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<br /> <br />4810-5342-0509, v. 2 <br /> 67 <br /> <br />(e) "Other Claim" means a Dispute that does not involve a Construction <br />Defect Claim. <br />(f) "Right to Repair Act" means Division 2, Part 2, Title 7 of the California <br />Civil Code (Section 895, et seq.) as amended from time to time. <br />16.5.2 Dispute Resolution. Declarant has recorded a Master Dispute Resolution <br />Declaration which sets forth the procedures that shall be used to resolve Disputes with Declarant for any <br />Claims asserted by an Owner and/or the Association. The Master Dispute Resolution Declaration recorded <br />in the Official Records constitutes a part of this Declaration and is incorporated herein by this reference as <br />though set forth in full herein. For any Construction Defect Claims, the Owners and the Association shall <br />comply with the Claims Process set forth in the Master Dispute Resolution Declaration. For any <br />Construction Defect Claims not resolved through the Claims Process or any Other Claims, the Owners and <br />the Association shall comply with the procedures set forth in the Master Dispute Resolution Declaration <br />which require the Dispute to be mediated. Each Owner and the Association acknowledge and agree that <br />the terms and provisions set forth in the Master Dispute Resolution Declaration are covenants running with <br />the land which are binding upon the Owners and the Association and successor Owners. <br />16.5.3 Relinquishment of Control. Notwithstanding any other provision in the <br />Declaration or the Master Dispute Resolution Declaration to the contrary (including, without limitation, any <br />provision which expressly or implicitly provides Declarant with control over Association decisions for any <br />period of time), while Declarant has majority control of the Board, Declarant hereby relinquishes control <br />over the Association's ability to decide whether to initiate any Claim against Declarant or any Declarant <br />Parties. No representative of Declarant or Declarant Parties on the Board shall vote on the initiation of any <br />Claim including without limitation, any Construction Defect Claim under California Civil Code Section 895 <br />et seq. of the Right to Repair Act, such that from and after the first election of directors in which Class A <br />Members participate, Declarant and Declarant Parties shall have no control over the Association's ability to <br />decide whether to initiate a Claim including without limitation, any Construction Defect Claim and in the <br />event of such a vote, the affirmative vote of a majority of the non-Declarant representatives on the Board <br />shall be binding so long as a quorum of the Board is present at any meeting where such vote is taken. <br />16.5.4 Pursuit of Claims. An Owner may only assert Limited Warranty claims <br />pertaining to such Owner's Condominium. The Association and not the individual Owners shall have the <br />power to pursue any Claims for the Association Property. The Association and each Owner shall comply <br />with the Claim Process in bringing any such Claims. Each Owner hereby agrees to delegate authority to <br />the Association and assigns to the Association all power and authority as is necessary for (i) the initiation <br />of any Claim, or (ii) any settlement or release of any Claim, in each instance relating to the Association <br />Property. <br />16.5.5 Notice Requirements. In the event that the Association commences a Claim <br />pursuant to the Master Dispute Resolution Declaration, or pursues any other legal action, all Owners must <br />notify prospective purchasers of such action or Claim and must provide such prospective purchasers with <br />a copy of the notice produced by the Association and delivered to the Owners in accordance with California <br />Civil Code Section 6000 and this Declaration. As required by California Civil Code Section 5520, if a <br />decision is made to use reserve funds or to temporarily transfer money from the reserve fund to pay for <br />litigation, the Association shall comply with the notice and accounting requirements set forth in California <br />Civil Code Section 5520. <br />16.5.6 Funding of Special Benefit Area Claims and Actions. Notwithstanding any <br />other provisions of the Governing Documents, the resolution of Disputes under Article 16 including, without <br />limitation, mediation, arbitration or litigation of any claims and other actions related exclusively to a Special <br />Benefit Area shall be funded solely from the contributions of the Owners within such Special Benefit Area, <br />or by a Special Assessment levied only on the Owners within the applicable Special Benefit Area, and/or <br />from the separate reserve account funds for the applicable Special Benefit Area. <br />320