Highland Summit Owners Association

Highland Summit CC&Rs (Declaration)

Highland Summit CCR's

HIGHLAND SUMMIT OWNERS’ ASSOCITATION
CONVANENTS, CONDITIONS AND RESTRICTIONS
SECTION 1 INTRODUCTION 2
SECTION 2 DEFINED TERMS 3
SECTION 3 HIGHLAND SUMMIT OWNERS' ASSOCIATION 5
SECTION 4 ASSESSMENTS 9
SECTION 5 ARCHITECTURAL AND DESIGN CONTROL 11
SECTION 6 PROPERTY USE AND RESTRICTIONS 15
SECTTON 7 OPEN SPACE AND EASEMENTS 16
SECTION 8 ENFORCEMENT 17
SECTION 9 GENERAL PROVISIONS 17

DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS
FOR HIGHLAND SUMMIT
(HIGHLAND SUMMIT OWNERS’ ASSOCIATION)


THIS DECLARATION is made this 16th day of July, 1991 by SCHNITZER INVESTMENT CORP., an Oregon corporation.

Recitals:

A. Declarant owns or has owned certain real Property in Clackamas County, Oregon more particularly described in Exhibit A attached hereto and made a part hereof and subsequently to be platted as HIGHLAND SUMMIT No. 1, HIGHLAND SUMMIT NO. 2, HIGHLAND SUMMIT NO. 3, HIGHLAND SUMMIT NO. 4 and HIGHLAND SUMMIT No. 5.

B. Declarant intends to create Highland Summit as a planned single family residential community which will provide an attractive place to live and work. Portions of Highland Summit will also be devoted to recreational or aesthetic uses.

C. Declarant intends to organize and administer Highland Summit prior to its completion, but expects the Owners to responsibility for community administration no later than time Highland Summit is complete. Funds for the maintenance, repair, and improvement of the Public Open Space and the Other Common Areas will be provided through assessments against the Owners.

D. By adoption of the covenants, conditions, and restrictions set forth in this Declaration, Declarant is not committing itself to take any action or to build or construct any Improvements other than as expressly provided herein. Anyone acquiring one or more Lots or any other portion of the Property will have the benefit of any further development, but shall not have any legal right to insist that there be development except to the extent, if any, expressly mandated herein.

NOW, THEREFORE, Declarant subjects the Property, together with any and all property which may be added to the property pursuant to the provisions of this Declaration, to the covenants, conditions, and restrictions set forth below.

SECTION 1 INTRODUCTION

1.1 General Declaration. The Covenants, conditions, and restrictions set forth in this Declaration shall run with and bind the Property, each Lot, and any other division, if any. Of the Property, the Owners, the Occupants and all other Persons acquiring any interest in the Property or any Portion thereof, and the heirs, successors, and assigns of the Owners, the Occupants, and such other Persons. These covenants, conditions, and restrictions shall inure to the benefit of and be burdens upon the Owners of Lots and/or the Owners of any other portion of the Property, including without limitation, Declarant as an owner of the Property or any portion thereof, and all Owners, Occupants, Developers, future Owners, future Occupants and future Developers.

1.2 Addition of Other Property. At any time and from to time prior to the Turnover Date, Declarant may add to the Property all or a portion of any real property adjacent or proximate to the Property. Upon recordation of a supplemental declaration identifying any such adjacent or proximate property in the Clackamas County Records, all provisions of this Declaration, as modified by such supplemental declaration, shall apply to such adjacent or proximate property in the same manner as if the adjacent or proximate property were originally covered by this Declaration as part of the Property. Declarant shall include in any such supplemental declaration any modifications to this Declaration which Declarant deems appropriate.

SECTION 2 DEFINED TERMS

Throughout this Declaration, the following terms, when capitalized, shall have the following meanings:

2.1 “Architectural Control Committee” means the committee formed pursuant to section 5 to review and approve or disapprove plans and specifications for the design and construction or Improvements within Highland Summit and to undertake such other tasks as are specified in this Declaration.

2.2 “Association” means the Highland Summit owners' Association, formed pursuant to Section 3.1.

2.3 “Board” means the Board of Directors of the Association, formed pursuant to Section 3.4.


2.4 “Clackamas County Records” means the Clerk and Recorders Office of Clackamas County or similar office where the real property records of Clackamas County, Oregon are kept and real property documents and instruments are recorded.

2.5 “Declarant” means SIC and any Person succeeding to the responsibility of Declarant pursuant to a designation by SIC or by any successor Declarant of such Person as a successor Declarant in a supplemental declaration recorded in the Clackamas County Records.

2.6 “Declaration” means this Declaration of Covenants, Conditions, and restrictions for Highland Summit (Highland Summit Owners' Association), as such may be amended from tine to time.

2.7 “Developer” means any Person engaged in the development of any Lot for the purpose of selling or leasing the Lot and the Improvements ultimately constructed on such Lot.

2.8 “Director” means a member of the Board, selected or elected in accordance with Section 3.

2.9 “Highland Summit” means the Property ad developed substantially in accordance with the Plat, as the same may be modified from time to time.

2.10 “Improved Declarant Lot” means any Lot of which Declarant is the Owner, which has access to a public street, to which sanitary and storm sewers, water, and power have been extended, and which is not a Single-Family Lot.

2.11 “Improvement” means any improvement now or hereafter placed or constructed in, under, or upon the Property, including without limitation, any building, road, driveway, parking area, fence, screening wall or barrier, retaining wall, stairs, deck, utility distribution facility landscaping or sign.

2.11 “Lot” means any parcel of land designated or intended to be designated on the Plat as a lot on which a Residential Unit is expected to be constructed.

2.13 “Occupant” means the Person in lawful possession of all or any portion of a Lot.

2.14 “Other Common Area” means those parcels, if any, included within the Property which are, from time to time, designated by Declarant (prior to the Turnover Date) or by the Board (after the Turnover Date) as common areas of Highland Summit, such as entry monuments and structures and median strips; such parcels may be conveyed to the Association, dedicated to the public, or owned by Persons other than Declarant or the Association and subject to easements in favor of the Association.

2.15 “Owner” means the record Owner of fee simple title to any Lot, unless such Lot is being sold pursuant to a land sale contract, in which case “Owner” means the contract vendee of such Lot, but does not include a Person holding only a security interest in such Lot. Where there is more than one Owner of fee simple title to, or contract vendee of, a Lot, the Owner means the collective aggregate of such fee simple title owners or contract vendees, with the intent and effect that there shall be only one (1) Owner of each Lot.

2.16 “Person” means any individual, association, corporation, partnership, or other legal entity.

2.17 “Plat” means the final plat of Highland Summit as recorded in the Clackamas County Records and any amendments hereto or replats thereof, which plat may consist of one final plat or of separate plats or replats for each phase of development of the Property.

2.18 “President” means the President of the Association, selected in accordance with Section 3.14.

2.19 “Private Open Space” means such portions of the Property, if any, as may be designated as Private Open Space on the Plat, or such other portions of the Property, if any, as may be designated as Private Open Space by Declarant (prior to the Turnover Date), or by the Board (after the Turnover Date).

2.20 “Property” means the real property in Clackamas County, Oregon legally described in Exhibit A attached hereto and made a part hereto, including without limitation, such portion of such real Property as may be legally described as HIGHLAND SUMMIT NO. 1, HIGHLAND SUMMIT NO. 2, HIGHLAND SUMMIT NO. 3, HIGHLAND SUMMIT NO. 4, HIGHLAND SUMMIT NO. 5, when and if plats therefor are filed and or recorded in the Clackamas County Records, as well as any property added to the Property pursuant to Section 1.2.

2.21 “Public Open Space” means (i) such Portions of the Property, as depicted on the Plat, parts of which are intended for development by Declarant as, among other things, a water feature, bicycle paths, walkways, and roadways, and parts of which are intended to remain undeveloped, and (ii) such other portions of the Property, if any, as may be designated as Public Open Space by Declarant (prior to the Turnover Date) or by the Board (after the Turnover Date); provided, however, that the actual amenities included in the Public Open Space shall be determined by Declarant (prior to the Turnover Date) or by the Board (after the Turnover Date) in their respective sole discretion.

2.22 “Reserves” means amounts retained by the Association in anticipation of future operating, maintenance, repair, or replacement expenses, as a general contingency, or for any other purpose deemed appropriate by the Board.

2.23 “Residential Unit” means a building or portion of a building located on a Lot and designated or intended for separate residential occupancy.

2.24 “Secretary” means the Secretary of the Association, selected in accordance with Section 3.14.

2.25 “SIC” means Schnitzer Investment Corp., an Oregon corporation.

2.26 “Single-Family Lot” means any Lot on which the Owner or any prior Owner has constructed an existing single Residential Unit or is constructing, or intends to construct a single-family Residential Unit. For purposes of this definition, an Owner shall be deemed to intend to Construct a single-family Residential Unit on a Lot if such Owner is contractually obligated to do so; has applied for a building permit to do so; has entered into an architectural or construction contract for such purpose; is a Person (other than Declarant) who is in or intends to enter the business of constructing single family Residential Units; or otherwise demonstrates such intention to the reasonable satisfaction of the Board; provided, however, that an Unimproved Declarant Lot shall in no instance be considered a Single-Family Lot; and provided further that a Lot of which Declarant is the Owner and which would be considered a Single-Family Lot under the foregoing definition shall be considered a Single-Family Lot only at such time as Declarant actually has commenced construction thereon of a single-family Residential Unit.

2.27 "Turnover Date" means the earlier of (I) the date on which Declarant first has title to only one Lot within the Property and does not own portions of the Property that are Improved Declarant Lots or Unimproved Declarant Lots, or (ii) the Date on which Declarant elects, in its sole discretion, to relinquish control of the Association, as evidenced by a supplemental declaration recorded in the Clackamas County Records.

2.28 "Turnover Meeting" means the meeting of Declarant and the Board called for the purpose of passing control of the Association from Declarant to the Owners, which meeting shall be held pursuant to section 3.7.1.

2.29 "Unimproved Declarant Lot" means any Lot of which Declarant is the Owner and on which no buildings have been or are being constructed, but which is not an Improved Declarant Lot.

SECTION 3 HIGHLAND SUMMIT OWNERS' ASSOCIATION

3.1 Formation and Authority. The Association shall be formed by Declarant as an Oregon nonprofit corporation within 180 days after the date this Declaration is recorded and shall be known as the Highland Summit Owners' Association. Nothing in this Declaration shall be construed to prohibit or restrict the formation of subassociations within Highland summit, including without limitation neighborhood associations.

3.2 Membership. Each Owner, by virtue of being an Owner and so long as such Owner continues in that capacity, shall be a member of the Association Each membership in the Association shall be appurtenant to the Lot owned by an Owner and shall not be transferred in any manner whatsoever except upon a transfer of
title to or of beneficial interest by means of a land sale contract in connection with such Lot and then only to the transferee of such title or to such contract vendee.

3.3 Duties and Powers of the Association. The Association shall have all requisite power, duty, and authority to perform its obligations under this Declaration, including without limitation the power, duty and authority to enforce the provisions of this Declaration and to acquire and pay for, out of the common fund provided by assessments pursuant to Section 4, all goods and services necessary or appropriate for the proper functioning of the Association in accordance with this Declaration. Without limiting the generality of the foregoing or the other provisions or this Declaration, the Association shall have the power, duty, and authority, subject to the other provisions of this Declaration, to undertake the following actions:

3.3.1 Determine the amounts necessary or appropriate for the performance by the Association of its powers and duties under this Declaration.

3.3.2 Impose and collect annual and special assessments from the Owners.

3.3.3 Maintain bank accounts on behalf of the Association and designate the signatories for those accounts.

3.3.4 file all required income tax returns.

3.3.5 Enforce by legal means the provisions of this Declaration

3-3.6 Maintain and repair the Public Open Space, the Other Common Areas, the Private Open Space, and the Improvements thereon and establish one or more reserve funds for such purposes -

3.3.7 Promulgate, modify, and rescind rules and regulations governing the use of the Public Open Space, the Other Common Areas, the Private Open Space, and all improvements on the foregoing, as well as the Property generally.

3.3.8 Obtain such policies of insurance as the Board may from time to time deem appropriate for the protection of the Association, the Public Open Space, the Other Common Areas, the Private Open Space, and any Improvements thereon, and as may be authorized pursuant to section 3 - 13.

3.3.9 Compensate the President, the Secretary, and members of the Architectural Control Committee, if any compensation is established pursuant to Section 3.14.6 or 5.1.

3.3.10 Contract for such services (including without limitation legal and accounting services) as may be necessary appropriate to manage the affairs of Highland summit and the Association properly and in accordance with this Declaration, whether the personnel performing such services are employed directly by the Association or by a manager or management firm or agent retained by the Association.

3.3.11 Appoint such committees as the Board may determine from time to time to be appropriate to assist in the conduct of the affairs of the association and delegate to any such committee such authority as the Board may deem appropriate, subject in all cases to the provisions of this Declaration. Notwithstanding the foregoing provisions of this section 3.3.11, the Architectural Control committee shall in all events be formed as provided in and shall have the authority granted by Section 5 and other applicable provisions of this Declaration.

3.4 Board of Directors

3.4.1 Generally. The Association shall act through the Board. Prior to the Turnover Meeting, Declarant shall select all Directors. During the period when Declarant is selecting the Directors, Declarant may also determine the number of Directors, which may be different than the number set forth in Section 3.4.2. From and after the Turnover Meeting, the number of Directors shall be as set forth in section 3.4.2, and the Owners shall select or elect the Directors in the manner provided in this section 3.

3.4.2 Number and Classification of Directors. From and after the Turnover Meeting, the Board shall be comprised of five (5) Directors. From and after the Turnover Meeting, all Directors must be Owners of one or more Lots.

3.4.3 Election of Directors. Each Director shall be elected by majority vote of the Owners of the Lots voting at a meeting conducted pursuant to Section 3.4.4 at which a quorum is present, with each such Owner having one vote for each Lot owned.

3.4.4 Meetings of Owners. Any meeting of Owners for the purpose of electing Directors pursuant to this section 3.4 shall be conducted in accordance with the following procedures:

(a) The first such meeting shall be held at least thirty (30) days prior to the Turnover Meeting, on a date selected by the Secretary. Subsequent meetings shall be held at least thirty (30) days prior to the expiration of the term of any director or, in the case of a vacancy pursuant to section 3.6 requiring a vote of the Owners, within thirty (30) days after such vacancy occurs.

(b) Any such meeting shall be held at a place within Clackamas County, Oregon designated by the secretary. The secretary shall give written notice of any such meeting to each Owner entitled to vote at the meeting at least ten (10) but not more than thirty (30) days prior to the date of the meeting. The notice shall state the purpose, time, and place of the meeting. The Secretary shall be required to notify an Owner of a meeting only if such Owner has previously given written notice to the Secretary setting forth such Owner's name and address. Notice of any meeting may be waived by any Owner at any time. No Owner who is present at a meeting may object to the adequacy or timeliness of the notice given.

(c) Any owner may give a proxy to any Person, so long as the proxy is in writing, signed by such Owner, and filed with the Secretary. A proxy shall expire on the earlier of (i) seven months after the date of the proxy; or (ii) the date of sale or conveyance of the Owner's Lot by its Owner. : Write-in votes from Owners received by the Board on or prior to the Owner's meeting shall be deemed for purposes of this section to be a proxy given to the Board to vote on behalf of such Owner in accordance with such write-in vote.

(d) A quorum for an Owner's meeting pursuant to this Section 3.4 shall consist of the number of persons who are entitled to cast twenty percent (20%) of the votes which may be cast for election of Directors and who are present in person or by proxy as herein provided at the beginning of the meeting.

3.5 Terms of Directors

3.5.1 Initial Terms. Subject to the provisions of Section 3.7.1, Directors selected by Declarant pursuant to Section 3.4.1 shall serve at the pleasure of Declarant. The first Directors selected or elected by the Owners pursuant to Sections 3.4.3 shall serve the following respective terms: As determined by random means, three of the Directors initially elected pursuant to Section 3.4.3 shall serve a two-year term, and the remaining two Directors shall serve a one-year term.

3.5.2 Subsequent Terms. Except as provided in Section 3.5.1 and Section 3.6, all Directors shall serve two-year terms; provided however that unless a Director dies, resigns or ceases to be an Owner of a Lot as and to the extent required in section 3.4.2 hereof, such Director shall continue to serve as a Director beyond such two (2) year term until a replacement Director is elected as provided herein. Any Director may serve more than one term.

3.5 Vacancies. In the event a Director dies, resigns, or ceases to be an Owner of a Lot as and to the extent required in Section 3.4.2 hereof, the resulting vacancy on the Board shall be filled by selection or vote of a majority of the remaining Directors, but if such majority of the remaining Directors cannot be obtained, then such vacancy shall be filled by vote of the Owners pursuant to Section 3.4.3. Any Director so selected or elected shall serve the remainder of the replaced Director's term.

3.7 Meetings of the Board

3.7.1 Turnover Meeting. The Turnover Meeting shall be called by Declarant and held within ninety (9O) days after the Turnover Date. Declarant shall give written notice of the time and place of the Turnover Meeting to each Owner who has previously given Declarant written notice setting forth such Owner’s name and address. Declarant's notice shall be given at least thirty (30) but not more than sixty (60) days prior to the date of the Turnover Meeting. At the Turnover Meeting, the following shall occur;

(a) The Directors selected by Declarant, the President, and the Secretary each shall resign. The Directors selected or elected by the Owners pursuant to Section 3.4 shall conduct their first meeting as the Board;

(b) The new Board shall elect a President and a secretary; and

(a) Declarant shall deliver to the new Board all of the Association's property in Declarant' S possession, including without limitation all books and records, funds, tangible personal property, insurance policies, and contracts to which the Association is a party.

3.7.2 Annual Meetings. The Board shall meet annually, within ninety (90) days after the end of each calendar year. At each annual meeting, the Secretary shall present to the Board a report on the financial condition of the Association, including a report of receipts and disbursements for the preceding calendar year and the estimated receipts and expenses for the coming year.


3.7.3 Special Meetings. Special meetings may be called at any time by three (3) Directors. Such meetings shall be scheduled by the Secretary within thirty (30) days after the Secretary's receipt of written request signed by three (3) or more Directors; provided that if the purpose of a special meeting is to elect a successor Secretary or to consider removal of the Secretary, the meeting may be scheduled by the President or, if the meeting is also for the purpose of electing a successor President or considering the removal of the President, by any other Director.

3.7.4 Place of Meetings. Meetings of the Board shall be held at such place as may be designated from time to time by the Board.

3.7.5 Notice. The Secretary shall give written notice to each Director of each Board meeting at least ten (10) but not more than thirty (30) days prior to the date set for such meeting, stating the purpose, time, and place of the meeting. Notice shall be sent to the address of each Director as listed on the books of the Association, or to such other address as any Director may designate by written notice to the Secretary. Notice of any meeting may be waived by any Director at any time. No Director who is present at a meeting may object to the adequacy or timeliness of the notice given.

3.8 Quorum. The presence, in person or by proxy, of a majority of the Directors shall constitute a quorum for voting at a Board meeting. When voting is by mail pursuant to Section 3.11, a quorum shall be constituted if the number of votes cast equals at least fifty-one percent (51%) of the total votes entitled to be cast. The Board shall have the power to adjourn a meeting even if more than a quorum is present.

3.9 Proxies. A Director may vote in person or by proxy. A proxy may be given to any other Director, so long as the proxy is in writing, signed by the Director giving the proxy, and filed with the Secretary. A proxy shall expire on the earlier of (i) the end of the Director's term or service on the Board; or (ii) seven months after the date of the proxy.

3.10 Voting by the Board. Each Director shall have one vote. So long as a quorum is constituted, the vote of Directors together holding a majority of the total votes cast, whether the Directors voting are present in person or by proxy, and whether the vote takes place at a meeting or by mail, shall be a binding vote of the Board for all purposes, unless a greater percentage is required by law or this Declaration.

3.11 Voting by Mail. Voting of the Directors may be by mail. In any case in which voting by mail is necessary or desirable, the Secretary shall give written notice to all Directors which notice shall (i) include a written resolution setting forth the proposed action, (ii) state that the Directors are entitled to vote by mail for or against such resolution, and (iii) specify a date not less than twenty-five (25) days after the effective date or such notice by which all votes must be received at the principal office of the Association. Votes received after the date specified shall not be effective.

3.12 Compensation of Directors. No Director shall receive compensation from the Association for serving on the Board.

3.13 Insurance. The Board may purchase and maintain insurance on behalf of any Director against any liability incurred by such Director in such capacity, if such insurance is available at a cost and on terms which the Board determines to be reasonable.

3.14 Officers of the Association

3.14.1 Designation. The officers of the Association shall be the President and the Secretary, both of whom shall be elected by the Board from the members of the Board. The same person shall not concurrently hold the offices of President and Secretary. The Board may designate such additional officers as it deems appropriate.

3.14.2 Election. The officers of the Association shall be elected annually by the Board and shall hold office at the pleasure of the Board and until their successors are elected. If any office becomes vacant, the Board shall elect a successor to fill the unexpired term.

3.14.3 Removal. The Board may remove any officer, at any time, with or without cause. Removal of the President or Secretary as officers shall not also constitute a removal of such person from the Board.

3.14.4 President. The President shall be the chief executive officer of the Association. The President shall preside at all meetings of the Board and, unless otherwise provided in this Declaration, shall have all of the general powers and duties normally incident to the office of the chief executive officer of an association.

3.14.5 Secretary. The Secretary shall keep the minutes of all proceedings of the Board and all other Association records and shall attend to the giving of all notices pursuant to this Declaration or required by law. The Secretary shall be responsible for the collection, deposit, and disbursement of Association funds and shall keep full and accurate financial records and books 'of account showing all receipts and disbursements of the Association. The Secretary shall perform all other duties incident to the office of secretary of an association or as may be directed by the Board. The Secretary shall perform all of the foregoing duties at the expense of the Association.

3.14.6 Compensation of Officers. Other than reimbursement for out-of-pocket expenses incurred on behalf of Association, neither the President, the Secretary, nor any other officer of the Association shall receive any compensation from the association for acting as an officer, unless such compensation is authorized by the Board.


3.15 Execution of Instruments. All agreements, contracts, deeds, leases, and other instruments of the Association shall be executed by such individual(s) as may be designated from time to time by the Board.

3.16 Indemnification. Neither a Director nor an officer of the Association shall be liable to the Association or the Owners for any mistake of judgment, negligence, or otherwise, except for such Director's or officer's willful misconduct or bad faith. Each Director and officer shall be indemnified by the Association against all expenses and liabilities, including reasonable attorneys' fees, incurred by or imposed upon such Director or officer in such capacity; provided, however, there shall be no indemnity if such Director or officer is adjudged guilty of willful misconduct or bad faith in connection with the matter as to which indemnification in sought.

SECTION 4 ASSESSMENTS

4.1 Annual Assessments. Subject to the requirements and limitations set forth in this section 4, the Association shall have the authority to determine the amount of and to levy annual assessments (i) to pay all expenses associated with the Association's performance of its powers, duties, and responsibilities under this Declaration; (ii) to pay all property taxes, lighting, insurance, maintenance, and other expenses incurred with respect to the Public Open Space, the Other Common Areas and any Improvements thereon; and (iii) to establish and maintain Reserves, in each case in such amount as may be deemed appropriate by the Board. The Association shall have no duty or obligation to maintain or otherwise provide for any Private Open space unless and only to the extent the Association expressly undertakes such obligation. The Board shall attempt to determine the amount of the annual assessment applicable to the current calendar year on or prior to April 15th of such year. Failure of the Board to determine the annual assessment prior to April 15th, or any amendment of or adjustment to an amount previously determined that occurs after April 15th, shall not relieve any Owner of its obligation to pay such assessment, provided only that such assessment otherwise is made consistently with the provisions of this section 4. The Association shall bill each Owner for such Owner's share of the assessments determined in accordance with this section 4) on an annual, quarterly, or monthly basis, as the Board may determine. Each Owner shall pay any such assessment within thirty (30) days after the date of billing.

4.2 Allocation to Lots

4.2.1 Initial Allocation. The annual assessment levied pursuant to section 4.1 with respect to any calendar year, shall be allocated to the single-Family Lots and shall be allocated among such Single-Family Lots pro rata based on the total number of Single-Family Lots; provided, however, that, except as otherwise herein provided, the amount allocated to each Single-Family Lot pursuant to this Section 4.2.1 with respect to any calendar year shall not exceed $250.00.

4.2.2 Allocation to Improved Declarant Lots. To the extent, if any, that the amount of any annual assessment to be allocated pursuant to this section 4.2 exceeds the amount which may be allocated pursuant to section 4.2.1 as a result of the limitations set forth therein, the excess shall be allocated pro rata among the Improved Declarant Lots; provided, however, that, except as otherwise herein provided, the amount so allocated to each Improved Declarant Lot pursuant to this section 4.2.2 with respect to any calendar year shall not exceed $250.00.

4.2.3 Allocation to Unimproved Declarant Lots. To the extent, if any, that the amount of any annual assessment to be allocated pursuant to this section 4.2 exceeds the aggregate amount which may be allocated pursuant to sections 4.2.1 and 4.2.2 as a result of the limitations set forth therein, the excess shall be allocated pro rata among the Unimproved Declarant Lots; provided, however, that, except as otherwise herein provided, the amount so allocated to each Unimproved Declarant Lot pursuant to this section 4.2.3 with respect to any calendar year shall not exceed $250.00.

4.2.4 Excess Allocation. To the extent, if any, that the amount of any annual assessment to be allocated pursuant to this Section 4.2 exceeds the aggregate amount which may be allocated pursuant to Sections 4.2.1, 4.2.2, and 4.2.3 as a result of the limitations set forth therein, the excess shall be allocated among the Single-Family Lots, the Improved Declarant Lots, and the Unimproved Declarant Lots pro rata based on the total number of such Lots.

4.3 Special Assessments. In addition to annual assessments pursuant to section 4.1, the Association shall have the authority to determine the amount of and to levy special assessments (i) to pay the cost of any construction or reconstruction of any Improvements in or to the Public Open Space, the Private Open Space and the Other Common Areas; (ii) to pay the cost of repair or replacement of any such Improvements, if in excess of Reserves available for that purpose; or (iii) for any other purpose deemed appropriate by the Board;. provided, however, that any special assessment shall be levied only upon Single-Family Lots and Improved Declarant Lots and only following the affirmative vote of at least 75 percent of the Directors. Special assessments shall be billed to the Owners of Single Family Lots and of Improved Declarant Lots at such time as the board may determine. Special assessments shall be allocated among the single-Family Lots and Improved Declarant Lots in the manner provided with respect to annual assessments in Section 4.2.1 and Section 4.2.2, without regard to the dollar limitations set forth therein. Each Owner shall pay any such assessment within thirty (30) days after the date of billing.

4.4 No Proration of Assessments. Annual and special assessments shall become a liability of the Owners of Lots at the time the assessment is approved or otherwise determined by the Board. Accordingly, no annual assessment shall be reduced or otherwise prorated for any portion of the calendar year in which the assessment is made for which an Owner may not have owned the Lot assessed. Nothing contained in this Section 4, however, shall preclude an Owner from prorating or otherwise contracting with such Owner's transferor or transferee, as the case may be, or with any other third party, for payment of any assessment (annual or special) made or levied by the Board. Such proration or agreement shall not relieve the Owner of its personal primary liability for payment of the assessment, but the Association shall be and become an intended third party beneficiary of such agreement.

4.5 Records of Assessments. The Association shall maintain records of assessments, of any other income received by the Association, and of all disbursements made. The Board may at any time and from time to time require that an audit or review of the Association’s records be performed at the expense of the Association. The results of any such audit may be presented at any meeting of the Board. Any Director may, at the Association's expense and at any reasonable time, copy any Association records reasonably necessary to the performance of such Director's duties. Any Owner shall have the right to inspect Association records at any reasonable time, after reasonable notice to the Secretary any Owner may copy Association records at such Owner's expense.

4.6 Enforcement. In the event that any assessment, or any expense due pursuant to section 6 or 8, is not paid within thirty (30) days after the date of billing, the unpaid amount shall thereafter bear interest from the date first due until paid in full at a rate per annum equal to three percentage points in excess of the announced prime rate of U.S National Bank of Oregon in effect on the date payment was first due. In addition to all other rights and remedies available by law or provided herein, the Association shall also be entitled (i) to impose a late charge with respect to any such unpaid amount equal to ten (10) percent thereof, to reimburse the Association for its administrative and other expenses incurred as a result of the Owner's failure to pay the assessment or expense when due; and (ii) upon fifteen (15) days prior written notice to the Owner owing such assessment or expense, to impose a lien against such Owner's Lot in the amount of the assessment or expense, plus collection costs (including reasonable attorneys' fees), plus interest and late charges as provided in this Section 4.6. Any such lien shall also secure any additional amounts thereafter coming due from the Owner of the Lot in question. Subject to the provisions of Section 4.8, any such lien shall bind and run with the Lot in question until paid in full. The Association may initiate an action to foreclose any such lien in any manner provided by law. In any action to foreclose any such lien, any judgment rendered against the Owner of the Lot in question and in favor of the Association shall include such amount as the court may adjudge reasonable as attorneys' fees and costs and expenses reasonably incurred in the preparation for and the prosecution of such action, at trial and on any appeal, in addition to all other amounts provided by law.

4.7 Personal Obligation. Each assessment or charge levied pursuant to the provisions of this Declaration shall be a separate and personal obligation of the Owner of the Lot against which the assessment or charge is levied. The sale, transfer, or conveyance of a Lot shall neither release nor discharge the Owner thereof from such personal liability, nor shall such a sale, transfer, or conveyance extinguish any lien placed on such Lot.

4.8 Subordination. Notwithstanding any other provision of this Declaration, any lien imposed on a Lot under this section 4 shall be and remain at all times inferior, junior, and subordinate to the lien of any first mortgage or deed of trust encumbering such Lot. Without limiting the generality of the foregoing, the sale or transfer of any Lot under a decree of foreclosure pursuant to any such first mortgage or deed of trust, or proceeding in lieu of foreclosure, shall extinguish any lien imposed on such Lot hereunder prior to the date of such sale or transfer; provided however, and notwithstanding the provisions of Section 4.1 concerning the absence of prorated assessments, annual assessments in the year of such foreclosure or deed in lieu thereof shall be prorated as of the date of foreclosure or transfer in lieu thereof, and the transferee shall be liable for the prorated portion of such annual assessment and for any assessments made on and after such date of foreclosure or transfer in lieu thereof. Upon twenty (20) days prior written request, the Association shall execute and deliver such reasonable documentation as any Lot Owner may request to confirm or evidence the provisions of this section 4.5.

SECTION 5 ARCHITECTURAL AND DESIGN CONTROL

5.1 Establishment of the Architectural Control Committee. On or prior to the Turnover Date, the Architectural Control Committee shall be established to review and approve or disapprove plans, specifications, design, construction, and alterations of all Improvements built within Highland Summit, pursuant to Sections 5.2 and 5.3. The Architectural Control Committee shall consist of three or five members (as determined by the Board from time to time) appointed, removed, and replaced by the Board, at least one of whom shall be an architect, engineer, or contractor or shall have such other similar qualifications as the Board may deem appropriate. The members of the Architectural Control Committee shall be compensated by the Association in such amount, if any, as may be determined from time to time by the Board. Until such time as the Architectural
Control Committee is established, Declarant shall have full power and authority to act as the Architectural Control Committee in accordance with the provisions of this section 5.

5.2 Architectural and Design Review

5.2.1 Generally. No Improvement of any kind shall be commenced, erected, placed, or altered on any portion of the Property unless such Improvement is in conformance with this Section 5.2 and until plans and specifications showing the nature, kind, shape, height, material, color, and location of such Improvement are submitted to and approved by the Architectural Control Committee pursuant to the provisions of Section 5.3. All such Improvements shall be erected and altered in conformance with all applicable governmental laws, ordinances, rules, and regulations and with the requirements set forth in this Section 5.2. To the extent applicable governmental laws, ordinances, rules, and regulations differ from or are in conflict with such requirements, the more restrictive standards shall control.

5.2.2 Design Guidelines. The Architectural Control committee shall have the authority, but not the obligation, to promulgate and issue, and thereafter to amend from time to time, design guidelines supplementing, interpreting, and not inconsistent with those set forth in this Section 5.2. Such guidelines shall be available in writing to all Owners requesting same, shall be fully binding upon all Owners as if set forth in this Declaration whether or not reviewed by an Owner, and shall be applied by the Architectural Control Committee in reviewing and approving or denying proposed Improvements. Without limiting the generality of the foregoing, the Architectural Control Committee shall have the authority to include in any such guidelines, among such other provisions as the Architectural Control Committee may deem appropriate, height restrictions with respect to Improvements to be constructed on the Property or any portion thereof, requirements and restrictions with respect to exterior lighting in addition to those set forth in this Declaration, requirements regarding parking and landscaping in addition to those set forth in this Declaration, signage restrictions, and requirements to be met in connection with construction activities on the Property or any portion thereof. Any requirements or restrictions set forth in the design guidelines need not relate to all components of Highland Summit, if the Architectural Control Committee determines that only certain portions of the Property should be affected. Prior to acquiring any Lot or other portion of the Property on which Improvements are to be built, each potential Owner has the responsibility and the obligation to consult with the Architectural Control Committee to determine whether any design guidelines have been promulgated or exist that restrict or otherwise affect the Lot or portion of the Property to be acquired. Without limiting the generality of the foregoing, each Owner hereby is advised that Declarant has and intends further to develop a Street Landscaping Plan, as such may be amended from time to time, affecting certain portions of the Property that will require the planting, maintenance and care of specified species of trees, shrubs and plants in predetermined configurations that are adjacent or proximate to the streets within Highland Summit.

5.2.3 Exterior Finish. The exterior of the Improvements on all Lots, including without limitation the roof, materials, and color thereof, shall be subject to the approval or disapproval of the Architectural Control Committee and shall be designed, built, and maintained so as to be compatible with the natural surroundings, existing structures, and landscaping within Highland Summit. Exterior trim, doors, railings, decks, eaves, and gutters, and the exterior finish of garages and other accessory buildings shall be designed, built, and maintained so as to be compatible with the exterior of the structure they are part of or adjoin.

5.2.4 Exterior Lighting. Any exterior lighting which is visible from any Lot or street, or any part of the Public Open Space or Other Common Areas, shall be compatible with its surroundings and approved by the Architectural control Committee prior to installation. No lighting shall produce excessive glare or excessive illumination or unreasonably interfere with the use of any other portion of the Property. No flashing or blinking lighting shall be permitted.

5.2.5 Fences. All fences and all fence finishes shall be approved by the Architectural Control Committee prior to installation. All approved fences shall be well-constructed of suitable fencing materials, shall be finished on both sides by the Person constructing the fence, and shall not detract from the appearance of any nearby building.

5.2.6 Hedges etc. No hedges or other plantings along the boundaries of any Lot shall be permitted without the prior approval of the Architectural Control Committee.

5.2.7 Tree Removal. No trees with a diameter of four inches or more, measured at a height of five feet above ground level, may be removed from any Lot without the prior approval of the Architectural Control Committee. Each Owner shall supply to the Architectural Control Committee, together with the plans and specifications for any proposed Improvement, a drawing showing the intended location of such Improvement on such Owner's Lot and of all trees thereon, so that necessary tree removal can be readily determined.

5.2.8 Service Facilities. Clothes lines, waste facilities, storage facilities, and other service facilities shall be screened so as not to be visible from the street, adjacent property, the Public Open Space or other Common Areas.

5.2.9 Antennae. No exterior radio, television, or telecommunication towers, antennae, satellite dishes, or other exterior transmission or receiving devices shall be allowed without the prior approval of the Architectural Control Committee.

5.2.10 Utilities and Equipment. All utility lines shall be underground. Pad-mounted transformers, switch-gears, and similar equipment which must be installed above ground and all service equipment such as meters, generators, mechanical duct work, piping, and HVAC equipment shall be screened with suitable landscaping or walls of design and material compatible with those of the adjacent buildings, as determined by the Architectural Control Committee.

5.3 Design Review Procedure

5.3.1 Submission of Plans. Prior to the commencement of construction of or the erection, placement, or alteration of any Improvement on any Lot, the Owner desiring so to commence, erect, place, or alter such Improvement shall submit plans and specifications to the Architectural Control Committee in accordance with such procedures as the Architectural Control Committee may establish from time to time. All plans and specifications shall conform to any specific requirements set forth in the design guidelines promulgated pursuant to Section 5.2.2 and shall provide sufficient detail to enable the Architectural Control Committee to determine whether the proposed Improvement is in conformance with the applicable requirements set forth in this section 5 and in such design guidelines. Such plans and specifications shall be accompanied by the Owner's payment of such reasonable fee as may be fixed by the Board from time to time to cover costs of the design review process. The Owner also shall supply any additional information reasonably requested by any member of the Architectural Control Committee. The Architectural control Committee shall review the information and plans submitted and shall, within thirty (30) days after submission of all information requested by any member of the Architectural Control Committee, notify the Owner in writing of its approval or disapproval of the proposed Improvement. If the Architectural Control Committee fails to give notice of its decision within such thirty (30) day review period, the proposed Improvement shall be conclusively presumed to be approved as submitted.

5.3.2 Approval. The Architectural Control Committee may approve a proposed Improvement as submitted or may impose specific conditions which must be met before approval will be granted. A decision by a majority of the members of the Architectural Control Committee shall constitute a decision of the Architectural Control Committee.

5.3.3 Commencement of Work. As soon as practicable after the receipt of approval by the Architectural Control Committee, if the Owner elects to proceed with the Improvement, the Owner shall satisfy any and all conditions of such approval, shall secure all necessary governmental permits and approvals, and shall commence construction of the approved Improvement. The Architectural Control Committee's approval of any proposed Improvement shall automatically be deemed revoked sixty (60) days after issuance unless construction of the Improvement has commenced or the Owner has applied for and received an extension of time from the Architectural Control Committee.

5.3.4 Completion of Work. Any approved Improvement shall be completed within one hundred eighty (180) days after the date of commencement of construction in the case of any Improvement on a Single-Family Lot; provided, however, that if the construction of any approved Improvement is delayed by causes beyond the reasonable control of the Person constructing such Improvement, the period within which construction must be completed shall be extended by the number of days construction is so delayed. In all cases, landscaping shall be completed within ninety (90) days after substantial completion of associated Improvements. Promptly after completion of any Improvement, the Owner shall give written notice of completion to the Architectural Control Committee. Within thirty (30) days after the effective date of such notice or at any time that the Architectural Control Committee has reason to believe that an Improvement has been completed, the Architectural Control Committee shall, at its option, inspect the completed Improvement and give written notice to the Owner of any respects in which the completed Improvement fails to conform to the plans therefor as approved by the Architectural Control Committee The Architectural Control Committee shall specify in any such notice a reasonable period, which shall be not less than thirty (30) days, during which the Owner may remedy the nonconformance. If the Architectural Control Committee fails to give a notice of nonconformance within thirty (30) days after the effective date of a notice of completion, the Improvement shall be conclusively presumed to be approved as completed.

5.3.5 Failure to Act. If at any time the Architectural Control Committee fails for any reason to perform its responsibilities under this Section 5, the Board shall have complete authority to serve as a temporary Architectural Control Committee.

5 3.6 Architectural Control Committee Discretion. The Architectural Control Committee, in its sole and absolute discretion, may withhold approval of any proposed Improvement if the Architectural Control Committee finds that the proposed Improvement would be inconsistent with the provisions of Section 6 or would be incompatible with the design standards for Highland Summit, as set forth in this Section 5 and in the design guidelines promulgated pursuant to Section 5.2.2. Considerations such as siting, shape, size, color, design, height, impairment of the view from other parts of the Property, solar access, and other effects on the enjoyment of other parts of the Property, including without limitation the Public Open Space and the other Common Areas, as well as any other factors which the Architectural Control Committee believes to be relevant, may be taken into account by the Architectural Control Committee in determining whether or not to approve any proposed Improvement. The Architectural Control Committee, in its sole discretion, may, upon application, waive any provision of this Section 5 if it determines that the application of such provision results in unnecessary hardship to the affected Owner or that strict application is not necessary for the furtherance of the objective to create an attractive development

5.3.7 No Liability. Neither the Architectural Control Committee, nor any member thereof, nor the Association shall be liable to any Owner, Occupant, Developer, or other Person for any damage or loss suffered or claimed as a result of any action or failure to act on the part of the Architectural Control Committee or any member thereof, so long as the Architectural control Committee or such member has acted in good faith based on actual knowledge.

5.3.8 Nonwaiver. Approval or disapproval by the Architectural Control Committee of any matter proposed to it or within its jurisdiction shall not constitute a precedent or waiver or impair in any manner whatsoever the right of the Architectural Control Committee to grant or withhold approval as to any similar matter thereafter proposed or submitted to it for approval.

5.3.9 Estoppel Certificate. Within twenty (20) days after receipt of a written request from any Owner, and the payment by such Owner of such reasonable fee as may be fixed by the Board from time to time to cover costs, the Architectural Control Committee shall provide such Owner with an estoppel certificate executed by a member thereof, certifying with respect to the Lot(s) owned by such Owner that, as of the date of the certificate, either (i) all Improvements on such Lot(s) comply with this Declaration, or (ii) such Improvements do not so comply, in which event the certificate shall also identify the noncomplying Improvements and state with reasonable particularity the nature of such noncompliance. Any purchaser from an Owner, and any mortgagee or other encumbrancer, shall be entitled to rely upon any such certificate as to the matters set forth therein, such matters being conclusive among Declarant, the Architectural Control Committee, the Association, all Owners, and such purchaser, mortgagee, or other encumbrancer.

SECTION 6 PROPERTY USE AND RESTRICTIONS

6.1 Improvements Permitted. No Improvement shall be erected or permitted to remain on any Single-Family Lot except Improvements consisting of or containing one Residential Unit and Improvements normally accessory thereto. The provisions of this Section 6.1 shall not be construed to prohibit construction of a private greenhouse, storage unit, private swimming pool, or structure for the storage of a boat, camping trailer, and/or recreational vehicle, so long as any such Improvement has been approved in writing by the Architectural Control Committee and is otherwise in conformance with this Declaration and applicable governmental requirements.

6.2 Residential Use. Except as provided in this Section 6.2, Single-Family Lots shall be used solely for residential purposes. Without limiting the generality of the foregoing, no trade, craft, business, profession, commercial, or similar activity of any kind shall be conducted on any single-Family Lot, nor shall any goods, equipment, vehicles, materials, or supplies used in connection with any trade, service, or business be kept or stored on any such Lot, other than with the prior approval of the Board. Nothing in this section 6.2 shall be deemed to prohibit or limit (i) activities relating to the sale or rental of Residential Units, (ii) the right of Declarant or any Developer to construct a Residential unit on any Single-Family Lot or to store construction materials and equipment on any such Lot in the normal course of construction, or (iii) the right of any Owner to maintain a personal professional library, handle business or professional telephone calls, or confer with business or professional associates, clients, or customers in such Owner's Residential Unit. The Board shall not approve any activity otherwise prohibited by this Section 6.2 unless the Board determines that only normal residential activities would be observable outside the Residential Unit in question and that the activity would not violate applicable law.

6.3 Landscaping and Maintenance. Each Owner and occupant shall maintain at all times such Owner's or Occupant's Lot, and the Improvements thereon, in an attractive, neat and good condition and as hereinafter provided, at such Owner's or Occupant's expense. Required maintenance and repair shall include without limitation (i) maintenance of all parking areas, private drives, curbs, and walkways in a clean and safe condition, including cleaning and repairing as often as is necessary; (ii) maintenance of landscaping in an attractive, neat, orderly, trimmed, and cut condition at all times, free of brush, weeds, and debris and in compliance with the Street Landscaping Plan to the extent applicable; (iii) cleaning, maintenance, and relamping of any external lighting fixtures; and (iv) maintenance of exteriors of buildings in an attractive and neat condition at all times. In addition, each Owner and Occupant shall maintain in good condition and repair the sidewalks, street trees and grass and other landscaping, if any, between the sidewalks and curbs bordering on such Owner's or Occupant's Lot, whether located on the Lot or the adjacent right-of-way. If the Board determines that maintenance and repairs are not conducted as required pursuant to this Declaration, the Association may conduct the necessary repairs or maintenance as provided in Section 8.

6.4 Limitations on Use

6.4.1 Offensive Activities. No noxious or offensive activity shall be carried on in Highland Summit, nor shall anything be done or placed upon any Lot which interferes with or jeopardizes enjoyment of other Lots, the Public Open Space, the Private Open Space or the Other Common Areas.

6.4.2 Animals. No animals of any kind shall be raised, kept, or permitted within Highland Summit; provided, however, that each Owner and Occupant may keep a reasonable number of household pets which are not kept, bred, or raised for commercial purposes and which are reasonably controlled so as not to be a nuisance.

6.4.3 Parking. Parking of boat, trailers, recreational vehicles, trucks, campers, motorcycles, and similar equipment shall not be allowed on any single-Family Lot, or any street adjacent thereto, except within an enclosed garage or screened area which prevents the vehicle or equipment therein from being seen from any other Lot, the Public Open Space, the Other Common Areas or any street within the Property1 and the construction of which has been reviewed and approved by the Architectural Control Committee pursuant to Section 5.

6.4.4 Vehicles in Disrepair. No Owner or Occupant shall permit any vehicle which is in an extreme state of disrepair (as reasonably so determined by the Board) or which is under repair to be abandoned or to remain parked on any Lot for a period in excess of 48 hours. If an Owner or Occupant fails to remove such a vehicle within three (3) days after notice from the Association, the Association may have the vehicle removed from the Property and charge the expense of such removal to the Owner of the Lot as provided in Section 8.

6.4.5 Rubbish and Trash. No Lot and no part of the Public Open Space, the Other Common Areas, the Private Open Space or any other portion of the Property shall be used as a dump for trash or rubbish of any kind. All garbage and other waste shall be kept in appropriate sanitary containers for proper disposal and out of public view. Yard rakings, dirt, and other material resulting from landscaping work shall not be dumped onto streets, the Public Open Space, the Other Common Areas, the Private Open Space or any Lot. In the event an Owner or Occupant fails to remove any trash, rubbish, garbage, yard rakings, or other waste materials from such Owner's or Occupant's Lot (or from any street or the Public Open Space, the Other Common Areas or the Private Open Space if deposited thereon by such Owner or Occupant) within three (3) days after notice from the Association, the Association may have such waste removed and charge the expense of such removal to the Owner of the Lot as provided in Section 8.

6.4.6 Temporary Structures. No structure of a temporary character, trailer, tent, shack, garage, barn, or other outbuilding shall be permitted or used in Highland Summit at any time as a residence either temporarily or permanently.

6.4.7 Improvements in the Public Open Space. No Improvement of any type shall be erected or maintained by any Owner or Occupant so as to trespass or encroach upon the Public Open Space, the Other Common Areas or the Private Open Space.

6.5 Resource Areas. Any portions of the Property designated on the Plat as significant resource areas shall remain undisturbed and in their natural state, except to the extent, if any, otherwise approved by the County and the Architectural Control Committee.

SECTTON 7 OPEN SPACE AND EASEMENTS

7.1 Public Open Space. The Public Open Space shall be conveyed to the Association by Declarant not later than ninety (90) days After the Turnover Date. Every Owner and Occupant, and all invitees and guests of all Owners and Occupants, shall have a nonexclusive right and easement to use and enjoy the Public Open Space, which right and easement shall be appurtenant to and shall run with the Property and all Lots therein. Such right and easement shall be subject to the Association's right to promulgate rules and regulations governing the use of the Public Open space. The Association shall maintain and repair the Public Open Space, subject to the Owners' obligations to pay their allocable shares of the cost of such maintenance and repair in accordance with Section 4 hereof.

7.2 Utility Easements. The Association shall have the right to grant nonexclusive easements and rights of way over the Public Open Space and the Other Common Areas for the purpose of installing, maintaining, repairing, and replacing public utility lines, services, and facilities reasonably necessary to serve any of the Property.

7.3 Future Improvements. The Association shall have the right to make further improvements in or of the Public Open Space and/or the Other Common Areas and to expand or replace any Improvements in the Public Open Space and/or the Other Common Areas.

SECTION 8 ENFORCEMENT

8.1 Right of Entry. Declarant, the Association, the Architectural Control Committee, and any representative of any of the foregoing shall have the right to enter upon any Lot (i) to clean or maintain landscaping, parking areas, driveways, exterior lighting fixtures.1 and buildings; (ii) to inspect any Lot prior to, during, or upon the completion of construction of Improvements thereon; (iii) to remove, demolish, replace, alter, repair, Or otherwise correct any Improvement which is placed on any Lot without the prior approval of the Architectural Control Committee pursuant to and in accordance with all of the provisions of Section 5 or which is constructed or installed in a manner inconsistent with the terms of the Architectural Control Committee's approval therefor pursuant to such Section 5; (iv) to enforce the provisions of Sections 5.3, 6.4.4, and 6,4.5 if the Owner or the Lot in question does not do so as required by this Declaration; or (v) for any other purpose permitted under or necessary to enforce the provisions of this Declaration. The Owner of any Lot shall reimburse the Association for any expenses incurred in connection with any action described in the clauses (i), (iii), or (iv) of the preceding sentence promptly upon billing or the same. If the Owner fails to reimburse the Association within ten (10) days after such billing, the Association may impose a lien against the Lot as provided in Section 4.6. No entry on any Lot pursuant to this Section 8 shall be deemed a trespass or otherwise create any right of action in the Owner or Occupant of such Lot.

8.2 Stop Work Order. The Association shall have the right, acting through the Architectural Control Committee, to issue an order to any Person, including any Owner or Occupant, requiring such Person to cease construction of and, if necessary, to remove any Improvement which previously has not been approved by the Architectural Control Committee pursuant to Section 5 or which otherwise violates this Declaration. The Association shall also have the right to seek enforcement of any such order in accordance with Section 9.4.

8.3 Fines. The Association shall have the right, acting through the Architectural Control Committee, to fine any Person who fails to comply with or violates any provision of Section 5 or Section 6 of this Declaration. Such fine shall be a personal obligation of the Owner, as and to the extent provided in Section 4.7 hereof. The Board shall determine the general circumstances in which fines may be imposed and the amount thereof for different types of violations or failures of compliance. If any fine is not paid within ten (10) days after notice thereof to an Owner or Occupant, the Association may impose a lien against such Owner's or Occupant's Lot pursuant to Section 4.6.

SECTION 9 GENERAL PROVISIONS

9.1 Duration. The covenants, conditions, and restrictions contained herein shall run with and bind, benefit, and burden in perpetuity the Property, all Owners and Occupants thereof, and the lessees, invitees, and guests of all Owners and Occupants.

9.2 Severability. In the event any provision of this Declaration is determined to be invalid or unenforceable, that determination shall not affect the validity or enforceability of any other provision or of the same provision to a different situation.

9.3 Amendment. Prior to the Turnover Date, this Declaration may be amended at any time and from time to time by Declarant. From and after the Turnover Date, this Declaration may be amended only (i) by majority vote of the Board, or (ii) upon the affirmative vote of 65 percent or more of the Owners, with each Owner having one vote for each Lot then owned; provided, however, that notwithstanding the foregoing, the provisions of Section 4.2 may be amended after the Turnover Date only by unanimous vote of the Board or upon the affirmative vote of 75 percent or more of the Owners.

9.4. Enforcement. The Association and each Owner shall have the right to enforce all of the covenants, conditions, restrictions, reservations, easements, liens, fines and charges now or hereinafter imposed pursuant to any provision of this Declaration by any appropriate proceeding at law or in equity. Any remedies specifically provided herein are nonexlusive and cumulative and are in addition to all other remedies available to the Association or the Owners at law or in equity.

9.5 Non-Waiver. Any failure of the Association or any Owner to enforce a covenant, condition, or restriction contained in this Declaration shall not be deemed to constitute a waiver of the Association's or any Owner's right to enforce that or any other covenant, condition, or restriction contained in this Declaration.

9.6 Declarant Not Liable. Neither Declarant nor Declarant's successors or assigns shall be liable to any Owner or Occupant or to any other Person for its enforcement or failure to enforce any provision of this Declaration. Each Owner and Occupant, by acquiring such Owner's or such Occupant's interest in the Property, agrees not to bring any action or suit against Declarant or any successor or assign of Declarant to recover any such damages or to seek any other relief (including without limitation equitable relief) by reason of any such enforcement or failure to enforce any provision of this Declaration. Each Owner and Occupant shall and does, by taking title to or occupying any portion of the Property, agree to defend, indemnify, and hold harmless Declarant and Declarant's successors and assigns from any claim, loss, damage, cost, or expense (including without limitation reasonable attorneys' fees) arising out of the use, operation, ownership, occupancy, or condition or state of repair of that portion of the Property owned by such Owner or occupied by such Occupant.

9.7 Authority. Where fee simple title to a Lot is owned by more than one person or where there is more than one contract vendee of a not, each such owner of the fee or contract vendee shall have authority to bind the other fee title owners or contract vendees as the case may be. All Persons hereunder, including without limitation, Declarant, the Association, the Board and/or the Architectural Control Committee, shall be entitled to rely conclusively upon any vote and/or written or oral communication from any such fee title owner or contract vendee as representing the vote and/or communication of the Owner of such Lot, and such Person shall have no duty or obligation to investigate or determine the authority of such fee title owner or contract vendee to speak for or bind any other fee title owner or contract vendee of a Lot or other portion of the Property.

9.8 Adjustment for Inflation. The maximum assessment amounts specified in Section 4.2.1, Section 4.2.2 and Section 4,2.3 shall be increased (but never shall be decreased) on January 1, 1993 and on January 1 of each year thereafter (each such date being referred to as an "Adjustment Date") in an amount equal to the product of (i) the then existing maximum assessment amount and (ii) the CPI Adjustment. The “CPI Adjustment” shall be a fraction, the numerator of which shall be the CPI, hereinafter defined, for the Adjustment Date and the denominator of which shall be the CPI for the date this Declaration is recorded as to the first Adjustment Date and the CPI for the immediately prior Adjustment Date as to all subsequent adjustments. “CPI” shall mean the All Items, All urban Consumers Price Index for the Portland-Vancouver consolidated Metropolitan Statistical Area (1982-84-100), as published by the United States Department of Labor, Bureau of Labor Statistics, or if the CPI is discontinued or revised, then such other index or computation with which it is replaced, and if there is no such replacement, then with such other index that reasonably is selected by the Board. If the CPI is not published for the date of recordation of this Declaration or for any applicable Adjustment Date, then the CPI published closest prior to or after such date shall be used. Notwithstanding the foregoing, the provisions of this Section 9.8 shall cease to apply if and to the extent that (i) the effect of the adjustment for inflation required pursuant hereto would result in the loss of the exemption to the application of ORS Chapter 94 to Highland Summit that is provided in ORS 94.570(2); and (ii) the Board does not affirmatively elect to be governed by the provisions of ORS Chapter 94; provided however that if the provisions of this Section 9.8 are so suspended, the maximum assessment amount, and subsequent adjustments to the maximum assessment amount, shall be made and determined so as to preserve the exemption now contained in ORS 94.570(2).

9.9 Constructive Notice and Acceptance. By the recording this Declaration, each Owner and Occupant shall be deemed to have consented and agreed to every term, covenant, condition, and restriction contained herein.

9.10 Joint and Several Liability. If an Owner consists of more than one Person, each such Person shall be jointly and severally liable for any assessment or charge and for the performance of any other obligation imposed pursuant to this Declaration.

9.11 Captions. The captions and headings of sections herein are for convenience only and are not intended in any way to define, limit, or describe the scope or intent of any section of this Declaration.

9.12 Notices. All notices under this Declaration shall be in writing. Any such notice shall be deemed effective on the earlier of the date of personal delivery or, if mailed, three business days following the date of mailing, if addressed to the addressee at the address, if any, designated in the Association's records.

IN WITNESS WHEREOF, the Declarant has executed this Declaration on this 16th day of July, 1991.

SCHNITZER INVESTMENT CORP., an Oregon corporation