Vanances 46 LumlalIon ofLiabihty

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Maintenance ofLots

approved byavoteof Members entitled tocast 75% ofthe total Class ..A" votes in the Association, except that nosuch approval shall berequired for actionsorproceedings

(a) mitratedduring theClass"B"Control Penod,

(b) imtiated toenforcetheprovisions of t1us Declaration, including collection of assessments and foreclosure ofhens,

(c) mmated tochallenge ad valorem taxation orcondemnationproceedings,

(d) unnated against anycontractor, vendor, or suppher of goodsor services ansmg outofacontract for services orsupplies, or

(e) to defend claims filed agamst the Associenon or to assert counterclaims in proceedings msntuted against It

This Section shallnotbe amended unless such amendment IS approved by the same percentage ofvotesnecessary to instituteproceedmgs

143 Alternatwe Method for ResolVlng Dimutes

Declarant, theAssociation and Its officers, directors, and COIIlID.Ittee members, aU Persons subject to tlusDeclaration, and any Person nototherwise subject to tlus Declaration who agrees to submit to thisArticle(collecuvely,"BoundParties") agree to encourage the amicable resolution of disputes mvolvmg Anthem Parkside, without the emotional and financial costsof litigation Accordingly, eachBound Partycovenants and agrees that thoseclaims, gnevances or disputesdescribed in Sections 144 ("Clauns") shallbe resolved usingthe procedures set forthm Section 145mlieu offilmg suitmaoy court

144 Claws

& usedmtins Article, the tenn "Claim" shall refer to anychum, gnevance, or dispute ansmg outoforrelating to

Documents.

(1) the mterpretation, apphcation, or enforcement of the Goverrung

(n)

Documents, or

the nghts, obligations,aodduties ofaoy Bound Partyunderthe Goverrung

(m) the design orconstruction ofunprovements within Anthem Parkside, other than matters of aestheticjudgment underArticle N, which shall notbesubject toreview

Notwithstandmg the above, the following shall notbe considered "Claims" unless all parties to the matter otherwise agree to submit the matter to the procedures set forth In Secnon 145

(1) anysuit by the ASSOCIation orthe Council tocollectassessments orother

amounts due from anyOwner,

(u) anysuitbythe Association to obtamequitable relief (e g. temporary restraining order, injunction, orspecific performance) and suchancillary relief asthecourt may deem necessary in order to maintain the status quo and preserve the Association's ability to enforcethe provisions of ArticlesIll, N, and V of this Declaration(relatingto creation and maintenance ofcommumty standards),

(111) anyswtbetweenOwners,winchdoesnot include Declarantorthe Association asa party. If such suit asserts a cause of action Independent of the Governing

Documents,

(IV) anysuit III winchanyindispensable party IS notaBoundParty;and

(V) any SUIt astowinchanyapplicableslatute of hmrtaticns wouldexpire within 180 days of grvmgthe Notice requiredby Section l45(a), unlessthepartyorparties against whom theClaim IS madeagree totoll the statute of hnutanons astosuchClaim for such penodasmayreasonablybenecessarytocomply With thrs Article

145 MandatoryProcedures

(a) NotIceTheBoundPartyassertinga Chum ("Chumant") agOU1St anotherBound Party("Respondent")shall glve wntten notice toeachRespondentandtotheBoard,stating plainly and concisely

(I) thenature of theClaim, including thePersons involved andRespondent's role III the Claim,

Claunanses), (II) thelegal basis of theClaim(, e, the specific authontyout of winchthe

(m) Claimant's proposed resolution Or remedy, and

(IV) thatClarmant WIll meet WIth Respondentto dISCUSS goodfaithwaysto

resolve the Claun

(b) NegotIatIon and MediatIon TheClaimantandRespondentshallmakeevery reasonable effort tomeet in person and confer for thepurpose of resolvmg the Claim bygood faith negotianon Ifrequested In wntmg, accomparued bya copy of the Notice, the Board may appoint arepresentative to assist the parties In negotiating aresolution ofthe Claun

If the parties donotresolve the Clarm through negonanon wtthm 30 days of the date of the notice descnbed above (or within such other penodastheparties may agree upon), Claimant shall have30 additional days to submit the Claim to mediation WIth an enttty designated by the

Association(litheAssocrauon IS notaparty tothe Claim)ortoanmdependent agencyproviding dispute resolution services mtheMancopa County, Arizonaarea.

IfClaunant does notsubmit the Claim tomediation within such tune, ordoes not appear formediationwhenscheduled, Claimant shallbedeemedtohavewaivedtheClaim,and Respondentshallbereleasedanddischargedfromanyand all halnhty toClaimant(butnotthird parties)onaccount ofsuchClaim

Anysettlement of the Chum throughmediationshallbedocumented in writing by the mediatorandSignedbytheparties Ifthepartiesdonotsettlethe Claim withm 30daysafter submisston ofthematter to the mehanon, orwitam such rime as determmed reasonable bythe mediator, themediator shallIssue anonceoftermination ofthe medration proceedings mdicatmg that theparties are atanimpasse and the date that mediation was termmated.

(c) Allocanon of Costs of ResolvmgClauns Eachpartyshall bear itsowncosts, mcludmgattorneysfees,andeachpartyshallshareequallyallchargesrenderedbythe medlator(s)

146 Enforcement ofResolunon

Afterresolunon of any Claim, Ifanyparty fails toabidebytheterms ofanysettlement,

then anyother party may fileswt enforce such settlement WIthout the needto again complyWIth

the procedures set forth In Section 145 In such event. the party talang action to enforce the settlement shall be entztled torecover from the non-complymg party (orIfmore than one noncomplyingparty,fromallsuchparties lD equalportions)allcostsincurredmenforcingsuch settlement, mcludmg, WIthout hmitanon, attorneys' feesand court costs

147 Attorneys' Fees

In the event ofan action instituted to enforce anyof the provisions contamed in the Governing Documents, the party prevailing msuchaction shall be entitled to recover from the other party thereto as part of the Judgment, reasonable attorneys' fees and costs, including admunstratrve and henfees. ofsuch SUIt In the event theAsSOCIatIon orCouncil IS aprevailing partyIn such action,the amount ofsuch attorneys' feesandcostsshall beaBenefited Assessment WithrespecttotheLot(s) involvedmtheaction,

AI1J.cle XV Mortgagee Provisions

The following provisions are for thebenefit ofholders, insurers, and guarantors of first Mortgages onLots Theprovisions of tlua Article apply tobothtlus Declaration and to theByLaws, notwrthstandmg any other prOVISIOns containedtherein.

15 I Notices ofAction

An mstituttonal holder, insurer, orguarantor ofafirst Mortgage wluch provides a wntten request to the ASSOCIatIon (such request to state thename and address of such holder, msurer,or

guarantorandthestreetaddressoftheLottowhichItsMortgagerelates,therebybecomingan "Eligible Holder"),WIll be entitled to timely wntten notice of

(a) Any condemnation lossoranycasualtylosswhtch affects amatenalportionof AnthemParksideorwhichaffectsanyLotonwhichthereisa first Mortgageheld, insured, or guaranteedbysuchEhgible Holder;

(b) Any delmquency in thepaymentofassessments orchargesowedbyaLotsubject totheMortgage ofsuchEligibleHolder,wheresuch delinquency has contmuedforaperiodof 60days,oranyotherviolationofthe Governing Documents relatingtosuchLotortheOwneror occupant winch15 notcured within 60 days,

(c) Anylapse, cancellation, ormatenaI modification of any insurance policy mamtained bytheAssocranon,

(d) IftheUSDepartmentofHousingandUrbanDevelopment is msunng or theUS. Department ofVeterans Affairs IS guaranteeing theMortgage onanyLot,matenalamendment to theGovemmgDocumentsor extraordinary action of the Assocranon, asdefined under VA Pamphlet26-7,or

(e) Any proposed action which wouldrequire theconsentofaspecified percentage of EhgrbleHolders

152 No Pnontv

No provisionofthisDeclarationortheBy-Lawsgives orshallbeconstrued asgivingany Ownerorotherparty pnonty overanynghtsofthefirstMortgageeofanyLot in the case of distnbution tosuchOwner of insurance proceedsor condemnation awardsforlosses to ora takingoftheCommonArea

153 NotIceto AssocIatIon

Uponrequest, each Owner shallbe obligated to furnish totheAssociationthenameand addressoftheholderofanyMortgageencumbenngsuchOwner's Lot

154 Fallure ofMortgagee toRespond

AnyMortgageewhoreceivesawritten request from theBoard to respond toorconsentto

any action shallbe deemed tohave approved such action Ifthe Association doesnotreceivea wntten response from the Mortgagee within 30days of the date of the Assocranon's request, provided suchrequest 15 dehvered totheMortgagee by certified orregistered marl, return receipt

requested

155 HUDNA Approval

Dunngthe Class "B" Control Penod, the followingacnons shall require thepnor approval oftheUS Department ofHousmgand Urban Development ortheUS Department of

Veterans Affairs, tf either such agency 18 msunng or guaranteeing the Mortgage on any Lot. merger, consohdanon, ordissolutionoftheAssocration, annexation ofadditional property other

than that descnbed in Exhibit "B", dedication, conveyance. ormortgagmg ofCommon Area, or material amendment ofthis Declaration The granting ofeasements forutilities or other similar purposes consistent WIth the intended use of the Common Area shall notbe deemed a conveyance withinthemeaningoftlusSection IftheapprovalofeithertheUS Department of HousmgandUrbanDevelopmentortheUS Department of VeteransAffairs IS requested pursuant to this Section and the agency whose approval IS requested doesnot disapprove the action by wntten noncetothe AsSOCiatIOn, Declarant, or other Person requesting Its approval wttlnn 30 daysafterthe delivery ofthe approval requesttotheappropnate agency, the action in question shallbedeemedapprovedbysuchagency

Article XVI PrivateAmenities

AccesstoanduseofanyPrivateAmeruty IS stnctlysubjecttothorulesand procedures of the owner ofsuch Pnvate Amemty, and noPerson gainsanynghtto enter ortouseanyPrivate Arnemty by VIrtue of memberslup In the Assocration, ownership of a Lot, or occupancy of a DwelbngUrut

All Persons, including all Owners, are hereby advised that no representations or warranties havebeenorare made by Declarant, theAssociation, anyBuilder, orbyanyPerson acting onbehalfofany oftheforegoing, WIth regard totheconnnumg ownership oroperation of thePnvateAmenities No purported representation orwarranty In such regard,wntten ororal, shallheeffectiveunlessspecificallysot forth mawntlenrustrumentexecutedbytheRecord owner ofthePnvateAmemty

Rights tousethePrivate Amemtles WIll be granted onlyto such persons, and onsuch terms and ccndmons, asmaybedetemuned by theirrespective owners Such owners shall have thenght, from time totuneIn their sale and absolute discretion and Without notice, to amend or waive theterms and conditions ofuse oftheir respective PnvateAmenities and to terminate use nghtsaltogether

ArticleXVIIChanges in Ownership ofLois

To facrhtate the Association's compliance With theAct's resaledisclosurerequirements, anyOwner,otherthanDeclarant, desiring tosonor otherwise transferMe toIusor her Lotshall

gIve theBoard and theCOunCIl'S designee written notice atleast 14dayspnortothepending sale ortransfer Thewritten notice shall include the name and address ofthepurchaser ortransferee. thedate ofsuch transfer oftitle, and such other mformation as theBoard may reasonably require tocomply With the Act's notice and statement requirements The Associanon may charge the Owner a reasonable feetopayforthecosts incurred In prepanng the statement pursuant tothe Act

The transferor shall continue tobe jointly and severally responsible With thetransferee for all obltgations ofthe Owner of the Lot, mcludmg assessment obhganons, until thedate upon which such notice IS received bytheBoard, nctwithstandmg thetransferoftitle

Article xvm ChangesinCommonArea

181 CondemnaMn

Wheneveranypart of theCommonAreashallbetakenorconveyedonder threat of condemnationbyanyauthontyhavmgthepowerofennnentdomain,theBoardshalldetermme, m the exercise ofIts business judgment, whether each Owner shall be entitled to notice thereof. The Board mayconveyCommon Area under threat of condemnation onlyifapproved In writing byatleast67%oftheClass"A" MembersmtheAssociation andDeclarant,aslongasDeclarant owns anyproperty describedin Exhibits "Air or"B "

TheawardmadeforsuchtakingshallbepayabletotheAssociationas trusteeforall Owners tobe disbursed asfollows

Ifthe takmg Involves a portion oftheCommon Area on which improvements have been constructed, the Association shall restore or replace such improvements ontheremaining land includedill the Common Area to the extent practicable, unless, withm 60daysafter such taking, Declarant, so long as Declarant ownsany property descnbed. In Exhibits "A" or "B" of tins Declaration, and at least 67% ofthe total Class "N'Members in theAssociation shall otherwise agree Any such construction shall be In accordance wrth plans approved by the Board The provisionsofSection73regardmgfunds fortherepairofdsmageordestructionshallapply.

Ifthe taIang doesnotinvolve anyimprovements onthe Common Area, ortfa decision 15 made notto repairorrestore, ortfnetfunds remam after any suchrestoration orreplacement 1S complete, then such award ornet funds shall be disbursed to the Association and used for such purposesastheBoardshalldetennme

18 2 Parl:IlIon.

Except aspenmtted in this Declaration, the Common Area shall remain undivided, and noPerson shall bring any action partition ofany portion ofthe Common Area without the wntten consentofallOwnersandMortgagees ThisSectionshallnotprohibittheBoardfromacqumng anddisposmgoftangiblepersonalpropertynor from acqumngand disposing ofreal property whichmayor may notbesubject totlus Declaration,

183 Transfer orDed1catlon ofConwO" Area.

The Association may dedicate portions of the Common Area to Mancopa County, Arizona, orto any other local, state, or federal governmental or quasr-govemmental entity, subjecttosuchapprovalasmayberequiredby Sections 155and184

184 Actions Requmng Owner Approval

Ifeither theUSDepartmentofHousmg andUrbanDevelopmentortheUS Department of Veterans Affairs IS msunng or guaranteeing the Mortgage on any Lot, then the following actions shall requtre the pnor approval ofMembers representing notless than two-thirds (2/3) of the total Class "A" votes In the Assocrenon and the consent of the Class "B'' Member, If such