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HomeMy WebLinkAboutCode of Bylaws - Magnolia Condominiums - Final - 12.11.20CODE OF BYLAWS OF MAGNOLIA CONDOMINIUMS AND MAGNOLIA CONDOMINIUMS HOMEOWNERS’ ASSOCIATION INC. ARTICLE I Identification and Applicability Section I.01 Identification and Adoption. These Bylaws are adopted simultaneously with the execution of a certain Condominium Declaration for Magnolia Condominiums (the “Declaration”) creating Magnolia Condominiums, to which these Bylaws are attached and made a part. The Declaration has been recorded in the Office of the Recorder of Hamilton County, Indiana, on or about ________________, 2021, as Instrument No. ____________________ (as amended), and the rights, restrictions and liabilities therein contained shall apply to and govern the interpretation of these Bylaws. The capitalized terms used herein and not elsewhere defined shall have the same meanings ascribed to them in the Declaration. The provisions of these Bylaws shall apply to the Property and the administration and conduct of the affairs of the Condominiums and the Association. Section I.02 Name. The name of the Association (hereinafter referred to as “the Association”) is “Magnolia Condominiums Homeowners’ Association Inc.”. Section I.03 Registered Office and Registered Agent. The post-office address of the registered office of the Association is 31 1st Street SW, Carmel, Indiana 46032, and the name and post-office address of the Registered Agent in charge of such office is _______________, 31 1 st Street SW, Carmel, Indiana 46032, until and unless changed in accordance with applicable law by the Board of Directors (hereinafter referred to collectively as the “Board” or “Board of Directors” or “Directors”, and individually, a “Director”). Section I.04 Individual Application. All of the Owners, future Owners, tenants, future tenants, or their guests and invitees, or any other person that might use or occupy a Condominium Unit or any part of the Property shall be subject to the restrictions, terms, and conditions set forth in the Declaration, these Bylaws and the Act, and to any rules and regulations adopted by the Board of Directors. ARTICLE II Meetings of the Association Section II.01 Purpose of Meetings. At least annually, and at such other times as may be necessary, the meetings of the Association shall be held for the purpose of electing the Board of Directors, approving the annual budget, providing for the collection of Common Expenses, and for such other purposes as may be required by the Declaration, these Bylaws or the Act. 25 Section II.02 Annual Meetings. The first annual meeting of the Association shall not be required prior to ninety (90) days following the recording of the Declaration and conveyance of a Unit; provided, however, that in no event shall the first annual meeting be held later than: (a) one hundred twenty (120) days after seventy-five percent (75%) of the Units have been conveyed to Owners; or (b) three (3) years after the first Unit is conveyed to an Owner, whichever is earlier, and provided further that Declarant may, at any time after recording, call for the first annual meeting of the Association, and pursuant to such meeting, the Association shall assumed the duties and responsibilities ascribed to it by the Declaration and these Bylaws. The date the Association assumes such duties shall be referred to as the “Applicable Date.” Subsequent regular annual meetings of the Association shall be held on a date established by the Board pursuant to notice provided in accordance with these Bylaws, which date shall not be more than eleven (11) months after the close of each fiscal year of the Association. The Board of Directors may change the date for the annual meeting, but shall give written notice to the Owners of any such change in date in accordance with Section 2.05 below. At the annual meeting the Owners shall elect the Board of Directors of the Association in accordance with the provisions of these Bylaws and transact such other business as may properly come before the meeting. Section II.03 Special Meetings. A special meeting of the members of the Association may be called by resolution of the Board of Directors or upon a written petition of Owners who have not less than twenty-five percent (25%) of the Percentage Vote; provided, however, that Members of the Association owning a majority of the Percentage Interests shall be permitted to petition for a special meeting not more than once during any calendar year. The reso lution or petition shall be presented to the President or Secretary of the Association and shall state the purpose for which the meeting is to be called. No business shall be transacted at a special meeting except as stated in the petition or resolution. Section II.04 Place of Meeting. All annual or special meetings of the Members of the Association shall be held at any suitable place in Hamilton County, Indiana, as may be designated by the Board of Directors. In the event an annual or special meeting cannot be held in person due to executive order or other mandate by local, state, or federal government, such meetings may be held via Skype, Zoom, WebEx, or similar electronic meeting software so long as all attendees are able to hear and be heard. Section II.05 Notice of Annual and Special Meetings. Written notice stating the place, day and hour of any meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given by the Secretary of the Association to each member entitled to vote at the meeting at least fifteen (15) days but not more than sixty (60) days before the date of the meeting. The notice shall be mailed or delivered to the Owners at the address of their respective Condominium Units and to up to one other address that each Owner may supply on a signed address card filed with the Secretary of the Board. If permission has been given in writing by an Owner, such notice may also be delivered via email transmission at an address supplied by such Owner to the Secretary of the Board. Email notice shall be in addition to and no in lieu of hard copy notice by mail or delivery. A copy of each such written notice shall also be delivered or mailed simultaneously by the Secretary of the Association to each Mortgagee (a) who requests in writing that such notices be delivered to it, and (b) who has furnished the Association with its name and address in accordance with Section 8.01 of these Bylaws. Such Mortgagee may designate a representative to attend the meeting. Attendance at any meeting in person, by agent or 25 by proxy shall constitute a waiver of notice of such meeting. If any officer of the Association has received an appropriate call of a special meeting of the members and does not give notice of such meeting within thirty (30) days after receipt thereof or if the Board or any Member(s) calling a special meeting of the Members have reason to believe that the officer of the Association receiving such call has not appropriately given notice of such meeting within thirty (30) days after receipt thereof, then such Board or Member(s) calling such meeting may give notice of such meeting to the Members of the Association in the manner and within the time limits set forth above. Any such notice which is mailed by an officer of the Association or by an authorized representative of the Board of Directors for or on behalf of the Board of Directors to a Member shall be effective when mailed. Section II.06 Voting at Meetings. (a) Number of Votes. On each matter coming before the meeting as to which an Owner is entitled to vote, such Owner shall be entitled to cast a vote equal to the Percentage Interest applicable to such Owner’s Condominium Unit. (b) Multiple Owners. Where the Owner of a Condominium Unit constitutes or consists of more than one person, or is a partnership, there shall be only one voting representative entitled to all of the Percentage Vote allocable to that Condominium Unit. At the time of acquisition of title to a Condominium Unit by more than one person or a partnership, those persons constituting such Owner or the partners shall file with the Secretary of the Association an irrevocable proxy appointing one of such person or partners as the voting representative for such Condominium Unit, which shall remain in effect until all of such parties constituting such multiple Owner or the partners in such partnership designate another voting representative in writing, or such appointed representative relinquishes such appointment in writing, becomes incompetent, dies, or such appointment is otherwise rescinded by order of a court of competent jurisdiction or the Owner no longer owns such Condominium Unit. Such appointed voting representative may grant a proxy to another to vote in his place at a particular meeting or meetings pursuant to paragraph (d) of this Section 2.06, which shall not constitute a permanent relinquishment of his right to act as voting representative for the Condominium Unit. (c) Voting by Corporation or Trust. Where a corporation or trust is an Owner or is otherwise entitled to vote, the trustee may cast the vote on behalf of the trust and the agent or other representative of the corporation duly empowered by the Board of Directors of such corporation may cast the vote to which the corporation is entitled. The secretary of the corporation or a trustee of the trust so entitled to vote shall deliver or cause to be delivered prior to the commencement of the meeting a certificate signed by such person to the Secretary of the Association stating who is authorized to vote on behalf of said corporation or trust. (d) Proxies. An Owner may vote either in person or by his duly authorized and designated attorney-in-fact. Where voting is by proxy, the Owner shall duly designate his attorney-in-fact in writing, delivered to the Secretary of the Association prior to the commencement of the meeting. 25 (e) Pledgees. If the vote of an Owner or Owners has been pledged by mortgage, security agreement, conditional assignment, or other instrument, an executed copy of which has been filed with the Secretary, only the pledgee shall be entitled to cast the vote of such Owner or Owners upon those matters upon which the Owner or Owners vote is so pledged. (f) Quorum. Except where otherwise expressly provided in the Declaration, these Bylaws or the Act, the Owners representing a majority of the Percentage Vote shall constitute a quorum at all meetings. Section II.07 Conduct of Annual Meeting. The President of the Board of Directors shall act as Chairman of all annual meetings of the Association if the President is present. At all annual meetings, the Chairman shall call the meeting to order at the duly designated time and business will be conducted in the following order: (a) Reading of Minutes. The Secretary shall read the minutes of the last annual meeting and the minutes of any special meeting held subsequent thereto, unless such reading is waived by a majority of the Percentage Vote. (b) Treasurer’s Report. The Treasurer shall report to the Owners concerning the financial condition of the Association and answer relevant questions of the Owners concerning the Common Expenses and financial report for the prior year and the proposed budget for the current year. (c) Budget. The proposed budget for the ensuing fiscal year shall be presented to the Owners for approval or amendment unless otherwise changed by the Board of Directors. (d) Election of Board of Directors. After the Applicable Date, nominations for the Board of Directors may be made by any Owner from those persons eligible to serve. Such nominations must be in writing and presented to the Secretary at least seven (7) days prior to the date of the annual meeting. Voting for the Board of Directors will be by paper ballot. The ballot shall contain the name of each person nominated to serve as a Board member. Each Owner may cast the total number of votes to which he is entitled for as many nominees as are to be elected, however, he shall not be entitled to cumulate his votes. Those persons receiving the highest number of votes shall be elected. Each voting Owner shall sign his ballot. The Board may provide a method to assure secrecy of the ballot. Prior to the Applicable Date, the nomination and election of the Board shall be governed by the provisions of Article III hereof. (e) Other Business. Other business requiring a vote may be brought before the meeting only upon a written request submitted to the Secretary of the Association at least seven (7) days prior to the date of the meeting; provided, however, that such written request may be waived at the meeting if agreed by a majority of the Percentage Vote. Any other general business matters of discussion that do not require a vote may be properly brought before the meeting by any Owner in good standing. 25 (f) Adjournment. Except as otherwise provided herein, any meeting of members, including both annual and special meetings and any adjournments thereof, may be adjourned to a later date without notice (other than announcement at the meeting) of the date, place and time for the new meeting even though a quorum is not present. A meeting may not be adjourned to a date later than one hundred twenty (120) days after the original meeting date. Section II.08 Conduct of Special Meetings. The President of the Board of Directors shall act as Chairman of any special meetings of the Association if he is present. The Chairman shall call the meeting to order at the duly designated time and the only business to be discussed and acted upon at such meeting shall be consideration of the matters for which such meeting was called, as set forth in the notice of such special meeting. Section II.09 Action Without a Meeting. Any action required or permitted to be taken at any meeting of the Owners may be taken without a meeting if a consent in writing setting forth such action so taken is signed by a majority (or other required percentage based on the action to be taken) of all Owners and such written consent is filed with the minutes of the proceedings of the Association. ARTICLE III Board of Directors Section III.01 Management; Board Composition. The affairs of the Condominium and the Association shall be governed and managed by the Board of Directors (collectively, the “Board” or “Directors,” and individual, each a “Director”). Prior to the Applicable Date, the Board shall be composed of three (3) individuals selected by the Declarant, as described in Section 3.02 below; after the Applicable Date, the Board shall be composed of three (3) individuals. The total number of Directors shall at no time exceed five (5). No person shall be eligible to serve as a Director unless he is, or is deemed in accordance with the Declaration to be, an Owner, excluding a person appointed by Declarant as provided in Section 3.02. Within a reasonable time following the Applicable Date, a special meeting of all Owners shall be called by the Board to elect not less than two (2) Director(s) to replace appointed member(s) of the Initial Board. Section III.02 Initial Board of Directors. The initial Board of Directors shall be ___________________, ___________________, and _____________________ (herein referred to as the “Initial Board”), all of whom have been or shall be appointed by Declarant. Declarant reserves the right to remove or replace any of such persons as Directors prior to the first annual or special meeting of the Association. Notwithstanding anything to the contrary contained in, or any other provisions of these Bylaws or the Declaration or the Act, the Initial Board, subject to the removal and replacement rights of Declarant, shall hold office until a special meeting of the Association is held for the election of Directors, which shall be held not later than (a) one hundred twenty (120) days after seventy-five percent (75%) of the Units have been conveyed to Owners; or (b) three (3) years after the first Unit is conveyed to an Owner, whichever is earlier. In the event of any vacancy or vacancies occurring in the Initial Board for any reason or cause whatsoever, 25 prior to the Applicable Date, every such vacancy shall be filled by a person appointed by Declarant, who shall thereafter be deemed a member of the Initial Board. Section III.03 Additional Qualifications. Where an Owner consists of more than one person or is a partnership, personal representative of an estate, Association, trust or other legal entity, then one of the persons constituting the multiple Owner, or a partner or an officer or trustee or personal representative of an estate shall be eligible to serve on the Board of Directors, except that no single Condominium Unit may be represented on the Board of Directors by more than one person at a time. Section III.04 Term of Office; Vacancies. Subject to the provisions of Section 3.02, the Board of Directors shall be elected at each annual meeting of the Association. The Initial Board of Directors shall be deemed to be elected as the Board of Directors for successive annual terms until the first annual meeting following the Applicable Date. Directors shall hold office for a term of three (3) years or until their successors have been duly elected and qualified; provided, however, the first Board of Directors elected by the Owners shall serve for terms of three (3), two (2) and one (1) year, respectively, to allow for staggered expiration of Directors’ terms. Subject to the provisions of Section 3.02, any vacancy or vacancies occurring in the Board shall be filled by a vote of a majority of the remaining Directors or by vote of the Owners if a Director is removed in accordance with Section 3.05. A Director filling a vacancy shall serve until the next annual meeting of the Association or until his successor has been duly elected and qualified. Section III.05 Removal of Directors. A Director or Directors, except the members of the Initial Board, may be removed with or without cause by vote of a majority of the Percentage Vote at a special meeting of the Owners duly called and constituted for such purpose. In such case, the Director's successor shall be elected at the same meeting from eligible Owners nominated at the meeting. A Director so elected shall serve until the next annual meeting of the Owners or until the Director's successor is duly elected and qualified. Section III.06 Duties of the Board of Directors. The Board of Directors shall provide for the administration of, the maintenance, upkeep and replacement of the Common Areas and Limited Common Areas (unless the same are otherwise the responsibility or duty of Owners of Condominium Units), the establishment of a budget, and the collection and disbursement of the Common Expenses. After the recording of the Declaration the Board may, on behalf of the Association, employ a property management agent (the "Managing Agent") upon such terms as the Board shall find, in its discretion, reasonable and customary. The Board shall be entitled to contract with a Managing Agent that is an affiliate of Declarant, provided that contract complies with the requirements of Section 3.16. The Managing Agent shall assist the Board in carrying out its duties, which include, but are not limited to: (a) protection, surveillance, maintenance and replacement of the Common Areas and Limited Common Areas, including, without limitation, the enforcement of the restrictions and limitations on vehicular parking in the rights-of-way and roads on the Property, unless the same are otherwise the responsibility or duty of Owners of Condominium Units; provided, however, that this duty shall not include or be deemed or interpreted as a requirement that the Association, the Board or any Managing Agent may 25 provide any on-site or roving guards, security service or security system for protection or surveillance; (b) procuring of utilities used in connection with the operation of the Condominiums; (c) arranging for removal of garbage and waste, and snow removal from the Common Areas and Limited Common Areas, as applicable; (d) landscaping, painting, decorating, furnishing, maintenance and upkeep of the Common Areas and, where applicable, the Limited Common Areas, including but not limited to, the maintenance, repair, upkeep and replacement of the following: (i) streets; (ii) entry gate(s); (iii) signage; (iv) flowers, plant material, grass and other landscaping; (v) irrigation system, if any; (vi) lighting; and (vii) mailboxes; (e) surfacing, paving and maintaining private streets, parking areas, and sidewalks to the extent the same are part of the Common Area or Limited Common Areas; (f) assessment and collection from the Owners of the Owner’s pro rata share of the Common Expenses, including (i) determination of whether improvements are to Common or Limited Common Areas, pursuant to the terms and conditions of the Declaration and Bylaws; (ii) determination of whether expenses incurred with respect to the same are allocable to all or fewer than all of the Owners; and (iii) the allocation of all expenses among the respective Condominium Units; (g) preparation of the proposed annual budget, a copy of which will be mailed or delivered to each Owner at the same time as the notice of annual meeting is mailed or delivered; (h) preparing and delivering annually to the Owners a full accounting of all receipts and expenses incurred in the prior year, which shall be delivered to each Owner simultaneously with delivery of the proposed annual budget for the current year; (i) keeping a current roster of all Owners, including the mailing addresses and legal descriptions of their respective Condominium Units and the email addresses and fax numbers of those members who have consented to receive notice by such methods, in accordance with the Act; (j) keeping a current, accurate and detailed record of receipts and expenditures affecting the Property, specifying and itemizing the Common Expenses; all records and vouchers shall be available for examination by an Owner at any time during normal business hours; payment vouchers for all expenditures shall, prior to payment, be approved by a member of the Board or such other person (which may include the Managing Agent) to whom the Board may delegate such duty and authority; (k) procuring and maintaining for the benefit of the Owners, the Association and the Board the insurance coverage required under the Declaration and such other insurance coverage as the Board, in its sole discretion, may deem necessary or advisable; 25 (l) interpreting, applying and enforcing all restrictive covenants, rules and regulations established by the Declaration, Bylaws or Board with respect to the Owners or users of Condominium Units within or relating to the use, maintenance or repair of the Property; (m) enforcing the lien procedures against any property for which assessments are not paid within thirty (30) days, or such other period of time as the Board shall from time to time determine, after due date, or to bring an action at law against the Owner personally obligated to pay the same; (n) making available to Owners and Mortgagees current copies of the Declaration, Bylaws and rules and regulations governing the Condominium (the “Organizational Documents”) and any other books, records and financial statements of the Association; the Board shall also make available to prospective purchasers of Condominium Units current copies of the Organizational Documents and the most recent annual financial statement if such statement has been prepared; “available” means available for inspection upon request during normal business hours or under other reasonable circumstances. A copy shall be provided initially for the Owners of each Condominium Unit and additional copies shall be made available for purchase by Members at reasonable costs. Upon written request by the United States Department of Housing and Urban Development, the Board may, in the Board’s discretion, also cause to be prepared and furnished, within a reasonable time, an audited financial statement for the Association for the immediately preceding fiscal year; (o) making available to Owners, upon request, for purposes related to operation of the Association and not for personal reasons, the roster of Owners maintained by the Association; (p) taking such action or performing such tasks as are, in the Board’s discretion, beneficial to the Owners. Section III.07 Powers of the Board of Directors. The Board of Directors shall have such full powers as are provided in the Act and are reasonable and necessary to accomplish the performance of their duties. These powers include, but are not limited to, the power: (a) to employ a Managing Agent to assist the Board in performing its duties; (b) to purchase, lease or otherwise obtain for the benefit of the Owners or for the Association to perform its duties, such equipment, materials, labor and services as may be necessary in the judgment of the Board; (c) to employ legal counsel, architects, contractors, accountants, and others as in the judgment of the Board may be necessary or desirable in connection with the business and affairs of the Condominium and the Association; (d) to employ, designate, discharge and remove such personnel as in the judgment of the Board may be necessary for the maintenance, upkeep, repair, and replacement of the Common Areas and, where applicable, the Limited Common Areas; 25 (e) to procure and maintain in adequate amounts for the benefit of the Owners fire and extended coverage insurance covering the Building and the Property as may be required by the Declaration; (f) to include the costs of all of the above and foregoing as Common Expenses and to pay all of such costs therefrom; (g) to open and maintain a bank account or accounts in the name of the Association; (h) to determine, adopt, revise, amend and alter from time to time, rules and regulations with respect to use, occupancy, operation, and enjoyment of the Property as the Board, in its discretion, deems necessary or advisable; provided, however, that copies of any such additional rules and regulations so adopted by the Board shall be promptly delivered or mailed to all Owners and further provided that such rules and regulations are not in conflict with any terms and provisions of the Declaration, the Act or these Bylaws; (i) to suspend the voting rights of a member during any period in which such member shall be in default in the payment of any assessment levied by the Association; such rights may also be suspended after notice and hearing for a period not to exceed one hundred twenty (120) days for infraction of published rules and regulations; (j) to grant easements, rights-of-way and other rights over the Common Areas; and (k) to do such other acts and things as are in the best interests of a majority of the Owners and which are not contrary to law, or to the Declaration or Bylaws. Section III.08 Limitation on Board Action. After the Applicable Date, the authority of the Board of Directors to enter into contracts shall be limited to contracts involving a total expenditure of less than fifty thousand dollars ($50,000.00) without obtaining the prior approval of a majority of the Percentage Vote, except that in the following cases such approval shall not be necessary: (a) contracts for replacing or restoring portions of the Common Areas or Limited Areas damaged or destroyed by fire or other casualty where the cost thereof is payable out of insurance proceeds actually received; (b) proposed contracts and proposed expenditures expressly set forth in the proposed annual budget as approved by the Owners at the annual meeting; and (c) contracts for repair, replacement or maintenance of improvements on the Property or affecting any property constituting all or a portion of the Property where delay in the said repair, replacement or maintenance would increase substantially the costs and expense of the same and/or would subject the Property or the persons thereon to substantial risk of injury or damage. Section III.09 Compensation. No Director shall receive any compensation for the Director's services as such except to the extent as may be expressly authorized by a majority of the 25 Percentage Vote of the Owners. However, any Director may at any time be reimbursed for the Director's actual expenses incurred in the performance of the Director's duties, and such reimbursement shall not require express approval of all the Owners or any portion thereof, but shall require majority approval of the Board. The Managing Agent shall be entitled to reasonable compensation for its services, the cost of which shall be a Common Expense. Section III.10 Meetings and Action of the Board. The Board shall meet each year within forty-five (45) days following the date of the annual meeting of the Association, which time and place shall be fixed at the annual meeting, for the purpose of organization, election of officers and consideration of any other business that may properly be brought before the meeting, and no notice shall be necessary to any newly elected Directors in order legally to constitute such meeting if a quorum is present. 1. Regular meetings of the Board of Directors may be held at such time and place as shall be determined from time to time by a majority of the Directors. The Secretary shall give notice of regular meeting of the Board to each Director personally or by United States mail at least ten (10) days prior to the date of such meeting. There shall be at least two (2) regular meetings of the Directors annually. 2. Special meetings of the Board may be called by the President or any two (2) members of the Board. The person or persons calling such meeting shall give written notice thereof to the Secretary who shall either personally or by mail, and at least five (5) days prior to the date of such special meeting, give notice to the Board members. The Notice of the meeting shall contain a statement of the purpose for which the meeting is called. Section III.11 Waiver of Notice. Before any meeting of the Board, any Director may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. The presence of any Director at a meeting or the Director's subsequent written consent to the actions taken, shall, as to such Director, constitute a waiver of notice of the time, place and purpose thereof. If all Directors are present at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting. Section III.12 Action Without a Meeting. Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if a consent in writing setting forth such action so taken is signed by all Directors and such written consent is filed with the minutes of the proceedings of the Board. Section III.13 Quorum. At all meetings of the Board, a majority of the Directors shall constitute a quorum for the transaction of business and .the votes of the majority of the Directors present at a meeting at which a quorum is present shall be the decision of the Board. Section III.14 Non-Liability of Directors. The Directors shall not be liable to the Owners or any other persons for any error or mistake of judgment exercised in carrying out their duties and responsibilities as Directors, except for their own individual willful misconduct, bad faith or gross negligence. The Association shall indemnify and hold harmless and defend each of the Directors against any and all liability to any person, firm or Association arising out of contracts made by the 25 Board on behalf of the Condominium or the Association, unless any such contract shall have been made in bad faith or contrary to the provisions of the Declaration or Bylaws. It is intended that the Directors shall have no personal liability with respect to any contract made by them on behalf of the Condominium or the Association and that in all matters the Board is acting for and on behalf of the Owners as their agent. The liability of any Owner arising out of any contract made by the Board or out of the aforesaid indemnity in favor of the Directors shall be limited to such percentage of the total liability or obligation thereunder as is equal to his Percentage Interest. Every contract made by the Board or the Managing Agent on behalf of the Condominium or the Association shall provide that the Board of Directors and the Managing Agent, as the case may be, are acting, as agent for the Owners and shall have no personal liability thereunder, except in their capacity as Owners (if applicable) and then only to the extent of their Percentage Interest. Section III.15 Additional Indemnity of Directors. The Association shall indemnify, hold harmless, and defend any person, his heirs, assigns, and legal representatives, made a party to any action, suit or proceeding by reason of the fact that he is or was a Director of the Association, against the reasonable expenses, including attorneys' fees, actually and necessarily incurred by him in connection with the defense of such action, suit or proceeding, or in connection with any appeal therein, except as otherwise specifically provided herein in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Director is liable for gross negligence or misconduct in the performance of his duties. The Association shall also reimburse to any such Director the reasonable costs of settlement or of judgment rendered in any action, suit or proceeding, if it shall be found by a majority of the Percentage Vote that such Director was not guilty of gross negligence or misconduct. In making such findings and notwithstanding the adjudication in any action, suit or proceeding against a Director, no Director shall be considered or deemed to be guilty of or liable for negligence or misconduct in the performance of his duties where, acting in good faith, such Director relied on the books and records of the Association or statements or advise made by or prepared by the Managing Agent of or any officer or employee, or any accountant, attorney or other person, firm or Association employed by the Association to render advice or service unless such Director had actual knowledge of the falsity or incorrectness of such statements; nor shall a Director be deemed guilty of or liable for negligence or misconduct by virtue of the fact that he failed or neglected to attend a meeting or meetings of the Board of Directors. Section I.01 Transactions Involving Affiliates. No contract or other transaction between the Association and one or more of its Directors, or between the Association and any Person (including Declarant and/or shareholders or members of Declarant) in which one or more of the Directors are directors, officers, partners, or employees or are pecuniarily or are otherwise interested, directly or indirectly, shall be void or voidable because such Director or Directors are present at the meeting of the Board that authorizes or approves the contract or transaction, or because his or their votes are counted for such purpose if: (a) the contract or transaction is between the Association and Declarant or any affiliate of Declarant and entered into prior to the Applicable Date; or (b) the fact of the affiliation or interest is disclosed or known to the Board or a majority thereof or noted in the minutes, and the Board authorizes, approves, or ratifies such contract or transaction in good faith by a vote sufficient for the purpose; or 25 (c) the fact of the affiliation or interest is disclosed or known to the Owners, or a majority thereof, and they approve or ratify the contract or transaction in good faith by a vote sufficient for the purpose; or (d) the contract or transaction is commercially reasonable to the Association at the time it is authorized, ratified, approved or executed. 1. Affiliated or interested Directors may be counted in determining the presence of the quorum at any meeting of the Board that authorizes, approves or ratifies any contract or transaction, but, following the Applicable Date, may not vote thereat to authorize any contract or transaction in which they are so affiliated or so interested. Section III.16 Bonds. The Board of Directors may require the Managing Agent, Treasurer and such other officers or employees of the Association as the Board deems necessary to provide surety bonds, indemnifying the Association against larceny, theft, embezzlement, forgery, misappropriation, wrongful obstruction, willful misapplication, and other acts of fraud or dishonesty, in such sums and with such sureties as may be approved by the Board of Directors and any such bond shall specifically include protection for any insurance proceeds received for any reason by the Board. The expense of any such bonds shall be a Common Expense. ARTICLE IV Officers Section IV.01 Officers of the Association. The principal officers of the Board and the Association shall be the President, Vice President, Secretary, and Treasurer, and such other officers as the Board may from time to time by resolution create, all of whom shall be elected by the Board. The Board may appoint an Assistant Secretary and an Assistant Treasurer and such other officer as in their judgment may be necessary. Any two or more offices may be held by the same person, except that the duties of the President shall be exclusive, and the President shall not hold any other office. Section IV.02 Election, Removal and Resignation of Officers. The Officers of the Board and the Association shall be elected annually by the Board at the initial meeting of each new Board and shall hold office for one (1) year or until his successor is elected and qualified, or until (if sooner) resignation, removal or other disqualification from service. Upon an affirmative vote of a majority of all members of the Board, any officer may be removed either with or without cause and his successor elected at any regular meeting of the Board or at any special meeting of the Board called for such purpose. Any officer may resign at any time by giving written notice to the Board of Directors, the President or Secretary. Such resignation shall take effect on the date of receipt of such notice or at any time specified therein, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Section IV.03 President. The President shall be elected from among the Directors and shall be the chief executive officer of the Board and Association. The President shall preside at all meetings of the Association and of the Board, shall have and discharge all the general powers and 25 duties usually vested in the office of president or chief executive officer of an association or a stock Association organized under the laws of Indiana, including but not limited to the power to appoint committees from among the Owners as he may deem necessary to assist in the affairs of the Association and to perform such other duties as the Board may from time to time prescribe. Section IV.04 Vice President. The Vice President shall be elected from among the Directors and shall perform all duties incumbent upon the President during the absence or disability of the President. The Vice President shall also perform such other duties as these Bylaws may prescribe or as shall from time to time be imposed upon him by the Board or by the President. Section IV.05 Secretary. The Secretary shall be elected from among the Directors. The Secretary shall attend all meetings of the Association and of the Board and shall keep or cause to be kept a true and complete record of the proceedings of such meetings, shall perform all other duties incident to the office of the Secretary, and shall perform such other duties as from time to time may be prescribed by the Board. The Secretary shall specifically see that all notices of the Association or the Board are duly given, mailed or delivered, in accordance with the provisions of these Bylaws. Section IV.06 Treasurer. The Board shall elect from among the Directors a Treasurer who shall maintain a correct and complete record of account showing accurately at all times the financial condition of the Association and who shall perform such other duties incident to the office of Treasurer. The Treasurer shall be the legal custodian of all monies, notes, securities and other valuables which may from time to time come into possession of the Association. The Treasurer shall immediately deposit all funds of the Association coming into his hands in some reliable bank or other depository to be designated by the Board and shall keep such bank account or accounts in the name of the Association. The Treasurer may permit and delegate to the Managing Agent the authority and responsibility to handle an account for monies and other assets of the Association to the extent approved by resolution of the Board. Section IV.07 Assistant Officers. The Board of Directors may, from time to time, designate and elect from among the Owners an Assistant Secretary and Assistant Treasurer who shall have such powers and duties as the officers whom they are elected to assist shall delegate to them and such other powers and duties as these Bylaws or the Board of Directors may prescribe. Section IV.08 Special Appointments. The Board may elect such officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine. Section IV.09 Committees. The Board may appoint committees to assist in the administration and affairs of the Association and Board. Section IV.10 Vacancies. A vacancy in any office may be filled by appointment by the Board of Directors. The officer appointed to such vacancy shall serve for the remainder of the terms of the officer he or she replaces. 25 ARTICLE V Assessments Section V.01 Annual Accounting. Annually, after the close of each fiscal year of the Association and prior to the date of the annual meeting of the Association next following the end of such fiscal year, the Board shall cause to be prepared and furnished to each Owner a financial statement prepared by a certified public accountant or firm of certified public accountants then serving the Association, which statement shall show all receipts and expenses received, incurred and paid during the preceding fiscal year. Section V.02 Proposed Annual Budget. Annually, on or before the date of the annual meeting of the Association, the Board of Directors shall cause to be prepared a proposed annual budget for the current fiscal year estimating the total amount of the Common Expenses for the current fiscal year and shall furnish a copy of such proposed budget to each Owner at or prior to the time the notice of such annual meeting is mailed or delivered to such Owners. The proposed annual budget shall be submitted to the Owners at the annual meeting of the Association for adoption and, if so adopted, shall be the basis for the Regular Assessments (as that term is defined below) for the current fiscal year. At the annual meeting of the Owners, the budget may be approved in whole or in part or may be amended in whole or in part by a majority of the Percentage Vote; provided, however, that in no event shall the annual meeting of the Owners be adjourned until an annual budget is approved and adopted at such meeting, either the proposed annual budget or the proposed annual budget as amended. The annual budget, the Regular Assessments and all sums assessed by the Association shall be established by using generally accepted accounting principles applied on a consistent basis. The annual budget and the Regular Assessments shall, in addition, be established to include the establishment and maintenance of a replacement reserve fund for capital expenditures and replacement and repair of the Common Areas, as hereinafter described. 3. The failure or delay of the Board of Directors to prepare a proposed annual budget and to furnish a copy thereof to the Owners shall not constitute a waiver or release in any manner of the obligations of the Owners to pay the Common Expenses as herein provided whenever determined. Whenever, whether before or after the annual meeting of the Association, there is no annual budget approved by the Owners as herein provided for such current fiscal year, the Owners shall continue to pay Regular Assessments based upon the last approved budget or, at the option of the Board, based upon one hundred five percent (105%) of such last approved budget as a temporary budget Section V.03 Regular Assessments. The annual budget as adopted by the Owners shall, based on the estimated cash requirement for the Common Expenses in the current fiscal year as set forth in said budget, contain a proposed assessment against each Condominium Unit based on the Percentage Interest of each Condominium Unit. Immediately following the adoption of the annual budget, each Owner shall be given written notice of such assessment against his respective Condominium Unit (“Regular Assessments”). In the event the Regular Assessment for a particular fiscal year is initially based upon a temporary budget, such Regular Assessment shall be revised, within fifteen (15) days following adoption of the final annual budget by the Owners, to reflect the 25 assessment against each Condominium Unit based upon such annual budget as finally adopted by the Owners. The aggregate amount of the Regular Assessments shall be equal to the total amount of expenses provided and included in the final annual budget, including reserve funds as provided in this Article V. The Regular Assessment against each Condominium Unit shall be paid in advance in equal monthly installments, commencing on the date of conveyance of the Condominium Unit and on the first day of each month thereafter. Payment of the monthly installments of the Regular Assessment shall be made to the Board of Directors or the Managing Agent, as directed by the Board of Directors; provided, however, Owners may elect to pay monthly assessments semi-annually or annually, in advance. At the election and option of the Owners by a majority of the Percentage Vote, the Regular Assessment may be required to be paid by the Owners in advance in one annual installment rather than monthly or semi-annual installments. In the event the Regular Assessment for a particular fiscal year of the Association was initially based upon a temporary budget then, (a) if the Regular Assessment based upon the final annual budget adopted by the Owners exceeds the amount of the Regular Assessment based upon the temporary budget, that portion of such excess applicable to the period from the first day of the current fiscal year to the date of the next payment of the Regular Assessment which is due shall be paid with such next payment and such next payment and all payments thereafter during such fiscal year, shall be increased so that the Regular Assessment as finally determined shall be paid in full by the remaining payments due in such fiscal year, or (b) if the Regular Assessment based upon the temporary budget exceeds the Regular Assessment based upon the final annual budget adopted by the Owners, such excess shall be credited against the next payment or payments of the Regular Assessment coming due until the entire amount of such excess has been so credited; 1. provided, however, that if an Owner had paid his Regular Assessment either semi-annually or annually, in advance, then the adjustments set forth under (a) or (b) above shall be made by a cash payment by, or refund to, the Owner on the first day of the second month following the determination of the Regular Assessment based upon the annual budget finally adopted by the Owners. 2. The Regular Assessment for the current fiscal year of the Association shall become a lien on each separate Condominium Unit as of the first day of each fiscal year (if the fiscal year is the calendar year, January 1 of each calendar year shall be the lien date) of the Association, even though the final determination of the amount of such Regular Assessment may not have been made by that date. The fact that an Owner has paid his Regular Assessment for the current fiscal year in whole or in part based upon a temporary budget and thereafter, before the annual budget and Regular Assessment are finally determined, approved and adjusted as herein provided, sells, conveys or transfers his Condominium Unit or any interest therein, shall not relieve or release such Owner or his successor as owner of such Condominium Unit from payment of the Regular Assessment for such Condominium Unit as finally determined, and such Owner and his 25 successor as owner of such Condominium Unit shall be jointly and severally liable for the Regular Assessment as finally determined. Any statement of unpaid assessments furnished by the Association pursuant to Section 8.02 hereof prior to the final determination and adoption of the annual budget and Regular Assessment for the year in which such statement is made shall state that the matters set forth therein are subject to adjustment upon determination and adoption of the final budget and Regular Assessment for such year, and all parties to whom any such statement may be delivered or who may rely thereon shall be bound by such final determinations. Quarterly or monthly (if so determined by the Board) installments of Regular Assessments shall be due and payable automatically on their respective due dates without any notice from the Board or the Association, and neither the Board nor the Association shall be responsible for providing any notice or statements to Owners for the same. Section V.04 Special Assessments. From time to time, Common Expenses of an unusual or extraordinary nature or not otherwise anticipated may arise. At such time and without the approval of the Owners, unless otherwise provided in these Bylaws, the Declaration or the Act, the Board of Directors shall have the full right, power and authority to make special assessments during any fiscal year which, upon resolution of the Board, shall become a lien on each Condominium Unit, prorated in accordance with each Condominium Unit's Percentage Interest (“Special Assessment”). Without limiting the generality of the foregoing provisions, Special Assessments may be made by the Board of Directors from time to time to pay for capital expenditures, to pay for the cost of any repair or reconstruction of damage caused by fire or other casualty or disaster to the extent insurance proceeds are insufficient therefor under the circumstances described in the Declaration. Section V.05 Failure of Owner to Pay Assessments. Each Owner shall be personally liable for the payment of all Regular and Special Assessments. Where the Owner constitutes more than one person, the liability of such persons shall be joint and several. (a) If any Owner shall fail or refuse to make any such payment of any assessment when due, the amount thereof shall constitute a lien on the Condominium Unit of the Owner, and upon the recording of notice thereof by the Association, such lien shall be constituted upon such Owner's Condominium Unit prior to all other liens and encumbrances, recorded or unrecorded, except only (i) taxes, special assessments and special taxes theretofore or thereafter levied by any political subdivision or municipal Association of this State and other 25 State or Federal taxes which by law are a lien on the interest of such Owner prior to pre-existing recorded encumbrances thereon, and (ii) encumbrances on the interest of such Owner recorded prior to the date such notice is recorded, which by law would be a lien thereon prior to subsequently recorded encumbrances. (b) The Association shall send a notice, postage prepaid, to any such encumbrancer whose encumbrance was recorded prior to the time of recording the notice of lien provided for in this section, at the address shown in the recorded encumbrance; provided that if such encumbrancer has furnished the Association with another address then such other address shall be used, and said Association shall not foreclose its said lien until at least thirty (30) days after the date of depositing such notice in the United States mails, postage prepaid, to the address of such encumbrancer. (c) Any encumbrancer holding a lien on a Condominium Unit may pay any Common Expenses payable with respect to such Condominium Unit and, if so provided in an encumbrance, may add the amount of such payment to the unpaid balance secured by his lien, and such added amount shall have the same priority and lien rights as the unpaid balance to which added. (d) The lien provided for in this section shall be in favor of the Association and shall be for the benefit of all other Owners, and may be foreclosed by an action brought in the name of the Association in a manner under the laws of the state governing mechanic's liens and materialmen's liens and as provided under the Act. The Association, acting on behalf of the Owners, shall have the power to bid on the interest so foreclosed at foreclosure sale and to acquire, hold, lease, mortgage and convey the same; and to subrogate so much of its right to such lien as may be necessary or expedient to an insurance company which will continue to give total coverage in spite of nonpayment of such defaulting Owner's portion of the premium. (e) Suit to recover a money judgment for unpaid assessments shall be maintainable without foreclosing or waiving the lien securing the same. (f) The Board shall further have the power to suspend the voting rights of a member during any period in which such members shall be in default in the payment of any assessment levied by the Association. (g) Any payment for assessments not made when due shall bear interest at the rate of eighteen percent (18%) per annum from the date the same shall become due until the date the same is paid. It shall further be the obligation of any party who shall fail to pay any assessment or assessments when due to reimburse the Association for all expenses incurred as a result of such failure to pay, including all expenses incurred by the Association in the collection of the same, and including further, but not limited to, all costs of overhead, accounting and legal expenses incurred with respect to, arising out of, or occasioned by the said failure to pay. 25 (h) In the event any person shall acquire or be entitled to the issuance of a tax deed, public trustee's deed, sheriffs deed, commissioner's deed, etc., the interest so acquired shall be subject to all the provisions of this Declaration and to the terms, provisions, covenants, conditions, and limitations contained in the Declaration, the Bylaws of the Association and any restrictions or exceptions affecting such interest then in force. Section V.06 Reserve for Replacements. The Board of Directors shall cause to be established and maintained a reserve fund for replacements by the allocation and payment to such reserve fund not less often than annually of an amount determined by the Board to be sufficient to meet the costs of periodic maintenance, repair, renewal and replacement of the Common Areas and Limited Common Areas, including, but not limited to, painting or otherwise maintaining the exterior of buildings and resurfacing, repairing or replacing streets, parking areas, sidewalks, roofs, landscaped areas and other facilities and appurtenances. In determining the amount of such reserve fund, the Board shall take into consideration the expected useful life of such Common Areas and Limited Common Areas, projected increases in the cost of materials and labor, interest to be earned by such funds, and the advice of Declarant, the Managing Agent and consultants the Board may employ. Such fund shall include an amount to cover any and all insurance deductibles. Such fund shall be conclusively deemed to be a Common Expense. Such fund shall be deposited in an interest bearing account with a bank or savings and loan association authorized to conduct business in Indianapolis, Hamilton County, Indiana. The reserve for replacements may be expended only for the purpose of effecting the periodic maintenance, repair, renewal or replacement of the Common Areas and Limited Common Areas and related equipment. The Board shall annually revise the adequacy of the reserve fund. The proportionate interest of any Owner in any reserve for replacements shall be considered an appurtenance of his Condominium Unit and shall not be separately withdrawn, assigned, transferred or otherwise separated from the Condominium Unit to which it appertains and shall be deemed to be transferred with such Condominium Unit. Section V.07 General Operating Reserve. The Board of Directors may establish and maintain a reserve fund for general operating expenses of a nonrecurring nature by the allocation and payment to such reserve fund not less frequently than annually of such amount as the Board in its discretion determines to be reasonable under the circumstances. Such fund shall be conclusively deemed to be a Common Expense. Such fund shall be deposited in an interest bearing account with a bank or savings and loan association authorized to conduct business in Marion County or Hamilton County, Indiana. The general operating reserve fund may be expended only for operating contingencies of a non-recurring nature. The proportionate interest of any Owner in any reserve fund for general operating expenses shall be considered an appurtenance of his Condominium Unit and shall not be separately withdrawn, assigned or transferred or otherwise separated from the Condominium Unit to which it appertains and shall be deemed to be transferred with such Condominium Unit. Section V.08 Regular Assessments Prior to Applicable Date. The purpose of this section is to provide for the maintenance and upkeep of the Condominium and for the payment of the Common Expenses during the period prior to the Applicable Date. Accordingly, and notwithstanding any other provision contained in the Declaration, these Bylaws, the Act or otherwise, prior to the Applicable Date the annual budget and all Regular Assessments and Special Assessments shall be established solely by the Initial Board. 25 4. Payment of the Regular Assessments prior to the Applicable Date with respect to each Condominium Unit within each Building that has been subjected to the Declaration (including Condominium Units in such Building owned by Declarant) shall commence on the date of the conveyance of the first Condominium Unit in such Building to a new Owner. In addition, at the initial closing of each Condominium Unit, the purchaser or new Owner is required to pay a sum equal to the full Regular Assessment applicable to such Condominium for two (2) months as his initial contribution to the working capital and reserves of the Association. Additionally, as provided in Section 5.03, at each closing, the purchaser of a Condominium Unit shall pay his pro rata share of the Regular Assessment due in the month of closing. Thereafter, payment of the Regular Assessment shall be made on the first day of each calendar month. 5. Declarant or its successors in interest, as an Owner, shall be excused from payment of assessments from the date the Declaration is recorded and expiring with respect to the Condominium Units owned by Declarant located within a particular Building committed by the Declaration on the first day of the thirty-sixth (36th) calendar month following the month in which the closing of the sale of the first Condominium Unit in such Building occurs; such provision shall also apply to assessments for Condominium Units owned by Declarant in each additional Building committed by Supplemental Declaration. Provided, further, that if the annual expenses of the Association incurred under the assessment procedure exceed the amount assessed against the other Owners (excluding the Declarant), then the Declarant or its successor shall pay the excess required during any such thirty-six (36) month period on an annual basis (the “Declarant’s Shortfall Payments”); provided, however, if in any subsequent fiscal year funds held by the Corporation exceed the total of the amount set forth in the annual budget for such fiscal year plus all reserves established by the Board in the manner set forth above, such excess amounts shall be disbursed to Declarant (or at the option of the Board credited against any Assessments owed by Declarant for any Condominium Units owned by Declarant) until Declarant has been fully reimbursed for the Declarant’s Shortfall Payments previously made. Prior to the Applicable Date, Declarant shall bear all expenses incurred with respect to the Property arising out of construction or other activities on any portion of the Real Estate, including but not limited to road damage and clean-up of debris caused by construction traffic, connection to any utility lines or mains located on the Property and damage to, or deterioration of, trees, fences or other portions of the Property due to construction off site or the state of areas under development. 6. No less than ten percent (10%) of the Regular Assessment paid prior to the Applicable Date shall be designated as a reserve fund for maintenance, repair or replacement of Common Areas that must be repaired and replaced on a periodic basis as provided in Section 5.06. 7. That portion of the Regular Assessment collected by the Declarant prior to the Applicable Date applicable to the replacement reserve shall be held by the Initial Board and, if required, applied to the replacement of the Property. To 25 the extent that such replacement reserve is not so applied, the balance thereof shall be retained by the Association at the Applicable Date. Section V.09 Liability of Grantee. In a voluntary conveyance of a Condominium Unit other than a deed in lieu of foreclosure, the grantee as successor Owner of the Condominium Unit shall be jointly and severally liable with the grantor for all unpaid assessments by the Association prior to the time of the grant or conveyance without prejudice to the grantee’s right to recover from the grantor amounts paid by the grantee therefor. Upon request by an Owner, purchaser or grantee thereof, or Mortgagee, the Secretary or other authorized officer of the Association or the Managing Agent shall provide within fifteen (15) days of the written request therefor, a statement of the amount of current and delinquent assessments by the Association, including fines and charges against a particular Condominium Unit. The Association may require the Owner to confirm that the person requesting the statement is a Mortgagee or purchaser or grantee of the Owner. The recording of such written statement, together with a deed to such Condominium Unit, shall operate to discharge the Condominium Unit from any lien for any other Regular or Special Assessment unpaid as of the date of such statement. Section V.10 Waiver of Lien upon Foreclosure. Notwithstanding anything to the contrary contained in the Declaration and these Bylaws, any sale or transfer of a Condominium Unit to a Mortgagee pursuant to a foreclosure of its mortgage or conveyance in lieu thereof, or conveyance to any Person at a public sale in the manner provided by law with respect to mortgage foreclosures, shall extinguish the lien of any unpaid installment of any Regular or Special Assessment as to such installments that become due prior to each sale, transfer or conveyance, but extinguishments of such lien shall not relieve the prior Owner from personal liability therefor. No such sale, transfer or conveyance shall relieve the Condominium Unit or the purchaser at such foreclosure sale, or grantee in the event of conveyance in lieu thereof, from liability for any installments of Assessments thereafter becoming due or from the lien therefor. Such unpaid share of any Assessments, the lien for which has been divested as aforesaid, shall be deemed to be a Common Expense, collectible from all owners (including the party acquiring the Condominium Unit from which it arose), as provided in the Act. Section V.11 Initial Budget and Assessments. Notwithstanding anything to the contrary contained herein in the Declaration, the Act, other applicable statutes or otherwise, until the Applicable Date, the annual budget and all Regular Assessments and Special Assessments shall be established by the Initial Board without meetings of or concurrence of the Owners. A power of attorney and proxy coupled with an interest is reserved to the Declarant and is granted to the Declarant by each Owner and shall be deemed to cover and include each Owner's right to vote on and approve the initial annual budget and any Regular Assessments and Special Assessments until the Applicable Date. Section V.12 Maintenance and Repairs. Every Owner shall promptly perform all maintenance and repairs within the Owner's Condominium Unit which, if neglected, would affect the value of the Property. In addition, each Owner shall furnish and shall be responsible at his own expense for the maintenance, repairs and replacements of his Condominium Unit and Limited Common Areas exclusive to his Condominium Unit, and all equipment serving the same. Such maintenance, repairs and replacements which each Owner is responsible to make personally and at his own expense include, but are not necessarily limited to: water lines, gas lines, plumbing and 25 electric lines which service the Owner's Condominium Unit only and are located within exterior walls of the Condominium Unit including any lines in the area from below the floor to above the roof if they are within an extension of the exterior walls of the Condominium Units; all partitions and interior walls, ceilings and floors; appliances, to include garbage disposals, dishwashers, stoves, ranges and refrigerators, telephones, air conditioning and heating equipment (whether located wholly or partially inside or outside the Condominium Unit), doors, screens, and windows (including exterior and interior of all glass and screen surfaces), lamps, and interior and exterior grouting and/or caulking and all other accessories appurtenant to the Condominium Unit or belonging to the Owner thereof. Notwithstanding any of the provisions of this paragraph, all lawn mowing, landscaping and other similar maintenance within the Common Areas shall be provided as an expense of the Association. No Owner shall in any way cut or fertilize lawns, shrubs or other items of landscaping or attempt to maintain or replace same in any manner whatsoever. The Association will provide personnel for these purposes. 8. Notwithstanding the foregoing, if, due to the willful, intentional or negligent acts or omissions of an Owner or a member of his family, or of a guest, tenant or other occupant or visitor of such Owner, damage shall be caused to the Common Areas or to a Condominium Unit or Limited Common Area owned by or reserved for the use of others, or if maintenance, repairs or replacements shall be required thereby which would otherwise be a Common Expense, then such Owner shall pay for such damage and such maintenance, repairs and replacements, as may be determined by the Association, unless such loss is covered by the Association's insurance with such policy having a waiver of subrogation clause. Maintenance, repairs and replacements to the Common Areas or the Condominium Units or any Limited Common Areas shall be subject to the rules and regulations adopted from time to time by the Board. 9. To the extent that equipment, facilities and fixtures within any Condominium Unit shall be connected to similar equipment, facilities or fixtures affecting or serving other Condominium Units or any Common Areas or Limited Common Areas, then the use thereof by the Owner of such Condominium Unit shall be subject to the rules and regulations adopted from time to time by the Board. The authorized representatives of the Association or Board of Directors, or the Managing Agent for the Association, shall be entitled to reasonable access to any Condominium Unit as may be required in connection with maintenance, repairs or replacements of or to the Common Areas or Limited Common Areas or any parts thereof, or any equipment, facilities or fixtures affecting or serving other Condominium Units or any Common Areas or Limited Common Areas. ARTICLE VI Restrictions, Entry and Rules and Regulations Section VI.01 Restrictions on Use. The following restrictions on the use and enjoyment of the Condominium Units, Common Areas, Limited Common Areas and the Property shall be applicable to the Condominium and in addition to those set forth in the Declaration: 25 (a) All Condominium Units shall be used exclusively for residential purposes and no Condominium Unit may be partitioned or subdivided. Except for the lease of certain Condominium Units owned by the Declarant, a Condominium Unit may not be rented or leased by its Owner without the approval of the Board of Directors. If approval is given, any Owner who leases a Condominium Unit shall lease the entire Condominium Unit for at least a six (6) month period and shall have a written lease, and such lease shall provide that the lease is subject to the provisions of the Declaration, the Bylaws and the rules and regulations as adopted by the Board of Directors, and any failure of the lessee to comply with the terms of such documents shall be a default under the lease. A copy of each such lease and the name of tenant shall be delivered to the Board of Directors promptly upon execution. (b) No additional buildings, temporary structures, utility buildings or tents shall be erected or located on the Property other than the Buildings designated in the Declaration or a supplement or amendment to the Declaration, and shown on the Plans or plans filed with such supplement or amendment to the Declaration without consent of the Board of Directors, except Declarant reserves the right to maintain a mobile office for construction, and no such structure no additional building shall be used as a residence. All hardware, doors and windows and trim visible from the exterior of the Condominium Units, except model Condominium Units during the period when they are in use as sales model units, shall be uniform in design throughout the Condominiums and shall not be changed, altered, painted, remodeled or replaced without the prior written approval of the Board of Directors. (c) Nothing shall be done or kept in any Condominium Unit or in the Common Areas or Limited Common Areas which will cause an increase in the rate of insurance on the Building or the contents thereof. No Owner shall permit anything to be done or kept in his Condominium Unit or in the Common Areas or Limited Common Areas which will result in a cancellation of insurance on the Building or any part of the Common Areas or Limited Common Areas or contents thereof, or which would be in violation of any law or ordinance or the requirements of any insurance underwriting or rating bureau. (d) No nuisance shall be permitted and no waste shall be committed in any Condominium Unit or in the Common Areas or Limited Common Areas. (e) No Owner shall cause or permit anything to be hung or displayed on the outside of the windows or placed on the outside walls of the Building, and no sign, awning, canopy, shutter, side of deck retractable screen or sun protector, or radio or television antenna or-other attachment or thing shall be affixed to or placed upon the exterior walls, patios, balconies, or roofs or any other part of the Building without the prior consent of the Board. (f) No animals, livestock, poultry, reptiles or exotic animals of any kind shall be raised, bred or kept in any Condominium Unit or in the Common Areas or Limited Common Areas or on the Property; provided, however, that a maximum of (i) two (2) dogs; (ii) two (2) cats or other non-reptilian, non-exotic, customary, domestic household pets; or (iii) one (1) fish tank not to exceed seventy-five (75) gallons shall be permitted in a Condominium Unit. Notwithstanding the foregoing, no Owner shall keep in any 25 Condominium Unit or in the Common Areas or Limited Common Areas or on the Property any dangerous breed of dog, including, without limitation, pit bull, Rottweiler or such other breed as is reasonably determined to be dangerous by the Board of Directors. Owners shall ensure that their pets do not disturb other Owners due to noise, odors, or other nuisance. Owners shall immediately clean up the waste produced by the Owner’s pet. All pets, including cats, must be under the control of the Owner, on a leash, or confined to the Condominium Unit or the Limited Common Area exclusively appurtenant thereto. An Owner shall be fully liable for any injury or damage to persons or property including the Common Areas or Limited Common Areas, caused by his pet. The Board may adopt such rules and regulations regarding pets as it may deem necessary from time to time including, but not limited to, a requirement that any Owner desiring to bring a pet on the Property shall deposit with the Board a security deposit in an amount to be determined by the Board to cover any damage that may be caused by such pet to the Common Areas and Li mited Common Areas. (g) Nothing shall be done or permitted in any Condominium Unit which will impair the structural integrity of the Building or which would structurally change the Building or which would affect the exterior appearance of any Condominium Unit, except as otherwise provided in the Declaration or these Bylaws. No Condominium Unit shall be used in any unlawful manner, in violation of the zoning laws in effect in Hamilton County, Indiana, or in any manner which might cause injury to the reputation of the Condominiums or the Association or which might be or cause a nuisance, annoyance, inconvenience or damage to other Owners and occupants of Condominium Units or neighboring property, including without limiting the generality of the foregoing noise by the use of any musical instruments, radio, television, loud speakers, electrical equipment, amplifiers or other equipment or machines or loud persons. (h) The Common Areas shall be kept free and clear of rubbish, debris and other unsightly materials. (i) No “for sale”, “for rent” or “for lease” signs, or other signs, or other window or advertising display shall be maintained or permitted on any part of the Property or any Condominium Unit without the prior consent of the Board; provided, however, that the right is reserved by the Declarant and the Board to place or allow to be placed “for sale” or “for lease” signs on or about the Property in connection with any unsold or unoccupied Condominium Units. (j) All Owners and members of their families, their guests, or invitees, and all occupants of any Condominium Unit or other persons entitled to use the same and to use and enjoy the Common Areas and relevant Limited Common Areas or any part thereof, shall observe and be governed by such rules and regulations as may from time to time be promulgated and issued by the Board governing the operation, use and enjoyment of the Condominium Units, the Common Areas and Limited Common Areas. (k) No boats, campers, trailers of any kind, buses, mobile homes or any other vehicles of any similar description or type shall be permitted, parked or stored anywhere within the Property, except in an Owner’s private garage, unless prior written approval is 25 obtained from the Board. No repair work shall be done on the Property, except in an Owner’s private garage, on any vehicles, including, but not limited to, passenger automobiles, motorcycles, trucks or boats unless express written permission is obtained from the Board. (l) No Owner shall be allowed to plant trees, landscape or do any gardening in any of the Common Areas or Limited Common Areas, except with express permission from the Board; provided, however, that limited additional plantings may be permitted as follows: (i) edible plans and plants producing edible items shall be planted in pots only; (ii) all pots shall be removed during winter months; (iii) the combined height for pots and plants shall not exceed thirty inches (30”); and (iv) any such planting shall be confined to porches, sunrooms, patios or balconies particular to a Condominium Unit. No additional plantings, pots or other landscaping shall substantially interfere with the Association’s regular Maintenance Obligations.. (m) Except for appropriate outdoor furniture on sun porches, patios and balconies, no Owner or tenant shall be allowed to place or cause to be placed in either Common Areas or Limited Common Areas, any furniture, packages or objects of any kind, without the consent of the Board. The Rules and Regulations adopted by the Board may set forth the standards to implement the intent of this provision. (n) All garbage, trash and refuse shall be stored in appropriate containers as determined by the Rules and Regulations by the Board. All such garbage, trash and refuse shall be placed in the containers approved by the Board and shall be placed at locations designated by the Board for scheduled trash collection in further accordance with the Rules and Regulations. (o) All Common Areas and Limited Common Areas shall be used only for the purposes for which they are designed and intended, and shall be used subject to the Rules and Regulations from time to time adopted by the Board. (p) Subject to applicable local ordinances and current building codes and except for Condominium Units which include the Declarant-installed grill center, no gas or charcoal grills with a grilling surface larger than 32”x32”) shall be permitted on Condominium Unit balconies or patios. (q) All window coverings shall have white, black, brown, or grey backing, unless otherwise specifically approved by the Board of Directors. (r) Bicycles stored in Condominium Units must be kept inside the unit and shall not be locked to fencing, balconies, or other parts of the structure or stored on patios or balconies. Bicycle storage outside the Condominium Units shall be restricted to private garages or the bike racks and storage areas provided in Common Areas and Limited Common Areas. (s) No parking shall be permitted in the drive aisles or Common Areas, unless in designated parking spaces. 25 (t) No hot tubs, Jacuzzis, exercise pools, swim spas, or similar items shall be permitted on Condominium Unit balconies or patios. Section VI.02 Enforcement. The Declarant, the Board or, in a proper case, an Aggrieved Owner, shall have the right of enforcement of all restrictions and regulations adopted pursuant to this Article VI. An “Aggrieved Owner” shall mean an Owner whose rights are affected or infringed by any such alleged failure to comply with the provisions of the Declaration, Bylaws or any decision of the Association or its Board of Directors in a manner diffe rent from the rights of all other Owners. Any Owner who alleges that he is an “Aggrieved Owner” shall first notify the Board of Directors of such Owner’s aggrieved status and request a special meeting of the Board of Directors to be held within thirty (30) days of such request (or within seven (7) days in an emergency situation) to establish to the Board and the Association that such owner is “aggrieved” within the meaning hereof, prior to the commencement of any right of action commenced hereunder. Any costs, including reasonable attorneys’ fees, may be recovered from any Owner for violation thereof, however, any reservation of right to the use of summary abatement or similar means to enforce restrictions against a Condominium Unit or its use shall require that judicial proceedings be instituted before any items of construction can be altered or demolished. 10. These Bylaws, including all restrictions set forth herein and the rules and regulations may be enforced by injunctive relief, specific performance or the imposition of reasonable monetary fines and suspension of use and voting privileges. These powers, however, shall not be construed as limiting any other legal means of enforcing the use restrictions or rules and regulations of the Association. Any fines so imposed shall be considered an assessment against the Condominium Unit and may be collected in the manner provide for collection of other assessments. In addition to the foregoing, if any person shall fail to maintain its Condominium Unit in a reasonably safe and sanitary condition, the Association may, at the Board’s option, and after thirty (30) days written notice to the Owner, perform any clean-up, repair and/or replacement to cure any such condition, and all costs and expenses reasonable incurred by the Association, plus interest thereof at the rate of eighteen percent (18%) per annum, shall be reimbursed to the Association by such Owner within thirty (30) days after the work has been completed. The Association may levy a special assessment against any such Condominium Unit, which may be enforced in accordance with these Bylaws. Section VI.03 Compliance with Covenants, Conditions and Restrictions. Every Owner, Mortgagee, lessee or other occupant of a Condominium Unit shall comply strictly with the covenants, conditions and restrictions set forth in the Declaration, with the Bylaws and with the Rules and Regulations in relation to the use and operation of the Property. A violation committed by any persons residing in, occupying or visiting a Condominium Unit at the behest or with the implied or express permission of the Owner or any other occupant of the Condominium Unit, or committed by any agent, employee, business invitee, or contractor of the Owner or of any person occupying a Condominium Unit shall be attributed to that Condominium Unit and the Owner thereof. Failure to comply with any of said covenants, conditions and/or restrictions shall be grounds for withdrawal by the Board of Directors of privileges with respect to the use of any of the Common Areas by any defaulting Owner and by his tenants, invitees, guests and all members of his family and/or his tenant’s family. An action seeking a declaratory judgment, the recovery 25 of sums due for damages, or injunctive relief, or any or all of them may be maintained by the Board of Directors or by an interested party who has obtained the prior written consent of the Board of Directors against any Owner, or any person entitled to occupy a Condominium Unit who refuses to comply or threatens to refuse to comply with any provisions of the Declaration, the Bylaws, the rules and regulations, or any other document establishing ownership or control over any part of the Property. One or more Owners may bring a class action on behalf of all Owners. 11. After giving not less than thirty (30) days prior written notice to an Owner who has not complied, and after giving such party the opportunity to be heard by the Board of Directors, the Board of Directors shall have the right to impose a fine of not more than One Hundred Dollars ($100) for the second violation attributable to a particular owner in a calendar year against the Owner and the Condominium Unit in which such Owner holds an ownership interest. For a third violation attributable to the same Owner in the same calendar year (whether or not this third violation involves the same terms or provision of the above -described condominium instruments as the first or second violations), the Board of Directors, after giving the above-described notice and opportunity to be heard, may levy a fine against that Owner and the Condominium Unit in which each Owner holds an ownership interest in an amount not in excess of One Hundred Fifty Dollars ($150). For the fourth and every subsequent such violation of said condominium instruments by the same Owner in the same calendar year, the Board of Directors, after giving the above-described notice and opportunity to be heard, may levy a fine against that Owner and the Condominium Unit in which such Owner holds an ownership interest in double the amount of the fine for the immediately preceding violation in that calendar year. 12. All fines described above, any fines imposed by the Board of Directors and any and all expenses incurred by the Association in enforcing any of the terms and provisions of the condominium instruments, including reasonable attorneys’ fees, may be levied as a Special Assessment against the Owner in question and his Condominium Unit. 13. Any action brought by the Association hereunder may be brought in its own name, in the name of its Board of Directors or in the name of the Managing Agent. In any case of flagrant or repeated violation by an Owner, he may be required by the Board of Directors to give sufficient surety or sureties for his future compliance with the covenants, conditions and restrictions contained in the Declaration, the Bylaws, and the rules and regulations. Section VI.04 Right of Entry. All Owners and occupants of a Condominium Unit shall be deemed to have granted the right of entry thereto to the Board or any person authorized b y the Board in case of any emergency originating in or threatening his Condominium Unit or the Building, whether the Owner is present at the time or not. Any Owner shall permit other persons, or their representatives when so required, to enter his Condominium Unit for the purpose of performing installations, alterations or repairs to the mechanical or electrical services, or to make structural repairs, provided that requests for entry are made in advance and that such entry is at a 25 time reasonably convenient to the Owner. In case of emergencies, such right of entry shall be immediate. Section VI.05 Right of Board to Adopt Rules and Regulations. The Board may promulgate such additional rules and regulations regarding the operation of the Property, including but not limited to the use of the Common Areas and Limited Common Areas, as it may deem necessary from time to time and such rules as are adopted may be amended by a vote of a majority of the Board, and the Board shall cause copies of such rules and regulations and all amendments thereto to be delivered to and mailed promptly to all Owners. In the event of any conflict between such rules and regulations of the Board and restrictions contained in these Bylaws, the restrictions in the Bylaws shall control. Section VI.06 Interpretation of Bylaws and Covenants. The Board of Directors shall have the power, authority and obligation to determine all matters affecting or relating to the interpretation, application and enforcement of the Bylaws and the Restrictive Covenants set forth in this Article VI of the Bylaws. Any decision or determination made by the Board pursuant to its powers and obligations as set forth in this Section shall be deemed binding upon all parties and all Owners unless it shall be shown that said determination was made in bad faith with an intent to unfairly discriminate between Owners or was made in contravention of the express terms and conditions of the Declaration and/or Bylaws. ARTICLE VII Amendment to Bylaws Section VII.01 Amendment to Bylaws. Subject to any contrary, overriding or superseding provisions set forth herein or in the Declaration or the Act, these Bylaws may be amended in the same manner, and subject to the same limitations and requirements, as amendments to the Declaration. Amendments to these Bylaws shall be considered as amendments of the Declaration and shall be recorded in the Office of the Recorder of Hamilton County, Indiana, as required by the Declaration and the Act. Notwithstanding anything to the contrary contained herein or in the Declaration, there shall be no amendment of the Declaration or these Bylaws prior to the Applicable Date without the consent and approval of Declarant. Section VII.02 Amended and Restated Bylaws. An amended and restated Bylaws containing the original Bylaws and all amendments theretofore made may be executed any time or from time to time by a majority of the then Board of Directors and shall, upon recording in the Office of the Recorder of Hamilton County, Indiana, be conclusive evidence of all amendments contained therein and may thereafter be referred to in lieu of the original Bylaws and the various amendments thereto. Section VII.03 Mortgagees and Amendments. Amendments of a material adverse nature to Mortgagees shall be agreed to by Mortgagees that represent at least fifty-one percent (51%) of the votes of Units that are subject to mortgages. Any action to terminate the legal status of the Condominium after substantial destruction or condemnation occurs or for other reasons shall be agreed to by Mortgagees that represent at least fifty-one percent (51%) of the votes of Units that 25 are subject to mortgages. Implied approval may be assumed when a Mortgagee fails to submit a response to any written proposal for an amendment within sixty (60) days after it receives proper notice of the proposal, provided the notice was delivered by certified or registered mail, with a return receipt requested. ARTICLE VIII Mortgages Section VIII.01 Notice to Association. Any Owner who places a first mortgage lien upon his Condominium Unit (or the Mortgagee of such Condominium Unit) shall notify the Secretary of the Association thereof and provide the name and address of the Mortgagee. A record of such Mortgagee and name and address shall be maintained by the Secretary and any notice required to be given to the Mortgagee pursuant to the terms of the Declaration, these Bylaws or the Act shall be deemed effectively given if mailed to such Mortgagee at the address shown in such record in the time provided. Unless notification of any such mortgage and the name and address of Mortgagee are furnished to the Secretary either by the Owner or the Mortgagee, no notice to any Mortgagee as may be otherwise required by the Declaration, these Bylaws or the Act shall be required and no Mortgagee shall be entitled to vote on any matter to which he otherwise may be entitled by virtue of the Declaration, these By-Laws, the Act, or proxy granted to such Mortgagee in connection with the mortgage. The holder, insurer or guarantor of any mortgage on any unit shall be given timely written notice by the Association of: (a) any condemnation or casualty loss that affects either a material portion of the Property or the Unit securing its mortgage; (b) any sixty (60) day delinquency in the payment of assessments or charges owed by the Owner of any Unit on which it holds the mortgage; (c) a lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; and (d) any proposed action that requires the consent of a specified percentage of eligible mortgage holders. 1. Such information shall only be supplied to mortgage holders upon receipt of a written request therefore specifying the Condominium Unit number on which it holds a mortgage. Section VIII.02 Notice of Unpaid Assessments. The Association shall, upon request of a Mortgagee, a proposed Mortgagee, or a proposed purchaser who has a contractual right to purchase a Condominium Unit, furnish to such Mortgagee or purchaser a statement setting forth the amount of the unpaid Regular Assessments or Special Assessments against the subject Condominium Unit, which statement shall be binding upon the Association and the Owners. Any Mortgagee or grantee of the Condominium Unit shall not be liable for nor shall the Condominium Unit conveyed be subject to a lien for any unpaid assessments in excess of the amount set forth in such statement or as such assessments may be adjusted upon adoption of the final annual budget, 25 as referred to in Section 5.02. Notwithstanding anything to the contrary provided herein, any first Mortgagee obtaining title to a Condominium Unit pursuant to the remed ies in its mortgage or through foreclosure shall not be liable for more than six (6) months of unpaid Regular Assessments attributable to such Condominium Unit and accrued prior to such Mortgagee’s acquisition of title to the Condominium Unit. The Mortgagee shall be liable for any fees or costs related to the collection of unpaid Assessments pursuant to Section 5.05(g) hereof. Section VIII.03 Limitations on Ability to Sell/Right of First Refusal. No right of first refusal contained in these Bylaws or the Declaration shall adversely impact the rights of a Mortgagee to: (a) foreclose or take title to a Unit pursuant to the remedies in the mortgage; (b) accept a deed or assignment in lieu of foreclosure in the event of a default by a mortgagor; or (c) sell or lease a Unit acquired by the Mortgagee or its assignee. Section VIII.04 First Mortgagee’s Rights Confirmed. No provision of these Bylaws or the Declaration shall give an Owner or any other party priority over any rights of the first Mortgagee of the Unit pursuant to its mortgage in the case of payment to the Owner of insurance proceeds or condemnation awards for losses to or a taking of a Unit and/or Common Area or Limited Common Area. ARTICLE IX Miscellaneous Section IX.01 Fiscal Year. Unless changed by resolution of the Board of Directors prior to the fiscal year of the Association shall begin on the first day of January in each year and end on the last day of December next following. Section IX.02 Personal Interests. No member of the Association shall have or receive any earnings from the Association as a result of being an officer or director of the Association except a member may receive principal and interest on moneys loan or advanced to the Association as provided in the Act. Section IX.03 Contracts, Checks, Notes, Etc. All contracts and agreements entered into by the Association and all checks, drafts and bills of exchange and orders for the payment of money shall, in the conduct of the ordinary course of business of the Association, unless otherwise directed by the Board of Directors, or unless otherwise required by law, be signed by the President or in his absence the Treasurer. Any one of the documents heretofore mentioned in this section for use outside the ordinary course of business of the Association or any notes or bonds of the Association shall be executed by and require the signature of the President and Secretary. Section IX.04 Financial Statements. Upon the written request from any person or entity that has an interest or prospective interest in any Condominium Unit, the Association shall furnish 25 to such entity within a reasonable time a copy of the financial statement of the Association for the immediately preceding fiscal year. The reasonable copying costs shall be paid by the person or entity requesting same. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 3006120-4 (13903-0003)