Fort Walton Beach Ordinance — 1811 rezone 248 brooks / baytowne view sub — reading text

property insurance coverage) for the benefit of certain Phases that it will not provide for other Phases. There shall be no requirement that the services to be provided by the Association be provided unifonnly to all of the Membership Property and the Board of Directors shall have the specific power and authority to cause the Association to provide certain services to certain Phases that it shall not provide to other Phases. Section 2. Membership. Every person who is, or who becomes, a record owner of a fee or undivided fee interest in any Lot is and shall be a Member of the Association; provided, however, that any such person who holds such interest merely as security for the performance of an obligation shall not be a Member of the Association. The transfer of ownership of a fee or undivided fee interest in any Lot shall automatically transfer Membership in the Association, and in no event shall such Membership be severed from the ownership of such Lot. Section 3. Classes of Membership: V oting Rights. The Association shall have two classes of voting Membership: Class A and Class B. a) Class A. The Class A Members shall be aU those persons holding an interest required for Membership in the Association, as specified in Section 2 of this Article IV, except for the Class B Member. The Class A Members shall be entitled to full voting privileges on the earlier of the following dates to occur: ( i) the date which the Declarant may so designate by a written designation executed by both the Declarant and by the holder or holders of any Mortgage upon any portion of the Bay Towne View Estates Deed Records of Property which is owned by the Declarant and which is recorded in the Okaloosa County, FLORIDA, or ( ii) the date on which the Declarant shall no longer own, or hold any right to purchase, any portion of the Bay Towne View Estates Property. Before the earlier of these dates to occur, the Class A Members shall be entitled to vote only on ( a) any proposal of merger, consolidation or dissolution of the Association; ( b) any proposal pursuant to Article IX of this Declaration to amend this Declaration; and ( c) it is provided any other matter for which it is herein specifically provided, or for which by the Act or the FLORIDA Nonprofit Corporation Code, that approval of each and every class of Membership of the Association is required. 9  b) Class B. The Declarant shall be the sole Class B Member. Class B Membership shall be a full voting Membership and, during its existence, the Class B Member shall be entitled to vote on all matters and in all events. Without limiting the generality of the foregoing, the Class B Member will itself elect all of the members of the Board of Directors until the termination of the Class B Membership. At such time as the Class A Members shall be entitled to full voting privileges, as provided in paragraph ( a) hereof, the Class B Membership shall automatically terminate and cease to exist, and the Class B tvlember shall be and become a Class A Member insofar as it may then hold any interest required for Membership by Section 2 of this Article IV. From and after the date on which the Class B Membership automatically terminates and ceases to. exist, such Membership shall not be renewed or reinstated. Section 4. Suspension of Membership Rights. The Membership rights of any Member of the Association, including the right to vote and to use the Common Area, may be suspended by the Board of Directors pursuant to the authority granted in the Bylaws. Any such suspension shall not affect such Member' s obligation to pay assessments coming due during the period of such suspension and shall not affect the permanent charge and lien on the Member' s property in favor of the Association. Section 5. Meetings of the Membership. All matters concerning the meetings of Members of the Association, including the time at which and the manner in which notice of any said meeting shall be given to Members, the quorum required for the transaction of business at any meeting, and the vote required on any matter, shall be as specified in the Act, the FLORIDA Nonprofit Corporation Code, this Declaration, or in the Articles of Incorporation or the Bylaws. Section 6. Association Acts Through Its Board of Directors. The Board of Directors shall have the power and authority to exercise all of the power and authority of the Association, as provided for in Section I hereof. Whenever approval of, or action or inaction by, the Association is referred to or called for in this Declaration, such action, inaction or approval shall be bythe Board of Directors of the Association, unless it is specifically stated in this Declaration, the Articles of Incorporation or the Bylaws with respect to such action, inaction or approval that the Members of the Association must vote. No member of the Board of Directors of the Association or any officer of the Association ( including, without limitation, any such individual who shall have been elected by a vote of the Class B Member) shall be personally liable to any owner of any Member for any mistake of judgment or for any other act or omission of any nature whatsoever, except for any acts or omissions found by a court of competent jurisdiction to constitute gross negligence or fraud. Section 7. Professional Management. The Association may, but shall not be obligated to, obtain and pay for the services of any person or other entity to manage the affairs of the Association, or any part thereof, and may enter into such agreements for the management of the Common Area as the Board of Directors deems to be in the best interests of the Association. 10  Section 8. Loans bv the Declarant. Notwithstanding any provision of the Act, or the FLORIDA Nonprofit Corporation Code, or any other provision of statutory or common law, which may provide to the contrary, the Association shall have the specific power and authority to borrow money from any lender, including the Declarant, on such terms as the Board of Directors shall determine, provided only that if the Association shall borrow money from the Declarant, then the annual rate of interest which shall be paid by the Association for such borrowed funds does not exceed by more than two ( 2) percentage points the average prime rate of interest then in effect at the major United States money center banking institutions. Any funds, which the Association shall borrow, whether from the Declarant or otherwise, shall be used for such purposes as the Board of Directors shall determine. ARTICLE V ASSESSMENTS Section 1. Assessments: Lien Therefore.The Declarant, as the owner of all of the Lots, hereby covenants, and each person who shall own any Lot, by acceptance of a deed or other conveyance thereto, and by acceptance of such ownership, and by taking record title thereto, shall be deemed to covenant and agree to pay to the Association all assessments and charges which are levied by the Association against the Lot( s) owned by such person in accordance with the terms and provisions of the Act and this Declaration. As more fully provided in 9 44- 3- 232( a) of the Act, all sums lawfully assessed by the Association against any Lot and the owner thereof, shall, from the time the sums became due and payable, be the personal obligation of the owner of such Lot and constitute a lien in favor of the Association on such Lot prior and superior to all other liens whatsoever, except: a) Liens for ad valorem taxes on the Lot; b) The lien of any First Mortgage or the lien of any Mortgage recorded in the Deed Records ofOkaloosa County, FLORIDA prior to the recording of this Declaration; or c) The lien of any secondary purchase money Mortgage covering the Lot, provided that neither the grantee nor any successor grantee on the Mortgage is the seller of the Lot. Section 2. Personal Obligation of Members. Each Member, by acceptance of a deed or other conveyance to the Lot( s) owned by such Member, irrespective of whether it shall be so expressed in any such deed or other conveyance, and by acceptance of ownership of such Lot ( s), and by taking record title to such Lot( s), shall be deemed to covenant and agree to pay to the Association: a) His share of the Annual Assessments which shall be levied by the Association in accordance with Section 4 hereof; and 11  b) When properly authorized in accordance with Section 5 hereof, special assessments, such annual and special assessments to be fixed, established and collected from time to time as hereinafter provided. All such assessments, together with interest thereon and costs of collection thereof, as hereinafter provided, shall be the personal obligation of the person who is the owner of the Lot against which such assessments are levied at the time such assessments become due and payable. The covenant to pay assessments herein stated is and shall be a covenant running with the land the Lots against which such assessments shall be levied). Section 3. Purposes of Assessments. The assessments levied by the Association pursuant to this Article V shall be used to pay the common expenses, which the Association shall incur in connection with the performance of its duties and responsibilities pursuant to the Act, this Declaration, the Articles of Incorporation and the Bylaws ( such costs and expenses being herein referred to as the " Annual Expenses"). Without limiting the generality of the foregoing, the Annual Expenses shall include the costs of: repair and maintenance of all Common Area; payment of all governmental charges, taxes and assessments which shall be levied against all Common Area; payment of all costs and expenses incurred by the Association in connection with its operations; payment of the premiums for all policies of property and liability insurance maintained by the Association with respect to Common Area; payment of the premiums for all fidelity bonds which shall be obtained by the Association; the maintenance of reserves for the repair and replacement of improvements located on the Common Area and for such other purposes as the Board of Directors shall determine; the payment of the fees of such management firms as the Board of Directors shall employ; and payment of the fees for the provision of such professional services as the Board of Directors shall determine to be required by the Association, including legal, accounting and architectural services; and the payment of interest on, and the repayment of principal of, such sums as may be borrowed by the Association. Section 4. Determination of Annual Assessment and Shares Thereof. Prior to the commencement of each fiscal year of the Association ( said fiscal year being specified in the Bylaws), the Board of Directors shall estimate the total amount of the Annual Expenses, which are anticipated to