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<br />4810-5342-0509, v. 2
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<br />of all Open Meetings and meetings of members, upon request for, and reimbursement of, the actual costs
<br />to copy and mail such minutes. This Section creates no right in representatives of Declarant to attend
<br />executive sessions of the Board or to participate in deliberations by the Board. Declarant representatives
<br />shall attend any Open Meeting they are permitted to attend under this Section in an observer capacity only,
<br />and they shall not have any right to vote on matters coming before the Board.
<br />9.8.2 Limit on Actions. Until Declarant no longer owns any portion of the Property or
<br />the Annexable Property, the following actions, before being undertaken by the Association, must first be
<br />approved in writing by Declarant: (a) any amendment to the Governing Documents or action requiring the
<br />approval of First Mortgagees; (b) the levy of a Capital Improvement Assessment for the construction of new
<br />facilities not constructed on the Association Property by Declarant; or (c) subject to those provisions of
<br />Section 6.6 (Changes to Assessments) regarding limitations on yearly Assessment increases, any
<br />significant reduction of Association Property maintenance or other services, or entering into contracts for
<br />maintenance or other goods and services benefiting the Association or the Association Property at contract
<br />rates which are fifteen percent (15%) or more below the reasonable cost for such maintenance, goods or
<br />services as determined pursuant to the maintenance provisions contained in this Declaration.
<br />ARTICLE 10
<br />INSURANCE
<br />10.1 Association’s Insurance Obligations.
<br />10.1.1 Liability Insurance. The Association shall obtain and maintain liability
<br />insurance providing coverage at least as broad as a current Insurance Services Office, Inc. (“ISO”)
<br />commercial general liability insurance form or its equivalent (including coverage for medical payments and
<br />coverage for owned and non-owned automobiles, if applicable), insuring the Association, Declarant (as
<br />long as Declarant is the Owner of any portion of the Property or the Annexable Property) and the Owners
<br />against liability arising from the ownership, operation, maintenance and use of the Association Property by
<br />the Association and the performance by the Association of its duties under this Declaration. Such coverage
<br />shall also include legal liability arising out of lawsuits related to employment contracts of the Association, if
<br />any. Coverage for such matters shall be primary to any coverage provided by any other liability insurance
<br />policy maintained by such insureds. The limits of such insurance shall at all times meet or exceed the
<br />minimum requirements of California Civil Code Section 5805. Such insurance shall include coverage
<br />against water damage liability, a broad form named insured endorsement, if reasonably available as
<br />determined by the Board, and may include coverage against any other liability customarily covered with
<br />respect to properties similar in construction, location and use, all as may be determined by the Board. Such
<br />policy shall include, if reasonably available as determined by the Board, a cross-liability or severability of
<br />interest endorsement insuring each insured against liability to each other insured.
<br />10.1.2 Property Insurance. The Association shall obtain and maintain property
<br />insurance for the risks covered by, and providing coverage at least as broad as, a current ISO “special
<br />form” policy or its equivalent, insuring: (i) all Improvements upon, within or comprising the Association
<br />Property, including fixtures and building service equipment; (ii) all personal property owned or maintained
<br />by the Association, and (iii) any items required to be included under Subsection (a) below (collectively,
<br />“Association Insured Property”). Such insurance shall be maintained in the amount of the maximum
<br />insurable replacement value of the property as determined annually by the Board. Such coverage may
<br />exclude land, foundations, excavations, and other items typically excluded from property insurance
<br />coverage on properties similar in construction, location and use.
<br />(a) Units. The property insurance maintained by the Association shall also
<br />cover any portions of the Units not required to be insured by the Owners pursuant to Section 10.2.1
<br />(Property Insurance), including without limitation, the following items and components installed by Declarant
<br />within Units at the time of original construction of the Units (and any equivalent replacements thereof):
<br />fixtures, interior walls and doors, ceiling, floor and wall surface materials (e.g. paint, wallpaper, mirrors,
<br />carpets, and hardwood floors); cabinets, built-in appliances; heating and air conditioning systems, and
<br />water heaters.
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