notice regarding proposed cc&r and by-law ......2011, as doc. no. 11263779, in book 9959, at...

18-11-14 OUT 4 Ntc re Prop CC&R and By-Law Amd CRT GDU 1147.001 lwb hb

NOTICE REGARDING PROPOSED CC&R AND

BY-LAW AMENDMENTS AND VOTING PROCEDURE

TO: Unit Owners

FROM: Board of Canyon Road Towers Owners Association

RE: Proposed Amendments to CC&Rs and By-Laws to be Discussed at Annual Meeting

and Vote Conducted Thereafter by Ballot.

Because the laws involving condominiums and nonprofit corporations have changed

substantially since the conception of this project the Board has engaged legal counsel to review

the CC&Rs and By-Laws. Thus, the Board believes it to be in the best interests of the Association

to amend and update. To assist you in your review of the documents we are providing the

following:

CC&Rs

1. Attached as Exhibit A is a blackline version of the sections of the CC&Rs proposed

to be changed, with strikeouts indicating omissions and underlines indicating additions.

2. Attached as Exhibit B is a table identifying which proposed changes are based

upon statutory updates and those which are Board recommended.

3. In particular, the Board is recommending a change to Article 22(a) which would

require unit owners to maintain, repair, replace sliding glass doors and windows of their units.

BY-LAWS

Attached as Exhibit C is a table marking the Board recommended and statutory updates

proposed to the By-Laws. Because the By-Laws are so old and needed changes are so numerous,

a blackline copy is not being provided. Attached as Exhibit D is a clean copy of the proposed

Amended and Restated By-Laws.

VOTING

Attached as Exhibit E is a ballot. The Board would ask that you complete and return the

ballot as soon as possible as member participation in this is important. From time to time the Board

may make follow-up calls or send follow-up emails to encourage participation in this vote. All

ballots must be received by the Association not later than Monday, January 14, 2019, to be counted.

QUESTIONS

Should you have questions please feel free to contact a member of the Canyon Road

Towers Owners Association Board.

Your Board

Exhibit A

18-11-14 OUT 4 CC&Rs (Compare Orig to v8) CRT CCR 1147.001 hb

Recorded at the request of:

Canyon Road Towers Owners Association

After recording mail to:

Jenkins Bagley, PLLC

Attn: Bruce C. Jenkins

285 W. Tabernacle, Ste. 301

St. George, UT 84770

Record against the property

described in Exhibit A

AMENDED AND RESTATED DECLARATION OF CONDOMINIUM

OF

CANYON ROAD TOWERS, A CONDOMINIUM PROJECT

Prepared by:



St. George, UT 8477

Amended and Restated Declaration

Canyon Road Towers

Page 1

THIS AMENDED AND RESTATED DECLARATION, (the “Declaration”), containing

covenants, conditions and restrictions relating to Canyon Road Towers, a Condominium Project,

iswas made on the date set forth at the end hereof by E. Keith Lignell and Burton M. Todd,

hereinafter called “Declarants,” (and consented to by Marian H. Lignell and Phyllis W. Todd, their

wives), for themselves, their successors, grantees and assigns,the Unit Owners of the Canyon Road

Towers Owners Association“” pursuant to the Condominium Ownership Act, as amended from

time to time, of the State of Utah. (the “Act”).

PREAMBLE

THIS DECLARATION was approved by not less than two-thirds (2/3) of the undivided

interest in the Common Areas and Facilities. This amended and restated instrument hereby amends

and restates, in the entirety, and substitutes for the following:

• Declaration of Condominium of Canyon Road Towers, a Condominium Project

recorded with the Salt Lake County Recorder on March 16, 1976, as Doc. No.

2794954, in Book 4136, at Page 201 (“Original Declaration”);

• Amendment to the Declaration of Condominium of Canyon Road Towers, a

Condominium Project recorded with the Salt Lake County Recorder on February

21, 1979, as Doc. No. 3240032, in Book 4817, at Page 713;


Condominium Project recorded with the Salt Lake County Recorder on April 5,

1989, as Doc. No. 4754759, in Book 6115, at Page 1681;

• Amendment to Declaration recorded with the Salt Lake County Recorder on May

14, 1991, as Doc. No. 5066261, in Book 6316, at Page 312;

• Amendment to Declaration of Condominium of Canyon Road Towers a

Condominium Project recorded with the Salt Lake County Recorder on April 2,

1992, as Doc. No. 5229525, in Book 6436, at Page 804;

• Amendment to Declaration of Condominium for the Canyon Road Towers

Condominiums recorded with the Salt Lake County Recorder on October 30, 1996,

as Doc. No. 6493886, in Book 7524, at Page 298;


Condominium Project recorded with the Salt Lake County Recorder on October 19,

2011, as Doc. No. 11263779, in Book 9959, at Page 2744; and

• any other amendments, supplements, or annexing documents to the covenants,

conditions, and restrictions of Canyon Road Towers, whether or not recorded with

the Salt Lake County Recorder.


Canyon Road Towers

Page 2

RECITALS

Declarants areconstructed the owners of the following described real propertyCanyon Road

Towers Condominium Project in Salt Lake County, Utah, to wit:

Tract A:

Tract B:

Declarants have constructed or will construct certain buildings and improvements thereon

in accordance with the plans and drawings set forth in the Record of Survey Map filed

concurrently herewith, consisting of 24 sheets, prepared and certified by Art V. Maxwell, Utah

Registered Land Surveyor.

Declarants desire by Declarants caused to be prepared and recorded a Record of Survey

Map for the Canyon Road Towers Condominium Project.

By filing thisthe original Declaration and the aforesaid Record of Survey Map to submit

the above described real property and the said buildings and other improvements being constructed

or, Declarants submitted the Canyon Road Towers Condominium Project to be constructed thereon

to the provisions of the Utah Condominium Ownership Act as a Condominium Project known as

Canyon Road Towers.

Declarants desiredeclared, and intend to sellthe Association affirms, that the sale of the fee

title to the individual Units contained in said Condominium Project, together with the undivided

ownership interests in the Common Areas and Facilities appurtenant thereto, to various

purchasers,would be and will be subject to the covenants, limitations, and restrictions contained

herein..

DECLARATION

NOW, THEREFORE for such purposes, Declarants hereby make the following

Declaration containing covenants, conditions and restrictions relating to this Condominium

Project which pursuant to the provisions of the Condominium Ownership Act of the State of

Utah shall be enforceable equitable servitudes, where reasonable, and shall run with the land:

1. NAME OF THE CONDOMINIUM PROJECT.

The name by which the Condominium Project shall be known is CANYON ROAD

TOWERS.

2. DEFINITIONS.

The terms used herein shall have the meaning stated in the Utah Condominium Ownership

Act and as given int hisin this Section 2 unless the context otherwise requires.

a. The word “Declarants” shall mean E. Keith Lignell and Burton M. Todd, who have

made and executed this DeclarationTodd, and/or any successor to such persons which, by either


Canyon Road Towers

Page 3

operation of law or through a voluntary conveyance, transfer or assignment comes to stand in the

same relation to the Project as did its predecessor. (references herein to the Declarants are for

historical purposes and context).

b. The words “Thethe Act” shall mean and refer to the Utah Condominium Ownership

Act, Utah Code Annotated 1953, Section 57-8-1, et. seq., as the same may be amended from time

to time.

c. The word “Condominium” shall mean and refer to the ownership of a single Unit

in this Condominium Project together with an undivided interest in the Common Areas and

Facilities of the Property.

d. The word “Declaration” shall mean this instrument, as the same may be amended

from time to time, by which Canyon Road Towers is established as a Condominium Project.

e. The word “Property” shall mean and include the land, the buildings, all

improvements and structures thereon, all easements, rights and appurtenances belonging thereto,

and all articles of personal property intended for use in connection therewith.

f. The words “Condominium Project” or sometimes the “Project” shall mean and refer

to the entire Property, as defined above, together with all rights, obligations, and organizations

established by this Declaration.

g. The word “Map” shall mean and refer to the Record of Survey Map of Canyon

Road Towers recorded herewith by Declarants.on March 16, 1976, with the Original Declaration.

h. The word “Unit” shall mean and refer to one of the apartment Units, or one of the

storage lockers or one of the parking stalls which is designated as a Unit on the mapMap.

i. The words “Unit Owner” or “Owner” shall mean the person or persons owning a

Unit of Canyon Road Towers in fee simple and an undivided interest in the fee simple estate of

the Common Areas and Facilities as shown in the records of the County Recorder of Salt Lake

County, Utah. Notwithstanding any applicable theory relating to a mortgage, deed of trust, or like

instrument, the term Unit Owner or Owner shall not mean or include a mortgagee or a beneficiary

or trustee under a deed of trust unless and until such a party has acquired title pursuant to

foreclosure or any arrangement or proceeding in lieu thereof.

j. The words “Association of Unit Owners” or “Association” shall mean and refer to

all of the UnitCanyon Road Towers Owners taken as, or acting as, a groupAssociation, which shall

act in accordance with the Declaration and By-Laws.

k. The words “Unit Number” shall mean and refer to the number, letter or combination

thereof designating the Unit in the Declaration and in the mapMap.

l. The words “Management Committee” or “Committee” are synonymous with the

terms “Board,” “Board of Directors,” or “Directors” as used herein and shall mean and refer to the

committeegoverning body of the Association as provided in thethis Declaration and the By-Laws

hereto attached as Exhibit A (which said By-Laws are hereby incorporated by reference and made

a part of this Declaration). Said CommitteeBoard is charged with and shall have the responsibility

and authority to make and to enforce all of the reasonable rules and regulations covering the

operation and maintenance of the Project.

m. The term “Manager” shall mean and refer to the person, persons or corporation

selected by the Management CommitteeBoard to manage the affairs of the Condominium Project.

n. The term “Common Areas and Facilities” shall mean and refer to:

(1) The aboveland described land;

(2)(1) Thatin this Declaration; that portion of the Property not specifically

included in the respective Units as herein defined;


Canyon Road Towers

Page 4

(3)(2) All foundations, columns, girders, beams, supports, mainwallsmain walls,

roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, swimming pools, recreational areas

and facilities, yards, gardens, fences, service and parking areas (other than parking stall Units) and

entrances and exits, storage spaces (other than storage locker Units), and in general all other

apparatus, installations and other parts of the Property necessary or convenient to the existence,

maintenance and safety of the Common Areas and Facilities or normally in common use;

(4)(3) Those areas specifically set forth and designated in the Map as “Common

Ownership” or “Limited Common Areas”; and

(5)(4) All Common Areas and Facilities as defined in the Act, whether or not

expressly listed herein.

o. The words “Limited Common Areas and Facilities” or “Limited Common Areas”

shall mean and refer to those Common Areas and Facilities designated herein or in the Map as

reserved for use of a certain Unit to the exclusion of the other Units, including some of the parking

stalls which are included within the Project (one per each apartment Unit), most of the storage

lockers (one per each apartment Unit), and the patio, terrace, and/or balcony associated with certain

apartment Units.

p. The words “Common Expenses” shall mean and refer to all expenses of

administration, maintenance, repair or replacement of the Common Areas and Facilities; to all

items, things and sums described in the Act which are lawfully assessed against the Unit Owners

in accordance with the provisions of the Act, this Declaration, the By-Laws, such rules and

regulations pertaining to the Condominium Project as the Association of Unit Owners or the

Management CommitteeBoard may from time to time adopt, and such other determinations and

agreements lawfully made and/or entered into by the Management CommitteeBoard.

q. The words “Utility Services” shall include, but not be limited to, electric power,

gas, hot or cold water, heating, refrigeration, air conditioning and garbage and sewer disposal.

r. The word “Mortgage” shall mean and include both a first mortgage on any

Condominium Unit and a first deed of trust on any Condominium Unit.

s. The words “Mortgagee” shall mean and include both the mortgagee under a first

mortgage on any Condominium Unit and the beneficiary under a first deed of trust on any

Condominium Unit.

t. Those definitions contained in the Act, to the extent they are applicable to and not

inconsistent herewith, shall be and are hereby incorporated herein by reference and shall have the

same effect as if expressly set forth herein and made a part hereof.

3. SUBMISSION TO CONDOMINIUM OWNERSHIP.

Declarants hereby submit the above-described Property, tract of land, buildings, and other

improvements constructedDeclarants submitted the Canyon Road Tower Project thereon or

hereafter to be constructed, together with all appurtenances thereto, to the provisions of the actAct

as a Condominium Project and this Declaration is submitted in accordance with the terms and the

provisions of the Act and shall be construed in accordance therewith. It is the intention of

Declarants that the provisions of the Act shall apply to the Property.

4. COVENANTS TO RUN WITH THE LAND.

This Declaration containing covenants, conditions, and restrictions relating to the Project

shall be enforceable equitable servitudes which shall run with the land and this Declaration and its

servitudes shall be binding upon Declarants, their successors and assigns and upon all Unit Owners


Canyon Road Towers

Page 5

or subsequent Unit Owners, their grantees, mortgagees, successors, heirs, executors,

administrators, devisees and assigns.

5. DESCRIPTION OF PROPERTY.

a. Description of land. The landCanyon Road Towers Project is thata tract or parcel

in Salt Lake County, Utah, more particularly described onin the first page of thisOriginal

Declaration. and also described in Exhibit A.

b. Description of Improvements. The significant improvements contained or to be

contained in the Project include those described in this paragraph b. The buildings will bewere

constructed by the Declarants in what appears to be substantially in accordance with the

information contained in the Map and with the Plans and Specifications therefor prepared by

Ronald L. Molen, A.I.A.. They consist of three apartment buildings. One building contains a

ground floor with a lobby, recreational area and twelve additional floors and will containcontains

one hundred and seventy-four apartment Units. Said building does not contain a basement and will

beis constructed principally of reinforced steel and concrete with brick exterior walls, concrete

block bearing walls, concrete floors with post-tension cables, double-glazed windows, and will

containcontains two elevators. The other two buildings are two-story townhouse style structures

and will contain a total of nine apartment Units. Neither of said townhouse style buildings contain

a basement. The townhouses will beare wood-framed and stucco with double-glazed windows.

Eighty-nine parking stall Units are located on each of the first three floors of the high-rise building;

these Units are unenclosed except for a roof. There are thirty-eight storage locker Units located on

the first three floors of the high-rise adjacent to the parking areas, which are constructed principally

of wood and fiberboard. The Project will also includeincludes other automobile parking stalls and

storage space, gardens and landscaping, a swimming pool, and other facilities located substantially

as shown in the Map and will beare subject to easements which are reserved through the Project

as may be required for utility services.

c. Description and legal status of Units. The Map and/or Exhibit C hereto shows the

Unit Number of each Unit, its location, those Limited Common Areas and Facilities which are

reserved for its use, and the Common Areas and Facilities to which it has immediate access. Units

in the Project are either apartment Units, storage locker Units or parking stall Units. Those parking

stalls and storage lockers which constitute Units shall for all purposes, except as otherwise

specifically provided in the Declaration, be accompanied by the same rights and obligations as

pertain to apartment Units. For maintenance purposes, parking stalls constituting Units shall have

the same status as those parking stalls which comprise a part of the Limited Common Areas and

Facilities. All Units, of whatever type, shall be capable of being independently owned, encumbered

and conveyed.

(1) Each apartment Unit shall include that part of the building containing the

Unit which lies within the boundaries of the Unit, which boundary shall be determined in the

following manner:

(a) the upper boundary shall be the plane of the lower surface of the

ceiling slab;

(b) the lower boundary shall be the plane of the upper surface of the

floor slab; and

(c) the vertical boundaries of the Unit shall be (i) the interior surface of

the outside walls of the building bounding a Unit; (ii) the center line of any non-bearing interior

walls bounding a Unit; and (iii) the interior surface of any interior bearing walls bounding a Unit.


Canyon Road Towers

Page 6

(2) As appears more fully in the MapExhibit B and Exhibit C, the Project

contains a number of parking stalls which constitute Units. In addition to providing the vertical

dimensions of such Units, the Map shows the horizontal dimensions thereof. Except for a roof,

however, such Units are not enclosed. Declarants shall have no obligation and no other person

shall have the right to accomplish any enclosure or further covering thereof. Each parking stall

Unit shall include that part of the parking structure containing the Unit which lies within the

boundaries of the Unit, which boundaries shall be determined in the following manner:

(a) the upper boundary shall be the plane of the lower surface of the

ceiling slab;


floor slab; and

(c) the vertical boundaries of the Unit shall be planes passed through

the lines shown on the Map in such a way that each such plane is perpendicular to the floor slab.

(3) Each storage locker Unit shall include that part of the structure containing

the Unit which lies within the boundaries of the Unit, which boundary shall be determined in the

following manner:

(a) the upper boundary shall be the plane of the lower surface of the top

of the storage locker;


bottom of the storage locker; and

(c) the vertical boundaries of the Unit shall be the interior surface of the

walls on the perimeter of the storage locker.

(4) The apartment Units of the Project are described below.

(a) There are four typical apartment Unit floor plans which are

designated by the capital letters A, B and C and the designation “Townhouse” or “T”. These Units

and the Limited Common Areas contiguous thereto are described below, by the Map, and by

Exhibits B and C.


Canyon Road Towers

Page 7

Unit

A

B

C

Townhouse

Containing

Living room, kitchen, 2

bedrooms, 2 bathrooms and

1 balcony terrace (except

for “A” type units located

on the northeast corner of

the building, which have 2

balconies, and except for

Unit 313, which has no

balconies)

Living room, kitchen, 2

bedrooms, 2 bathrooms and

1 balcony terrace

Living room, dining room,

2 bedrooms, 1 study,

kitchen, 2 bathrooms, 2

balcony terraces (except

certain of the “C” type units

located on one of the first

three floors, which have

only one balcony)

1st floor- living room,

kitchen, recreation room,

dining room, lavatory

2nd floor- 2 bedrooms, 2

bathrooms, utility room

Exhibit

B-1

B-2

B-3

B-4


Canyon Road Towers

Page 1

Unit Containing Exhibit

A Living room, kitchen, 2 bedrooms, 2 bathrooms and 1 balcony terrace

(except for “A” type units located on the northeast corner of the

building, which have 2 balconies, and except for Unit 313, which has

no balconies)

B-1

B Living room, kitchen, 2 bedrooms, 2 bathrooms and 1 balcony terrace

B-2

C Living room, dining room, 2 bedrooms, 1 study, kitchen, 2 bathrooms,

2 balcony terraces (except certain of the “C” type units located on one

of the first three floors, which have only one balcony)

B-3

Townhouse 1st floor- living room, kitchen, recreation room, dining room, lavatory

2nd floor- 2 bedrooms, 2 bathrooms, utility room

B-4

There is one atypical penthouse apartment Unit which has the same exterior dimensions as

a B and C Unit combined. This special penthouse Unit contains a kitchen, utility room, 2

bathrooms, 3 bedrooms, dressing room, den, living-dining room, and 3 balcony terraces.

(b) Exhibit C attached hereto and/or the Map show the Unit number of

each Unit, the type of each apartment Unit (A, B, C or Townhouse), its location, its appurtenant

percentage of undivided ownership, and certain of the Limited Common Areas and Facilities (a

parking stall and storage locker) appurtenant to each apartment Unit.

(c) The immediate Common Areas to which each Unit has access is

shown on the Map.

d. Common Areas and Facilities. Except as otherwise provided in this Declaration

provided, the Common Areas and Facilities shall consist of the areas and facilities described in the

definitions and constitute in general all of the parts of the Property except the Units. Without

limiting the generality of the foregoing, the Common Areas and Facilities shall include the

following, whether located within the bounds of a Unit or not:

(1) all structural parts of the buildings including, without limitation,

foundations, columns, joists, beams, supports, supporting walls, floors, ceilings and roofs;

(2) driveways, parking areas (other than parking stall Units), lawns, shrubs and

gardens, entrance ways, stairways and courts, lobbies, recreation areas, service areas, swimming

pool and storage lockers (other than storage locker Units);

(3) any utility pipe or line or system servicing more than a single Unit, and all

ducts, wires, conduits, and other accessories used therewith;

(4) all other parts of the Property necessary or convenient to its existence,

maintenance and safety, or normally in common use, or which have been designated as Common

Areas and Facilities in the Map;

(5) the Limited Common Areas and Facilities herein described; and

(6) all repairs and replacements of any of the foregoing.

e. Description of Limited Common Areas and Facilities.


Canyon Road Towers

Page 2

e. Each Owner of an apartment Unit is hereby granted an irrevocable and exclusive

license to use and occupy the Limited Common Areas and Facilities reserved exclusively for the

use of his Unit. The Limited Common Areas appurtenant to any given apartment Unit consist of

the one parking stall and the one storage locker or area indicated on the Map and/or Exhibit C and

the patio, terrace and/or balcony contiguous with the apartment Unit. The exclusive right to use

and occupy each Limited Common Area shall be appurtenant to and shall pass with the title to the

Unit with which it is associated. Notwithstanding that a given parking stall may be a Limited

Common Area, however, if access to a storage space or spaces reasonably requires passage over

such parking stall, the person or persons having the right to use such storage space shall have the

right, at any and all reasonable times, to pass over such parking stall or stalls for purposes of ingress

and egress from the storage space to which his right of use applies.

6. ALTERATIONS.

For the two (2) years following the recordation hereof, the Declarants reserve the right to change

the interior design and interior arrangement of any Unit and to alter the boundaries between Units,

so long as the Declarants own the Units so altered. Any such change shall be reflected by an

amendment of this Declaration and of the Map which may be executed by the Declarants alone,

notwithstanding the procedures for amendment described in Section 27 of this Declaration.

However, no such change shall increase the number of Units nor alter the boundaries of the

Common Areas and Facilities without amendment of this Declaration and of the Map in the manner

described in Section 27 of this Declaration. If the boundaries between Units are altered, in the

amendment related thereto the Declarants shall reapportion the percentage of ownership in the

Common Areas and Facilities which are allocated to the altered Units on the basis of the change

in floorspace which results from the boundary alteration.

An Unit Owner shall neither make any structural alterations to a Unit or Common Area

and Facilities nor remove or alter a partition between Units, even if the partition is entirely or partly

Common Areas and Facilities. Moreover, no Unit Owner shall do any work or make any

alterations or changes which would jeopardize the soundness or safety of the Property, reduce its

value, or impair any easement or hereditament without.

7. STATEMENT OF PURPOSE AND RESTRICTION ON USE.

a. Purpose. The purpose of the Condominium Project is to provide residential housing

space for Unit Owners and to tenants and guests and to provide parking, storage and recreational

space and facilities for use in connection therewith, all in accordance with the provisions of the

Act.

b. Restrictions on use. The Units and Common Areas and Facilities shall be used and

occupied as hereinafter set forth.

(1) Each of the apartment Units shall be occupied only by the Unit Owner(s),

their family, servants or guests as a private residence and for no other purpose. Each parking stall

Unit shall be used by the Unit Owner(s), their family, servants or guests for the parking or storage

of motor vehicles, boats, snowmobiles or such other items as the Management CommitteeBoard

may approve and for no other purpose. Each storage locker Unit shall be used only by the Unit

Owner(s), their family, servants or guests as a private storage facility and for no other purpose.

Said storage locker Unit shall be subject to all of the use restrictions applicable to the storage

lockers included within the Limited Common Areas as set forth in this Declaration, in the By-

Laws and in such rules and regulations as shall be promulgated by the Management


Canyon Road Towers

Page 3

Committee.Board. The Common Areas and Facilities shall be used only for the purposes for which

they are intended in the furnishing of services and facilities for the enjoyment of the Units.

(2) Nothing shall be done or kept in any Unit or in the Common Areas and

Facilities which will increase the rate of insurance on the buildings or contents thereof beyond that

customarily applicable for residential use, or will result in the cancellation of insurance on the

buildings, or the contents thereof, without the prior written consent of the Management

Committee.Board. No Unit Owner shall permit anything to be done or kept in his Unit or in the

Common Areas and Facilities which is in violation of any law or regulation of any governmental

authority,

(3) No Unit Owner shall cause or permit anything (including, without

limitation, a sign, awning, canopy, shutter, storm door, screen door, radio or television antenna) to

hang, be displayed or otherwise affixed to or placed on the exterior walls or roof or any part thereof,

or on the outside of windows or doors, without the prior written consent of the Management

CommitteeBoard.

(4) No noxious or offensive activity shall be carried on in any Unit or in the

Common Areas and Facilities, nor shall anything be done therein, either willfully or negligently,

which may be or become an annoyance or nuisance to the other Unit Owners or occupants.

(5) Nothing shall be done in any Unit or in, on, or to the Common Areas and

Facilities which will impair the structural integrity of the buildings or any part thereof or which

would structurally change the buildings or any part thereof except as is otherwise provided herein.

(6) No pets shall be allowed in the Project.

(6) No pets shall be allowed in the Project, subject to the following: (i) the Fair

Housing Act, 42 U.S.C. 3604, Section 804(9) states that federal law “does not require that a

dwelling be made available to an individual whose tenancy would constitute a direct threat to the

health or safety of other individuals;” (ii) therefore, if any Owner requests an accommodation or

exception to the no-pet policy while an existing Owner or existing lawful resident within the

Association has a severe allergy to the animal that is, or requested to be, maintained within the

Building, the Board shall deny such request to ensure the health and safety of the Owners and

residents; and (iii) all future Owners and residents are required to notify the Board of any potential

problems with allergies related to animals, and any such Owners and residents shall submit to the

Board verification of such allergies and verification of the severity that would exclude Assistance

or Support Animals (or animals of any kind) from residing in, or visiting within the Association.

(7) The Common Areas and Facilities shall be kept free and clear of all rubbish,

debris and other unsightly materials.

(8) The Management CommitteeBoard may, in its sole discretion, elect to

charge a use fee for, or rent or lease the roof of the building, or any portion thereof, for commercial,

residential or mixed purposes; no other admission fees, charges for use, leases, or other income-

generating arrangement of any type shall be employed or entered into with respect to any portion

of the Common Areas and Facilities without the prior written consent of at least sixty-seven

percent (67%) of the undivided ownership interest in the Common Areas and Facilities.

8. PERSON TO RECEIVE SERVICE OF PROCESS.

The person to receive service of process indesignated as the cases provided herein or

inRegistered Agent for the Act is _____Burton M. Todd_____, whose address is ___223 South 7th

East, Salt Lake City, Association with the Utah 84102_____.Department of Commerce, Division


Canyon Road Towers

Page 4

of Corporations and Commercial Code. The said person may be changed by the recordationfiling

by the Management CommitteeBoard of an appropriate instrument.

9. OWNERSHIP AND USE.

a. Ownership of a Unit. Except with respect to any of the Common Areas and

Facilities located within the bounds of a Unit, each Unit Owner shall be entitled to the exclusive

ownership and possession of his Unit and to the ownership of an undivided interest in the Common

Areas and Facilities in the percentage expressed in Exhibit C.

b. Nature of and Restrictions on Ownership and Use. Each Unit Owner shall have and

enjoy the rights and privileges of fee simple ownership of his Unit. There shall be no requirements

concerning who may own apartment Units, it being intended that they may and shall be owned as

any other property rights by persons, corporations, partnerships, or trusts and in the form of

common tenancy; however, storage locker Units and parking stall Units shall be owned by, or

conveyed to, only owners of apartment Units, and shall be leased to or used by only persons who

reside in apartment Units. The Unit Owners may lease or rent their Units with their appurtenant

rights subject to terms and conditions chosen solely by the Unit Owner and his lessee, except that

all Unit Owners, their tenants and other occupants or users of the Project, shall be subject to the

Act, this Declaration, the By-Laws, and all rules and regulationregulations of the Association of

Unit Owners and Management CommitteeBoard.

c. Prohibition against subdivision of Unit. No Unit Owner, by deed, plat or otherwise,

shall subdivide or in any manner cause his Unit to be separated into physical tracts or parcels

smaller than the whole Unit as shown on the Map.

d. Ownership of Common Areas and Facilities. The Common Areas and Facilities

contained in the Project are described and identified in Section 5(d) of this Declaration. Said

Common Area and Facilities shall be owned by the Unit Owners as tenants-in-common. No

percentage of undivided ownership interest in the Common Areas and Facilities shall be separated

from the Unit to which it appertains; and even though not specifically mentioned in the instrument

of transfer, such a percentage of undivided ownership interest shall automatically accompany the

transfer of the Unit to which it relates. The Common Areas and Facilities shall be used only in a

manner which is consistent with their community nature and with the use restrictions applicable

to the Units contained in the Project.

e. Use of Common Areas and Facilities. Except with respect to Limited Common

Areas, each Unit Owner may use the Common Areas and Facilities in accordance with the purpose

for which they are intended, but subject to this Declaration and the By-Laws. This right of use

shall be appurtenant to and run with each Unit.

f. Computation of undivided interest. The percentage of undivided ownership interest

in the Common Areas and Facilities which is appurtenant to each Unit has been computed by

determining the ratio between the par value associated with such Unit (as set forth in Exhibit C)

and the aggregate par values of all Units in the Project (with such minor adjustments in some or

all of the resulting percentage interests as may have been necessary to assure that the total

undivided interest respecting the Project equals 100%). Substantially identical Units have been

assigned the same par value and the total of all undivided interest equals 100%. A Unit Owner’s

percentage of ownership interest in the Common Areas and Facilities shall be for all purposes,

including voting and assessment of common expenses.

g. The total number of Units that may be offered for rent shall be

limited.


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g. Rental Restrictions. The total number of Units that may be offered for rent shall be

limited to twenty-four percent (24%) of the total number of Units in the Project. If at the time this

Declaration is recorded in the records of the Salt Lake County Recorder, there are more than

twenty-four percent (24%) of the total Units in the Project being rented, such Units may continue

to be rented until such time as the Unit is transferred or becomes Owner-Occupied. An Owner in

compliance with this Declaration may continue to Lease the Owner’s Unit even if the lessees

change or the Unit remains unoccupied in between Lease terms, (Collectively the foregoing shall

be referred to as the “Rental Cap”). For purposes hereof, a Unit shall be deemed “Owner-

Occupied” if: (i) Except as provided for in Subsection (6) for hardships, the Owner or any member

of Owner’s immediate or extended family occupies the Unit for a period of seven (7) days or more

in any ten (10) consecutive day period; or (ii) an officer, owner, member, trustee, beneficiary,

director, or person holding a similar position of ownership or control of an entity or trust that holds

an ownership interest in the Unit, occupies the Unit. For purposes hereof, a transfer occurs when

one or more of the following occur: (i) the conveyance, sale, or other transfer of a Unit by deed;

(ii) the granting of a life estate in the Unit; or (iii) if the Unit is owned by a limited liability

company, corporation, partnership, or other business entity, the sale or transfer of more than 75%

of the business entity's share, stock, membership interests, or partnership interests in a 12-month

period.

h.(1) The Association shall establish and maintain a Rental Pool providing for the

number of Units that may be rented or leased. Beginning one year from execution hereof (the

“Effective Date”), onlyrental of Units permitted within the Rental Cap. Only those Units in the

Rental Pool may be rented or leased, except as described below or otherwise exempted by Utah

Code Annotated section 57, as amended. All other rentals or leases are prohibited.provided in

Subsection (6) for hardships.

i.(2) Unit Owners may place their Units in the Rental Pool by notifying the

Association office in writing. Units will be included in the Rental Pool on a first-come, first-served

basis and come in compliance with the association rules.

j.(3) A Unit will be removed from the Rental Pool (i) if ownership of the Unit is

transferred, (ii) if the Unit becomes Owner reoccupies the Unit after a period of rental-Occupied,

or (iii) upon any violation by the Unit Owner, the Unit Owner’s agent, or the Unit Owner’s tenant

or guests, of the Declaration, Bylaws, or Rules and Regulations. Eligibility for and inclusion in the

Rental Pool will be determined by the Association in its sole and absolute discretion.

k. Units which are under a written contract for rent or lease before the

Effective Date, are placed in the Rental Pool for the duration of their current tenant’s lease and

will be included in the Rental Pool. The Unit Owner shall inform the Association office of all

current rental and lease contracts and provide a copy of the contract to the Association. Thereafter,

the Unit may only be rented or leased if it is placed in the Rental Pool.

l.(4) As of the Effective Date, the Association shall catalog all Units eligible for

rent under part 9.k. above.in the Rental Pool. If a Unit loses its eligibility for rent or lease under

part 9.k.,subpart (d), above, the Unit shall be removed from the Rental Pool.

m.(5) Units for which a written contract for rent or lease is executed between the

Effective Date and one year after the Effective Date are eligible for rent or lease to that same tenant

without being included in the Rental Pool, if the Rental Pool is full at the time the contract for rent

or lease is executed. The Unit Owner shall inform the Association office of any such rental or lease

contracts and provide a copy of the contract to the Association. The Unit’s eligibility for rent or

lease outside of the Rental Pool will end when ownership of the Unit is transferred, the Unit Owner


Canyon Road Towers

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reoccupies the Unit, or the tenant residing in the unit at the Effective Date moves out, whichever

occurs first. Thereafter, the Unit may only be rented or leased if it is placed in the Rental Pool.

(6) A Unit HARDSHIP. If, at any time after the Amendment Date, an Owner

who is prohibited by this Declaration from renting his or her believes that a hardship is being

endured (the “Hardship”) pursuant to which such Owner needs to Lease the Owner’s Unit and the

Owner is not then Leasing the Unit may under the terms of this Amendment, the Owner may apply

to the Association officeBoard for a relocationHardship exemption from the rental restriction. The

relocationleasing restrictions contained in this Amendment. If an Owner decides to apply for a

Hardship exemption is available only to , such Owner must take the following steps:

(a) Application. The Owner must submit a request in writing to the

Board requesting a Hardship exemption setting forth in detail the reasons why such Owner should

be entitled to same.

(b) Approved Exemptions. The following four Hardship exemptions

shall be deemed expressly approved, provided the Owner provides proof of engagement in one or

more of the following for each application or extension:

1. a Unit Owner whose Unit is his or her primary residence, who is

relocating for a owner in the military for the period of the Unit owner’s

deployment;

2. a Unit is occupied by a Unit owner's parent, child, or sibling;

3. a Unit owner whose employer has relocated the Unit owner for no

moreless than two years, and who intends to make the Unit his or her

primary residence upon return. The Unit Owner shall make an application

in writing for the relocation exemption and provide any supportingyear;

4. a Unit owned by an entity that is occupied by an individual who:

a. has voting rights under the entity's organizing documents

requested by the Association. Eligibility for and granting of the

relocation; and

b. has a 25% or greater share of ownership, control, and right

to profits and losses of the entity; and

5. Unit owned by a trust or other entity created for estate planning

purposes if the trust or other estate planning entity was created for:

a. the estate of a current resident of the Unit; or

b. the parent, child, or sibling of the current resident of the Unit.

(c) Conditional Exemptions. In addition to the foregoing exemptions

set forth in subsection (ii) above, if based on the information supplied to the Board by the Owner,

the Board finds, in its sole discretion, that a reasonable Hardship exists, the Board may grant a

waiver of Lease restrictions up to a maximum of one (1) year.

n.(d) Conditional Hardship Factors. The types of Conditional Hardships

that the Board may consider under subsection (iii) above, shall include, but not be limited to,

hardships for a death in the family, transfers for jobs, or one or more significant medical treatments

for an Owner or an immediate family member of the Owner (such as a spouse or child) or for a

person who resided with the Owner in the Owner’s Unit, that requires the Owner to be away from

the Owner’s Unit during the medical treatment. The Board, in its sole discretions, may determine

if a Conditional Hardship exemption shall be determined by the Association in its sole and absolute

discretion. The Unit Owner may not rent his or her Unit until the exemption is granted in writing

by the Association.


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o. A Unit Owner who is prohibited by this Declaration from renting

his or her Unit may apply to the Association office for a hardship exemption from the rental

restriction. The hardship exemption is available only to a Unit Owner who has been unable to sell

his or her Unit for 95% of its current Salt Lake County assessed value after the Unit has been on

the market for a period of 120 days. The Unit Owner shall make an application in writing for the

hardship exemption and provide documents establishing the number of days the Unit has been

marketed, the assessed value of the Unit and all written offers to purchase the Unit received by the

Unit Owner. Eligibility for and granting of the hardship exemption shall be determined by the

Association in its sole and absolute discretion. The Unit Owner may not rent his or her Unit until

the exemption is granted in writing by the Association.

p.(e) No Subject to the Hardship Exemptions, no Unit may be rented for

any period of less than six months unless otherwise allowed in Utah Code Annotated section 58,

as amended.

q.(7) No lessee may sublease a Unit. Unit Owners must include in their lease

agreements a prohibition against subleases.An Owner shall not allow any subleasing of the

Owner’s Unit. Units which are sublet will be removed from the Rental Pool.

r.(8) It is the responsibility of the Unit Owner to inform the Association office of

the move-in and move-out dates of his or her tenants, to inform the tenants of the CRTAssociation

rules for moves and, if necessary, to pay any fees associated with the move-in or move-out of his

or her tenant, or any other fees which the Management Committee in its sole discretion has

determined to be applicable to all landlords. Unit Owners must also make his or her tenant aware

of the current Association Rules and Regulations.from Units. Failure to meet these requirements

may result in a fine against the Unit Owner and removal from the Rental Pool..

s. Unit Owners shall inform the Association office of any rentals or

leases exempted under Utah Code Annotated section 58-8-10(9), as amended, and the Association

shall determine and track the number of rentals and Units exempted thereunder.

h. Occupancy Limits. Occupancy in a Unit shall be limited to two (2) persons per

bedroom. As an example, a two (2) bedroom Unit will be limited to four (4) occupants. A total

of two (2) guests of a Unit’s occupants may also occupy a Unit for periods for no more than 45

days in any 365 consecutive day period. A room intended for use as an office or originally

designated as an office shall not be considered as a bedroom.

i. Single Family. A Unit shall only be occupied by a single family (1 family) and

within the Occupancy Limits set forth above. A “family” shall be defined as (i) one or more

persons related by blood, marriage, adoption, or legal guardianship, including foster children,

living together as a single housekeeping unit in a Unit; or (ii) a group of not more than three (3)

persons not related by blood, marriage, adoption, or legal guardianship living together as a single

housekeeping unit in a Unit; or (iii) two (2) unrelated persons and their children living together as

a single housekeeping unit in a Unit. The term "family" shall not be construed to mean a club,

group home, residential support dwelling, a lodge or a fraternity/sorority house.

10. USE OF LIMITED COMMON AREAS AND FACILITIES.

A Unit Owner’s exclusive right of use and occupancy of the Limited Common Areas and

Facilities reserved for his apartment Unit shall be subject to and in accordance with this

Declaration and the By-Laws. Any Limited Common Area shall be leased only to persons who

reside in the Project or used by the family, servants or guests thereof on a temporary basis.


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11. VOTING—MULTIPLE OWNERSHIP.

The vote attributable to and exercisable in connection with a Unit shall be the percentage

of undivided ownership interest in the Common Areas and Facilities which is appurtenant to such

Unit. In the event there is more than one Owner of a particular Unit, the vote relating to such Unit

shall be exercised as such Owners may determine among themselves. A vote cast at any meeting

by any of such Owners shall be conclusively presumed to be the vote attributable to the Unit

concerned unless an objection is immediately made by another Owner of the same Unit. In the

event such an objection is made, the vote involved shall not be counted for any purpose whatsoever

other than to determine whether a quorum exists.

12. MANAGEMENT.

a. Management Committee.Board. The business, property and affairs of Canyon Road

Towers shall be managed, operated and maintained by the Management CommitteeBoard as agent

for the Unit Owners. The Management CommitteeBoard shall, in connection with its exercise of

any of the powers delineated in paragraphs (1) through (914) below, constitute a legal entity

capable of dealing in its own name. The Management CommitteeBoard shall have; and is hereby

granted, the following authority and powers:

(1) the authority, without the vote or consent of the Unit Owners or of any other

person(s), to grant or create, on such terms as it deems advisable, utility and similar easements,

over, under, across and through the Common Areas and Facilities;

(2) the authority to execute and record, on behalf of all Unit owners, any

amendment to the Declaration or Map which has been approved by the vote or consent necessary

to authorize such amendment;

(3) the power to sue and be sued;

(4) the authority to enter into contracts which in any way concern the Project,

so long as any vote or consent of the Unit Owners necessitated by the subject matter of the

agreement has been obtained;

(5) the power and authority to convey or transfer any interest in real property,

so long as any vote or consent necessary under the circumstances has been obtained and with

respect to Common Area, to sell, exchange, hypothecate, alienate, mortgage, or transfer portions

of the Common Areas and Facilities to any person, provided the Board obtains the approval of

sixty-seven percent (67%) of the Unit Owners, the local governmental authority and the

Mortgagees, to the extent required under Section 20;

(6) the power and authority to purchase, otherwise acquire, and accept title to, any

interest in real property, so long as such action has been authorized by any vote or consent which

is necessary under the circumstances;

(7) the power and authority to add any interest in real property obtained pursuant

to paragraph (6) above to the Condominium Project, so long as such action has been authorized by

the necessary vote or consent;

(8) the authority to promulgate such reasonable rules, regulations, and procedures

as may be necessary or desirable to aid the CommitteeBoard in carrying out any of its functions or

to insureensure that the project is maintained and used in a manner consistent with the interests of

the Unit Owners; andhowever, such rules are bound by following limits identified in 57-8-8.1 of

the Act


Canyon Road Towers

Page 9

9.(a)(i) Except as provided in Subsection (a)(ii), a rule shall treat similarly

situated Unit Owners similarly.

(ii) Notwithstanding Subsection (8)(a)(1), a rule may:

(A) vary according to the level and type of service that the

Association provides to Unit Owners; or

(B) differ between residential and nonresidential uses.

(b)(i) If a Unit Owner owns a rental Unit and is in compliance with the

Association’s governing documents and any rule that the Association

adopts under Subsection (4), a rule may not treat the Unit Owner differently

because the Unit Owner owns a rental Unit.

(ii) Notwithstanding Subsection (8)(b)(i), a rule may:

(A) limit or prohibit a rental Unit Owner from using the

Common Areas and Facilities for purposes other than attending an

association meeting or managing the rental Unit;

(B) if the rental Unit Owner retains the right to use the

Association’ Common Areas and Facilities, even occasionally

charge a rental Unit Owner a fee to use the Common Areas and

Facilities

or(C) include a provision in the Association’s governing

documents that:

(1) requires each tenant of a rental Unit to abide by the

terms of the governing documents; and

(2) holds the tenant and the rental Unit Owner jointly

and severally liable for a violation of a provision of the

governing documents.

(c)(i) A rule may not interfere with the freedom of a Unit Owner to

determine the composition of the Unit Owner’s household.

(ii) Notwithstanding Subsection (c)(i), an Association may:

(A) require that all occupants of a dwelling be members of a

single housekeeping Unit; or

(B) limit the total number of occupants permitted in each

residential dwelling on the basis of the residential dwelling’s:

(1) size and facilities; and

(2) fair use of the Common Areas and Facilities.

(d) Unless contrary to a Declaration, a rule may require a minimum

lease term.

(e) Unless otherwise provided in the Declaration, an Association may

by rule:

(i) regulate the use, maintenance, repair, replacement, and

modification of Common Areas and Facilities;

(ii) impose and receive any payment, fee, or charge for:

(A) the use, rental, or operation of the common areas, except

limited Common Areas and Facilities; and

(B) a service provided to a Unit Owner;

(iii) impose a charge for a late payment of an assessment; or


Canyon Road Towers

Page 10

(iv) provide for the indemnification of the Association’ officers

and Board consistent with Title 16, Chapter 6a, Utah Revised

Nonprofit Corporation Act.

(9) A rule shall be reasonable.

(10) A Declaration, or an amendment to a Declaration, may vary any of the

requirements of Subsections (1) through (5), except Subsection (a)(b)(ii).

(11) This section applies to an Association regardless of when the Association is

created.

(12) the power and authority to perform any other acts and to enter into any other

transactions which may be reasonably necessary for the Management CommitteeBoard to perform

its functions as agent for the Unit Owners.;

(13) the power to assess fines against a Unit Owner for a violating the

Governing Documents. Fines shall be assessed in accordance with Utah Code § 57-8-37 of the

Act.; and

(14) The Board shall use the Board’s reasonable judgment to determine whether to

exercise the Association’s powers to impose sanctions or pursue legal action for a violation of the

Governing Documents, including whether to compromise a claim made by or against the Board or

the Association and whether to pursue a claim for an unpaid assessment. The Association may not

be required to take enforcement action if the Board determines, after fair review and acting in good

faith and without conflict of interest, that under the particular circumstances: (a) the Association’s

legal position does not justify taking any or further enforcement action; (b) the covenant,

restriction, or rule in the Governing Documents is likely to be construed as inconsistent with

current law; (c) a technical violation has or may have occurred and the violation is not material as

to a reasonable person or does not justify expending the Association of Unit Owners’ resources,

or it is not in the Association’s best interests to pursue an enforcement action, based upon hardship,

expense, or other reasonable criteria. If the Board decides under the foregoing to forego

enforcement, the Association is not prevented from later taking enforcement action. The Board

may not be arbitrary, capricious, or act against public policy in taking or not taking enforcement

action. This section does not govern whether the Association’s action in enforcing a provision of

the Governing Documents constitutes a waiver or modification of that provision.

Any instrument executed by the Management CommitteeBoard that recites facts which, if

true, would establish the Committee’sBoard’s power and authority to accomplish through such

instrument what is purported to be accomplished thereby, shall conclusively establish said power

and authority in favor of any person who in good faith and for value relies upon said instrument.

Except as limited in this Declaration, the Association’s By-Laws or Articles of

Incorporation, or of the Condominium Act, the Board, pursuant to § 57-8-59 of the Act, acts in all

instances on behalf of the Association.

The Board shall cause all of the Association’s funds to be kept in an account in the name

of the Association and may not commingle the Association’s funds with the funds of any other

person

b. Composition of Management Committee.Board. The CommitteeBoard shall be

composed of five (5) members. At the first regular Owners meeting three (3) CommitteeBoard

members shall bewere elected for two-year terms and two (2) members for one-year terms. At each

annual Owners meeting thereafter any vacant seat on the CommitteeBoard shall be filled with a

member elected for a two-year term. Only Unit Owners and officers and agents of Owners other

than individuals shall be eligible for CommitteeBoard membership. At the annual meeting the


Canyon Road Towers

Page 11

percentage of undivided ownership interest appurtenant to a Unit may be voted in favor of as many

candidates for Committee membership as there are seats on the Committee to be filled; provided,

however, that until the annual Owners meeting held in October 1978, or until Units to which an

aggregate of at least three-fourths (3/4) of the undivided Ownership interest in the Common Areas

and Facilities appertain have been conveyed by Declarants, whichever occurs first (hereinafter

referred to as the “Event”), Declarants alone shall be entitled to select three (3) of the five (5)

Committee members, Notwithstanding the foregoing limitations, until the first annual meeting of

the Owners, the members of the Committee, although numbering less than five (5), shall be the

following persons and each shall hold the office indicated opposite his name: Board membership

as there are seats on the Board to be filled.

________Burton M. Todd_______ President

______Harold N. McDonald_____ Vice-President

________E. Keith Lignell_______ _Secretary-Treasurer

Any CommitteeBoard member who fails on three successive occasions to attend

CommitteeBoard meetings (whether regular or special) or who has failed to attend at least 25% of

all CommitteeBoard meetings (whether regular or special) held during any twelve-month period

shall automatically forfeit his seat. In the event a Committee seat which was filled by Declarants

becomes vacant prior to the Event, whether by reason of forfeiture or due to another cause,

Declarants shall select a replacement member to sit on the Committee for the balance of the term

associated with the vacated seat. In all other cases of vacancy the remaining Committee members

shall elect a replacement to sit on the Committee until the expiration of the term for which the

member being replaced was elected. Unless he forfeits or otherwise loses his seat as herein

provided, a member shall serve on the CommitteeBoard until his successor is elected and qualifies.

CommitteeBoard members shall be reimbursed for all expenseeexpense reasonably incurred in

connection with CommitteeBoard business.

c. Responsibility. The Management CommitteeBoard shall be responsible for the

control, operation and management of the projectProject in accordance with the provisions of the

Act, this Declaration, and the By-Laws such administrative, management and operational rules

and regulations as it may adopt from time to time as herein provided, and all agreements and

determinations lawfully made and entered into by said CommitteeBoard.

d. Additional facilities. The Management CommitteeBoard shall, subject to any

necessary approval, have the authority to provide such facilities, in addition to those for which

provision has already been made, as it may deem to be in the best interests of the Unit Owners and

to effect the necessary amendment of documents and maps in connection therewith.

e. Name. The Management Committee shall beBoard was formerly known as the

Canyon Road Towers Management Committee and the Committee and the Unit Owners are now

a part of the Canyon Road Towers Owners Association.

f. Manager. The CommitteeBoard may carry out through a Manager any functions

which are properly the subject of delegation. Any Manager so engaged shall be responsible for

managing the Project for the benefit of the Association, and on behalf of the CommitteeBoard, and

shall to the extent permitted by law and the terms of the contract between the parties be authorized

and empowered to perform any of the functions or acts required or permitted to be performed by

the CommitteeBoard itself. PROVIDED, HOWEVER, any contract or employment agreement for

management of the Project which may be entered into by the CommitteeBoard or the Association

shall provide for a term not to exceed a period of one (1) year and shall also provide that (and if


Canyon Road Towers

Page 12

omitted, it shall be deemed to include this provision) for cause the contract or agreement may be

terminated by the Association by not more than sixty (60) days prior written notice.

For purposes of this section, the term “Manager” shall mean and refer to any person, firm or

company designated from time to time by the Association or CommitteeBoard to manage, in whole

or in part, the business and affairs of the Association and the Project.

For purposes of this section, the term “for cause” shall mean a material breach or violation of

management contract, employment agreement, Declaration of Condominium, By-Laws, or rules

and regulations of the Project.

13. EASEMENTS.

a. Each Unit shall be subject to such easements as may be necessary for the

installation, maintenance, repair or replacement of any Common Areas and Facilities located

within the boundaries of such Unit.

b. In the event that, by reason of the construction, re-construction, settlement or

shifting of any part of a building, any part of the Common Areas and Facilities encroaches or shall

hereafter encroach upon any part of any Unit or any part of any Unit encroaches or shall hereafter

encroach upon any part of the Common Areas and Facilities or any other Unit, valid easement for

such encroachment and the maintenance of such encroachment are hereby established and shall

exist for the benefit of such Unit and the Common Areas and Facilities, as the case may be, so long

as all or any part of the building containing any such Unit shall remain standing; provided,

however, that in no event shall a valid easement for any encroachment be created in favor of any

Unit Owner or in favor of the Unit owners as owners of the Common Areas and Facilities if such

encroachment occurred due to the willful conduct of such Unit Owner or Owners.

14. CHANGE IN OWNERSHIP.

The Management CommitteeBoard shall maintain up-to-date records showing the name of

each person who is an Owner, the address of such person, and the Unit which is owned by him. In

the event of any transfer of a fee of undivided fee interest in a Unit either the transferor or transferee

shall furnish the Management CommitteeBoard with evidence establishing that the transfer has

occurred and that the Deed or other instrument accomplishing the transfer is of record in the office

of the County Recorder of Salt Lake County, Utah. The Management CommitteeBoard may for

all purposes act and rely on the information concerning Owners and Unit ownership which is thus

acquired by it or, at its option, the Management CommitteeBoard may act and rely on current

ownership information respecting any Unit or Units which is obtained from the office of the

County Recorder of Salt Lake County, Utah. The address of an Owner shall be deemed to be the

address of the Unit owned by such person unless the Management CommitteeBoard is otherwise

advised.

15. ASSESSMENTS.

Every Unit Owner shall pay his proportionate share of the common expenses. Payment

thereof shall be in such amounts and at such times as the Management CommitteeBoard

determines in accordance with the Act, thethis Declaration or the By-Laws. There shall be a lien

for nonpayment of common expenses as provided by the Act.

a. In addition to a Unit Owner’s obligation to pay a proportionate share of the

common expenses, and upon the transfer or conveyance of a Condominium Unit, there shall be

one (1) reinvestment fee charged to the buyer or seller, as the buyer and seller may determine. The


Canyon Road Towers

Page 13

reinvestment fee is required to benefit the Property and shall be comprised of one (1) or more of

the following charges:

(1) Administrative fee incurred by the Association or its Manager upon the

resale of the Condominium Unit, which fee will offset costs of transferring records,

providing documents and information to title companies, and other matters related to the

transfer of the Condominium Unit;

(2) A reinvestment fee to be placed in the Association’s reserve fund to be

applied toward the amenities, facilities, and infrastructure;

(3) A reinvestment fee to be placed in the operating account of the Association

for common planning and programming of the Association; and

(4) Such other reinvestment fee as established by the Association, provided the

resolution establishing the fee is recorded with the Salt Lake County Recorder.

b. Limitations on Reinvestment Fee.

(1) No reinvestment fee shall exceed one-half percent (0.5%) of the fair market

value of the Condominium Unit.

(2) When the seller is a financial institution, the reinvestment fee shall be

limited to the costs directly related to the transfer of the Condominium Unit, not to exceed

two hundred and fifty dollars ($250.00).

No reinvestment fee may be enforced upon: (i) an involuntary transfer; (ii) a transfer that

results from a court order; (iii) a bona fide transfer to a family member of the seller within three

(3) degrees of consanguinity who, before the transfer, provides adequate proof of consanguinity;

or (iv) a transfer or change of interest due to death, whether provided in a will, trust, or decree of

distribution.

Subject to Utah Code § 57-8-44 of the Act, the Association has a lien on a Condominium

Unit for all assessments and fines, together with amounts incurred in collecting an unpaid

assessment, including court courts and reasonable attorney fees, late charges, interest, and any

other amount the Association is entitled to recover under the Declaration or the Act.

The Association lien has priority over each other lien and encumbrance on a Unit except:

(i) a first or second security interest on the Unit secured by a Mortgage that is recorded before a

recorded notice of lien by or on behalf of the Association, or (ii) a lien for real estate taxes or other

governmental assessments or charges against the Unit.

To evidence a lien for assessments, the Association shall prepare a written notice of lien

setting forth the amount of the assessment, the date due, the amount remaining unpaid, the name

of the Unit Owner of the Unit and a description of the Unit. The notice of lien must be signed by

the Association or its authorized agent and recorded with the Salt Lake County Recorder. A notice

of lien may not be recorded until there is a delinquency in payment of the assessment.

In assessing Unit Owners, no assessment for a single improvement in the nature of a capital

expenditure exceeding the sum of $10,000.00 shall be made without the same having been first

voted on and approved by at least a majority of the Project’s undivided ownership interest.

16. DESTRUCTION OR DAMAGE.

In the event of destruction or damage of part or all of the improvements in the

Condominium Project, the procedures of this section shall apply.


Canyon Road Towers

Page 14

a. If proceeds of the insurance maintained by the Management CommitteeBoard are

alone sufficient to repair or reconstruct the damaged or destroyed improvement, such repair or

reconstruction shall be carried out.

b. If less than 75% of the Project’s improvements are destroyed or substantially

damaged, and if proceeds of the insurance maintained by the CommitteeBoard are not alone

sufficient to accomplish repair or reconstruction, restoration shall be carried out and all of the Units

shall be assessed for any deficiency on the basis of their respective appurtenant percentages of

undivided ownership interest.

c. If 75% or more of the Project’s improvements are destroyed or substantially

damaged, if proceeds of the insurance maintained by the Management CommitteeBoard are not

alone sufficient to accomplish restoration, and if the Unit owners within 100 days after the

destruction or damage by a vote of at least 75% of the entire undivided ownership interest in the

Project elect to repair or reconstruct the affected improvements, restoration shall be accomplished

in the manner directed under subsection b above.

d. If 75% or more of the Project’s improvements are destroyed or substantially

damaged, if proceeds of the insurance maintained by the CommitteeBoard are insufficient to

accomplish restoration, and if the Unit Owners do not, within 100 days after the destruction or

damage and by a vote of at least 75% of the entire undivided ownership interest in the Project,

elect to repair or reconstruct the affected improvements, the Management CommitteeBoard shall

promptly record with the Salt Lake County Recorder a notice setting forth such facts. Upon the

recording of such notice the provisions of subsections (1) through (4) of Section 57-8-31, Utah

Code Annotated (1953),, as amended, shall apply and shall govern the rights of all parties having

an interest in the Project or any of the Units.

e. Any reconstruction or repair which is required to be carried out by this section shall

be accomplished at the instance and direction of the Management Committee.Board. Any

determination which is required to be made by this section regarding the extent of damage to or

destruction of Project improvements shall be made as follows:

The Management CommitteeBoard shall select three MAI appraisers; each appraiser shall

independently arrive at a figure representing the percentage of project improvements which have

been destroyed or substantially damaged; the percentage which governs the application of this

provisions of this section shall be the average of the two closest appraisal figures.

17. TAXES.

It is understood that under the Act each Unit, together with its percentage of undivided

interest in the Common Areas and Facilities in the Project, is deemed a parcel and subject to

separate assessment and taxation by each assessing unit and special district for all types of taxes

authorized by law. Each Unit Owner will, accordingly, pay and discharge any and all taxes which

may be assessed against his Condominium Unit.

18. INSURANCE.

a. Hazard Insurance. The Management Committee or Association of Unit Owners

shall at all times maintain in force hazard insurance meeting the following requirements.

(1) A multi-peril type policy covering the entire Condominium Project (both Units

and Common Areas and Facilities) shall be maintained. Such policy shall provide coverage

against loss or damage by fire and other hazards covered by the standard extended coverage

endorsement and by sprinkler leakage, debris removal, vandalism, malicious mischief,


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windstorm, water damage, and such other risks as customarily are covered with respect to

condominium projects similar to the Project in construction, location, and use. As a

minimum, such policy shall provide coverage on a replacement cost basis in an amount not

less than that necessary to comply with any co-insurance percentage specified in the policy,

but not less than one hundred percent (100%) of the full insurable value (based upon

replacement cost). Such policy shall include an “Agreed Amount Endorsement” or its

equivalent, and if necessary or appropriate, an “Increased Cost of Construction

Endorsement” or its equivalent, and a “Contingent Liability from Operation of Building

Laws Endorsement” or its equivalent.

a. Property Insurance. Subject to Utah Code § 57-8-43(9) of the Act, blanket property

insurance or guaranteed replacement cost insurance on the physical structures in the Condominium

Project, including the Common Areas and Facilities and the Units, insuring against all risks of

direct physical loss commonly insured against, including fire and extended coverage perils. The

total amount of coverage provided by blanket property insurance or guaranteed replacement cost

insurance may not be less than one hundred percent (100%) of the full replacement cost of the

insured property at the time the insurance is purchased and at each renewal date, excluding items

normally excluded from property insurance policies. Property insurance shall include coverage for

any fixture, improvement, or betterment installed at any time to a Unit or to Limited Common

Areas associated with a Unit, whether installed in the original construction or in any remodel or

later alteration, including a floor covering, cabinet, light fixture, electrical fixture, heating or

plumbing fixture, paint, wall covering, window, and any other item permanently part of or affixed

to a Unit or to Limited Common Areas associated with a Unit. Each Unit Owner shall be an insured

person under the property insurance policy. If a loss occurs that is covered by the Association’s

property insurance and another property insurance policy in the name of a Unit Owner, the

Association’s policy provides primary insurance coverage. Notwithstanding the foregoing, the

Unit Owner is responsible for the deductible of the Association’s building property coverage, often

referred to as coverage A, of the Unit Owner’s policy applies to that portion of the loss attributable

to the Association’s policy deductible.

(1) As used in this Article, “covered loss” means a loss, resulting from a single

event or occurrence, that is covered by the Association’s property insurance. “Unit damage” means

damage to a Unit or to Limited Common Areas appurtenant to that Unit, or both. “Unit damage

percentage” means the percentage of total damage resulting in a covered loss that is attributable to

Unit damage.

(2) A Unit Owner who owns a Unit that has suffered Unit damage as part of a

covered loss is responsible for an amount calculated by applying the Unit damage percentage for

that Unit to the amount of the deductible under the Association’s property insurance. If a Unit

Owner does not pay the amount required under this subsection (ii) within thirty (30) days after

substantial completion of the repairs to the Unit or Limited Common Areas appurtenant to that

Unit, the Association may levy an assessment against the Unit Owner for that amount.

(3) The Association shall set aside an amount equal to the amount of the

Association’s property insurance policy deductible or, if the policy deductible exceeds ten

thousand dollars ($10,000.00), an amount not less than ten thousand dollars ($10,000.00). Unit

Owners are hereby notified that the Association’s current deductible is twenty-five thousand

dollars ($25,000.00). The Board may, by resolution, increase or decrease the amount of the

Association’s policy deductible. The Association shall provide notice, as provided in the Bylaws


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or as otherwise provided in Utah Code § 57-8-42 of the Act, to each Unit Owner of the Unit

Owner’s obligation under this subsection (iii) for the Association’s policy deductible if there is

any change in the amount of the deductible. If the Association fails to provide notice of any change

in the deductible, the Association is responsible for the portion of the deductible that the

Association could have assessed to a Unit Owner, but only to the extent that the Unit Owner does

not have insurance coverage that would otherwise apply. However, if the Association fails to

provide notice of a later increase in the amount of the deductible, the Association is responsible

only for the amount of the increase for which notice was not provided. The failure of the

Association to provide notice as provided in this subsection (iii) shall not be construed to invalidate

any other provision in this Declaration.

(4) If, in the exercise of the business judgment rule, the Board determines that

a covered loss is likely not to exceed the property insurance policy deductible of the Association

and until it becomes apparent the covered loss exceeds the deductible of the property insurance of

the Association and a claim is submitted to the Association’s property insurance insurer: (a) a Unit

Owner’s policy is considered the policy for primary coverage for a loss occurring to the Unit

Owner’s Unit or to Limited Common Areas appurtenant to the Unit; (b) the Association is

responsible for any covered loss to any Common Areas and Facilities; (c) a Unit Owner who does

not have a policy to cover the damage to the Unit Owner’s Unit and appurtenant Limited Common

Areas is responsible for that damage, and the Association may recover, as provided for in

subsection (ii) above, any payments the Association makes to remediate that Unit and the

appurtenant Limited Common Areas; and (d) the Association need not tender the claim to the

Association’s insurer.

(5) An insurer under a property insurance policy issued to the Association shall

adjust with the Association’s loss covered under the Association’s policy. Notwithstanding this

subsection (v), the insurance proceeds for a loss under the Association’s property insurance policy

are payable to an insurance trustee that the Association designates or, if no trustee is designated,

to the Association, and may not be payable to a holder of a security interest. An insurance trustee

or the Association shall hold any insurance proceeds in trust for the Association, Unit Owners, and

lien holders. If damaged property is to be repaired or restored, insurance proceeds shall be

disbursed first for the repair or restoration of the damaged property. After the disbursements

described herein are made and the damaged property has been completely repaired or restored or

the Condominium Project terminated, any surplus proceeds are payable to the Association, Unit

Owners, and lien holders based on the Undivided Interest of each Condominium Unit.

(6) An insurer or the insurer’s authorized agent that issues a property insurance

policy under this Section 7.1(a) shall issue a certificate or memorandum of insurance to: (a) the

Association; (b) a Unit Owner, upon the Unit Owner’s written request; and (c) a holder of a security

interest, upon the holder’s written request. A cancellation or nonrenewal of a property insurance

policy under Section 7.1(a) is subject to the procedures stated in Utah Code § 31A-21-303, as may

be amended and supplemented.

(7) A Board that acquires from an insurer the property insurance required in

this Section 7.1(a) is not liable to Unit Owners if the insurance proceeds are not sufficient to cover

one hundred percent (100%) of the full replacement cost of the insured property at the time of the

loss.

(8) Nothing in this Section 7.1(a) shall prevent a Person suffering a loss as a

result of damage to property from asserting a claim, either directly or through subrogation, for the

loss against a Person at fault for the loss.

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(9) All policies of property insurance must provide that notwithstanding any

provision affording the insurer the right to elect to restore damage in lieu of a cash settlement, such

option shall not be exercisable without the prior written approval of the Association (or any

insurance trustee) or when in conflict with the provisions of any insurance trust agreement to which

the insurance may be a party, or any requirement of law.

a.(10) Fidelity Insurance. The Management CommitteeBoard or Association shall

at all times maintain in force fidelity coverage against dishonest acts on the part of managers (and

employees of managers), trustees, employees, officers, CommitteeBoard members, or volunteers

responsible for handling funds belonging to or administered by the Management CommitteeBoard

or Association of Unit Owners. The fidelity bond or insurance shall name the Association as the

obligeeoblige or insured and shall be written in an amount sufficient to afford the protection

reasonably necessary, but in no event less than fifty-thousand dollars ($50,000).three (3) months

of assessments and the total amount of money contained in the Reserve Account. An appropriate

endorsement to the policy shall be secured to cover persons who serve without compensation if

the policy would not otherwise cover volunteers.

(11) Liability Insurance. Subject to Utah Code § 57-8-43(10) of the Act, liability

insurance covering all occurrences commonly insured against for death, bodily injury, property

damage, including water damage, liability for non-owned or hired automobile, liability for

property of others, and such other risks as shall customarily be covered with respect to projects

similar in construction, location, and use arising out of or in connection with the use, ownership,

or maintenance of the Common Areas and Facilities. The limits of the liability insurance policy

shall be in an amount determined by the Association, but not less than five million dollars

($5,000,000.00) for all claims for personal injury or property damage arising out of a single

occurrence. Each Unit Owner is an insured person under the liability insurance policy the

Association obtains, but only for liability arising from: (i) the Unit Owner’s ownership interest in

the Common Areas and Facilities; (ii) maintenance, repair, or replacement of Common Areas and

Facilities; and (iii) the Unit Owner’s membership in the Association. Such policies shall be issued

on a comprehensive liability basis, shall provide a cross-liability endorsement pursuant to which

the rights of the named insured as between themselves are not prejudiced, and shall contain “a

severability of interest” clause or endorsement to preclude the insurer from denying the claims of

a Unit Owner because of negligent acts of the Association or other Unit Owners.

(12) General Requirements Concerning Insurance. Each insurance policy

maintained pursuant to the forgoing Sections 18a through 18c shall be written by an insurance

carrier which is licensed to transact business in the State of Utah and which has a financial rating

by Best’s Insurance Reports of BBB+ or better. No such policy shall be maintained where: (1)

under the terms of the carrier’s charter, by-laws or policy, contributions may be required from, or

assessments may be made against, a Unit Owner, a Mortgagee, the Board, the Association of Unit

Owners, a Unit, the Common Areas, or the Project; (2) by the terms of the carrier’s charter, by-

laws, or policy, loss payments are contingent upon action by the carrier’s board of directors,

policyholders, or members; (3) the policy includes any limiting clauses (other than insurance

conditions) which could prevent the party entitled from collecting insurance proceeds; or (4) the

policy provides that the insurance thereunder shall be brought into contribution with insurance

purchased by the individual Unit Owners or their Mortgagees. Each such policy shall provide that:

(a) coverage shall not be prejudiced by any act or neglect of the Unit Owners when such act or

neglect in not within the control of the Association of Unit Owners or the Board; (b) coverage shall

not be prejudiced by any failure by the Association or Board to comply with any warranty or


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condition with regard to any portion of the Project over which the Association and Board have no

control; (c) coverage may not be cancelled or substantially modified (including cancellation for

nonpayment of premium) without at least thirty (30) days prior written notice to any and all

insureds named therein, including any Mortgagee named as an insured; and (d) the insurer waives

any right of subrogation it might have as to any and all claims against the Association, the Board,

any Unit Owner, and/or their respective agents, employees or tenants, and any defense it might

have based upon co-insurance or upon invalidity arising from acts of the insured. If due to changed

circumstances, excessive cost, or any other reason, any of the insurance coverage required to be

obtained and maintained under Sections 18a through 18c hereof cannot reasonably be secured,

with respect to such coverage the Association or the Board shall obtain and maintain such

substitute, different or other coverage as may be reasonable and prudent under the circumstances

as they then exist.

(13) Availability. If the Association becomes aware that property insurance

under Section 7.1(a) above or liability insurance under Section 7.1(b) above is not reasonably

available, the Association shall, within seven (7) days after becoming aware, give all Units Owners

notice as provided in the Bylaws, or as otherwise specified in Utah Code § 57-8-42 of the Act, that

the insurance is not reasonably available

(14) Directors and Officers. The Association shall maintain a policy of directors

and officers insurance in such form and amounts as is customary for projects of this type and size.

19. PAYMENT OF EXPENSES.

a. Each Unit Owner shall pay the Management CommitteeBoard his allocated portion

of the cash requirement deemed necessary by the Management CommitteeBoard to

manage and operate the Condominium Project, upon the terms, at the time, and in

the manner herein provided without any deduction on account of any set-off or

claim which the Owner may have against the Management CommitteeBoard or

Association. If the Unit Owner shall fail to pay any installment within one month

of the time when the same becomes due, the Owner shall pay interest thereon at the

current legal rate being charged on past-due commercial accounts from the date

when such installment shall become due to the date of payment thereof.

b. The cash requirements above referred to for each year, or portions of the year, are

hereby defined and shall be deemed to be such aggregate sum as the Management

CommitteeBoard from time to time shall determine, in its judgment, is to be paid

by all the Owners of the Condominium Project then in existence to enable the

Management CommitteeBoard to pay all estimated expenses and outlays of the

Management CommitteeBoard to the close of such year, growing out of or in

connection with the maintenance and operation of such land, buildings, and

improvements; which sum may include, among other things, the cost of

management, special assessments, fire, casualty, flood, fidelity, public liability, and

other insurance premiums, common lighting, landscaping and the care of the

grounds, repairs and renovations to Common Areas and Facilities, snow removal,

wages, water charges, utility services (except telephone and other services which

are separately billed or metered to the individual Units by the utility or party

furnishing such service), legal and accounting fees, management fees, expenses and

liabilities incurred by the Management CommitteeBoard under or by reason of this

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Declaration, the payment of any deficit remaining from the previous period, the

creation of a reasonable contingency or other necessary reserve or surplus fund, as

well as all other costs and expenses relating to the Condominium Project. The

Management CommitteeBoard may, from time to time, up to the close of the year

for which such cash requirements have been so set or determined, increase or

diminish the amount previously fixed or determined for such year, it may include

in the cash requirements for any year, any liabilities or items of expense which

accrued or became payable in the previous year, or which might have been included

in the casbcash requirements for a previous year, but were not included therein; and

also any sums which the Management CommitteeBoard may deem necessary or

prudent to provide a reserve against liabilities or expenses then accrued or thereafter

to accrue although not payable in that year.

c. The portion payable with respect to each Unit in and for each year or for a portion

of a year shall be s umsum equal to the aggregate amount of such cash requirements

for such year, or portion of year, determined as aforesaid, multiplied by the

percentage of undivided interest in the Common Areas and Facilities appurtenant

to such Unit, as shown in Exhibit C. Such assessments, together with any additional

sums accruing under this Declaration, shall be payable monthly in advance, or in

such payments and installments as shall be provided by the Management

CommitteeBoard.

d. The Management CommitteeBoard shall have discretionary powers to prescribe the

manner of maintaining and operating the Condominium Project and to determine

the cash requirements of the Management CommitteeBoard to be paid as aforesaid

by the Owners under this Declaration. Every such reasonable determination by the

Management CommitteeBoard within the bounds of the actAct, and this

Declaration shall be final and conclusive as to the Owners, and any expenditures

made by the Management CommitteeBoard, within the bounds of the Act and this

Declaration shall as against the owner be deemed necessary and properly made for

such purpose.

e. If an Owner shall at any time let or sublet his Unit and shall default for a period of

one month in the payment of any assessments, the management Committee may, at

its option, so long as such default shall continue, demand and receive from any

tenant or sub-tenant of the Owners occupying the Unit the rent due or becoming

due and payment of such rent to the Management Committee shall be sufficient

payment and discharge of such tenant or sub-tenant and the Owner to the extent of

the amount so paid.The Board may require a tenant under a lease with a Unit Owner

to pay the Association all future lease payments due to the Unit Owner if the Unit

Owner fails to pay an assessment for a period of more than 60 days after the

assessment is due and payable, beginning with the next monthly or periodic

payment due from the tenant and until the Association is paid the amount owing.

Before requiring a tenant to pay lease payments to the Association, the

Association’s manager or Board shall give the Unit Owner notice, which notice

shall state: (i) the amount of the assessment due, including any interest, late fee,

collection cost, and attorney fees; (ii) that any costs of collection, including attorney


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fees, and other assessments that become due may be added to the total amount due

and be paid through the collection of lease payments; and (iii) that the Association

intends to demand payment of future lease payments from the Unit Owner’s tenant

if the Unit Owner does not pay the amount owing within fifteen (15) days.

f. If a Unit Owner fails to pay the amount owing within fifteen (15) days after the

Association’s manager or Board gives the Unit Owner notice, the Association’s

manager or Board may exercise the Association’s rights by delivering a written

notice to the tenant. The notice to the tenant shall state that: (i) due to the Unit

Owner’s failure to pay an assessment within the required time, the Board has

notified the Unit Owner of the Board’s intent to collect all lease payments until the

amount owing is paid; (ii) the law requires the tenant to make all future lease

payments, beginning with the next monthly or other periodic payment, to the

Association, until the amount owing is paid; and (iii) the tenant’s payment of lease

payments to the Association does not constitute a default under the terms of the

lease with the Unit Owner. The manager or Board shall mail a copy of this notice

to the Unit Owner.

g. A tenant to whom notice is given shall pay to the Association all future lease

payments as they become due and owing to the Unit Owner: (i) beginning with the

next monthly or other periodic payment after the notice is delivered to the tenant;

and (ii) until the Association notifies the tenant under Subsection (1) that the

amount owing is paid. A Unit Owner shall credit each payment that the tenant

makes to the Association under this section against any obligation that the tenant

owes to the Owner as though the tenant made the payment to the Owner; and may

not initiate a suit or other action against a tenant for failure to make a lease payment

that the tenant pays to an Association as required under this section.

e.h. Within five (5) business days after the amount owing is paid, the Association’s

manager or Board shall notify the tenant in writing that the tenant is no longer

required to pay future lease payments to the Association. The manager or Board

shall mail a copy of this notification to the Unit Owner. The Association shall

deposit money paid to the Association under this section in a separate account and

disburse that money to the Association until the amount owing is paid; and any cost

of administration, not to exceed Twenty-Five Dollars ($25.00), is paid. The

Association shall, within five (5) business days after the amount owing is paid, pay

to the Unit Owner any remaining balance.

i. Each monthly assessment and each special assessment shall be separate, distinct

and personal obligations of the Owner(s) of the Unit against which the same is

assessed at the time the assessment is made and shall be collectible as such. If a

Unit Owner fails or refuses to pay any assessment or fine when due the Association

may:

(1) Bring an action against the Unit Owner personally obligated to pay without

waiving any lien or lien rights;


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(2) Foreclose the lien against the Unit Owner’s Condominium Unit in

accordance with the laws of Utah applicable to the exercise of powers of sale in deeds of trust or

the foreclosure of mortgages or in any other manner permitted by law;

(3) In accordance with Section 5.10(c) below, terminate the Unit Owner’s

utility services (if any) paid as a Common Expense, and terminate the Unit Owner’s right of access

to and use of recreational facilities;

(4) Pay rent to the Association in accordance with Utah Code § 57-8-53 of the

Act; and

(5) Take any other action authorized in the Condominium Act.

f.j. Suit to recover a money judgment for unpaid common expenses may be maintained

without foreclosing or waiving the following lien securing the same: the amount of

any assessment, whether regular or special, assessed to a Unit plus interest at ten

percent per annum, and costs, including reasonable attorney’s fees, shall become a

lien upon such Unit upon recordation of a notice of assessment as provided by the

Act. The said lien for non-payment of common expenses shall have priority over

all other liens and encumbrances, recorded or unrecorded, except only:

(1) tax and special assessment liens (1) a first or second security interest on the Unit

in favor secured by a Mortgage that is recorded before a recorded notice of any assessment unit,

and special district; and

(2) encumbranceslien by or on the interestbehalf of the Unit Owner recorded

prior to the date such notice is recorded which by law would be a lien prior to subsequently

recorded encumbrances.Association, or

(2) a lien for real estate taxes or other governmental assessments or charges against

the Unit.

g.k.A certificate executed and acknowledged by the Manager or Management

CommitteeBoard stating the unpaid common expenses then outstanding with

respect to a Unit shall be conclusive upon the Management CommitteeBoard and

the Owners as to the amount of such indebtedness on the date of the certificate, in

favor of all persons who rely thereon in good faith, and such certificate shall be

furnished to any Owner or encumbrancee or prospective Owner or encumbrancee

of a Condominium Unit upon request at a reasonable fee not to exceed TenFifty

Dollars ($1050.00). Unless the request for a certificate of indebtedness shall be

complied within ten (10) days, all unpaid common expenses which became due

prior to the date of making of such request shall be subordinate to the lien or interest

held by or obtained by the person making the request. Any encumbrancee holding

a lien on a Condominium Unit may pay and unpaid Common Expenses payable

with respect to such Condominium Unit and upon such payment such

encumbrancee shall have a lien on such Unit for the amounts paid of the same rank

as the lien of his encumbrance.

h.l. Upon payment of delinquent assessments concerning which a notice of assessments

has been recorded or other satisfaction thereof, the Management CommitteeBoard

shall cause to be recorded in the same manner as the notice of assessment a further

notice stating the satisfaction and release of the lien thereof. Such lien for


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nonpayment of assessment may be enforced by sale by the Management

CommitteeBoard or by a bank or trust company or title insurance company

authorized by the Management CommitteeBoard, such sale to be conducted in

accordance with the provisions of the law applicable to the exercise of powers of

sale or foreclosure in deeds of trust of mortgages or in any manner permitted by

law. In any foreclosure or sale, the Unit Owner shall be required to pay the costs

and expenses of such proceedings including reasonable attorney’s fees.

i.m. In the event of foreclosure, the Unit Owner shall be required to pay a

reasonable rental for the Condominium Unit and the plaintiff in the foreclosure

action shall be entitled to the appointment of a receiver to collect the rental without

regard to the value of the mortgage security. The Management CommitteeBoard or

Manager shall have the power to bid in the Condominium Unit at foreclosure or

other sale and to hold, lease, mortgage and convey the Condominium Unit.

n. Termination of Delinquent Unit Owner’s Rights to Recreational Facilities.

(1) The Board may terminate a Delinquent Unit Owner’s right to receive a

utility service for which the Unit Owner pays as a Common Expense (if any) or a Delinquent Unit

Owner’s right of access to and use of recreational facilities. “Delinquent Unit Owner” means a

Unit Owner who fails to pay an assessment when due.

(2) Before terminating a utility service or right of access to and use of

recreational facilities, the Manager or Board shall give the Delinquent Unit Owner notice. The

notice shall be delivered not less than fourteen (14) days before it is to take effect and state: (i) that

the Association will terminate the Unit Owner’s utility service or right of access to and use of

recreational facilities, or both, if the Association does not receive payment of the assessment within

fourteen (14) days; (ii) the amount of the assessment due, including any interest or late-payment

fees; and (iii) the Unit Owner’s right to request a hearing. The notice may include the estimated

cost to reinstate a utility service if the service is terminated.

(3) A Delinquent Unit Owner may submit a written request to the Board for an

informal hearing to dispute the assessment. The written request shall be submitted within fourteen

(14) days after the date the Delinquent Unit Owner receives the notice.

(4) If a Delinquent Unit Owner timely submits a written request for an informal

hearing, the Board shall conduct an informal hearing at which the Delinquent Unit Owner shall

have the opportunity to be heard and, if desired, represented by legal counsel. The Association

may not terminate a utility service or right of access to and use of recreational facilities until after

the Board conducts the hearing and enters a final decision.

(5) If the Association terminates a utility service or a right of access to and use

of recreational facilities, the Association shall take immediate action to reinstate the service or

right following the Unit Owner’s payment of the assessment, including any interest and late-

payment fees.

(6) The Association may assess a Unit Owner for the cost associated with

reinstating a utility service that the Association terminates and demand that the estimated cost to


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reinstate the utility service be paid before the service is reinstated if the estimated cost is included

in the notice.

20. MORTGAGE PROTECTION.

a. From and after the time a Mortgagee makes written request to the Management

CommitteeBoard or the Association of Unit Owners therefor, the CommitteeBoard or the

Association shall notify such Mortgagee in writing in the event that the Owner of the

Condominium Unit encumbered by the Mortgage held by such Mortgagee neglects for a period of

thirty (30) or more days to cure any failure on his part to perform any of his obligations under this

Declaration.

The lien or claim against a Condominium Unit for unpaid assessments or charges levied

by the Management CommitteeBoard or by the Association of Unit Owners pursuant to this

Declaration or the Act shall be subordinate to the Mortgage affecting such Condominium Unit,

and the Mortgagee thereunder which comes into possession of the Condominium Unit shall take

the same free of such lien or claim for unpaid assessments or charges, but only to the extent of

assessments or charges which accrue prior to foreclosure of the Mortgage, exercise of a power of

sale available thereunder, or deed or assignment in lieu of foreclosure (except for claims for a pro

rata share of such prior assessments or charges resulting from a pro rata reallocation thereof to all

Condominium Units including the Condominium Unit in which the Mortgagee is interested). No

assessment, charge, lien or claim which is described in the preceding sentence as being subordinate

to a Mortgage or as not to burden a Mortgagee which comes into possession shall be collected or

enforced by either the Management CommitteeBoard or the Association from or against a

Mortgagee, a successor in title to a Mortgagee, or the Condominium Unit affected or previously

affected by the Mortgage concerned (to the extent any such collection or enforcement would

prejudice the interests of the Mortgagee or successor in title to the Mortgagee interested in such

Unit).

Unless all of the Mortgagees of the individual Condominium Units have given their

prior written approval, neither the Management CommitteeBoard nor the Association of Unit

Owners shall be entitled, by act, omission, or otherwise:

(1) To abandon or terminate the Condominium Project or to abandon or

terminate the arrangement which is established by this Declaration and the Record of Survey Map

(except as provided in Section 16 hereof in the event of certain destruction or damage);

(2) To partition or subdivide any Unit;

(3) To abandon, partition, subdivide, encumber, sell or transfer all or any part

of the Common Areas and Facilities (except for the granting of easements for utilities and similar

purposes consistent with the intended use of the Common Areas and except as provided in Section

16 hereof in the event of certain destruction of damage);

(4) To use hazard insurance proceeds resulting from damage to any part of the

Condominium Project (whether to Units or to the Common Areas) for purposes other than the

repair, replacement, or reconstruction of such improvements, except as provided in Section 16

hereof in the event of certain destruction or damage;

(5) To change the pro rata interests or obligations of any Unit which apply for

(a) purposes of levying assessments or charges or allocating distributions of hazard insurance

proceeds or condemnation awards and for (b) determining the pro rata share of ownership of each

Unit in the Common Areas and Facilities;


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(6) To alter the provisionprovisions of Section 12 hereof in such a way as to

diminish the protections afforded to the Owners regarding the duration or terminability of

agreements for managerial services; or

(7) To alter the provisions of Section 18 hereof in such a way as to diminish the

insurance protection required to be afforded to the parties designed to be protected thereby, or to

fail to maintain the insurance coverage described therein.

Any Mortgagee shall have the right, at its request and expense and upon reasonable

notice, to examine the books and records of the Management CommitteeBoard, or the Association

of Unit Owners, or of the Condominium Project. From and after the time a Mortgagee makes

written request to the Management CommitteeBoard or the Association of Unit Owners therefor,

the CommitteeBoard or the Association shall furnish to such Mortgagee copies of such annual

operating reports and other reports or writings summarizing or reflecting the financial position or

history of the Condominium Project as may be prepared for distribution to or use by the

CommitteeBoard, the Association, or the Unit Owners.

To the extent the same is reasonably possible and practical and is not inconsistent

with the significant interest of the Association of Unit Owners, the Management CommitteeBoard

and the Association shall establish an adequate reserve to cover the cost of reasonably predictable

and necessary major repairs and replacements of the Common Areas and Facilities and shall cause

such reserve to be funded by regular monthly or other periodic assessments against the Units rather

than by special assessments. The requirements for a reserve analysis and reserve funding are

further provided for in Section 29.

From and after the time a Mortgagee makes written request to the Management

CommitteeBoard or the Association of Unit Owners therefor, the CommitteeBoard or the

Association shall notify such Mortgagee in writing in the event that there occurs any damage or

loss to, or taking or anticipated condemnation of : (a) The Common Areas involving an amount in

excess of, or reasonably estimated to be in excess of, Ten Thousand Dollars ($10,000.00); or (b)

Anyany apartment Unit involving an amount in excess of, or reasonably estimated to be in excess

of, One Thousand Dollars ($1,000.00). Said notice shall be given within ten (10) days after the

Management CommitteeBoard or said Association learns of such damage, loss, taking or

anticipated condemnation.

In the event another provision or clause of this Declaration deals with the same subject

matter as is dealt with in any provision or clause of this Section 20, the provision or clause which

results in the greatest protection and security for a Mortgagee shall control the rights, obligations,

or limits of authority as the case may be applicable to the Management CommitteeBoard and

Association of Unit Owners with respect to the subject concerned.

No amendment to this Section 20 which has the effect of diminishing the rights, protection

or security afforded to Mortgagees shall be accomplished or effective unless all of the Mortgagees

of the individual Units have given their prior written approval to such amendment. Any

amendment to this Section 20 shall be accomplished by an instrument executed by the

Management CommitteeBoard and filed for record in the office of the Salt Lake County Recorder.

In any such instrument an officer of the Management CommitteeBoard shall certify that any prior

written approval of Mortgagees required by this Section 20 as a condition to amendment has been

obtained.

21. EMINENT DOMAIN.


Canyon Road Towers

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In the event that eminent domain proceedings are commenced against the Project or any

portion thereof, the provisions of § 57-8-32.5, Utah Code Annotated (1953), as amended, shall

apply. The Management CommitteeBoard shall give written notice of such proceedings to all

Mortgagees of record. No first lien priority of any Mortgagee shall be diminished or otherwise

disturbed by virtue of such proceedings.

22. MAINTENANCE.

a. Each Owner of an apartment Unit or storage locker Unit at his own expense shall

keep the interior of such Unit and its equipment and appurtenances in good order, condition and

repair and in a clean and sanitary condition, and shall do all redecorating and painting which may

at any time be necessary to maintain the good appearance of such Unit. Except to the extent that

the Management CommitteeBoard is protected by insurance against such injury, the Unit Owner

shall repair all injury or damages to the Unit, building or buildings caused by the act, negligence

or carelessness of the Unit Owner or that of any tenant or subtenant of any member of the Unit

Owner’s family or of the family of any tenant or subtenant or any agent, employee or guest of the

Owner or his tenant or subtenant and all such repairs, redecorating and painting shall be of a quality

and kind equal to the original work. In addition to decorating and keeping the interior of the

apartment Unit in good repair; the Unit Owner, at the Owner’s expense, shall be responsible for

the maintenance or replacement ofto maintain, repair and replace (i) any exterior sliding glass

doors and windows, and (ii) plumbing fixtures that may be in or connected with the Unit. Each

Unit Owner shall be entitled to the exclusive use and possession of the Limited Common Area

storage locker associated with his Unit and shall be responsible for the maintenance and upkeep

of same; provided, however, that without the written permission of the Management

CommitteeBoard first had and obtained, except as provided for in Section 6 a Unit Owner shall

not make or permit to be made any structural alteration, in or to the apartment Unit, the storage

locker Unit, the parking stall Unit, or any storage locker or parking stall included within the

Limited Common Areas or in or to the exterior of the buildings, and shall not paint or decorate any

portion of the exterior of the Unit or of the building in which the Unit is located.

b. Except as hereinafter provided, the Management CommitteeBoard shall provide for

such maintenance and operation of the Common Areas danand Facilities and of the Limited

Common Areas and Facilities as may be reasonably necessary to keep them clean, functional,

attractive, and generally in good condition and repair. The Management CommitteeBoard shall

have no obligation regarding maintenance or care either of apartment Units, storage locker Units,

or those storage lockers, balconies, patios or terraces which constitute Limited Common Areas but

shall maintain all parking stalls which constitute Units in the same manner that it is required to

maintain parking stalls comprising a part of the Limited Common Areas and Facilities.

23. RIGHT OF ENTRY.

The Management Committee and its duly authorized agents shall have the right to

enter any and all of the Units and the Limited Common Areas appurtenant thereto in case of an

emergency originating in or threatening such Unit or any other part of the Project, whether or not

the Unit Owner or occupant thereof is present at the time. The Committee and its duly authorized

agents shall also have the right to enter into any and all of said Units and Limited Common

Areas at all reasonable times as required for the purpose of making necessary repairs upon the

Common Areas and Facilities of the Project or for the purpose of performing emergency

installations, alterations or repairs to the mechanical or electrical devices or installations located


Canyon Road Towers

Page 26

therein or thereon; provided, however, such emergency installations, alterations or repairs are

necessary to prevent damage or threatened damage to other Units in the Project; and provided

further, that the Unit Owner affected by such entry shall first be notified thereof if available and

if time permits.

Some Common Areas and Facilities are or may be located within the Units or may be

conveniently accessible only through the Units. After reasonable notice to the occupants of the

Unit being entered, the Directors or Board may access a Unit:

(a) From time to time during reasonable hours, as may be necessary for the

maintenance, repair, or replacement of any of the Common Areas and Facilities or for making

emergency repairs.

(i) “Reasonable notice” means written notice that is hand delivered to

the Unit at least twenty-four (24) hours before the proposed entry, or in the

case of emergency repairs, notice that is reasonable under the

circumstances.

(ii) “Emergency repairs” means any repairs that, if not made in a timely

manner, will likely result in immediate and substantial damage to the

Common Areas and Facilities or to another Unit or Units.

(b) The Association is liable to repair damage it causes to the Common Areas and

Facilities or to a Unit the Association uses to access the Common Areas and Facilities. The

Association shall repair damage described in this Section 10.3 within a time that is reasonable

under the circumstances.

(c) If a Unit Owner fails to properly maintain the Unit Owner’s Unit, the Association

has the right, but not the obligation, to enter the Unit and perform all upkeep to the Unit that is

necessary under the circumstances, including any inspection, maintenance, repair, replacement, or

any other act necessary to maintain the Unit in a decent, safe, and sanitary condition. Any costs or

other amounts incurred by the Association under this subsection (c) shall be assessed as an

individual assessment.

24. ADMINISTRATIVE RULES AND REGULATIONS.

The Management CommitteeBoard shall have the power to adopt and establish by

resolution, such building management and operational rules as it may deem necessary for the

maintenance, operation, management and control of the Project. The CommitteeBoard may, from

time to time by resolution, alter, amend and repeal such rules. When a copy of any amendment or

alteration or provision for repeal of any rule or rules has been furnished to the Unit Owners, such

amendment, alteration or provision shall be taken to be a part of such rules. Unit Owners shall at

all times obey such rules and see that they are faithfully observed by those persons over whom

they have or may exercise control and supervision, it being understood that such rules shall apply

and be binding upon all Unit Owners, tenants, subtenants or other occupants of the Units.

25. OBLIGATION TO COMPLY HEREWITH.

Each Unit Owner, tenant, subtenant or other occupant of a Unit shall comply with the

provisions of the Act, this Declaration, the By-Laws, and the rules and regulations, all agreements

and determinations lawfully made and/or entered into by the Management CommitteeBoard or the

Unit Owners, when acting in accordance with their authority, and any failure to comply with any

of the provisions thereof shall be grounds for an action by the Management CommitteeBoard or

other aggrieved party for injunctive relief or to recover any loss or damage resulting therefrom.


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26. INDEMNIFICATION OF MANAGEMENT COMMITTEEBOARD.

Each member of the Management CommitteeBoard shall be indemnified and held harmless

by the Association of Unit Owners against all costs, expenses and liabilities whatsoever, including,

without limitation, attorney’s fees, reasonably incurred by him in connection with any proceeding

to which he may become involved by reason of his being or having been a member of said

CommitteeBoard; provided, however, the foregoing indemnification shall not apply if the loss,

expense or liability involved resulted from the willful misconduct or gross negligence of the

member.

27. AMENDMENT.

In addition to the amendment provisions contained in Section 6 above, but subject to the

terms of Section 20, this Declaration and/or the Map may be amended upon the affirmative vote

or approval and consent of not less than two-thirds (2/3) of the undivided interest in the Common

Areas and Facilities. Any amendment so authorized shall be accomplished by recordation of an

instrument executed by the management Committee.Board. In said instrument the

CommitteeBoard shall certify that the vote or consent required by this Section 27 has occurred.

Notwithstanding any other provision contained herein, until occurrence of the “Event” referred to

in Section 12 hereof no amendment to the Map or to any provision of this Declaration which has

or may have the effect of diminishing or impairing any right, power, authority, privilege, protection

or control accorded to Declarants (in their capacity as Declarants) herein shall be accomplished or

effective unless the instrument through which such amendment is purported to be accomplished in

consented to in writing by Declarants.

CONSENT IN LIEU OF VOTE.

28. RESERVED.

29. RESERVE FUND.

a. Definitions. As used in this Article: (a) “reserve analysis” means an analysis to

determine the need for a reserve fund to accumulate reserve funds and the appropriate amount of

any reserve fund; (b) “reserve fund line item” means the line item in an Association’s annual

budget that identifies the amount to be placed into a reserve fund; and (c) “reserve funds” means

money to cover the cost of repairing, replacing, or restoring Common Areas and Facilities that

have a useful life of three (3) years or more and a remaining useful life of less than thirty (30)

years, if the cost cannot reasonably be funded from the general budget or other funds of the

Association.

b. Reserve Analysis. The Board shall cause a reserve analysis to be conducted no less

frequently than every six (6) years. The Board shall also review and, if necessary, update a

previously conducted reserve analysis no less frequently than every three (3) years. The Board

may conduct a reserve analysis itself or may engage a reliable person or organization, as

determined by the Board, to conduct the reserve analysis.

c. Content of Analysis. A reserve fund analysis shall include: (a) a list of the

components identified in the reserve analysis that will reasonably require reserve funds; (b) a

statement of the probable remaining useful life, as of the date of the reserve analysis, of each

component identified in the reserve analysis; (c) an estimate of the cost to repair, replace, or restore

each component identified in the reserve analysis; (d) an estimate of the total annual contribution

to a reserve fund necessary to meet the cost to repair, replace, or restore each component identified


Canyon Road Towers

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in the reserve analysis during the component’s useful life and at the end of the component’s useful

life; and (e) a reserve funding plan that recommends how the Association may fund the total annual

contribution.

d. Unit Owners. The Association shall annually provide Unit Owners a summary of

the most recent reserve analysis or update and provide a copy of the complete reserve analysis or

update to a Unit Owner who requests a copy.

e. Budget. In formulating its budget each year, the Association shall include a reserve

fund line item in an amount the Board determines, based on the reserve analysis, to be prudent, or

an amount required by this Declaration.

f. Veto. Within forty-five (45) days after the day on which the Association adopts its

annual budget, the Unit Owners may veto the reserve fund line item by a vote of fifty-one percent

(51%) of the voting interests in the Association at a special meeting called by the Unit Owners for

the purpose of voting whether to veto a reserve fund line item. If the Unit Owners veto a reserve

fund line item and a reserve fund line item exists in a previously approved annual budget of the

Association that was not vetoed, the Association shall fund the reserve account in accordance with

that prior reserve fund line item.

g. Use of Reserve Fund. Unless a majority of the voting interests in the Association

vote to approve the use of reserve fund money for that purpose, the Board may not use money in

a reserve fund: (a) for daily maintenance expenses; or (b) for any purpose other than the purpose

for which the reserve fund was established. This Section may not be construed to limit a Board

from prudently investing money in a reserve fund, subject to any investment constraints imposed

by the Declaration. The reserve fund shall be maintained separate from other funds of the

Association.

30. RESERVED.

31. RESERVED.

32. NO DISCRIMINATION.

28.

In any case in which the Act or this Declaration requires the vote of a stated percentage

of the Project’s undivided ownership interest for authorization or approval of a transaction, such

requirement may be fully satisfied by obtaining, with or without a meeting, consents in writing to

such transaction from Unit Owners who collectively hold at least the stated percentage of

undivided ownership interest. Provided that all owners receive an identical copy of the

transaction with a waiting period of 30 days to elapse before the votes are counted. The

following additional provisions shall govern any application of this section:

a. all necessary consents must be obtained prior to the expiration of ninety (90) days

after the first consent is given by any Owner;

b. any change in ownership of a Unit which occurs after consent has been obtained

rom the Owner having an interest therein shall not be considered or taken into account for any

purpose; and

c. unless the consent of all Owners having an interest in the same Unit are secured,

the consent of none of such Owners shall be effective.

29. DECLARANTS’ SALES PROGRAM.


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Notwithstanding any other provision in this Declaration, until Declarants cease to

be Unit Owners or the expiration of four (4) years after the date on which this Declaration

is filed for record in the office of the County Recorder of Salt Lake County, Utah,

whichever first occurs (hereinafter referred to as the “Occurrence”), Declarants shall have

the following rights in furtherance of any sales, promotional, or other activities designed

to accomplish or facilitate the sale of all Units owned by Declarants:

a. Declarants shall have the right to maintain three or less sales offices and/or model

apartments. Such offices and/or model apartments may be one or more Units (of any floor area

and at any location) owned by them, one or more separate structures or facilities placed on the

Property for the purpose of aiding Declarants’ sales effort, or any combination of the foregoing.

If one or more separate structures or facilities is employed by Declarants, each shall be

reasonably located given the layout of the Project and each shall have an aggregate floor area not

substantially in excess of the aggregate floor area of the largest Unit contained in the Project.

b. Declarants shall have the right to maintain a reasonable number of promotional,

advertising, and/or directional signs, banners or similar devices at any place or places on the

Property, but any such device shall be of a size and in a location as is reasonable and customary.

c. Declarants shall have the right to use the Common Areas and Facilities of the

Project to entertain prospective purchasers or to otherwise facilitate Unit sales, provided said use

is reasonable as to both time and manner.

Declarants shall have the right from time to time to locate or relocate any of their sales

offices, model apartments, and/or signs, banners or similar devices, but in connection with each

such location or relocation shall observe the limitations imposed by the preceding portion of this

Section. Within a reasonable period of time after the happening of the Occurrence, Declarants

shall have the right to remove from the Project any signs, banners or similar devices and any

separate structure or facility which was placed on the Property for the purpose of aiding

Declarants’ sales effort.

30. LIMITATION ON IMPROVEMENTS BY ASSOCIATION.

Until the Occurrence described in Section 29, neither the Association nor the

Management Committee shall, without the written consent of Declarants, make any

improvement to or alteration in any of the Common Areas and Facilities, other than such repairs,

replacements, or similar matters as may be necessary to properly maintain the Common Areas as

originally created or constructed by Declarants.

31. COMPLETION OBLIGATION.

Declarants hereby covenant in favor of each Owner that no later than June 15, 1976:

a. The Unit which such Owner has contracted to purchase, the Building within

which such Unit is contained or it to be contained, and each Limited Common Area appurtenant

to such Unit shall be fully constructed and ready for use or occupancy (as the case may be); and

b. There shall be substantially completed and usable as part of the Common Areas

all planned landscaping, sidewalks, parking facilities, roads, fences, outdoor lighting,

recreational or entertainment facilities, and utility lines and conduits necessary to enable full use

and enjoyment of the Unit concerned.

32. MINIMUM AGE FOR OCCUPANCY.

No Unit Owner shall subject any person to discrimination because of race, color, religion,

sex, handicap, familial status or national origin in the sale, rental or advertising of any Unit. The

Canyon Road Towers Owners Association shall not subject any person to discrimination because


Canyon Road Towers

Page 30

of race, color, religion, sex, handicap, familial status or national origin in the sale, rental or

advertising of any Unit.

33. SEVERABILITY.

The invalidity of any one or more phrases, sentences, subparagraphs, paragraphs,

subsections or sections hereof shall not affect the remaining portions of this instrument or any part

thereof, and in the event that any portion or portions of this instrument should be invalid or should

operate to render this instrument invalid, this instrument shall be construed as if such invalid phrase

or phrases, sentence or sentences, subparagraph or subparagraphs, paragraph or paragraphs,

subsection or subsections, or section or sections had not been inserted.

34. DECLARANTS’ RIGHTS ASSIGNABLE.

All of the rights of Declarants under this Declaration may be assigned or transferred either by

operation of law or through a voluntary conveyance, transfer or assignment. Any Mortgage

covering all Condominium Units in the Project title to which is veated in either of the Declarants

shall, at any given point in time and whether or not such Mortgage does so by its terms,

automatically cover, encumber, and include all of the then-unexercised or then-unused rights,

powers, authority, privileges, protections and controls which are accorded to Declarants (in their

capacity as Declarants) herein.

34. EXEMPTION FROM RULES OF PROPERTY.

The rule of property known as the rule against perpetuities and the rule of property known

as the rule restricting unreasonable restraints on alienation shall not be applied to defeat any of the

provisions of this act, or of any Declaration, By-Laws or other document executed in accordance

with the Act.

35. GENDER.

The singular, wherever used herein, shall be construed to mean the plural when applicable,

and the necessary grammatical changes required to make the provisions hereof apply either to

corporations or individuals, male or female, shall in all cases be assumed as though in each case

fully expressed.

36. WAIVERS.

No provision contained in this Declaration shall be deemed to have been waived by reason

of any failure to enforce it, irrespective of the number of violations which may occur.

37. TOPICAL HEADINGS.

The topical headings contained in this Declaration are for convenience only and do not

define, limit or construe the contents of the Declaration.

38. EFFECTIVE DATE.

This Declaration shall take effect upon recording.

39. RIGHT TO APPROVE OR DISAPPROVE.

The Canyon Road Towers Condominium Unit Owners Association, acting through its

Management Committee, shall have the right to approve or disapprove any person, persons,

corporations, partnerships or associations who contemplate purchasing, leasing, renting,

occupying, or transferring any unit or units in Canyon Road Towers Condominium. An


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“Application for Occupancy” form is available from the Manager and must be filled out and signed

by the applicant and reviewed by the majority of the Management Committee.

IN WITNESS WHEREOF, the undersigned, being the Declarants herein, have hereunto

set their hands and seals this _____ day of ______, 1976.

/ / /


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IN WITNESS WHEREOF, the President of the Association hereby certifies that on this

____ day of ______________ 20____, this Amended and Restated Declaration was approved by

at least two-thirds (2/3) of the undivided interest in the Common Areas and Facilities, in

accordance with the instruments cited in the preamble and Utah Code Sections 57-8-7(3), 57-8-39

and 57-8-41.

CANYON ROAD TOWERS OWNERS

ASSOCIATION,

a Utah nonprofit corporation

___________________________________

By: ________________________________

Its: President

STATE OF UTAH, )

:ss.

County of Salt Lake. )

On this ___ day of _______________, 201__, personally appeared before me

_________________ , whose identity is personally known to me or proved to me on the basis of

satisfactory evidence, and who, being duly sworn (or affirmed), did say that he/she is the President

of Canyon Road Towers Owners Association, a Utah non-profit corporation, and that the foregoing

document was signed by him/her on behalf of the Association by authority of its By-Laws,

Declaration, or resolution of the Board, and he/she acknowledged before me that he/she executed

the document on behalf of the Association and for its stated purpose.

___________________________________

Notary Public

Exhibit B

18-11-14 OUT 4 Table of Chngs CC&Rs GM CRU 1098.002 hb

STATUTORY UPDATES TO CC&RS

PROPOSED AMENDMENT RELEVANT UTAH CODE

1. Article 12(a)(5), Power to Convey/Transfer Common Area. § 57-8-7

2. Article 12(a)(8), Authority to Promulgate Rules § 57-8-8.1

3. Article 18, Insurance. § 57-8-43

4. Remove Article 28, Consent in Lieu of Vote. § 16-6a-707

5. Article 29, Reserve Fund. § 57-8-7.5

6. Article 34, Exemption from Rules of Property § 57-8-28

7. Throughout the CC&Rs changed “Committee Member” to

“Director.”

§ 16-6a-102

BOARD RECOMMENDED CHANGES TO CC&RS

PROPOSED AMENDMENT REASON

1. Article 6, Alterations. To limit the ability of Owners to make structural

alterations to the Units without Board approval.

2. Article 7(b)(6), Pets. To incorporate the 3/15/17 Resolution of the Management

Committee (Animal-Free Building) into the CC&Rs.

3. Article 9(g), Rental Restrictions. To make rental policy complaint with current statutes,

Utah Code § 57-8-10.1

4. Article 9(h), Occupancy Limits. Limits the number of people who can reside within a

single Unit.

5. Article 9(i), Single Family. Limits the occupancy of limits to single families.

6. Article 15, Assessments. Allows the Association to charge a fee to cover various

Association expenses whenever a Unit is sold, under Utah

Code § 57-1-46.

7. Article 19, Payment of Expenses. Allows the Association to collect assessments from the

tenants if the owner has not paid his/her assessments,

under Utah Code § 57-8-53.

Allows the Association to withhold utility services and

access to recreational facilities to owners who have not

paid their assessments.

8. Article 23, Right of Entry. Allows the Association to access a Unit to repair the

common area and make emergency repairs to the Unit,

under Utah Code § 57-8-7.

9. Remove Article 29, Declarant’s Sales

Program and replace it with Reserve

Fund.

The Association is no longer within the Declarant Control

Period.

10. Remove Article 30, Limitation on

Improvements.


Period.

11. Remove Article 31, Completion

Obligation.


Period.

12. Remove Article 32, Minimum Age for

Occupancy.

No longer applicable.

13. Remove Article 34, Declarants’

Rights Assignable.


Period.

14. Remove Article 39, Right to Approve

or Disapprove Occupants.

Attorney suggests removal.

Exhibit C

18-11-14 OUT 4 Table of Chngs By-Laws GM CRU 1098.002 hb

STATUTORY UPDATES TO BY-LAWS

PROPOSED AMENDMENT RELEVANT UTAH CODE

1. Article I, Section 1.1, Purpose of Bylaws § 16-6a-206

2. Article III, Section 3.3, Members’ Voting Rights § 16-6a-602

3. Article IV, Section 4.1, Place of Members’ Meetings § 16-6a-701

4. Article IV, Section 4.2, Annual Meetings of Members § 16-6a-812

5. Article IV, Section 4.3, Special Meetings of Members § 16-6a-702

6. Article IV, Section 4.4, Record Date/Members List § 16-6a-706 & 710

7. Article IV, Section 4.5, Notice of Members’ Meeting § 16-6a-814

8. Article IV, Section 4.6, Proxies at Meetings § 16-6a-

9. Article IV, Section 4.7, Ballots at Meetings § 16-6a-709

10. Article IV, Section 4.8, Ballots without a Meeting & Electronic

Voting

§ 46-4-201, et seq.

11. Article IV, Section 4.10, Written Consents without a Meeting § 16-6a-707

12. Article IV, Section 4.11, Telecommunications § 16-6a-708

13. Article IV, Section 4.18, Waiver of Notice § 16-6a-705

14. Article IV, Section 4.19, Signature of Members & Electronic

Signatures and Voting

§ 16-6a-713

15. Article V, Section 5.1, General Powers § 16-6a-302

16. Article V, Section 5.4, Number of Directors § 16-6a-803

17. Article V, Section 5.5, Term of Office & Elections § 16 -6a-805

18. Article V, Section 5.7, Removal of Directors § 16-6a-808

19. Article V, Section 5.8, Resignation of Directors § 16-6a-807

20. Article V, Section 5.9, Vacancies in Board of Directors § 16-6a-810

21. Article V, Section 5.11, General Provisions Applicable to

Committees

§ 16-6a-817

22. Article VI, Section 6.1, Place of Directors Meetings § 16-6a-812

23. Article VI, Section 6.3, Other Regular Meetings § 57-8-57

24. Article VI, Section 6.4, Special Meetings of Directors § 57-8-57

25. Article VI, Section 6.5, Open Meetings/Members Right to

Participate

§ 57-8-57

26. Article VI, Section 6.6, Closed Meetings § 57-8-57

27. Article VI, Section 6.7, Notice to Directors of Board Meetings § 16-6a-814

28. Article VI, Section 6.8, Notice to Members of Board Meetings § 57-8-57

29. Article VI, Section 6.9, Proxies § 16-6a-816

30. Article VI, Section 6.10, Telecommunications § 16-6a-812

31. Article VI, Section 6.11, Quorum of Directors § 16-6a-816

32. Article VI, Section 6.13, Vote Required at Directors’ Meeting § 16-6a-816

33. Article VI, Section 6.15, Waiver of Notice § 16-6a-815

34. Article VI, Section 6.16, Dissent or Abstention § 16-6a-816

35. Article VI, Section 6.17, Action of Directors without a Meeting. § 16-6a-813

36. Article VII, Section 7.2, Appointment and Term of Office of

Officers

§ 16-6a-818

37. Article VII, Section 7.3, Resignation & Removal of Officers § 16-6a-820

38. Article VII, Section 7.4, Vacancies in Officers § 16-6a-820

39. Article VIII, Section 8.1, Right of Indemnification § 16-6a-903

40. Article VIII, Section 8.2, Authority to Insure § 16-6a-902

41. Throughout the Bylaws changed “Committee Member” to

“Director”

§ 16-6a-102

By-Laws – Table of Changes

Canyon Road Towers

Page 2

BOARD RECOMMENDED CHANGES TO BY-LAWS

CHANGE REASON

1. Article V, Section 5.2, Special Powers & Duties of

Board.

See CC&Rs.

2. Article V, Section 5.3, Qualification of Directors. Requires Unit occupancy 75% of the year.

3. Article V, Section 5.6, Nominating Committee. To streamline the Board nomination

process.

4. Article V, Section 5.7.2, Removal of Directors. To encourage active participation by

Board Members.

5. Article V, Section 5.10, Appointment of Committees. To allow for the appointment of

committees.

6. Article V, Section 5.12, Expenditure Policy. Limits the amount of money each

individual Board Member can spend on

behalf of the Association without prior

approval.

7. Article VI, Section 6.2, Annual Meeting of Directors. To set limits on extensions of annual

meetings.

8. Article VI, Section 6.6, Closed Meetings ¶ 2 Attorney Recommended for clarity.

9. Article VI, Section 6.12, Adjournment of Directors’

Meeting.

To allow for adjournments of Directors’

meetings.

10. Article VII, Section 7.1, Officers, Employees, and

Agents.

To allow flexibility in appointment of the

secretary and treasurer.

11. Article VII, Section 7.10, Special Appointments. Allow special appointments as necessary.

12. Article VII, Section 7.13, Accounting. Modifications to audit requirements.

13. Article IX, Section 9.10 through 9.20. Attorney Recommended.

14. Article X, Notice and Hearing Procedure. Attorney Recommended.

15. Article IX, Section 9.20, Interpretation Attorney Recommended

Exhibit D

18-08-28 OUT 4 Amd & Rest By-Laws (v5 18-11-15) Clean CR GDU 1147.001 hb

Recorded at the request of:

Canyon Road Towers

Owners Association

After recording mail to:

Jenkins Bagley, PLLC




Record against the property

described in Exhibit A

AMENDED AND RESTATED BY-LAWS

OF

CANYON ROAD TOWERS

A CONDOMINIUM PROJECT

Prepared by:




Amended & Restated By-Laws Canyon Road Towers

Page 1

AMENDED AND RESTATED BY-LAWS

OF

CANYON ROAD TOWERS

A CONDOMINIUM PROJECT

ARTICLE I - GENERAL

1.1 Purpose of By-Laws.

These Amended and Restated By-Laws (“By-Laws”) of the Association are adopted upon

the affirmative vote or approval and consent of not less than two-thirds (2/3) of the undivided

interest in the Common Areas and Facilities for the regulation and management of the affairs of

Canyon Road Towers Owners Association, a Utah nonprofit corporation (the “Association” or the

“Association of Unit Owners”), organized to be the association to which reference is made in the

Amended and Restated Declaration of Condominium of Canyon Road Towers, a Condominium

Project recorded contemporaneously herewith in the official records of the Salt Lake County

Recorder, State of Utah, as amended or supplemented from time to time (the “Declaration”), to

perform the functions as provided in the Declaration and to further the interests of Owners of Units

within the Property.

1.2 Terms Defined in Declaration.

Unless otherwise specifically provided herein, capitalized terms in these By-Laws shall

have the same meaning as given to such terms in the Declaration. Additionally, references in the

Condominium Act (defined below), the Declaration or other governing document of the

Association to the “Management Committee” are synonymous with the terms “Board,” “Board of

Directors,” or “Directors” as used herein.

1.3 Controlling Laws and Instruments.

These By-Laws are controlled by and shall always be consistent with the provisions of the

Utah Revised Nonprofit Corporation Act (Utah Code 16-6a-101, et seq.) (“Nonprofit Act”) and

the Condominium Ownership Act (Utah Code 57-8-1, et seq.) (“Condominium Act”) (collectively

the “Acts”), the Declaration, and the Articles of Incorporation of the Association (“Articles”) filed

with the Division of Corporations and Commercial Code of the Utah Department of Commerce

(the “Division”), as any of the foregoing may be amended from time to time.

1.4 Application.

All present or future owners, tenants, or any other persons who might use the facilities of

Canyon Road Towers in any manner are subject to the regulations set forth in these By-Laws. The

mere acquisition or rental of any of the Units or parts thereof, or the mere act of occupancy or use

of any of said Units or parts thereof or the Common Areas and Facilities will signify that these By-

Laws are accepted, ratified, and will be complied with by said persons.


Page 2

ARTICLE II - OFFICES

2.1 Principal Office.

The principal office of the Association shall be at the address identified in the Association’s

latest annual report filed with the Division. The Board in its discretion, may change from time to

time the location of the principal office. (A member of the Board shall hereinafter be referred to

as a “Director.”)

2.2 Registered Office and Agent.

The Acts require that the Association have and continuously maintain in the State of Utah

a registered office and a registered agent. The registered agent must be an individual who resides

in the State of Utah and whose business office is identical with the registered office. The initial

registered office and the initial registered agent are specified in the Articles and may be changed

by the Association at any time, without amendment to the Articles, by filing a statement as

specified by law with the Division.

ARTICLE III - MEMBERS

3.1 Members.

A “Member” is the person or, if more than one (1), all persons collectively, who constitute

the Owner of a Unit within the Property.

3.2 Memberships Appurtenant.

Each membership shall be appurtenant to the fee simple title to a Unit. The person or

persons who constitute the owner of fee simple title to a Unit shall automatically be the holder of

the membership appurtenant to that Unit and the membership shall automatically pass with fee

simple title to the Unit.

3.3 Members’ Voting Rights.

The vote attributable to and exercisable in connection with a Unit shall be the percentage

of undivided ownership interest in the Common Areas and Facilities which is appurtenant to such

Unit as provided for in the Declaration, including the exhibits and attachments thereto.

3.4 Voting by Joint Owners.

In the event there is more than one Owner of a particular Unit, the vote relating to such

Unit shall be exercised as such Owners may determine among themselves. A vote cast at any

meeting by any of such Owners shall be conclusively presumed to be the vote attributable to the

Unit concerned unless an objection is immediately made by another Owner of the same Unit. In


Page 3

the event such an objection is made, the vote involved shall not be counted for any purpose

whatsoever other than to determine whether a quorum exists.

3.5 Resolution of Voting Disputes.

In the event of any dispute as to the entitlement of any Member to vote or as to the results

of any vote of Members at a meeting, the Board shall act as arbitrators and the decision of a

disinterested majority of the Board shall, when rendered in writing, be final and binding as an

arbitration award and may be acted upon in accordance with Utah law.

3.6. Transfer of Memberships on Association Books.

Transfer of membership shall be made on the books of the Association only upon

presentation of evidence, satisfactory to the Association, of the transfer of ownership of the Unit

to which the membership is appurtenant. Prior to presentation of such evidence, the Association

may treat the previous Owner of the membership as the Owner of the membership entitled to all

rights in connection therewith, including the right to vote and to receive notice.

3.7 Assignment of Voting Rights to Tenants and Mortgagees.

A Member may assign the Member’s right to vote to a tenant occupying the Member’s

Unit or to a mortgagee of the Member’s Unit for the term of the lease or the mortgage and any

sale, transfer or conveyance of the Unit shall, unless otherwise provided in the document of sale,

transfer or conveyance, be subject to any such assignment of voting rights to any tenant or

mortgagee. Any such assignment of voting rights and any revocation or termination of any

assignment of voting rights shall be in writing and shall be filed with the secretary of the

Association. Any such assignment of voting rights shall be automatically terminated and revoked

upon the sale, transfer, or conveyance of the Unit.

ARTICLE IV - MEETING OF MEMBERS

4.1 Place of Members’ Meetings.

Meetings of the Members shall be held at such place within the State of Utah as the Board

may specify in the notice, except as herein otherwise specified.

4.2 Annual Meetings of Members.

Annual meeting of the Members shall be held at the Project on the first Tuesday in

October. Thereafter, the annual meetings shall be held on such day of each succeeding year;

provided, however, that whenever such date falls on a legal holiday, the meeting shall be held on

the next succeeding business day, and further provided that the Board may by resolution fix the

date of the annual meeting on such date or at such other place as the Board may deem appropriate;

provided that such date is not more than sixty (60) days from the date of the regularly scheduled


Page 4

annual meeting, unless the Board determines that exceptional circumstances exist for holding the

meeting at a later date.

4.3 Special Meetings of Members.

Special Meetings of the Members may be called by the president or the Board or by

Members holding not less than twenty-five percent (25%) of the total votes of all Members. No

business shall be transacted at a special meeting of Members except as indicated in the notice

thereof. Notice for the Special Meeting shall comply with the requirements of Section 4.5, below.

4.4 Record Date/Members List.

4.4.1. The record date for the purpose of determining Members entitled to notice of, or to

vote at, any meeting of Members or in order to make a determination of such Members for any

other proper purpose for the taking of any other lawful action shall be as set forth in Subsection

4.4.2 below, unless the Board, in advance of sending notice, sets a date by resolution as the record

date for any such determination of Members. Such record date shall not be more than sixty (60)

days prior to the meeting of Members or the event requiring a determination of Members.

4.4.2. Members entitled to notice of a meeting of the Members are the Members of the

Association at the close of business on the business day preceding the day on which notice is

effective, or, if notice is waived, at the close of business on the business day preceding the day on

which the meeting is held. Members entitled to vote at a meeting of the Members are the Members

of the Association on the date of the meeting, and who are otherwise eligible to vote. The record

date for the purpose of determining the Members entitled to exercise any rights in respect of any

other lawful action are Members of the Association at the later of (a) the close of business on the

day on which the Board adopts the resolution relating to the exercise of the right; or (b) the close

of business on the sixtieth (60th) day before the date of the exercise of the right. A record date fixed

under this Section may not be more than seventy (70) days before the meeting or action requiring

a determination of Members occurs. A determination of members entitled to notice of or to vote

at a meeting of Members is effective for any adjournment of the meeting unless the Board fixes a

new date for determining the right to notice or the right to vote.

4.4.3. The Association shall only be required to prepare a list of the names of the Members

as provided for in Section 9.3.3.

4.5 Notice of Members’ Meetings.

Written notice stating the place, day and hour of any meeting shall be given not less than

ten (10) nor more than sixty (60) days before the date of the meeting, plus any time added to

effectuate delivery under Section 9.18. The notice of an annual, regular or special meeting shall

include: (a) the names of any known candidate for Director and shall identify any other matter

which it is known may come before the meeting; (b) potential conflicting interest transactions of

a Director, party related to a Director, or an entity in which the Director is a director or has a

financial interest, if any; (c) notice of any indemnification or advance of expenses to a Director in


Page 5

connection with a legal “proceeding” as defined in the Acts; (d) notice of any amendment to these

By-Laws proposed by the Members and a copy, summary or general statement of the proposed

amendment; (e) notice of a proposed plan of merger; (f) notice of a proposed sale of the properties

by the Association other than in the regular course of activities; (g) notice of a proposed dissolution

of the Association; and (h) any matter a Member intends to raise at the meeting if requested in

writing to do so by a person entitled to call a special meeting and the request is received (receipt

deemed effective as set forth under Section 9.18) by the secretary or president at least ten (10) days

before the Association gives notice of the meeting, plus any time added to effectuate delivery under

Section 9.18. The notice of a special meeting shall state the purpose or purposes for which the

meeting is called.

4.6 Proxies at Meetings.

A Member entitled to vote at a meeting may vote in person, by ballot, or by proxy executed

in writing by the Member or his duly authorized attorney-in-fact and filed with the secretary of the

meeting prior to the time the proxy is exercised.

4.7 Ballots at Meetings.

A written ballot, if delivered by the Association to every Member entitled to vote on the

matter or matters therein as described in Section 4.8 below, may be used in connection with any

annual, regular, or special meeting of Members, thereby allowing Members the choice of either

voting in person, by proxy, or by written ballot delivered by a Member to the Association in lieu

of attendance at such meeting. Any written ballot shall comply with the requirements of Sections

4.8 and 4.8.1 and shall be counted equally with the votes of Members in attendance at any meeting

for every purpose, including satisfaction of a quorum requirement.

4.8 Ballots without a Meeting and Electronic Voting.

The Association may utilize ballots without a meeting to take any action that may be taken

at any annual, regular or special meeting of the Members provided the Association delivers a

written ballot to every member entitled to vote. Any ballot utilized without a meeting shall be valid

only when (a) the time by which all ballots must be received has passed so that a quorum can be

determined and (b) the number of approvals equals or exceeds the number of votes that would be

required to approve the matter at a meeting at which the total number of votes cast was the same

as the number of votes cast by ballot.

4.8.1 All solicitations for votes by written ballot shall: (a) set forth each proposed action,

(b) provide for an opportunity to vote for or against each proposed action, (c) indicate the number

of responses needed to meet the quorum requirements; (d) state the percentage of approvals

necessary to approve each matter other than election of Directors; (e) specify the time by which a

ballot must be received by the Association in order to be counted; and (f) be accompanied by

written information sufficient to permit each person casting the ballot to reach an informed

decision on the matter.


Page 6

4.8.2 Any written ballot shall comply with the requirements in this Section and shall be

counted equally with the votes of Members in attendance (by person or proxy) at any meeting for

every purpose, including satisfaction of a quorum requirement.

4.8.3 Members shall be provided a fair and reasonable amount of time before the day on

which the Association must receive ballots. An amount of time is considered to be fair and

reasonable if (a) Members are given at least fifteen (15) days from the day on which the notice is

mailed, if the notice is mailed by first-class or registered mail; (b) Members are given at least thirty

(30) days from the day on which the notice is mailed, if the notice is mailed by other than first-

class or registered mail; or (c) considering all the circumstances, the amount of time is otherwise

reasonable.

4.8.4 The Association and its members, by adoption of these By-Laws, agree to allow

voting by electronic means. To effectuate electronic voting, ballots may be signed electronically

as provided for in subsection 4.19.

4.9 Revocation of Proxy or Ballot.

A proxy or ballot may be revoked, prior to the time the proxy is exercised or the ballot

counted, by (a) the Member attending the meeting and voting in person, or (b) the Member signing

and delivering to the secretary or other person authorized to tabulate proxy or ballot votes (i) a

writing stating that the appointment of proxy or ballot is revoked, or (ii) a subsequent proxy form

or ballot. A proxy or ballot shall automatically cease upon the conveyance by a Member of the

Unit of the Member and the transfer of the membership on the books of the Association. No proxy

shall be valid after eleven (11) months from the date of its execution unless otherwise provided in

the proxy. The death or incapacity of the Member appointing a proxy or issuing a ballot does not

affect the right of the Association to accept the proxy’s authority or count the ballot unless notice

of the death or incapacity is received by the secretary or other officer or agent authorized to tabulate

votes before the proxy exercises the proxy’s authority or the ballot is counted.

4.10 Written Consents Without a Meeting.

Unless prohibited by the Articles, any action required to be taken or which may be taken

at a meeting of Members may be taken without a meeting and without prior notice, if one (1) or

more written consents, setting forth the action taken, are signed by the members having not less

than the minimum voting power that would be necessary to authorize or take the action at a meeting

at which all Members entitled to vote on the action were present and voted. Directors may not be

elected by written consent, except by unanimous written consent of all Members entitled to vote

for the election of Directors. Any action taken under this Section is not effective unless all written

consents are received within a sixty (60) day period and have not been revoked. A written consent

may be given by electronically transmitted facsimile or other form of communication providing

the Association with a complete copy of the written consent, including a copy of the signature to

the written consent.


Page 7

4.11 Telecommunications.

Any or all of the Members may participate in an annual, regular or special meeting of the

Members by, or the meeting may be conducted through the use of, any means of communication

by which all persons participating in the meeting may hear each other during the meeting. A

member participating in a meeting by a means permitted under this Section is considered to be

present in person at the meeting.

4.12 Quorum at Members’ Meetings.

Except as may be otherwise provided in the Declaration, the Articles, or these By-Laws, at

the meeting of the Members, the Owners of more than fifty (50) percent in the aggregate of interest

in the undivided ownership of the Common Areas and Facilities shall constitute a quorum for any

and all purposes, except where by express provisions a greater vote is required, in which event a

quorum shall be the percentage of interest required for such vote. In the absence of a quorum the

chairman of the meeting may adjourn the meeting from time to time, without notice other than by

announcement at the meeting, until holders of the amount of interest requisite to constitute a

quorum shall attend. At any such adjourned meeting at which a quorum shall be present any

business may be transacted which might have been transacted at the meeting as originally notified.

4.13 Adjournment of Members’ Meetings.

Members present in person or by proxy at any meeting at which a quorum or reduced

quorum, as the case may be, was present may adjourn the meeting from time to time, without

notice other than announcement at the meeting, for a total period or periods not to exceed forty-

five (45) days after the date set for the original meeting. At any adjourned meeting which is held

without notice other than announcement at the meeting, the quorum requirement shall be the same

as the quorum requirement of the meeting so adjourned, and any business may be transacted which

might have been transacted at the adjourned meeting.

4.14 Vote Required at Members’ Meetings.

When a quorum is present at any meeting, the vote of the Members representing more than

fifty (50) percent of the undivided interest present at the meeting either in person or presented by

proxy, shall decide any question of business brought before such meeting, including the election

of the Board, unless the question is one upon which, by express provision of the Declaration or

these By-Laws, a greater vote is required, in which case such express provision shall govern and

control the decision of such question. All votes may be cast either in person or by proxy. All

proxies shall be in writing, and in the case of proxies for the annual meeting, they shall be delivered

to the secretary at least five (5) days prior to said annual meeting. Proxies for special Members’

meetings must be of record with the secretary at least two days prior to said special meeting.


Page 8

4.15 Cumulative Voting Not Permitted.

Cumulative voting by Members in the election of Directors shall not be permitted.

4.16 Order of Business.

Unless otherwise changed by resolution of the Board or the Members, the order of business

at any meeting of Members shall be as follows: (a) roll call to determine the voting power

represented at the meeting; (b) proof of notice of meeting or waiver of notice; (c) election of

Directors, if applicable; (d) report of finances; and (e) any other Association business.

4.17 Expenses of Meetings.

The Association shall bear the expenses of all regular and annual meetings of Members

and of special meetings of Members.

4.18 Waiver of Notice.

A Member may waive any notice required by the Acts or by these By-Laws, whether before

or after the date or time stated in the notice as the date or time when any action will occur or has

occurred. A waiver shall be in writing, signed by the Member entitled to the notice, and delivered

to the Association for inclusion in the minutes; or filing with the corporate records. The delivery

and filing required above may not be conditions of the effectiveness of the waiver. A Member’s

attendance at a meeting (a) waives objection to lack of notice or defective notice of the meeting,

unless the Member at the beginning of the meeting objects to holding the meeting or transacting

business at the meeting because of lack of notice or defective notice, and (b) waives objection to

consideration of a particular matter at the meeting that is not within the purpose or purposes

described in the meeting notice, unless the Member objects to considering the matter when it is

presented.

4.19 Signature of Members.

Except as otherwise provided in the Acts, all votes, consents, written ballots, waivers,

proxy appointments, and proxy or ballot revocations shall be in the name of the Member and signed

by the Member with a designation of the Member’s capacity; i.e., owner, partner, president,

director, member, trustee, conservator, guardian, etc. Pursuant to Utah Code Section 46-4-201 a

signature may not be denied legal effect or enforceability solely because it is in electronic form,

i.e. an electronic signature. As used herein, the term “electronic” means relating to technology

having electrical, digital, magnet, wireless, optical, electromagnetic, or similar capabilities. As

used herein, the term “electronic signature” means an electronic sound, symbol, or process

attached to or logically associated with a ballot and executed or adopted by a person with the intent

to sign the ballot.


Page 9

ARTICLE V - BOARD OF DIRECTORS

5.1 General Powers and Duties of the Board of Directors/Management

Committee.

The Board shall be responsible for the maintenance, control, operation and management of

the Condominium Project in accordance with the provisions of the Act, the declaration under

which the Condominium Project was established and submitted to the provisions of the Act, these

By-Laws and such rules and regulations as the Association of Unit Owners may adopt from time

to time as herein provided, and all agreements and determinations lawfully made and entered into

by the Association of Unit Owners. The Board shall have the duty to manage and supervise the

affairs of the Association and shall have all powers necessary or desirable to permit it to do so.

Without limiting the generality of the foregoing, the Board shall have the power to exercise or

cause to be exercised for the Association all of the powers, rights and authority of the Association

not reserved to Members in the Declaration, the Articles, these By-Laws, or the Acts.

5.2 Special Powers and Duties of the Board of Directors.

Without limiting the foregoing statement of general powers and duties of the Board or the

powers and duties of the Board as set forth in the Declaration, the Board shall be vested with the

following specific powers and duties:

5.2.1 Assessments. The duty to fix and levy from time to time assessments, special

assessments, and all other assessments upon the Members of the Association as provided in the

Declaration; and to enforce the payment of such delinquent assessments as provided in the

Declaration.

5.2.2 Insurance. The duty to contract and pay premiums for fire, casualty, liability and

other insurance in accordance with the provisions of the Declaration.

5.2.3 Common Areas. The duty to manage and care for the Common Areas, and to

employ personnel necessary for the care and operation of the Common Areas, and to contract and

pay for necessary or desirable improvements on property acquired by the Association in

accordance with the Declaration.

5.2.4 Agents and Employees. The power to select, appoint, and remove all officers,

agents, and employees of the Association and to prescribe such powers and duties for them as may

be consistent with law, with the Declaration, the Articles, and these By-Laws.

5.2.5 Borrowing. The power, with the approval of the Members representing at least two-

thirds (2/3) of the voting power of the Association, to borrow money and to incur indebtedness for

the purpose of the Association, and to cause to be executed and delivered therefor, in the

Association’s name, promissory notes, bonds, debentures, mortgages, pledges, hypothecations or

other evidences of debt, and securities therefor.


Page 10

5.2.6 Enforcement. The power to enforce the provisions of the Declaration, the rules and

regulations, these By-Laws, or other agreements of the Association.

5.2.7 Delegation of Powers. The power to delegate its powers according to law.

5.2.8 Rules and Regulations. The Board shall have the power to adopt and establish, by

resolution, such building, management and operational rules and regulations as it may deem

necessary for the maintenance, operation, management and control of the Canyon Road Towers

Condominium Project, and the Board may from time to time, by resolution, alter, amend, and

repeal such rules and regulations. Members shall at all times obey such rules and regulations and

use their best efforts to see that they are faithfully observed by their lessees and the persons over

whom they have or may exercise control or supervision, it being clearly understood that such rules

and regulations shall apply and be binding upon all Members of the Condominium Project.

Provision of the Condominium Act pertaining to rules and regulations are incorporated herein by

reference and shall be deemed a part hereof.

5.2.9 Emergency Powers. The right to exercise such emergency powers as provided for

in the Acts.

5.3 Qualifications of Directors.

A Director must be (i) a natural person eighteen (18) years of age or over ; (ii) an Owner

of a Unit within the Property or, if the Owner of any such Unit is a partnership, corporation, or

limited liability company, must be a designated representative of such partnership, corporation, or

limited liability company; and (iii) the Owner, or designated representative, must occupy the Unit

for seventy-five percent (75%) of the calendar year. If a Director conveys or transfers title to his

Unit, or if a Director who is a designated representative of a partnership, corporation, or limited

liability company ceases to be such designated representative, or if the partnership, corporation, or

limited liability company of which a Director is a designated representative transfers title to its

Unit, such Director’s term as Director shall immediately terminate and a new Director shall be

selected as promptly as possible to take such Director’s place. Any Director no longer qualified to

serve under the standards provided for in this Section 5.3 may be removed by a majority vote of

the Directors then in office.

5.4 Number of Directors.

The number of Directors of the Association is five (5).

5.5 Term of Office of Directors and Elections.

The Board shall be elected as provided in the Declaration.

In an election of multiple Directors, that number of candidates equaling the number of

Directors to be elected, having the highest number of votes cast in favor of their election, are


Page 11

elected to the Board. When only one (1) Director is being voted upon, the candidate having the

highest number of votes cast in his or her favor is elected to the Board.

5.6 Nominating Committee.

Nominations for election to the Board may be made by a nominating committee, if such a

committee is appointed by the Board. Nominations may also be made from the floor at the annual

meeting of the Members. The nominating committee shall consist of a chairman, who shall be a

member of the Board, and two (2) or more Members of the Association. The nominating committee

shall be appointed by the Board prior to each annual meeting of the Members. The nominating

committee shall make as many nominations for election to the Board as it shall in its discretion

determine, but not less than the number of vacancies that are to be filled. Such nominations shall

be made from among the Members. At least sixty (60) days prior to the annual meeting, the

Nominating Committee shall send a notice to the Members seeking proposed nomination for the

Board. The Nominating Committee is not required to include all nominations it receives as

recommendations for filling the vacancies on the Board. Nominations may also be made by

Members from the floor at the annual meeting.

5.7 Removal of Directors.

5.7.1 At any meeting of the Members, the notice of which indicates such purpose,

any or all of the Directors may be removed, with or without cause, by the affirmative vote of

Members holding a majority of the voting interests of all Members; and a successor may be then

and there elected to fill the vacancy thus created.

5.7.2 Any Director may be removed from the Board, by the Board and without

the vote of the members if (i) the Director is absent (not present in person) from three (3)

consecutive Board meetings or (ii) the Director is absent (not present in person) from more than

twenty-five percent (25%) of the Board meetings in any calendar year.

5.8 Resignation of Directors.

Any Director may resign at any time by giving written notice to the president, to the

secretary, or to the Board stating the effective date of such resignation. Acceptance of such

resignation shall not be necessary to make the resignation effective. A Director who resigns may

deliver to the Division a statement setting forth (a) that person’s name; (b) the name of this

Association; (c) information sufficient to identify the report or other document in which the person

is named as a Director or officer; and (d) the date on which the person ceased to be a Director or

officer or a statement that the person did not hold the position for which the person was named in

the corporate report or other document.

5.9 Vacancies in the Board of Directors.

Any vacancy occurring in the Board shall be filled by the affirmative vote of a majority of

the remaining Directors, though less than a quorum of the Board. A Director elected or appointed


Page 12

to fill a vacancy shall be elected or appointed for the unexpired term of his predecessor in office.

A directorship to be filled by reason of an increase in the number of Directors shall be filled only

by vote of the Members. A Director elected by the Board to fill the vacancy of a Director elected

by the voting Members may be removed without cause by the voting Members, but not the Board.

Should any vacancy of the Board remain unfilled for a period of two (2) months, the Members

may, at a special meeting of the Members called for that purpose, elect a Director to fill such

vacancy by a majority of the votes which Members present at such meeting, or represented by

proxy or ballot, are entitled to cast.

5.10 Appointment of Committees.

The Board, by resolution adopted by a majority of the Directors in office, may designate

and appoint one (1) or more committees which shall consist of one (1) or more Directors and

which, unless otherwise provided in such resolution, shall have and may exercise the authority to

make recommendations (but not final decisions) to the Board in the management of the

Association, except authority with respect to those matters specified in the Acts as matters which

such committee may not have and exercise the authority of the Board.

5.11 General Provisions Applicable to Committees.

The designation and appointment of any committee and the delegation thereto of authority

shall not operate to relieve the Board, or any individual Director, of any responsibility imposed

upon it or him by law. The provision of these By-Laws with respect to notice of meeting, waiver

of notice, quorums, adjournments, vote required and action by consent applicable to meetings of

the Board shall be applicable to meetings of committees of the Board.

5.12 Expenditure Policy.

Individual Board members are authorized to spend up to a maximum amount of $500

without obtaining bids for the work or prior Board approval; provided the expenditure was

reasonable and for the benefit of the Association (the “Director Spending Limit”). If such an

expenditure is deemed unreasonable by the majority of the Board, the member making the

unreasonable expenditure will forfeit this authorization. For all other expenditures by the Board,

the following shall apply: (i) for all expenditures under $2,500.00, no bids shall be required; (ii)

for expenditures above $2,500 and below $5,000.00, two bids shall be required; and (iii) for all

expenditures exceeding $5,000, three bids shall be required (the “Board Spending Limit”). The

Board may change the Director Spending Limit and the Board Spending Limit by Rule.

Additionally, the foregoing does not apply in the case of an emergency, as determined by the

Board, and does not apply to vendors selected by the Board for ongoing services after first

obtaining the bids for such services.


Page 13

ARTICLE VI - MEETING OF DIRECTORS

6.1 Place of Directors’ Meetings.

Meetings of the Board shall be held at the principal office of the Association or at such

other place, within or convenient to the Property, as may be fixed by the Board and specified in

the notice of the meeting.

6.2 Annual Meeting of Directors.

The annual meeting of the Board shall be held on the same date as, or within ten (10) days

following, the annual meeting of Members. The Business to be conducted at the annual meeting

of the Board shall consist of the appointment of officers of the Association and the transaction of

such other business as may properly come before the meeting. No prior notice of the annual

meeting of the Board shall be necessary if the meeting is held on the same day and at the same

place as the annual meeting of Members at which the Board is elected or if the time and place of

the annual meeting of the Board is announced at the annual meeting of Members.

6.3 Other Regular Meetings of Directors.

The Board may hold other regular meetings and may, by resolution, establish in advance

the times and places for such regular meetings. The resolution of meeting schedule shall be given

to all Members of the Association at least forty-eight (48) hours (plus any time added to effectuate

delivery under Section 9.18) before the first meeting scheduled. No prior notice of any regular

meeting need be given after establishment of the time and place thereof by such resolution.

6.4 Special Meetings of Directors.

Special Meetings of the Board may be called by the president or any two (2) members of

the Board other than the president. Any special meeting of the Board not regularly scheduled

under Section 6.3, shall require the same notice as Section 6.3. In addition, the Notice shall specify

those matters to be discussed at the special meeting of the Board and only those matters included

in the notice shall be addressed at the special meeting.

6.5 Open Meetings/Member Right to Participate.

Except as provided in Subsection 6.6 and 6.8, a Board meeting, whether in person or by

means of electronic communication, at which the Board can take binding action shall be open to

each Member or the Member’s representative if the representative is designated in writing. At each

meeting, the Board shall provide each Member a reasonable opportunity to offer comments. The

Board may limit the comments to one specific time period during the meeting. A Director may not

avoid or obstruct the requirements of this Section. However, nothing in this section shall affect the

validity or enforceability of an action of a Board.


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6.6 Closed Meetings.

The Board may close a meeting to: (a) consult with an attorney for the purpose of obtaining

legal advice; (b) discuss ongoing or potential litigation, mediation, arbitration, or administrative

proceedings; (c) discuss a personnel matter; (d) discuss a matter relating to contract negotiations,

including review of a bid or proposal; (e) discuss a matter that involves an individual if the

discussion is likely to cause the individual undue embarrassment or violate the individual’s

reasonable expectation of privacy; or (f) discuss a delinquent assessment or fine.

If after a vote of the majority of all other Directors, it is determined that a Director has not

maintained the confidentiality of any matter covered in the previous paragraph that is addressed at

a closed meeting (“Confidential Matter”), the non-offending Directors may take one of the two

following steps: (1) exclude the offending Director from any closed meetings at which that matter

is addressed, or (2) create a committee to address the Confidential Matter and exclude the

offending Director from that committee.

6.7 Notice to Directors of Board Meetings.

In the case of all meetings of the Board for which notice is required by these By-Laws,

notice stating the place, day and hour of the meeting shall be given not less than two (2) nor more

than thirty (30) days before the date of the meeting (plus any time added to effectuate delivery

under Section 9.18), by mail, fax, electronic means, telephone or personally, by or at the direction

of the persons calling the meeting, to each member of the Board. If by telephone such notice shall

be deemed to be effective when given by telephone to the Director. If given personally, such notice

shall be deemed effective upon delivery of a copy of a written notice to, or upon verbally advising,

the Director or some person who appears competent and mature at his home or business address

as either appears on the records of the Association.

Neither the business to be transacted at, nor the purpose of, any regular or special meeting

of the Board need be specified in the notice to the Director or waiver of such meeting.

6.8 Notice to Members of Board Meetings.

At least forty-eight (48) hours before an open Board meeting (plus any time added to

effectuate delivery under Section 9.18), the Association shall give written notice of the meeting

via email to each Member who requests notice of a meeting, unless: (a) notice of the meeting is

included in a meeting schedule that was previously provided to the Member; or (b) the meeting is

to address an emergency and each Director receives notice (receipt deemed effective as set forth

under Section 9.18) of the meeting less than forty-eight (48) hours before the meeting. The notice

to the Members shall: (a) be delivered to the Member by email, to the email address that the

Member provides to the Board or the Association (or via mail if requested in writing by the

Member); (b) state the time and date of the meeting; (c) state the location of the meeting; and (d)

if a Director may participate by means of electronic communication, provide the information

necessary to allow the member to participate by the available means of electronic communication.


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6.9 Proxies.

For purposes of determining a quorum with respect to a particular proposal, and for

purposes of casting a vote for or against a particular proposal, a Director may be considered to be

present at a meeting and to vote if the Director has granted a signed written proxy: (a) to another

Director who is present at the meeting; and (b) authorizing the other Director to cast the vote that

is directed to be cast by the written proxy with respect to the particular proposal that is described

with reasonable specificity in the proxy. Except as provided in this Section 6.9 and as permitted

by Section 6.16, Directors may not vote or otherwise act by proxy.

6.10 Telecommunications.

The Board may permit any Director to participate in a regular or special meeting of the

Board by, or conduct the meeting through the use of, any means of communication by which all

Directors participating may hear each other during the meeting. A Director so participating in such

a meeting is considered to be present in person at the meeting.

6.11 Quorum of Directors.

A majority of the number of Directors fixed in these By-Laws shall constitute a quorum

for the transaction of business. For the purpose of determining the presence of a quorum, Directors

will be counted if represented in person or by proxy, if applicable.

6.12 Adjournment of Directors’ Meeting.

Directors present at any meeting of the Board may adjourn the meeting from time to time,

whether or not a quorum shall be present, without notice other than announcement at the meeting,

for a total period or periods not to exceed thirty (30) days after the date set for the original meeting.

At any adjourned meeting which is held without notice other than announcement at the meeting,

the quorum requirement shall not be reduced or changed, but if the originally required quorum is

present, any business may be transacted which might have been transacted at the meeting as

originally called.

6.13 Vote Required at Directors’ Meeting.

At any meeting of the Board, if a quorum is present, a majority of the votes present in

person or by proxy, if applicable, and entitled to be cast on a matter shall be necessary for the

adoption of the matter, unless a greater proportion is required by law, the Declaration, the Articles,

or these By-Laws.

6.14 Officers at Meetings.

The president shall act as chairman and the Board shall appoint a secretary to act at all

meetings of the Board.


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6.15 Waiver of Notice.

A waiver of notice of any meeting of the Board, signed by a Director, whether before or

after the meeting, shall be equivalent to the giving of notice of the meeting to such Director.

Attendance of a Director at a meeting in person shall constitute waiver of notice of such meeting

unless (a) at the beginning of the meeting or promptly upon the Director’s later arrival the Director

objects to holding the meeting or transacting business at the meeting because of lack of notice or

defective notice and, after objecting, the Director does not vote for or assent to action taken at the

meeting, or (b) the Director contemporaneously requests that the Director’s dissent or abstention

as to any specific action taken be entered in the minutes of the meeting; or (c) the Director causes

written notice of the Director’s dissent or abstention as to any specific action to be received by (i)

the presiding officer of the meeting before adjournment of the meeting; or (ii) the Association

promptly after adjournment of the meeting.

6.16 Dissent or Abstention.

The right of dissent or abstention pursuant to Section 6.15 is not available to a Director

who votes in favor of the action taken.

6.17 Action of Directors Without a Meeting.

6.17.1 By Written Consent. Any action required or permitted by the Nonprofit Act,

Declaration, Articles or these By-Laws, that may be taken at a Board meeting may be taken without

a meeting if all Directors consent to the action in writing. Action is taken under Subsection 6.17.1

at the time the last Director signs a writing describing the action taken, unless, before that time,

any Director revokes a consent by a writing signed by the Director and received by the secretary

or any other person authorized by these By-Laws or the Board to receive the revocation. Action

under this Subsection 6.17.1 is effective at the time it is taken, unless the Board establishes a

different effective date.

6.17.2 With Advance Notice. Any action required or permitted by the Nonprofit Act,

Declaration, Articles or these By-Laws that may be taken at a Board meeting may be taken without

a meeting if notice is transmitted in writing to each Director and each Director, by the time stated

in the notice: (a) (i) signs a writing for such action; or (ii) signs a writing against such action,

abstains in writing from voting, or fails to respond or vote; and (b) fails to demand in writing that

action not be taken without a meeting.

The notice required by Subsection 6.17.2 shall state: (a) the action to be taken; (b) the time

by which a Director must respond to the notice; (c) that failure to respond by the time stated in the

notice will have the same effect as: (i) abstaining in writing by the time stated in the notice; and

(ii) failing to demand in writing by the time stated in the notice that action not be taken without a

meeting; and (d) any other matters the Association determines to include.

Action is taken under this Subsection 6.17.2 only if at the end of the time stated in the

notice: (a) the affirmative votes in writing for the action received by the Association and not


Page 17

revoked pursuant to this Subsection equal or exceed the minimum number of votes that would be

necessary to take such action at a meeting at which all of the Directors then in office were present

and voted; and (b) the Association has not received a written demand by a Director that the action

not be taken without a meeting other than a demand that has been revoked pursuant to this

Subsection.

A Director’s right to demand that action not be taken without a meeting shall be considered

to have been waived unless the Association receives such demand from the Director in writing by

the time stated in the notice transmitted pursuant to this Subsection and the demand has not been

revoked.

A Director who in writing has voted, abstained, or demanded action not be taken without

a meeting pursuant to this Subsection 6.17.2 may revoke the vote, abstention, or demand in writing

received by the Association by the time stated in the notice transmitted.

Unless the notice transmitted pursuant to Subsection 16.17.2 states a different effective

date, action taken pursuant to this Subsection is effective at the end of the time stated in the notice.

6.17.3 General Provisions. A communication under this Section 6.17 may be delivered by

an electronic transmission. An electronic transmission communicating a vote, abstention, demand,

or revocation under Subsection 6.17.2 is considered to be written, signed, and dated for purposes

of this section if the electronic transmission is delivered with information from which the

Association can determine: (a) that the electronic transmission is transmitted by the Director; and

(b) the date on which the electronic transmission is transmitted. The date on which an electronic

transmission is transmitted is considered the date on which the vote, abstention, demand, or

revocation is signed. For purposes of this Section 6.17, communications to the Association are not

effective until received. Action taken pursuant to this Section 6.17 has the same effect as action

taken at a meeting of Directors and may be described as an action taken at a meeting of Directors

in any document.

ARTICLE VII - OFFICERS

7.1 Officers, Employees and Agents.

The officers of the Association shall be natural persons 18 years of age or over and shall

consist of a president, a secretary, a treasurer, and such other officers, assistant officers, employees,

and agents as may be deemed necessary by the Board. Officers other than the secretary and

treasurer must be Directors. The same person may simultaneously hold more than one office.

7.2 Appointment and Term of Office of Officers.

The officers shall be appointed by the Board at the annual meeting of the Board and shall

hold office, subject to the pleasure of the Board, until the next annual meeting of the Board or until

their successors are appointed, whichever is later, unless the officer resigns, or is removed earlier.


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7.3 Resignation and Removal of Officers.

An officer may resign at any time by giving written notice of resignation to the Association.

A resignation of an officer is effective when the notice is received by the Association unless the

notice specifies a later effective date. If a resignation is made effective at a later date, the Board

may: (a) (i) permit the officer to remain in office until the effective date; and (ii) fill the pending

vacancy before the effective date if the successor does not take office until the effective date; or

(b) (i) remove the officer at any time before the effective date; and (ii) fill the vacancy created by

the removal. The Board may remove any officer at any time with or without cause. An officer who

resigns, is removed, or whose appointment has expired may file a statement in the same form as

provided in Section 5.8.

7.4 Vacancies in Officers.

Any vacancy occurring in any position as an officer may be filled by the Board. An officer

appointed to fill a vacancy shall be appointed for the unexpired term of his predecessor in office.

7.5 President.

The president shall be the chief executive of the Board and shall exercise general

supervision over its property and affairs. He shall sign on behalf of the Condominium Project all

conveyances, mortgages and contracts of material importance to its business, and shall do and

perform all acts and things which the Board may require of him. He shall preside at all meetings

of the Members and the Board. He shall have all of the general powers and duties which are

normally vested in the office of the president of a corporation, including, but no limited to, the

power to appoint committees from among the members (or otherwise) from time to time as he may

in his discretion decide is appropriate to assist in the conduct of the affairs of the Condominium

Project..

7.6 Vice President.

The vice president shall take the place of the president and perform his duties whenever

the president shall be absent or unable to act. If neither the president nor the vice president is able

to act, the Board shall appoint some other member thereof to do so on an interim basis. The vice

president shall also perform such other duties as shall from time to time be prescribed by the Board.

7.7 Secretary.

The secretary shall keep the minutes of all meetings of the Board and of the Members; he

shall have charge of the books and papers as the Board may direct; and he shall in general, perform

all the duties incident to the office of secretary.

7.8 Treasurer.


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The treasurer shall have the responsibility for the funds and securities of the Board and

shall be responsible for keeping full and accurate accounts of all receipts of all disbursements in

books belonging to the Board. He shall be responsible for the deposit of all monies and all other

valuable effects in the name, and to the credit of, the Board in such depositaries as may from time

to time be designated by the Board.

7.9 Bonds.

The Association may pay for fidelity bonds covering officers or other persons handling

funds of the Association as provided for in the Declaration. The Association shall pay the

premiums for any such bonds acquired.

7.10 Special Appointments.

The Board may elect such other officers as the affairs of the Association may require,

each of whom shall hold office for such period, have such authority, and perform such duties as

the Board may, from time to time, determine.

7.12 Compensation.

No compensation shall be paid to the officers for their services as officers. No

remuneration shall be paid to an officer for services performed by him for the Board in any other

capacity, unless a resolution authorizing such remuneration shall have been unanimously adopted

by the Board before the services are undertaken.

7.13 Accounting.

7.13.1. Books and Accounts. The books and accounts of the Board shall be kept under the

direction of the treasurer and in accordance with generally accepted accounting principles

(“GAAP”).

7.13.2. Report. At the close of each accounting year, the books and records of the Board

shall be reviewed in accordance with the American Institute of Certified Public Accountants’

Statement of Standards for Accounting Review Services. Report of such review shall be prepared

and submitted to the Members at or before the annual meeting of the Members. Provided,

however, that (i) the Board or the Members upon a petition of at least sixty-seven percent (67%)

of the undivided interest in the Common Areas and Facilities determine to require the same, can

require a certified audit by a certified public accountant.

ARTICLE VIII - INDEMNIFICATION OF OFFICIALS AND AGENTS

8.1 Right of Indemnification.

The Association shall indemnify any Director, officer, employee, fiduciary and agent

(including without limitation the property manager) to the fullest extent allowed the Acts, or any

replacement Sections thereof.


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8.2 Authority to Insure.

The Association may purchase and maintain liability insurance on behalf of any Director,

officer, employee, fiduciary, and agent against any liability asserted against him and incurred by

him in such capacity or arising out of his status as such, including liabilities for which he might

not be entitled to indemnification hereunder.

ARTICLE IX - MISCELLANEOUS

9.1 Amendment/Conflict.

These By-Laws may be altered or amended in the same manner and subject to the same

conditions as apply with respect to amendment of the Declaration. In the case of any conflict

between the Articles and these By-Laws, the Articles shall control; and in the case of any conflict

between the Declaration and these By-Laws, the Declaration shall control.

9.2 Compensation of Officers, Directors and Members.

No Director shall have the right to receive any compensation from the Association for

serving as a Director except for reimbursement of expenses as may be approved by resolution of

disinterested members of the Board and except as may otherwise be approved by the Members.

Officers, agents and employees shall receive such reasonable compensation as may be approved

by the Board. Appointment of a person as an officer, agent or employee shall not, of itself, create

any right to compensation.

9.3 Books and Records.

9.3.1 The Association shall keep as permanent records: (a) minutes of all meetings of its

Members and Board; (b) a record of all actions taken by the Members or Board without a meeting;

(c) a record of all actions taken by a committee of the Board in place of the Board on behalf of the

Association; (d) a record of all waivers of notices of meetings of Members and of the Board or any

committee of the Board; and (e) a copy of the Declaration, as the same may be amended.

9.3.2 The Association shall maintain appropriate accounting records.

9.3.3 The Association or its agent shall maintain a record of its Members in a form that

permits preparation of a list of the name and address of all Members: (a) in alphabetical order, by

class, and (b) showing the number of votes each Member is entitled to vote.

9.3.4 The Association shall maintain its records in written form or in another form

capable of conversion into written form within a reasonable time.

9.3.5 The Association shall keep a copy of each of the following records at its principal

office: (a) Declaration; (b) Articles; (c) By-Laws; (d) resolutions adopted by its Board relating to


Page 21

the characteristics, qualifications, rights, limitations, and obligations of Members or any class or

category of Members; (e) the minutes of all Member meetings; (f) records of all actions taken by

Members without a meeting; (g) all written communications to Members generally as Members

for a period of three (3) years; (h) a list of the names and business or home addresses of its current

Directors and officers; (i) a copy of its most recent annual report; and (j) all financial statements

prepared for periods ending during the last three (3) years.

9.3.6 If the Association has an active website, the Association shall make the documents

described in Subsection 9.3.5 available to all Members, free of charge, through the website; or, if

the Association does not have an active website, make physical copies of the documents described

in Subsection 9.3.5 available to Members during regular business hours at the Association’s

address registered with the Department of Commerce.

9.4 Inspection of Records.

9.4.1 A Director or Member is entitled to inspect and copy any of the records of the

Association described in Subsection 9.3.5: (a) during regular business hours; (b) at the

Association’s principal office; and (c) if the Director or Member gives the Association written

demand, at least five (5) business days before the date on which the Member wishes to inspect and

copy the records.

9.4.2 In addition to the rights set forth in Subsection 9.4.1, a Director or Member is

entitled to inspect and copy any of the other records of the Association: (a) during regular business

hours; (b) at a reasonable location specified by the Association; and (c) at least five (5) business

days before the date on which the Member wishes to inspect and copy the records, if the Director

or Member: (i) meets the requirements of Subsection 9.4.3; and (ii) gives the Association written

demand.

9.4.3 A Director or Member may inspect and copy the records described in Subsection

9.4.2 only if: (a) the demand is made: (i) in good faith; and (ii) for a proper purpose; (b) the Director

or Member describes with reasonable particularity the purpose and the records the Director or

Member desires to inspect; and (c) the records are directly connected with the described purpose.

9.4.4 Notwithstanding any other provision in these By-Laws, for purposes of this

Section: (a) “Member” includes: (i) a beneficial owner whose membership interest is held in a

voting trust; and (ii) any other beneficial owner of a membership interest who establishes

beneficial ownership; and (b) “proper purpose” means a purpose reasonably related to the

demanding Member’s or Director’s interest as a Member or Director.

9.4.5 The right of inspection granted by this Section may not be abolished or limited by

the Articles or these By-Laws.

9.4.6 This Section does not affect: (a) the right of a Director or Member to inspect records

relating to ballots; (b) the right of a Member to inspect records to the same extent as any other


Page 22

litigant if the Member is in litigation with the Association; or (c) the power of a court, independent

of this Article IX, to compel the production of corporate records for examination.

9.4.7 A Director or Member may not use any information obtained through the inspection

or copying of records permitted by 9.4.2 for any purposes other than those set forth in the demand

made under 9.4.3.

9.4.8 The Association may redact the following information from any document the

Association produces for inspection or copying (a) a Social Security number; (b) a bank account

number; or (c) any communication subject to attorney-client privilege.

9.4.9

(a) In a written request to inspect or copy documents, a Member shall include:

i. the Association’s name;

ii. the Member’s name;

iii. the Member’s property address;

iv. the Member’s email address;

v. a description of the documents requested; and

vi. any election or request described in Subsection (b).

(b) In a written request to inspect or copy documents, a Member may:

(a) elect whether to inspect or copy the documents;

(b) if the Member elects to copy the documents, request hard copies or

electronic scans of the documents; or

(c) subject to Subsection 9.4.10, request that:

(i) the Association make the copies or electronic scans of the

requested documents;

(ii) a recognized third-party duplicating service make the copies

or electronic scans of the requested documents;

(iii) the Member be allowed to bring any necessary imaging

equipment to the place of inspection and make copies or electronic

scans of the documents while inspecting the documents; or

(iv) the Association email the requested documents to an email

address provided in the request.

9.4.10 If the Association produces the copies or electronic scans, the copies or electronic

scans shall be legible and accurate and the Member shall pay the Association the reasonable cost

of the copies or electronic scans and for the time spent meeting with the Member, which may not

exceed: (a) the actual cost that the Association paid to a recognized third-party duplicating service

to make the copies or electronic scans; or (b) if an employee, manager, or other agent of the

Association makes the copies or electronic scans, ten cents ($.10) per page and fifteen dollars

($15.00) per hour for the employee’s, manager’s, or other agent’s time making the copies or

electronic scans.


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9.4.11 If a Member requests a recognized third-party duplicating service make the copies

or electronic scans the Association shall arrange for the delivery and pick up of the original

documents; and the Member shall pay the duplicating service directly. If a Member requests to

bring imaging equipment to the inspection, the Association shall provide the necessary space, light,

and power for the imaging equipment.

9.4.12 Subject to Subsection 9.4.13, if in response to a Members request to inspect or copy

documents, the Association fails to comply with a provision of this section, the Association shall

pay:

(a) the reasonable costs of inspecting and copying the requested documents;

(b) for items described Subsection 9.3.6, twenty-five dollars ($25.00) to the Member who

made the request for each day the request continues unfulfilled, beginning the sixth (6th)

day after the day on which the Member made the request; and

(c) reasonable attorney fees and costs incurred by the Member in obtaining the inspection

and copies of the requested documents.

9.4.13 The Association is not liable for identifying or providing a document in error, if the

Association identified or provided the erroneous document in good faith.

9.5 Scope of Inspection Right.

A Director or Member’s agent or attorney has the same inspection and copying rights as

the Director or Member. The right to copy records under Section 9.4 includes, if reasonable, the

right to receive copies made by photographic, xerographic, electronic, or other means. The

Association may comply with a Director’s or Member’s demand to inspect the record of Members

under Subsection 9.3.3 by furnishing to the Director or Member a list of Directors or Members

that: (a) complies with Subsection 9.3.3; and (b) is compiled no earlier than the date of the

Director’s or Member’s demand. Concerning financial statements, by no later than fifteen (15)

days after the day on which the Association receives a written request of any Member (receipt by

the Association deemed effective as set forth under Section 9.18), the Association shall mail to the

Member the following that show in reasonable detail the assets and liabilities and results of the

operations of the Association: (a) the Association’s most recent annual financial statements, if any;

and (b) the Association’s most recently published financial statements, if any. Without consent of

the Board, a membership list or any part thereof may not be obtained or used by any person for

any purpose unrelated to a Member’s interest as a Member.

9.6 Annual Report.

The Board shall cause to be prepared and distributed to each Member, and any first

mortgagee of a Member who has filed a written request therefor, not later than ninety (90) days

after the close of each fiscal year of the Association, an annual report containing (a) an income

statement reflecting income and expenditures of the Association for such fiscal year; (b) a balance

sheet as of the end of such fiscal year; (c) a statement of changes in financial position for such

fiscal year; and (d) a statement of the place of the principal office of the Association where the

books and records of the Association, including a list of names and addresses of current Members,


Page 24

may be found. The Board shall also annually distribute to the Members a summary of the latest

reserve analysis or update and a full copy to any Member making such request.

9.7 Statement of Account.

Upon payment of a reasonable fee to be determined by the Association and upon written

request of an Owner of a Unit or any person with any right, title or interest in a Unit or intending

to acquire any right, title or interest in a Unit, the Association shall give, within ten (10) days after

the receipt of such request (receipt by the Association deemed effective as set forth under Section

9.18), a written statement of account setting forth the amount of unpaid assessments, or other

amounts, if any, due or accrued and then unpaid with respect to the Unit, and the amount of the

assessments for the current fiscal period of the Association payable with respect to the Unit. Such

statement shall, with respect to the party to whom it is issued, be conclusive against the Association

and all parties, for all purposes, that no greater or other amounts were then due or accrued and

unpaid and that no other assessments have been levied.

9.8 Annual Corporation Reports.

The Association shall file with the Division, within the time prescribed by law, annual

corporate reports in such form and containing the information required by law and shall pay the

fee for such filing as prescribed by law.

9.9 Fiscal Year.

The fiscal year of the Association shall be the calendar year and shall begin on January 1

and end the succeeding December 31. The fiscal year may be changed by the Board without

amending these By-Laws.

9.10 Seal.

The Board may adopt a seal which shall have inscribed thereon the name of the Association

and the words “SEAL” and “UTAH”.

9.11 Shares of Stock and Dividends Prohibited.

The Association shall not have, or issue shares of stock and no dividends shall be paid, and

no part of the income or profit of the Association shall be distributed to its Members, Directors or

officers. Notwithstanding the foregoing, the Association may issue certificates evidencing

membership therein, may confer benefits upon its Members in conformity with its purposes and,

upon dissolution or final liquidation, may make distributions as permitted by law, and no such

payment, benefit or distribution shall be deemed to be a dividend or distribution of income or

profit.

9.12 Loans to Directors, Officers, and Members Prohibited.


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No loan shall be made by the Association to its Members, Directors or officers, and any

Director, officer or Member who assents to or participates in the making of any such loan shall be

liable to the Association for the amount of such loan until the repayment thereof.

9.13 Limited Liability.

The Association, the Board, the Architectural Control Committee, and any agent or

employee of the Association, the Board, or the Architectural Control Committee, shall not be liable

to any person for any actions or for any failure to act in connection with the affairs of the

Association if the action taken or failure to act was in good faith and without malice.

9.14 Minutes and Presumptions Thereunder.

Minutes or any similar record of the meetings of Members or of the Board, when signed

by the secretary or acting secretary of the meeting, shall be presumed to truthfully evidence the

matters set forth therein. A recitation in any such minutes that notice of the meeting was properly

given shall be prima facie evidence that the notice was given.

9.15 Checks, Drafts, and Documents.

All checks, drafts or other orders for payment of money, notes or other evidences of

indebtedness, issued in the name of or payable to the Association, shall be signed or endorsed by

such person or persons, and in such manner as, from time to time, shall be determined by resolution

of the Board.

9.16 Execution of Documents.

The Board, except as these By-Laws otherwise provide, may authorize any

officer or officers, agent or agents, to enter into any contract or execute any instrument in the name

of and on behalf of the Association, and such authority may be general or confined to specific

instances; and unless so authorized by the Board, no officer, agent or employee shall have any

power or authority to bind the Association by any contract or engagement or to pledge its credit or

to render it liable for any purpose or in any amount.

9.17 Right to Inspect.

Notwithstanding the other provisions of this Article, unless otherwise provided in these

By-Laws, a right of a Member to inspect or receive information from the Association applies only

to a voting Member of the Association.

9.18 Manner of Giving Notice.

Notwithstanding any other provision in the Declaration, Articles, By-Laws or rules and

regulations, the Association may provide notice to Members by electronic means, including text

message, email, or the Association’s website, except that a Member may, by written demand,


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require the Association provide notice to that Member by mail. Any notice required to be given

will be deemed received and effective upon the earlier to occur of the following:

(a) when sent by facsimile, the notice is deemed effective when the sender receives a

facsimile acknowledgment confirming delivery of the facsimile;

(b) when placed into the care and custody of the United States Postal Service, first-class

mail, and addressed to the most recent address of the recipient according to the records of the

Association, the notice is deemed effective at the earliest of the following: (a) when received; (b)

six (6) days after it is mailed; or (c) on the date shown on the return receipt if sent by registered or

certified mail, sent return receipt requested, and the receipt is signed by or on behalf of the

addressee;

(c) when sent via electronic means such as an e-mail, text message or similar electronic

communication, the notice is deemed effective within twenty-four (24) hours of being sent and a

rejection or undeliverable notice is not received by the sender;

(d) when posted on the Association’s website, the notice is deemed effective seventy-two

(72) hours after it was posted;

(e) when hand delivered, the notice is deemed effective immediately upon delivery; or

(f) when delivered by other means, the notice is deemed effective upon such circumstances

and conditions as are reasonably calculated to give notice to the Member.

9.19 Severability.

Invalidation of any provision of the Governing Documents by judgment or court order shall

in no way affect any other provisions, which shall remain in full force and effect.

9.20 Interpretation.

The provisions of the Governing Documents shall be liberally construed to effectuate its

purpose of creating a uniform plan for the development of a residential community and for the

maintenance of the Common Areas and other areas within the Property. The article and section

headings have been inserted for convenience only and shall not be considered or referred to in

resolving questions of interpretation or construction. Unless the context requires a contrary

construction, the singular shall include the plural and the plural the singular; and the masculine,

feminine and neuter shall each include the masculine, feminine and neuter. Except for judicial

construction and express Utah law, the Board shall have the exclusive right to construe and

interpret the provisions of the Governing Documents, and amendments thereto. In the absence of

any adjudication by a court of competent jurisdiction or express Utah law to the contrary, the

Board’s construction or interpretation of the provisions hereof shall be final, conclusive and

binding as to all persons and property benefitted or bound by the Governing Documents.

ARTICLE X - NOTICE AND HEARING PROCEDURE

10.1. Association’s Enforcement Rights.

In the event of an alleged violation of the Declaration, the Articles, these By-Laws, or the

rules and regulations of the Association by a Member or occupant (“Respondent”) , the Board shall


Page 27

have the right, upon an affirmative vote of a majority of all Directors, to take any one (1) or more

of the actions and to pursue one (1) or more of the remedies permitted by law or equity or under

the provisions of the Declaration, these By-Laws, or the rules and regulations of the Association.

The failure of the Board or the Architectural Control Committee to enforce the rules and

regulations of the Association, these By-Laws, or the Declaration shall not constitute waiver of the

right to enforce the same thereafter. The remedies set forth and provided by law or equity or in the

Declaration, these By-Laws, or the rules and regulations of the Association shall be cumulative,

and none shall be exclusive.

10.2. Hearing.

(a) At the hearing, the Respondent must show cause, if any cause can be shown, why

said Respondent is not in violation of the Declaration, these By-Laws, or the rules and regulations

of the Association, as set forth in the Notice.

(b) Oral evidence shall be taken only on oath or affirmation administered by a Director.

The use of affidavits and written interrogatories in lieu of oral testimony shall be encouraged by

the Board.

(c) Each party shall have these rights: to call and examine witnesses; to introduce

exhibits; to cross-examine witnesses on any matter relevant to the issues; to impeach any witness;

and to rebut the evidence against such party. If Respondent does not testify in his own behalf, he

may be called and examined as if under cross-examination.

(d) The hearing need not be conducted according to technical rules relating to evidence

of witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which

responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the

existence of any common law or statutory rule which might make improper the admission of such

evidence over objection in civil action. Hearsay evidence may be used for the purpose of

supplementing or explaining other evidence but shall not be sufficient in itself to support a finding

unless it would be admissible over objection in civil actions.

(e) Neither the complainant nor the Respondent need be in attendance at the hearing.

The hearing shall be open to attendance by any Member of the Association to the extent of the

permissible capacity of the hearing room.

(f) In rendering a decision, official notice may be taken at any time of any provision

of the Declaration, these By-Laws, the rules and regulations of the Association, or any generally

understood matter within the working of the Association. Persons present at the hearing shall be

informed of the matters to be noticed by the Board, and these matters shall be made a part of the

record of proceedings.

(g) The Board may grant continuances on a showing of good cause.


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(h) Whenever the Board has commenced to hear the matter and a Director is forced to

withdraw prior to a final determination by the Board, the remaining Directors shall continue to

hear and decide the case.

10.3. Decision.

If a Respondent fails to appear at a hearing, the Board may take action based upon the

evidence presented to it without further notice to Respondent. However, the Respondent may make

any showing by way of mitigation. After all testimony and documentary evidence has been

presented to the Board, the Board may vote by secret written ballot, or otherwise, upon the matter,

with a majority of the entire Board controlling. A copy of the Notice of Adjudication of the Board

may be posted by the Board at a conspicuous place in the Property, and a copy shall be provided

by the president of the Association to each person directly involved in the matter and his attorney,

if any, in accordance with the notice provision(s) set forth in the Declaration, if any. The Notice

of Adjudication may include (a) the terms of any disciplinary action; (b) the levy of any

Assessment of fine; or (c) other such actions or remedies as the Board deems appropriate. The

decision of the Board shall become effective ten (10) days after it is given to each Respondent,

unless otherwise ordered in writing by the Board of Directors. The Board may order a

reconsideration at any time within fifteen (15) days following service of its decision on the

involved persons, on its own motion or on petition by any party. However, no action against a

Respondent arising from the alleged violation shall take effect prior to the expiration of the later

of (a) fifteen (15) days after each Respondent’s receipt of the Notice of Hearing; or (b) ten (10)

days after the hearing required herein.

CERTIFICATE OF PRESIDENT

I, the undersigned, do hereby certify that:

1. I am the duly elected and acting President of Canyon Road Towers Owners

Association; and

2. The foregoing Amended and Restated By-Laws constitute the By-Laws of the

Association duly adopted by the Members as provided for in the original By-Laws and Declaration.

IN WITNESS WHEREOF, I have hereunto subscribed my hand this ______ day of

____________, 2019.

CANYON ROAD TOWERS OWNERS

ASSOCIATION,

a Utah nonprofit corporation

___________________________________

By: ________________________________

Its: President


Page 29

STATE OF UTAH, )

:ss.

County of Salt Lake. )

On this ___ day of _______________, 201__, personally appeared before me

_________________ , whose identity is personally known to me or proved to me on the basis of

satisfactory evidence, and who, being duly sworn (or affirmed), did say that he/she is the President

of Canyon Road Towers Owners Association, a Utah non-profit corporation, and that the foregoing

document was signed by him/her on behalf of the Association by authority of its By-Laws,

Declaration, or resolution of the Board, and he/she acknowledged before me that he/she executed

the document on behalf of the Association and for its stated purpose.

___________________________________

Notary Public

Exhibit E

18-11-14 OUT 4 Ballot (clean v2 18-11-14 js) CRT CCR 1147.001 hb

CONSENT/BALLOT TO AMEND THE CC&RS and BY-LAWS OF CANYON ROAD TOWERS

I/We, are the Owner(s) of Unit _____ in Canyon Road Towers Owners Association (the “Association”).

As you know from the Notice sent to you, the purpose of this Consent/Ballot is to consider (i) an Amendment

and Restatement of the Declaration of Condominium (“CC&Rs”); and (ii) an Amendment and Restatement of the By-

Laws (“By-Laws”). More specifically,

1. Whether to amend the CC&Rs to update the CC&Rs to comply with and recognize Utah statute.

2. Whether to amend the CC&Rs to add the Board’s recommended changes.

3. Whether to amend the CC&Rs to add a provision on exterior glass maintenance by Unit Owners.

4. Whether to amend and restate the By-Laws to update the By-Laws.

As a member of the Association you are entitled to cast your vote through this Consent/Ballot pursuant to Utah

Code 16-6a-709 of the Utah Revised Nonprofit Corporation Act. A completed and returned Consent/Ballot will be

deemed a final vote by the member.

To amend the CC&Rs there is no quorum requirement and the amendment and restatement shall be approved

by the affirmative vote or approval and consent of not less than two-thirds (2/3) of the members. To amend the By-

Laws, Article VIII of the original By-Laws states that the By-Laws may be amended “in the same manner and subject

to the same conditions as apply with respect to amendment of the Declaration.” Therefore, there is no quorum

requirement to amend the By-Laws and the amendment and restatement of the Bylaws shall be approved upon the

affirmative vote or approval and consent of not less than two-thirds (2/3) of the members.

The undersigned member(s) hereby casts his or her vote as follows:

1. Statutory Updates to the CC&Rs (Article 12(a)(5), (a)(8), and (a)(13); Article 18; Article 28; and

Article 29):

[ ] FOR [ ] AGAINST

2. Board Recommended Changes to the CC&Rs (Article 6; Article 7(b)(6) and (b)(8), Article 9(g), (h),

and (i); Article 12(a)(14); Article 15; Article 19; Article 23; Article 30; Article 31; Article 32; and

Article 34):

[ ] FOR [ ] AGAINST

3. Exterior Glass Maintenance Amendment (Article 22(a)):

[ ] FOR [ ] AGAINST

4. Amendment and Restatement of the By-Laws:

[ ] FOR [ ] AGAINST

DATED, this _____ day of _______________________, 20___.

_____________________________________ (signature) _______________________________ (print name)

_____________________________________ (signature) _______________________________ (print name)

RETURN THIS CONSENT/BALLOT TO:

Canyon Road Towers Owners Association

C/O Advanced Community Services

ADDRESS: P.O. Box #179, Lehi, UT 84043

EMAIL: [email protected]

Please return your Ballot as soon as possible. The Ballot must be received by the Association or its Manager by Monday, January 14,

2019.