RESTATED DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS

LONGWATER HOMEOWNERS ASSOCIATION, March 2001

This Restated Declaration, made on the date set forth below, pursuant to the written consent of sixty percent (60%) of the Owners of the Property, Collectively referred to as "The Association" is made with reference to the following facts:

        A.  The Association and its Members are the Owners of certain Property located in the City of Foster City, County of San Mateo, State of California, as shown on the map entitled "Tract No. 53-76 Longwater Foster City-Neighborhood No. 7 Foster City San Mateo County California" which map was recorder in the Office of the Recorder of the County of San Mateo, State of California, in Book 94 of Maps, at Pages 48 and 49, inclusive.

        B.  A Declaration of covenants, conditions and restrictions have previously been imposed upon the Property as recorded on April 13, 1997, at document number 5240AL, at Volume 7440, page 555, et seq. in the Office of the Recorder of San Mateo County, State of California,

        C.  The Association intends by this document to restate the Declaration of covenants, conditions and restrictions previously imposed upon the Property.

NOW, THEREFORE, Association hereby declares that the Property shall continue to be held, conveyed, mortgaged, encumbered, leased, used, occupied, and improved, subject to imposed as equitable servitudes pursuant to a general plan for the purpose of improving and protecting the value and attractiveness of the Property, and every part thereof. These restated covenants, conditions and restrictions shall constitute covenants which shall run with the land and shall inure to the benefit of and be binding upon the Association and all parties having or acquiring any right, title or interest in or to any part of the Property, their heirs, successors, assigns.

1. ARTICLE I - DEFINITIONS

1. "Articles" shall mean or refer to the Articles of Incorporation of the Longwater Homeowners Association which are filed in the Office of the Secretary of State of California.
2. "Association" shall mean the Longwater Homeowners Association, its successors and assigns, incorporated as a non-profit mutual benefit corporation under the laws of the State of California.
3. "Beneficiary" shall mean and refer to a Mortgagee under a First Mortgage or a Beneficiary under a first deed of trust encumbering a Lot.
4. "Board" or "Board of directors" shall mean the governing body of the Association.
5. "Bylaws" shall mean or refer to the Bylaws of the Association, as amended from time to time.
6. "Common Area" shall mean all real property owned by the association for the common use and enjoyment of its Members, but does not include real property over which the Association has only an easement. The Common Area within the Property is Parcels A through I, inclusive as shown o the Map.
7. "Declaration" shall mean and refer to this Restated Declaration, as amended or added to from time to time.
8. "Eligible Holder Mortgages" shall mean Mortgages held by "Eligible Mortgage Holder".
9. "Eligible Mortgage Holder" shall mean a First Lender who has requested notice of certain matters from the Association in accordance with Article XI.
10. "Eligible Insurer or Guarantor" shall mean a First Lender who has requested notice of certain matters from the Association in accordance with Article XI.
11. "First Lender" shall mean any person, entity, bank, savings and loan association, insurance company, or financial institution holding a recorded First Mortgage on any Lot.
12. "First Mortgage" shall mean and refer to any recorded Mortgage on a Lot with first priority over other Mortgages thereon, made in good faith and for value.
13. "Governing Documents" shall mean this Declaration, the Articles, Bylaws, and Rules.
14. "Landscape Improvement Plans" shall mean the landscape improvement plan map recorded April 13, 1977, at Document No. 5240AL with the office of the Recorder of San Mateo County.
15. "Lot" shall mean any numbered or lettered plot of land shown upon the recorded subdivision map of the Property, which is not Common Area.
16. "Map" refers to that certain Map entitled "Tract No. 53-76 Longwater Foster City-Neighborhood No. 7 Foster City San Mateo County California, and recorded in Book 94 of Maps, at Pages 48 and 49, inclusive.
17. "Member" shall mean and refer to a person entitled to membership in the Association as provided herein.
18. "Mortgage" shall mean a deed of trust as well as a Mortgage.
19. "Mortgagee" shall mean a beneficiary under or holder of a deed of trust as well as Mortgage.
20. "Owner" or "Owners" shall mean and refer to the record holder, whether one (1) or more persons or entities, of a fee simple title to any Lot which is a part of the Property but excluding those persons or entities having an interest merely as security for the performance of an obligation. If a Lot is sold under a contract of sale and the contract is recorded, the purchaser, rather that the fee Owner, will be considered the "Owner" from and after the date the Association receives a written notice of the recorded contract.
21. "Project Fence" shall mean that fence on certain Lots abutting Pitcairn Drive as shown and identified as the Project Fence on the Landscape Improvement Plans.
22. "Property" shall mean and refer to all the real property described on the Map and all improvements thereon, subject to this Declaration.
23. "Rules" shall mean the Rules adopted by the Board pursuant to Section 4.3.15 of this Declaration.
24. "Total Voting Power of the Association" shall mean and refer to the total of 55 votes allocated to the Members.
25. "Unenclosed Portion" means that portion of a Lot exterior of any dwelling, Project Fence, perimeter fence line, and lagoon retaining wall as such Project Fence, perimeter fence lines and lagoon retaining walls are shown and identified on the Landscape Improvement Plans.

2. ARTICLE II - THE PROPERTY

1. Description of Property. The property is a planned development which consists of the Common Area and 55 individual Lots and all improvements thereon.
   
   
2. Division of Property. The Property is divided into the following separate freehold estates:
   
   
1. Lots. Each of the Lots as separately shown, numbered, and designated in the Map, consists of the real property and the improvements contained thereon. The Lot does not include those areas and those things which are defined as "Common Area".
   
   
2. Common Areas. The remaining portion of the Property, referred to herein as "Common Area" shall include without limitations, all of the elements set forth in Article 1.6 The Common Area shall be owned by the Association for the use and benefit of the Owners.
   
   
3. Owners's Interest.

Every Owner shall have a right to and from his Lot over the various streets comprising a portions of the Common Area, which rights and easements shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:



1. The right of the Association to charge reasonable admission and other fees for the use of recreational facilities, if any, situated upon the Common Area;



2. The right to the Association top suspend the right of an Owner to use any recreational facilities on the Common Area (1) for any period during which any assessment against such Owner's Lot remains unpaid; and, (2) for a period not to exceed 30 days for any infraction of the Governing Documents after notice and hearing by the Board.



3. The right of the Association to grant easements and to dedicate or otherwise convey all or any part of the Common Area as provided in Section 4.2.1 thereof.



4. Easements that benefit or burden any Lot shall be appurtenant to that Lot and shall automatically accompany the conveyance of any Lot, even through the description in the instrument of conveyance may refer only to the fee title to the Lot.



5. Any Owner may delegate, his or her tight of enjoyment to the Common Area and facilities to the members of his or her family, his or her tenants, or contract purchasers, who reside on his or her Lot. Nonresident Members, their families, guests and relatives, are not permitted to use the recreational facilities during periods when their Lot is leased to and/or occupied by others (nonfamily members).
   
   
4. Easements
   
   
1. There shall be reciprocal appurtenant easements of encroachment between each Lot and such portion of the Common area as may be adjacent thereto and between adjacent Lots for the flow of rainwater.
   
   
2. Any easements for navigation and for installation. Maintenance and repair of utilities and drainage facilities over and across the Common "Area, whether dedicated on shall be kept free of buildings and within such easements no structure planting or other material shall be placed or permitted to remain which may damage or interfere with the installation, maintenance and repair of such utilities and drainage facilities, of drainage in the easements. All such easements shall be accessible to all persons installing, repairing or maintaining such utilities and drainage facilities.
   
   
5. Association Easements. The association shall have nonexclusive easements and rights of use on and over all of the Property for the purpose of performing its powers and duties with respect to maintenance of the property and enforcement of the Governing Documents.
   
   
6. Partition of Common Area. There shall be no subdivision or partition of the Common Area, nor shall any Owner seek any partition or subdivision thereof. Notwithstanding any provisions to the contrary contained in this Declaration and in order to provide for a means of terminating the Association if this should become necessary or desirable, on occurrence of any of the conditions allowing an Owner to maintain an action for partition (as such conditions are presently set forth in California Civil Code Section 1359 or as such conditions in the future may be set forth in any amendment thereto or comparable provisions of lay), two-thirds (2/3) of the Total Voting Power of the Association shall have the right to petition the Superior Court having jurisdiction to alter or vacate the recorded Subdivision Map of the property under California Government Code Section 66499.21, et Seq., or any comparable provisions of law, and to vest title to the property in the Owners as tenants in common and order an equitable partition to the Property in accordance with the laws of the State of California. Nothing herein shall be construed to prohibit partition of an joint tenancy or co-tenancy in any Lot.
   

3.  ARTICLE III - ASSOCIATION, ADMINSTRATION, MEMBERSHIP AND VOTING RIGHTS

1. Association to Manage Common Areas. The Association shall manage the Property in accordance with the provisions of the Governing Documents. The affairs of the Association shall be managed by the Board. All powers and duties not specifically reserved to the Members in the Governing Documents shall be exercised exclusively by the Board.
   
   
2. Limitation of Liability. Neither the Association, nor its Board nor Officers shall be liable for any failure to provide any service or perform any duty, function, or responsibility designated or provided in the Governing Documents, or for injury or damage to persons or property caused by fire, explosion, the elements or by another Owner or resident in the Property, or resulting from electricity, water, rain or dirt which may leak or flow from outside an improvement, or from any other place or cause unless the Association has insurance which covers the loss, or unless caused by the intentional act of the Association, its Board or Officers.
   
   
3. Membership. The owner of a Lot shall automatically, upon becoming the Owner, be a Member of the Association, and shall remain a Member thereof until such time as the ownership ceases for any reason, at which time the membership in the Association shall automatically cease. Membership shall be appurtenant to and may not be separate from ownership of a Lot. Membership shall be held in accordance with the Governing documents. Membership in the Association shall not be transferred, encumbered, pledged or alienated n ny way, except upon the transfer of recorded title to the Lot to which it is appurtenant, and then only to the transferee of such Lot. On any transfer of title to a Lot, membership passes automatically with title to the transferee. A Mortgagee does not have membership rights until it obtains title to the Lot by foreclosure or deed in lieu thereof. Any attempt to make a prohibited transfer is void. No member may resign his or her membership. On notice of a transfer of ownership, the Association shall record the transfer on its books.
   
   
4. Voting. At any meeting of the Members, each of the Members shall be entitled to cast one vote for each Lot owned by him or her. When more than one (1) person holds an ownership interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as the Owners among themselves determine, but in no event shall more that one (1) vote be cast with respect to any Lot.

4.  ARTICLE IV- POWERS AND DUTIES OF THE ASSOCIATION

1. Duties. In addition to the duties enumerate in the Governing Documents, and without limiting the generality thereof, the Association shall perform the following duties:
   
   
1. Common Area Maintenance and Repairs. Provide for the improvement, maintenance, restoration, and repair of the Common Area.
   
   
2. Insurance. Maintain such policy or policies of insurance as are required by Article IX of this Declaration.
   
   
3. Discharge of Liens. Discharge by payment, if necessary, any lien against the Common Area, and charge the cost thereof to the Member responsible for the existence of the lien after notice and hearing, as provided in the Bylaws.
   
   
4. Assessments. Fix, levy, collect, and enforce assessments set forth in Article V hereof.
   
   
5. Payment of Expenses. Pay all expenses and obligations incurred by the Association in the conduct of its business including, without limitation, all licenses, taxes, or governmental charges levied or imposed against the property of the Association.
   
   
6. Utilities. Pay for water, sewage, garbage, electrical, gas, telephone and other necessary utility service for the Common Area and (to the extent not separately metered or charged) for the Lots.
   
   
2. Powers. In addition to the powers enumerated in the Governing Documents, and without limiting the generality thereof, the Association shall have the following powers:
   
   
1. Easements. The Association shall have the authority with the vote or written consent of a majority of the Total Voting Power of the Association, to grant easements in addition to those shown on the Map, where necessary for utilities, cable television, sewer facilities and other common purposes over the Common Area to serve the Common Area and the Lots.
   
   
2. Manager. The Association shall have the authority to employ a manager or other persons and to contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association, except for the responsibility to levy fines, impose discipline, hold hearings, file suit, or make capital expenditures. Any contract with a firm or person appointed as a manager or managing agent shall not exceed a one (1) year term, and shall provide for the right of the Association to terminate the same, without cause or payment of a termination fee on (90) days' written notice, or for cause on thirty (30) days' written notice.
   
   
3. Access. For the purpose of performing inspections, construction, maintenance, or emergency repair for the benefit of the Common Area or the Owners in common, the Association's agents or employees shall have the right, after reasonable notice (not less than twenty-four (24) hours except in emergencies) to the Owner thereof, to enter any Lot or to enter any portion of the Common Area at reasonable hours. Such entry shall be made with as little inconvenience to the Owner as practicable.
   
   
4. Discipline and Fines. The Association may impose fines or take disciplinary action against any Owner for failure to pay assessments or for violations of any provision of the Governing Documents, provided the Owner is given notice and a hearing as provided in the Bylaws before the imposition of any fine or other disciplinary action. Discipline may be imposed for failure to pay assessments without a hearing. Penalties may include but are not limited to fines, temporary suspension of voting rights, rights to use the recreational facilities, recordation of a notice of noncompliance or any other appropriate discipline allowed by law. Owners are responsible for any fines, costs or charges incurred due to their family, pets, tenants or guests.
   
   
5. Enforcement. The Association shall have the authority to enforce the Governing Documents.
   
   
6. Acquisition and disposition of Property. The Association shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, or otherwise dispose of real or personal property in connection with the affairs of the Association. Any transfer of real property, except a Lot acquired through foreclosure of an assessment lien, shall be approved by a majority of the Total Voting Power of the Association.
   
   
7. Loans. The association shall have the power to borrow money, but, only with the vote or written consent of a majority of the Total Voting Power of the Association, to mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred.
   
   
8. Contracts. The association shall have the power to contract for goods and/or services for the Common Area, and interest of the Association, subject to limitations in the Governing Documents.
   
   
9. Appointement of Trustee. The Association, or the Board acting on behalf of the Association, has the power to appoint a trustee to enforce assessment liens by sale as provided in this Declaration and Civil Code Section 1367(b).
   
   
10. Use of Property. The Association shall have the power to lease, license, or contract for the use of land, improvements, and equipment for recreational or other purposes.
    
    
11. Signs. The association shall have the power to place and maintain upon Common Area signs and curb markings for the identification of the Property or roads, the regulation of traffic, including parking, the regulation and use of the Common Area, and the health, welfare and safety of Owners and other persons.
    
    
12. Maintenance of Lots. The Association shall have the power to maintain, or provide for the maintenance of, any Lot, and any exclusive use area appurtenant to such Lot which is not maintained by the Owner thereof in accordance with the requirements of this Declaration, at the expense of any such Owner, after notice and hearing as provided in the Bylaws.
    
    
13. Security Control. The Association shall have the power to provide security control, including but not limited to security guards, locked doors or gates, fences, or burglar or fire alarm systems as it deems necessary to afford reasonable protection to: (I) persons legally within the Property; and (ii) rea and persona property within the Property. This provision does not require the Association to provide such services.
    
    
14. Rules and Regulation.



1. Adoption. The Board may, from time to time and subject to this Declaration, adopt, amend, and repeal rules and regulations providing for:
   
   
1. The use of the Common Area and facilities.
   
   
2. The use of roads and parking areas including the designation of the parking and limited parking areas, assignment of parking stall spaces and storage areas, if any, within Common Area.
   
   
3. Monetary penalties, temporary suspension by the Board of an Owner's right as a Member, or other discipline, for failure to comply with the Governing Documents.
   
   
4. The interpretation or implementation of the Article entitled "Architectural Control", and the designation of plans, specifications, or other documents or things required as a prerequisite for consideration of such proposed work.
   
   
5. The establishment of move-in fees, title transfer fees, or such other fees as are reasonably necessary for the operation of the Association.
   
   
6. The implementation of security control procedures within the Property, including, but not limited to: the registration of keys, security cards, or other means to control access to common facilities, and limitation on the distribution of such keys, security cards, or other means of access to common facilities.
   
   
7. The interpretation of the provisions of this Declaration as they would apply to specific factual situations.
   
   
2. Common Area. The rules may limit and otherwise regulate the use of the Common Area. The Rules relating to the use of Common Area shall not discriminate between Owners and other occupants, and shall not discriminate between invitees of Owners and invitees of other occupants, but may provide rules for invitees differing from those governing occupants. The rules may prohibit or limit the invitees that may use the Common Area recreational and service facilities.
   
   
3. Delivery. Each year the Board shall mail to each Owner and Occupant the Rules and any schedule of fines or penalties. The Board shall also post a copy of the Rules at one or more reasonable locations in the Common Area as the Board determines, in its own discretion, will provide exposure to Owners and occupants. Upon such notice and posting, the Rules shall have the same force and effect as if they were set forth in and were a part of this Declaration. Any Rule relating to the health or safety of occupants or other persons coming upon the Property shall take effect upon adoption.
   
   
4. Other Powers. In addition to the powers contained herein, the Association may exercise the powers granted to a nonprofit mutual benefit corporation under California Corporations Code Section 7140.

5.  ARTICLE V - ASSESSMENTS

1. Creation of the Lien and Personal Obligation of Assessments. The Association, for each Lot owned within the Property, hereby covenants, and each Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay to the Association annual, special assessments and reimbursement assessments for purposes permitted herein, such assessments to be established and collected as hereinafter provided; and to allow the Association to enforce any assessment lien established hereunder by nonjudicial proceedings under a power of sale or by any other means authorized by law. The annual and special assessments, together with interest, late charges, collection costs, and attorneys' fees, shall be a charge on the land and shall be a continuing lien upon the Lot against which each such Assessment is made, the lien to become effective upon recordation of a notice of assessment lien. Each such assessment, together with interest, late charges, collection costs, and attorneys' fees, shall also be the personal obligation (joint and several) of each person who was an Owner of such Lot at the time when the assessment fell due. No Owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the Common Areas or by the abandonment of his or her Lot.
   
   The interest of any Owner in the amounts paid pursuant to any assessment upon the transfer of ownership shall pass to the new Owner. Upon the termination of these covenants for any reason, any amounts remaining from the collection of such assessments after paying all amounts properly charged against such assessments shall be distributed to the then Owners on the same pro rata basis on which the assessments were collected.
   
   
2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the economic interests, recreation, health, safety and welfare of all the Owners and the Property and to enable the Association to perform its obligations hereunder.
   
   
3. Assessments.
   
   
1. Annual Assessments. The board shall establish and levy annual assessments in an amount that the Board estimates will be sufficient to raise the funds needed to perform the duties of the Association during each fiscal year. The annual assessment shall include a portion for reserves in such amounts as the Board in its discretion considers appropriate to meet the costs of the future repair, replacement or additions to the major improvements and fixtures that the Association is obligated to maintain and repair.
   
   
2. Special Assessments. The Board, at any time, may levy a special assessment in order to raise funds for unexpected operating or other costs, insufficient operating or reserve funds, or such other purposes as the Board in its discretion considers appropriate.
   
   
3. Reimbursement Assessments. The Board shall levy a reimbursement Assessment against any Owner and his or her Lot whose failure to comply with the Governing Documents has necessitated an expenditure of monies by the Association to repair any damages or to bring such Owner and Lot into compliance with said documents or in otherwise performing its functions under this Declaration, including but not limited to attorney’s fees. Such Assessment shall be for the purpose of reimbursing the Association, shall be limited to the amount so expended, shall be due and payable to the Association when levied and shall be levied only after notice to the Owner and an opportunity for a hearing before the Board to the affected Owner.
   
   
4. Restrictions on Increases in Annual or Special Assessments. The Board may not impose an annual assessment on any Lot which is more than twenty percent (20%) greater than the annual assessment for the immediate preceding fiscal year or levy a special assessment to defray the cost of any action or undertaking on behalf of the Association which in the aggregate exceeds five percent (5%) of the budgeted gross expenses of the Association for that fiscal year, without the vote or written assent of Members casting a majority of the votes at a meeting of the Association at which a quorum is present. For purposes of this section, a "quorum" means more that fifty percent (50%) of the Members. The Board may increase annual assessments by up to twenty percent (20%) over the annual assessment for the immediate preceding fiscal year only if the Board has complied with provisions of California Civil Code section 1365(a), or has obtained the approval of such increase by the Members in the manner set forth above in this section.
   
   Notwithstanding the foregoing, the Board, without membership approval, may increase annual assessments or levy special assessments necessary for an emergency situation. For purposes of this section, an emergency situation is one of the following:
   
   (1) an extraordinary expense required by an order of a court,
   
   (2) an extraordinary expense necessary to repair or maintain the Property or any part of it for which the Association is responsible where a threat to personal safety on the Property is discovered, or
   
   (3) an extraordinary expense necessary to repair or maintain the Property or any part of it for which the association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the pro forma operating budget, provided, however that prior to the imposition or collection of the assessment, the board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process and the resolution shall be distributed to the Members with the notice of the assessment.
   
   The Association shall provide notice by first-class mail to the Owners, of any increase in the regular or special assessments of the Association, not less than thirty (30) nor more than sixty (60) days prior to the increased assessment becoming due.
   
   This section incorporates the statutory requirements of California Civil Code Section 1366. If this section of the California Civil Code is amended in any manner, this section automatically shall be amended in the same manner without the necessity of amending this declaration.
   
   
5. Division of Assessments. Annual and special assessments shall be levied equally among the Lots. A reimbursement assessment may be levied against an individual Lot.
   
   
6. Due Date of Assessments. Subject to the provisions of Section 5.3 hereof, the Board shall use its best efforts to fix the amount of the annual assessment against each Lot and send written notice thereof to every Owner at least forty-five (45) days in advance of each annual assessment period provided that failure to comply with the foregoing shall not affect the validity of any assessment levied by the board. The due dates for annual and special assessment shall be established by the Board. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer or designated representative of the Association stating whether the assessments on a specified Lot have been paid. Such a certificate shall be conclusive evidence of such payment.
   
   
7. Effect of Nonpayment of Assessments. Any assessment not paid within fifteen (15) days after the due date shall be delinquent, shall incur a late payment penalty in an amount to be set by the Board from time to time, not to exceed the maximum permitted by applicable law, and shall bear interest at a rate established by the Board which shall not exceed the maximum interest rate authorized by law from thirty (30) days after the due date until paid.
   
   
8. Transfer of Lot by Sale or Forclosure. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale of any Lot pursuant to foreclosure of a First Mortgage shall extinguish the lien of any assessments on that Lot (including attorneys fees, late charges, or interest) as to payments which became due prior to that sale or transfer (except for assessment liens recorded prior the Mortgage). No amendment of the preceding sentence may be made without the consent of sixty-seven percent (67%) if the Total Voting Power of the Association, and the consent of the Eligible Mortgage Holders holding First Mortgages on Condominiums comprising fifty-one percent (51%) of the Lot subject to First Mortgages. No sale or transfer shall relieve a Lot from liability for any assessments thereafter becoming due or from the lien of those assessments. The unpaid share of those assessments shall be deemed to be common expenses collectible from all of the Lot Owners, including the acquirer and his or her successors or assigns.
   
   If a Lot is transferred, the grantor shall remain personally liable to the Association for all unpaid assessments against the Lot through and including the date of the transfer. The grantee shall be entitled t a statement from the Association, dated as of the date of transfer, setting forth the amount of the unpaid assessments against the Lot to be transferred. The grantee shall be personally liable for any assessments that become due after the date of the transfer. In any event, the Lot shall be subject to a lien for all such assessments.
   
   
9. Priorities; Enforcement; Remedies. If an assessment is delinquent, the Association may record a notice of assessment lien against the Lot of the delinquent Owner prior and superior to all other liens except (1) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (2) the lien or charge of any First Mortgage. The notice of delinquent assessment lien shall state the amount of the assessment, collection costs, attorneys’ fees, late charges and interest, a description of the Lot against which the assessment and other sums are levied, the name of the record Owner, and the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice shall be signed by any officer of the Association or any authorized agent retained by the Association.
   
   An assessment lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to California Civil Code Section 2934(a). Any sale by the trustee shall be conducted in accordance with the provisions of Sections 2924, 2924b, 2924c, 2924f, 2924g and 2924h of the California Civil Code, including any successor statutes thereto, applicable to the exercise of powers of sale in Mortgages and deeds of trust, or in any other manner permitted by law. Nothing herein shall preclude the Association from bringing an action directly against an Owner for breach of the personal obligation to pay assessments. The Board may temporarily suspend the voting rights and right to use recreational facilities of a Member who is in default in payment of any Assessment, without a hearing before the Board Suit to recover a money judgment for unpaid common expenses, and attorneys’ fees shall be maintainable without foreclosing or waiving the lien securing the same.
   
   The Association, acting on behalf of the Owners, shall have the power to bid for the Lot at foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. During the period a Lot is owned by the Association, following foreclosure:
   
   (1) no right to vote shall be exercised on behalf of the Lot;
   
   (2) no assessment shall be assessed or levied on the Lot; and
   
   (3) each other Lot shall be charged, in addition to its usual assessment, its share of the assessment that would have been charged to such Lot had it not been acquired by the Association as a result of foreclosure.
   
   After acquiring title to the Lot at foreclosure sale, the Board may convey title to the Lot which deed shall be binding upon the Owners, successors, and all other parties.

6.  ARTICLE VI - ARCHITECTURAL CONTROL

1. Architectural Approval: No building, fence, wall or other structure on any Lot shall be erected, constructed, demolished, repainted or altered until an application including plans and specifications showing the nature, kind, shape, height, colors, materials, and location of same shall have been submitted to and approved in writing by the Board. Approval of external design with neighboring structures; effect on aesthetic beauty; assurance of adequate access for the Association in connection with the performance of its duties and the exercise of its powers under this Declaration; maintenance costs; and conformity with such rules and regulations as may be adopted by the Board. The Board may require as a condition of approval that the Owner agree to record a covenant against the Lot and all future Owners of he Lot indemnifying the Association or containing other reasonable terms for the protection of the Association.
   
   
2. Failure to Approve or Disapprove Plans and Specifications: In the event the Board fails to either approve or disapprove plans and specifications within sixty (60) days after the same have been submitted to it, it shall be conclusively presumed that the Board has approved such plans and specifications. All improvements work approved by the Board shall be diligently completed and constructed in accordance with the approved plans and specifications.
   
   
3. No Liability: Neither the Board, the Association, the Architectural Committee, nor the members thereof shall be liable in damages to anyone submitting plans or specifications to them for approval, or to any Owner by reason of mistake in judgment, negligence or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve or disapprove an such plans or specifications, or for any defect in any structure constructed from such plans and specifications.
   
   
4. Governmental Approval: Before commencement of any alteration or improvements, the Owner shall comply with all appropriate governmental laws and regulations. Approval by the Board does not satisfy the appropriate approvals that may be required by any governmental entity with appropriate jurisdiction.

7.  ARTICLE VII - COMMON AREA AND LANDSCAPING MAINTENANCE

1. The Association shall maintain and keep in repair the Common Area and the Project fence.
   
   
2. Subject to Section 7.3 hereof, the Association shall plant, maintain, repair and replace, as necessary, landscaping improvements (including but not limited to, street sidewalks, grass, shrubs, plants, trees, sprinkler pipes and heads and plant supports) on the Unenclosed Portion of any Lot. To carry out its responsibilities, the Association shall have an easement over each Lot for maintaining the Project Fence and for planting, repairing, replacing, and maintaining landscaping and shall have reasonable access to each Lot to perform such work. Each Owner shall accept title to his Lot subject to the aforesaid rights of the Association.
   
   
3. The Owner shall at all times be responsible to maintain and keep in repair any fence (other than the Project Fence), driveways, walkways (other than the street sidewalk) and the lagoon retaining wall located anywhere on his Lot. In addition, the Owner shall be responsible to maintain his or her Lot and all the landscaping and improvements thereon which are not the responsibility of the Association to maintain.
   
   
4. No alteration by any Owner is the Location of any fence or other barrier enclosing the yard on his Lot shall increase the obligation of the Association with respect to maintenance as set forth in Sections 7.1 and 7.2 hereof unless the Association assumes in writing said further obligation.
   
   
5. Each Owner shall landscape any portion of his Lot that is visible from the lagoon or from any public or private street within or outside of the Property (unless such portion of his Lot is maintained by the Association in accordance with Section 7.2 hereof) so that such portion presents an neat and orderly appearance. Each Owner shall continually maintain such landscaping to present a neat and orderly appearance.
   
   
6. The cost of repair or replacement of any improvement to be maintained and kept in repair by the Association, which repair or replacement is required because of the willful or negligent act or omission of any Owner or of any Owner's pets, family, guests, tenants or invitees, shall be paid for by such owner and after notice and hearing, the Association may levy such cost as a reimbursement assessment upon that Owner's Lot.
   
   
7. The Association shall maintain any storm drainage facilities located on drainage easements accepted by the Association.
   
   
8. The Property is encumbered by an easement in favor of Pacific Gas and Electric Company, which easement is described by instrument recorded on October 5, 1929, in book 436 at page 189 of official records of San Mateo County. The Association shall maintain any landscaping improvements made within said easement and limit such landscaping to a maximum height of fifteen (15) feet from the surface ground level.

8.  ARTICLE VIII - USE RESTRICTIONS

In addition to all of the covenants contained herein, the use of the Property and each Lot therein is subject to the Following:

1. Residential Use. Each Lot shall be used for residential purposes only and no part of the Property shall be used or caused, allowed or authorized to be used in any way, directly or indirectly for any business, commercial, manufacturing, mercantile, storing, vending or other nonresidential purpose. Notwithstanding the foregoing, Owners or occupants of the Lot may use a room or rooms in the house as an office provided that the primary use of the Lot is as a residence, no advertising or sign is used in any manner in connection with the office use, no customers, suppliers, clients, or patients enter the Lot on any regular basis and such use does not interfere with the quiet enjoyment of the Lots as determined by the Board. The Owner or occupant must obtain a permit for such activity to adopt additional Rules regarding the use of offices within the Property in order to maintain the residential characteristics of the Property. No tent, trailer, mobile vehicle, basement, garage, outbuilding or structure of a temporary character shall be used at any time as a residence either temporally or permanently.
   
   
2. Nuisance. No activity shall be conducted in any Lot of on the Property that constitutes an nuisance or unreasonably interferes with the use of quiet enjoyment of the occupants of any other Lot. No noxious, illegal, or offensive trade or activity shall be carried on upon any Lot or any part of the Property, nor shall anything be done there which may be, or may become, an annoyance or nuisance to the neighborhood, or which shall in any way increase the rate of insurance for the Property, or cause any insurance policy to be canceled or to cause a refusal to renew the policy, or which will impair the structural integrity of any building. No Owner shall permit anything to be done or kept in his or her Lot that violates any law, ordinance, statute, rule or regulation of any local, county, state or federal agency.
   
   
3. Signs. No signs shall be displayed to the public view on any Lot or on any portion of the Property except such signs as are approved by the Board. "For Sale" or "For Rent" or For Exchange" signs shall be allowed, and the Owner may display one (1) sigh within the Common Area Advertising directions to the Owner's Lot which is for sale, rent, or exchange, provided the design, dimensions and locations are reasonable. Only one (1) such sign shall be permitted on any Lot. The sign shall not be attached to the outside of the house or fence. It may be displayed in the window, or staked in the yard.
   
   
4. Vehicle Restrictions, Parking and Towing. No Owner shall park, store or keep any vehicle except wholly within the driveway or garage located upon his or her Lot. No Owner shall park, store or keep any truck camper, boat, trailer, mobile home, recreational vehicle or any vehicle anywhere on the Property, except within his or her garage. The Owner of each Lot shall not be permitted to have or maintain more that two (2) motor vehicles on Unenclosed Portion of the Lot. No Owner shall repair, overhaul, restore or service any motor vehicle, boat, trailer, aircraft, or other vehicle upon the Unenclosed Portion of a Lot or upon any part of the Common Area, except for emergency repairs necessary to enable movement thereof to a proper repair facility. The Board may enact Rules for vehicles on the Property consistent with this article. The Association may cause the removal of any vehicle parked on the Property in violation of the Governing Documents in any manner allowed by law at the expense of the owner of the vehicle. The Association may cause the removal, without notice, of any vehicle parked in a marked fire lane, within fifteen (15) feet of a fire hydrant, in marked parking space designated for handicapped without proper authority or in a manner which interferes with any entrance to, or exit from, the Property or any Lot, parking space or garage located thereon. The association shall not be liable for any damages incurred by the vehicle Owner because of the removal in compliance with this section or for any damage to the vehicle caused by the removal.
   
   
5. Animals. Any Owner may keep dogs, cats and other household pets in reasonable numbers, provided they are not kept for commercial purposes. No unleashed dogs are permitted within the Common Area. Owners must prevent pets from continuously barking, or making other loud noises, or defecating in the Common Area or in Lots not owner or controlled by the owner of the pet. No pets may be kept on the Property which result in a n annoyance or interfere with the quiet enjoyment of other residents, as determined by the Board. If the Board, in its sole discretion, and, after notice and a hearing as provided in the Bylaws, determines an animal constitutes an nuisance or interferes with the quiet enjoyment of any occupant, the Board may require the permanent removal of the animal. After making a reasonable attempt to notify the dog owner, the Association or any Owner may cause any unleashed dog found within the Common Area to be removed to a pound or animal shelter by calling the appropriate authorities. The dog owner may then, upon payment of all expenses connected with this, repossess the dog. Owners shall be liable for all damages or costs incurred by any animal brought on the Property by the Owner, or his or her family, tenants or guests.
   
   
6. Rubbish. No rubbish, trash, garbage or other waste material shall be kept or permitted upon any Lot or the Common Area, except in sanitary containers located in an appropriate area screened and concealed from view.
   
   
7. Exterior Antennas. The installation or maintenance of any exterior antennas or satellite dishes in prohibited without the prior written consent of the Board, except as allowed by law.
   
   
8. Rental Requirements. Any Owner may lease his or her Lot. As used in this article, "lease" shall mean any and all agreements, including, but not limited to lease, sublease or rental agreements for the use or occupancy of nay Lot. Any Owner who wishes to lease his or her Lot must meet each and every one of the following requirements.
   
   
1. All leases must be in writing. The lease must be for the entire Lot and not merely parts thereof, unless the Owner remains in occupancy. No lease shall be for a period of less that six (6) months. All leases shall be subject in all respects to the Governing Documents, and each Owner shall provide a copy of the Governing Documents to each tenant of his Lot. By becoming a tenant, each tenant agrees to be bound by the Governing Documents, and recognizes and accepts the right and power of the Association to evict a tenant for any violation by the tenant of the Governing Documents.
   
   
2. Owners who lease the Lots shall promptly notify the Board or manager of the Association in writing of the names of the tenants occupying the Lot and the address and telephone number of the Owner. The Owner shall provide the Board with a copy of the lease upon seven (7) days of written request therefor;
   
   
3. Any failure of a tenant to comply with the governing documents shall be a default under the lease, regardless of whether the lease so provides. In the event of any such default, the Owner immediately shall take all actions to cure the default including, if necessary, eviction of the tenant. The Association shall give the tenant and the Owner notice in writing of the nature of the violation of the nature of the violation of the governing Documents, and thirty (30) days from the mailing of the notice in which to cure the violation before the Association may file for eviction.
   
   
4. If any tenant is in violation of the Governing Documents, the Association may bring an action in its own name and/or in the name of the Owner to have the tenant evicted and/or to recover damages. If the court finds that the tenant is violating, or has violated any of the provisions of the Governing Documents, the court may find the tenant guilty of unlawful detainer notwithstanding the fact that the Owner is not the plaintiff in the action and/or the tenant is not otherwise in violation of tenant's lease. For purposes of granting an unlawful detainer against the tenant, the Owner and tenant acknowledge tat the lease was made for the express benefit of the Association. The remedy provided by this subsection is not exclusive and is in addition to any other remedy or remedies which the Association has. The Association may recover all its costs, including court costs and attorneys' fees incurred in prosecuting the unlawful detainer action.

9.  ARTICLE IX - INSURANCE

1. Insurance: The Association shall obtain and maintain the following insurance:
   
   
1. A hazard policy insuring all improvements, equipment, and fixtures owned by the Association;
   
   
2. If obtainable, an occurrence version comprehensive general liability policy insuring the Association, against liability incident to the ownership or maintained real or personal property; the amount of general liability insurance which the Association shall carry at all times shall be not less than the minimum amounts required by California Civil Code Section 1365.9;
   
   
3. Workers' compensation insurance to the extent required by law (or such greater amount as the Board deems necessary); the Association shall obtain a Certificate of Insurance naming it as an additional insured in regard to workers' compensation claims from any independent contractor who performs any service for the Association, if the receipt of such a certificate is practicable;
   
   
4. Fidelity bonds or insurance covering officers, directors, and employees that have access to any Association funds;
   
   
5. Officers and directors liability insurance in the minimum amounts required by California Civil Code Section 1365.7;
   
   
6. Earthquake insurance to the extent required by law, and if not required by law, then to the extent available at commercially reasonable rates in the opinion of the Board.
   
   
7. The following endorsements should be included, if applicable:
   
   (a) changes in building codes, and demolition coverage (sometimes referred to as "ordinance or law endorsement");
   
   (b) inflation guard coverage;
   
   (c) "agreed-amount" endorsement (to eliminate a coinsurance problem);
   
   (d) replacement costs endorsement;
   
   (e) primary coverage endorsement.
   
   
2. Coverage: The amount, term and coverage of any policy required hereunder (including the type of endorsements, the amount of the deductible, the named insureds, the loss payees, standard mortgage clauses, notices of changes or cancellations, and the insurance company rating) shall satisfy the minimum requirements imposed for this type of project by the Federal national mortgage Association ("FNMA") and the Federal Home Loans Mortgage Corporation ("FHLMC") or any successor thereto. If the FNMA or FHLMC requirements conflict. The more stringent requirement shall be met. If FNMA and FHLMC do not impose requirement on any policy required hereunder, the term, amount and coverage of such policy shall be no less than that which ins customary for similar policies on similar projects in the area. The Association shall periodically (and not less than once every three [3] years) review all insurance policies maintained by the Association to determining the adequacy of the coverage and to adjust the policies accordingly.
   
   
3. Insurance Trustee: Each Owner appoints the Association or any insurance trustee designated by the Association to act on behalf of the Owners in connection with all insurance matters arising from any insurance policy maintained by the association, including without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement.
   
   
4. Waiver of Subrogation:Any insurance maintained by the Association shall contain "waiver of subrogation" as to the Association and its officers, directors and Members, the Owners and occupants of the Lots and Mortgagees, and cross-liability and severability of interest coverage insuring each insured against liability to each other insured. However, each Owner shall be responsible for any deductible incurred by the Association as the result of the intentional or negligent act or omission of the Owner, his or her family, guests, tenants or pets. An individually owner insurance shall contain a waiver of subrogation as to the Association and its officers, directors and Members, the owners and occupants of the Lots and mortgages, and all Members are deemed to have waived subrogation rights as to the Association and/or other Members, whether or not their policies so provide.
   
   
5. Insurance Trustee: Each Owner shall obtain and maintain, at the Owner's sole expense, fire and casualty coverage as may be required by any Mortgagee of the Lot and in no event less that one hundred percent (100%) of current replacement cost of all improvements on his Lot. All such individually carried insurance shall contain a waiver of subrogation by the carrier as to the other Owners, the Association and the Mortgages of such Lot.
   
   
6. Lapse: The Association and its directors and officers, shall have no liability to any Owner or Mortgagee if, after a good faith effort, it is unable to obtain the insurance required hereunder, because the insurance is no longer available or, if available, can be obtained only a cost that the Board in its sole discretion determines in unreasonable under the circumstances, of the Members fail to approve any Assessment increase needed to fund the insurance premiums. In such event, the Board immediately shall notify each Member and any Mortgagee entitled to notice that the insurance will not be obtained or renewed.

10.  ARTICLE X
DAMAGE, DESTRUCTION AND EMINENT DOMAIN OF COMMON AREA

1. Damage or Destruction. If any Improvements or landscaping on any Lot other that a Common Area Lot are damaged or destroyed by fire or other casualty, the Owner of such Lot shall repair or reconstruct the improvement in accordance with the original as-built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time of such repair or reconstruction or as authorized by the Board. In the case of damage or destruction of an individual home, whether by fire,. Earthquake or other causes, the Owner(s) of that Lot and home are responsible for the cost of reconstruction that is not covered by insurance or is within the deductible amount.
   
   If Common Area Improvements are damaged or destroyed by fire or other casualty, the Improvements shall be repaired or reconstructed by the Association substantially in accordance with the original as-built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time of such repair or reconstruction and subject to such alterations or upgrades as may be approved by the Board, unless the cost of repair of reconstruction is more than seventy-five percent (75%) of the current replacement cost of all Common Area improvements, available insurance proceeds are not sufficient to pay for at least seventy-five percent (75%) of the cost of such repairs or reconstruction, and three-fourths (3/4) of the Total Voting Power of the Association vote against such repair and reconstruction.
   
   
   1. Process for Repair or Reconstruction. If the Common Area Improvement is to be repaired or reconstructed and the cost for repair or reconstruction is in excess of fifty percent (50%) of the current replacement cost of all the Common Area Improvements, the Board shall designate a construction consultant, a general contractor or an architect for the repair or reconstruction. All insurance proceeds, Association monies allocated for the repair or reconstruction, and any borrowings by the Association for the repair or reconstruction shall be deposited with a commercial lending institution experienced in the disbursement of construction loan funds (the "depository") as selected by the Board. Funds shall be disbursed in accordance with the normal construction loan practices of the depository that require as a minimum that the construction consultant, general contractor or architect certify within ten (10) days prior to any disbursement substantially the following:
      
      
   1. that all of the work completed as of the date of such request for disbursement has been done in compliance with the approved plans and specifications;
      
      
   2. that such disbursement request represents monies which either have been paid by or on behalf of the construction consultant, the general contractor, or the architect and/or are justly due to contractors, subcontractors, materialmen, engineers, or other persons (whose name and address shall be stated) who have rendered or furnished certain services or materials for the work and giving a brief description of such services and materials respective amounts paid or due to each of said persons in respect thereof and stating the progress of the work up to the date of said certificate;
      
      
   3. that the sum then requested to be disbursed plus all sums previously disbursed does not exceed the cost of the work insofar as actually accomplished up the date of such certificate;
      
      
   4. that no part of the cost of the services and materials described in the foregoing paragraph has been or is being made the basis for the disbursement of any funds in any previous or then pending application; and
      
      
   5. that the amount held by the depository, after payment of the amount requested in the pending disbursement request, will be sufficient to pay in full the costs necessary to complete the repair or reconstruction.

   If the cost of repair or reconstruction is less that fifty percent (50%) if the current replacement cost of all the Common Area improvements, the Board shall disburse the available funds for the repair and reconstruction under such procedures as the Board seems appropriate under the circumstances.

   The repair or reconstruction shall commence as soon as reasonably practicable after the date of such damage or destruction and shall be completed as quickly as reasonably practicable after commencement of reconstruction, subject to delays that are beyond the control of the party responsible for making repairs. The Owners of the damaged or destroyed improvement immediately shall take such steps as may be reasonably necessary to secure any hazardous condition and to screen any unsightly views resulting from the damage or destruction.

   2. Process If Repair of Reconstruction Not Undertaken. If the Common Area Improvement is not repaired or reconstructed in accordance with the foregoing, all available insurance proceeds shall be disbursed among all Owners and their respective Mortgages in the same proportion that the Owners are assessed, subject to the rights of the Owners’ Mortgagees, after first applying the proceeds to the cost of mitigating hazardous conditions on the Property, making provision for the continuance of public liability insurance to protect the interests of the Owners until the property can be sold, and complying with all other applicable requirements of governmental agencies.
      
      

2. Condemnation. If all or any part of a Lot (except the Common Area) is taken by eminent domain, the award shall be disbursed to the Owner of the Lot, subject to the rights of the Owner’s Mortgagees. If the taking renders the Lot uninhabitable, the Owner shall be divested of any further interest in the Property, including membership in the Association, and the interest of the remaining Owners shall be adjusted accordingly. If all or any part of the Common Area is taken by eminent domain, the proceeds of condemnation shall be used to restore or replace the portion of the Common Area affected by condemnation, if restoration or replacement is impossible, and any remaining finds, after payment of any and all fees and expenses incurred by the Association relating to such condemnation, shall be distributed among the Owners in the same proportion as such Owners are assessed, subject to the rights of Mortgagees. If necessary, the remaining portion of the Property shall be resurveyed to reflect such taking. The association shall participate in the negotiations, and shall propose the method of division of the proceeds of condemnation, where Lots are not valued separately by the condemning authority of by the court. The Association proceeds or in negotiations, settlements and agreements with the condemning authority for acquisition of the Common Area, or part thereof.
   
   

11.  ARTICLE XI - RIGHTS OF FIRST LENDERS



1. Rights of First Lenders. All Owners who Mortgage their Lot shall at the request of the Board or manager provide the recording date, document recording number, and the name and address of the Beneficiary of each Mortgage. No breach of any of the covenants, condition and restrictions herein contained, nor the enforcement of any lien provision herein, shall render invalid the lien of any First Mortgage, but all of said covenants, conditions and restrictions shall be binding on and effective against any Owner whose title is derived through foreclosure or trustee’s sale, otherwise. Notwithstanding any provision in the Declaration to the contrary, First Lenders shall have the following rights:
   
   
2. Copies of Governing Documents. The Association shall make available to Owners and First Lenders, and to holders, the Governing Documents, and the books, records, and financial statements of the Association. "Available" means available for inspection and copying, upon request, during normal business hours or under other reasonable circumstances. The Board may impose a fee for providing the foregoing which may not exceed the reasonable cost to prepare and reproduce the requested documents.
   
   
3. Audited Statement. Any holder, insurer or guarantor of a First Mortgage shall be entitled, on written immediately preceding fiscal year, prepared at its expense if one is not otherwise available. Such statement shall be furnished within one hundred twenty (120) days of the Association’s fiscal year-end.
   
   
4. Notice of Action. Upon written request to the Association, identifying the name and address of the Mortgage holder, insurer or guarantor, and the Lot number or address, such Eligible Mortgage Holder, Insurer or Guarantor will be entitled to timely written notice of:
   
   
1. Any condemnation loss or any casualty loss which affects a material portion of the Property or any Lot on such Eligible Mortgage Holder, Insurer or Guarantor, as applicable;
   
   
2. Any default in performance of obligations under the Governing Documents or delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to a First Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder, Insurer or Guarantor, which remains uncured for a period of sixty (60) days;
   
   
3. Any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the association; and
   
   
4. Any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders as specified in Section 11.5.
   
   The Association shall discharge its obligation to notify Eligible Mortgage Holders, Insurers or Guarantors by address given on the current request for notice, in the manner prescribed by Section 12.4.
   
   
5. Consent to Action. . Except as provided by statute or by other provision of the Governing Documents in case of substantial destruction of condemnation of the property,
   
   
1. The consent of sixty-seven percent (67%) of the Total Voting Power of the Association and the approval of Eligible Mortgage Holders holding Mortgages on Lots which have at least fifty-one percent (51%) of the votes of Lots subject to Eligible Holder Mortgages, shall be required to terminate the legal status of the Property as a planned development; provided however, that if termination is for reasons other that substantial destruction of condemnation, the agreement of Eligible Mortgage Holders representing at least sixty-seven percent (67%) of the votes of the mortgaged Lots is required.
   
   
2. The consent of at least sixty-seven percent (67%) of the Total Voting Power of the Association and the approval of Eligible Mortgage Holders holding Mortgages on Lots which have at least fifty-one percent (51%) of the votes of the Lots subject to Eligible Holder Mortgages, shall be required to add or amend any material provisions of the Declaration which establish, provide for, govern, or regulate any of the following: (i) voting rights; (ii) increases on assessments that raise the previously assessed amount by more than twenty-five percent (25%), assessment liens, or the priority of assessment liens; (iii) reductions in reserves for maintenance, repair and replacement of the Common Areas; (iv) responsibility for maintenance and repairs; (v) reallocation of interests in the general or restricted Common Areas, or rights to their use; (vi) convertibility of Lots into Common Areas or vice versa; (vii) expansion or contraction of the Property or the addition, annexation, or withdrawal of property to or from the Property; (viii) hazard or fidelity insurance requirements; (ix) imposition of any restrictions on an Owner’s right to sell or transfer his or her Lot; (xi) restoration or repair of the property (after damage or partial condemnation) in a manner other than that specified in the Declaration; or (xii) any provisions that expressly benefit Mortgage Holders, Insurers or Guarantors.
   
   
3. An Eligible Mortgage Holder who receives a written request to approve additions or amendments who does not deliver or post to the requesting party a negative response within thirty (30) days after the notice of the proposed addition or amendment, shall be deemed to have approved such request, provided the notice has been delivered to the Mortgage Holder by certified or registered mail, return receipt requested.
   
   
   1. Unless the holders of at least two-thirds (2/3) of the First Mortgages (bases on one (1) vote for each First Mortgage owned), or two-thirds (2/3) of the Total Voting Power of the Association have given their prior written approval, the Association and/or the Owners shall not be entitled to:
      
      
      1. By act or omission, seek to abandon or terminate the Association except for abandonment or termination provided by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain. The granting of easements for public utilities or other common purposes consistent with the intended use of the Property shall not be deemed a transfer within the meaning of this clause; or
         
         
      2. Change the method of determining the obligations, assessments or other charges which may be levied against an Owner; or
         
         
      3. By act or omission, change, waive or abandon any scheme of regulations, or enforcement thereof, pertaining to the architectural design or the exterior appearance of Lots, the exterior maintenance of Lots, the maintenance of the Common Area walks or fences and driveways, or the upkeep of landscaping in the Common Area, or
         
         
      4. Fail to maintain fire and extended coverage on insurable Association Common Area improvements on a current replacement cost basis in an amount not less that one hundred percent (100%) of the insurable value based on current replacement costs; or
         
         
      5. Use hazard insurance proceeds for losses to any Common Area property for other than the repair, replacement of reconstruction of such Common Area property.
         
         
6. Right to First Refusal. The right of an Owner to sell, transfer, or otherwise convey his or her Lot shall not be subject to any right of first refusal or similar restriction.
   
   
7. Priority of Liens. Any First Lender who obtains title to a Lot pursuant to the remedies provided in the Mortgage or foreclosure of the Mortgage will not be liable for such Lot’s unpaid assessments and fees, late charges, fines or interest levied in connection therewith which accrue prior to the acquisition of title to such Lot by the Mortgagee, except for claims for a pro rate share of such assessments or charges resulting from a pro rata reallocation of such assessments or charges to all Lots including the mortgaged Lot, and except for assessment liens recorded prior to the Mortgage.
   
   
8. Distribution of Insurance or Condemnation Proceeds. No Owner or any other party shall have priority over any rights of First Lenders pursuant to their Mortgages in case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or taking of Common Area property or of individual Lots.
   
   
9. Payment of Taxes or Insurance by Lenders. First Lenders may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area property and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for such Common Area property and First Lenders making such payment shall be owed immediate reimbursement therefor from the Association, provided that said lender(s) have given notice to the Association prior to the making of such payment(s) and the Association has failed to pay the same.
   
   

12.  ARTICLE XII GENERAL PROVISIONS

1. Non-Discrimination. No Owner shall, either directly of indirectly forbid or restrict the conveyance, encumbrance, leasing, or mortgaging, or occupancy of his Lot to any person of a specified age, race, sex sexual orientation, adulthood, martial status, color, religion, ancestry, physical handicap, or national origin, or source or income.
   
   
2. Construction. The provisions of these restrictions shall be liberally construed to effectuate their purpose of creating a uniform plan for the operation of the Property as a planned development. The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision thereof. The singular and plural number and the masculine, feminine and neuter gender shall each include the other where the context requires. N the event any statute in this Declaration, whether stated by code and number, or named b body of law, is amended, repealed, renumbered, or renamed, all references to such statute or body of law shall refer to the amended, repealed, renumbered, or renamed statutory provisions.
   
   
3. Term. The covenants and restrictions of this Declaration shall run with and bind the Property, and shall inure to the benefit of and shall be enforceable by the Association or the Owner of any property subject to this Declaration, their respective legal representatives, heirs, successors, and assigns, for a term of thirty (30) years from the date this restated Declaration in recorded, after which time they shall be automatically extended for successive periods of ten (10) years, unless an instrument in writing approved by two-thirds (2/3rds) of the Total Voting Power of the Association, has been recorded with the year preceding the beginning of each successive period of the (10) years, agreeing to terminate said covenants and restrictions.
   
   
4. Notice. Any notice permitted or required by the Declaration, Articles, or Bylaws may be delivered either personally or by mail. If delivery is by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of the some has been deposited in the United States mail, first class or registered, postage prepaid, addressed to the person to be notified at the current address given by such person to the Board or manager of the association, or addressed to the Lot of such person if no address has been given.
   
   
5. Observance of this Declaration. Each Owner shall comply with the Governing Documents, and shall be responsible for such compliance by such Owner’s family, agents, guests, contractors, employees, tenants or subtenants, and any other person coming within the Property at the request of or with the consent of such Owner.
   
   
6. Enforcement. Except to the extent otherwise expressly provided in the Declaration, the Association or any Owner or Owners may enforce any and all of the provisions now or hereafter imposed by the Governing Documents. However, if the Association undertakes such enforcement, no Owner shall take or continue any such action without the written consent of the Association. Only the Association shall be allowed to use selfhelp as a remedy.



1. Nuisances. Every act or omission whereby any provision of the Governing Documents is violated in whole or n part, is hereby declared to be a nuisance, and may be enjoined or abated, by the Association or by an Owner or Owners, provided, however, that only the Association or its duly authorized agents may enforce by self-help, including where applicable, removal and storage of personal property without civil or criminal liability therefor, any provision set forth in this Declaration.



2. Violation of Law. Any violation of any state, municipal or local law, ordinance or regulation pertaining to the ownership, occupation or use of any portion of the Property is hereby declared to be a violation of these restrictions and subject to any or all of the enforcement procedures herein set forth.
   
   
3. Cumulative Remedies. The remedies provided for in this Declaration are cumulative and not exclusive.
   
   
4. Nonwaiver. The failure to enforce any provision of the Governing Documents shall not constitute a waiver of any right to enforce that provision or any other provision of this Declaration.
   
   
5. Attorneys’ Fees. Attorneys’ fees and costs shall be awarded to the prevailing party in any action brought to enforce the Governing Documents or collect any money due to the Association.
   
   
7. Amendment. This Declaration may be amended only by the affirmative vote (in person or by proxy) or written consent of a majority of the Total Voting Power of the Association. However, the percentage of voting power necessary to amend a specific clause shall not less than the prescribed percentage of affirmative votes required for action to be taken under that clause. Any amendment must be certified in a writing executed and acknowledged by the President of the Association and recorded in the Recorder’s Office of the county of San Mateo. No amendment shall adversely affect the rights of the holder of any Mortgage of record prior to the recordation of such amendment.
   
   

IN WITNESS WHEREOF, this Restated Declaration is executed by the President of the Association.
	LONGWATER HOMEOWNERS ASSOCIATION
Dated: ____________________	By: ___________________________________________
	President
State of California)      ) ss County of San Mateo )

On _________________________________ before me, _____________________________________, a

Notary Public, Personally appeared ______________________________________________________,

Personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Signature __________________________________

March 2001.