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DECLARATION OF SHERWOOD ARMS

Vernon, Connecticut · Recorded in the Vernon Land Records

VERNON-ISLAND ASSOCIATES LIMITED PARTNERSHIP A.K.A. VERNON-ISLAND ASSOCIATES, A LIMITED PARTNERSHIP, with an office at 1950 Coney Island Avenue, Brooklyn, New York does hereby submit the real property in the Town of Vernon, Connecticut described in Schedule A-1, to the provisions of the Common Interest Ownership Act, Chapter 828 of the Connecticut General Statutes, as amended, for the purpose of creating Sherwood Arms.
Article I

Definitions

In the Documents, the following words and phrases shall have the following meanings:

Section 1.1
Act

The Common Interest Ownership Act, Chapter 828 of the Connecticut General Statutes as it may be amended from time to time.

Section 1.2
Allocated Interests

The undivided interest in the Common Elements, the Common Expense liability, and votes in the Association, allocated to the Units in the Common Interest Community. The Allocated Interests are described in Article IX of this Declaration and shown on Schedule A-2.

Section 1.3
Association

Sherwood Arms Association, Inc., a non-stock corporation organized under the laws of the State of Connecticut. It is the Association of Unit Owners pursuant to Section 47-243 of the Connecticut General Statutes.

Section 1.4
Bylaws

The Bylaws of the Association, as they may be amended from time to time.

Section 1.5
Common Elements

All portions of the Common Interest Community other than the Units.

Section 1.6
Common Expenses

The expenses for the operation of the Common Interest Community as set forth in Section 19.1 of this Declaration.

Section 1.7
Common Interest Community

Sherwood Arms.

Section 1.8
Declarant

VERNON-ISLAND ASSOCIATES LIMITED PARTNERSHIP A.K.A. VERNON-ISLAND ASSOCIATES, A LIMITED PARTNERSHIP, or its successor as defined in Subsection (12) of Section 47-202 of the Connecticut General Statutes.

Section 1.9
Declaration

This document, including any amendments.

Section 1.10
Development Rights

The rights reserved by the Declarant under Article VIII of this Declaration to create Units, Common Elements, and Limited Common Elements within the Common Interest Community.

Sections 1.11 – 1.27
Additional Definitions

1.11 Director. A member of the Executive Board.

1.12 Documents. The Declaration, Survey and Plans recorded and filed pursuant to the provisions of the Act, the Bylaws, and the Rules as they may be amended from time to time. Any exhibit, schedule or certification accompanying a Document is a part of that Document.

1.13 Eligible Insurer. An insurer or guarantor of a first Security Interest in a Unit which has notified the Association in writing of its name and address and that it has insured or guaranteed a first Security Interest in a Unit.

1.14 Eligible Mortgagee. The holder of a first Security Interest in a Unit which has notified the Association, in writing, of its name and address, and that it holds a first Security Interest in a Unit.

1.15 Executive Board. The Board of Directors of the Association.

1.16 Improvements. Any construction or facilities existing or to be constructed on the land included in the Common Interest Community, including but not limited to buildings, trees and shrubbery planted by the Declarant or the Association, paving, utility wires, pipes, and light poles.

1.17 Limited Common Elements. A portion of the Common Elements allocated by the Declaration or by the operation of Subsection (2) or (4) of Section 47-221 of the Connecticut General Statutes for the exclusive use of one or more but fewer than all of the Units.

1.18 Notice and Consent. The right of a Unit Owner to receive notice of an action proposed to be taken by or on behalf of the Association, and the right to comment thereon. The procedures for Notice and Comment are set forth in Section 24.1 of this Declaration.

1.19 Notice and Hearing. The right of a Unit Owner to receive notice of an action proposed to be taken by the Association, and the right to be heard thereon. The procedures for Notice and Hearing are set forth in Section 24.2 of this Declaration.

1.20 Person. An individual, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or other legal or commercial entity.

1.21 Plans. The plans filed with this Declaration as Schedule A-4, as they may be amended from time to time.

1.22 Property. The land, all Improvements, easements, rights and appurtenances, which have been submitted to the provisions of the Act by this Declaration.

1.23 Rules. Rules for the use of Units and Common Elements and for the conduct of persons within the Common Interest Community, adopted by the Executive Board pursuant to this Declaration.

1.24 Security Interest. An interest in real property or personal property, created by contract or conveyance, which secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in the Association, and any other consensual lien or title retention contract intended as security for an obligation.

1.25 Survey. The survey filed with this Declaration as Schedule A-3, as it may be amended from time to time.

1.26 Unit. A physical portion of the Common Interest Community designated for separate ownership or occupancy, the boundaries of which are described in Section 4.3 of this Declaration.

1.27 Unit Owner. The Declarant or other Person who owns a Unit. Unit Owner does not include a Person having an interest in a Unit solely as security for an obligation. The Declarant is the initial owner of any Unit created by this Declaration.

Article II

Name and Type of Common Interest Community and Association

Section 2.1
Common Interest Community

The name of the Common Interest Community is Sherwood Arms. Sherwood Arms is a condominium.

Section 2.2
Association

The name of the Association is Sherwood Arms Association, Inc.

Article III

Description of Land

The Common Interest Community is situated in the Town of Vernon, Connecticut and is located on land described in Schedule A-1 (the full metes and bounds description is contained in the recorded Declaration on file with the Vernon Town Clerk).

The property is known as 565 Talcottville Road, Vernon, Connecticut.

Article IV

Maximum Number of Units, Identification and Boundaries

Section 4.1
Number of Units

The Common Interest Community presently contains sixty (60) Units. The Declarant may create an additional three (3) Units up to a maximum of sixty-three (63) Units.

Section 4.2
Identification of Units

All Units are identified by number and are shown on the Survey or Plans or both.

Section 4.3
Boundaries

The boundaries of each Unit created by this Declaration are located as shown on the Survey and Plans and are more particularly described as follows:

  • Walls, floors, windows, exterior doors and ceilings are designated as boundaries of a Unit. All lath, furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint, finished flooring and any other materials constituting any part of the finished surfaces thereof are a part of the Unit, and all other portions of the walls, floors, windows, exterior doors and ceilings are a part of the Common Elements.
  • Inclusions: Each Unit shall include the spaces and Improvements lying within the boundaries described above, and shall also contain any pipes, wires, ducts and conduits situated in the perimeter walls of the Unit serving only that Unit.
  • Exclusions: Except when specifically included by other provisions of Section 4.3, the following are excluded from each Unit: The spaces and Improvements lying outside of the boundaries described above; and all chutes, pipes, flues, ducts, wires, conduits, and other facilities running through any interior wall or partition for the purpose of furnishing utility and similar services to other Units or Common Elements or both.
  • Inconsistency with Survey and Plans: If this definition is inconsistent with the Survey and Plans, then this definition shall control.
Article V

Limited Common Elements

The following portions of the Common Elements are Limited Common Elements assigned to the Units as stated:

  • If any chute, flue, pipe, duct, wire, conduit, or any other fixture lies outside the designated boundaries of a unit, any portion thereof serving only that Unit is a Limited Common Element allocated to that Unit.
  • Any shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, patios and all exterior doors and windows or other fixtures designed to serve a single Unit, but located outside the Unit's boundaries, are Limited Common Elements allocated exclusively to that Unit.
  • Stoops and steps at the entrances to each building which provide access to less than all units.
  • Stairways, the use of which is limited to certain Units as shown on the Plans.
  • Basement storage and utility areas, the use of which is limited to the Unit or Units as shown on the Plans.
  • Any space heating, water heating and air conditioning apparatus and all electrical switches, television, telephone, and electrical receptacles and light switches serving one Unit exclusively, are Limited Common Elements allocated exclusively to that Unit.

A right of use is reserved as an appurtenance to the particular Unit or Units as described above. The fee ownership of the Limited Common Elements, however, is vested in all of the Unit Owners.

Article VI

Maintenance, Repair and Replacement

Section 6.1
Common Elements

The Association shall maintain, repair and replace all of the Common Elements, except the portions of the Limited Common Elements which are required by this Declaration to be maintained, repaired or replaced by the Unit Owners.

Section 6.2
Units

Each Unit Owner shall maintain, repair and replace, at his or her own expense, all portions of his or her Unit, except the portions thereof to be maintained, repaired or replaced by the Association.

Section 6.3
Limited Common Elements

Each Unit Owner shall be responsible for removing all snow, leaves and debris from all patios and balconies which are Limited Common Elements appurtenant to his or her Unit. Each Unit Owner shall also be responsible for the maintenance, repair and replacement of the Limited Common Elements described in Article V Subsection (f) of this Declaration.

Section 6.4
Access

Any person authorized by the Executive Board shall have the right of access to all portions of the Property for the purpose of correcting any conditions threatening a Unit or the Common Elements, and for the purpose of performing installations, alterations or repairs, provided that requests for entry are made in advance and that any such entry is at a time reasonably convenient to the affected Unit Owner. In case of an emergency, no such request or notice is required and such right of entry shall be immediate, whether or not the Unit Owner is present at the time.

Section 6.5
Repairs Resulting From Negligence

Each Unit Owner shall reimburse the Association for any damages to any other Unit or to the Common Elements caused intentionally, negligently or by his or her failure to properly maintain, repair or make replacements to his or her Unit. The Association shall be responsible for damage to Units caused intentionally, negligently or by its failure to maintain, repair or make replacements to the Common Elements.

Article VII

Subsequently Allocated Limited Common Elements

Those portions of the Common Elements shown as parking spaces on the Survey may be subsequently allocated as Limited Common Elements in accordance with Subsection 8.1(b) and Section 12.1 of this Declaration.

Article VIII

Development Rights and Other Special Declarant Rights

Section 8.1
Reservation of Development Rights

The Declarant reserves the following Development Rights:

  • The right to add not more than three (3) Units and/or the right to enlarge not more than three (3) Units and the right to add or relocate Common Elements and Limited Common Elements.
  • The right to allocate as Limited Common Elements all one hundred eight (108) of the parking spaces as shown on the Survey and assign them to particular Units.
  • The right to construct utility lines, pipes, wires, ducts, conduits and other facilities across the land designated as Development Rights area.
Section 8.2
Limitations on Development Rights

Development Rights may be exercised at any time, but not more than seven (7) years after the recording of the initial Declaration. Not more than three (3) additional Units may be created or enlarged under the Developmental Rights.

Section 8.9
Declarant Control of the Association

There shall be a period of Declarant control of the Association, during which the Declarant, or persons designated by it, may appoint and remove the officers and members of the Executive Board. The period of Declarant control shall terminate no later than the earlier of:

  • Sixty (60) days after conveyance of sixty percent (60%) of the Units that may be created to Unit Owners other than a Declarant;
  • Two (2) years after all Declarants have ceased to offer Units for sale in the ordinary course of business; or
  • Five (5) years after the first Unit is conveyed to a Unit Owner other than a Declarant.

Not later than the termination of any period of Declarant control, the Unit Owners shall elect an Executive Board of at least three (3) members, at least a majority of whom shall be Unit Owners. The Executive Board shall elect the officers.

Notwithstanding any provision of this Declaration or the Bylaws to the contrary, the Unit Owners, by a two-thirds (2/3) vote of all persons present and entitled to vote at any meeting of the Unit Owners at which a quorum is present, may remove any member of the Executive Board with or without cause, other than a member appointed by the Declarant.

Article IX

Allocated Interests

Section 9.2
Formulas for the Allocation of Interests
  • Undivided Interest in the Common Elements. The percentage of the undivided interest in the Common Elements allocated to each unit is based on the relative floor area of each Unit as compared to the floor area of all of the Units in the Common Interest Community. For the purpose of this calculation, the floor areas of basements and attics are not to be counted.
  • Liability for the Common Expenses. The percentage of liability for Common Expenses allocated to each Unit is based on the relative floor area of each Unit as compared to the floor area of all of the Units in the Common Interest Community.
  • Votes. Each Unit in the Common Interest Community shall have one (1) equal Vote.
Article X

Restrictions on Use, Alienation and Occupancy

Section 10.1
Use and Occupancy Restrictions
  • Each Unit is restricted to residential use as a single-family residence including home professional pursuits not requiring regular visits from the public. No sign indicating commercial or professional uses may be displayed outside a unit. A single-family residence is defined as a single housekeeping unit with no more overnight occupants than two per bedroom.
  • The use of Units and Common Elements is subject to the Bylaws and the Rules of the Association.
  • For any period during which any Common Expense assessment remains unpaid or, after Notice and Hearing, for any period not to exceed thirty (30) days, for any infraction of its published Rules, the Executive Board may suspend the right to use Common Elements not necessary to give access to a public street.
Section 10.2
Restrictions on Alienation

A Unit may not be conveyed pursuant to a time-sharing plan. A Unit may not be leased or rented for a term of less than sixty (60) days. All leases and rental agreements shall be in writing and subject to the requirements of the Documents and the Association.

Article XI

Easements and Licenses

All easements or licenses to which the Common Interest community is presently subject are recited in Schedule A-l to this Declaration. In addition, the Common Interest Community may be subject to other easements or licenses granted by the Declarant pursuant to its powers under Article VIII of this Declaration.

Article XII

Allocation and Reallocation of Limited Common Elements

Section 12.1
Allocation of Limited Common Elements Not Previously Allocated

The Declarant has reserved the right, under Subsection 8.1(b) of this Declaration, to allocate as Limited Common Elements all one hundred eight (108) parking spaces shown on the Survey. If any such parking spaces are so allocated, they shall be assigned to particular Units by amendment to this Declaration.

Section 12.2
Reallocation of Depicted Limited Common Elements

No Limited Common Element depicted on the Survey or Plans may be reallocated by an amendment to this Declaration pursuant to this Article XII except as part of a relocation of boundaries of Units pursuant to Article XIV of this Declaration. Basement storage areas may be reallocated by an amendment to the Declaration executed by the Unit Owners between or among whose Units the reallocation is made. Such amendment shall require the approval of all holders of Security Interests in the affected Units, which approval shall be endorsed thereon. The persons executing the amendment shall provide an executed copy thereof to the Association which, if the amendment complies with the provisions of this Declaration and the Act, shall record it. The amendment shall contain words of conveyance and shall be recorded and indexed in the names of the parties and the Garmon Interest Community. The parties executing the amendment shall be responsible for the preparation of the amendment and shall reimburse the Association for its reasonable attorneys' fees in connection with the review of the amendment and for recording costs.

Article XIII

Additions, Alterations and Improvements

Section 13.1
Additions, Alterations and Improvements by Unit Owners

- A Unit Owner: - May make any improvements or alterations to the interior of his or her Unit that do not impair the structural integrity or mechanical systems or lessen the support of any portion of the Common Interest Community; - May not change the appearance of the Common Elements, or the exterior appearance of a Unit or any other portion of the Common Interest Community, without permission of the Executive Board; - After acquiring an adjoining Unit or an adjoining part of an adjoining Unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a Common Element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the Common Interest Community. Removal of partitions or creation of apertures under this Subdivision is not an alteration of boundaries. - A Unit Owner may submit a written request to the Executive Board for approval to do anything that he or she is forbidden to do under Subsection 13.1(a) (ii). The Executive Board shall answer any written request for such approval, after Notice and Hearing, within sixty (60) days after the request thereof. Failure to do so within such time shall not constitute a consent by the Executive Board to the proposed action. The Executive Board shall review requests in accordance with the provisions of its rules. - Any applications to any department or to any governmental authority for a permit to make any additions, alteration or improvement in or to any Unit shall be executed by the Association only. Such execution will not, however, create any liability on the part of the Association or any of its members to any contractor, sub-contractor or materialman on account of such addition, alteration or improvement or to any person having any claim for injury to person or damage to property arising therefrom. - All additions, alterations and improvements to the Units and Common Elements shall not, except pursuant to prior approval by the Executive Board, cause any increase in the premiums of any insurance policies carried by the Association or by the earners of any Units other than those affected by such change. The provisions of this Section shall not apply to the Declarant in the exercise of any Special Declarant Right.

Section 13.2
Additions, Alterations and Improvements by Executive Board

Subject to the limitations of Sections 19.5 and 19.6 of this Declaration, the Executive Board may make any additions, alterations or improvements to the Common Elements which, in its judgment, it deems necessary,

Article XIV

Relocation of Boundaries Between Adjoining Units

Section 14.1
Application and Amendment

Subject to approval of any structural changes and required permits pursuant to Article XII, the boundaries between adjoining Units may be relocated by an amendment to this Declaration on application to the Association by the owners of the Units affected by the relocation. If the owners of the adjoining Units have specified a reallocation between their Units of their Allocated Interests, the application shall state the proposed reallocations. Unless the Executive Board determines, within thirty days after receipt of the application, that the reallocations are unreasonable, the Association shall consent to the reallocation and prepare an amendment that identifies the Units involved, states the reallocations and indicates the Association's consent. The amendment shall be executed by those Unit Owners and contain words of conveyance between them, and the approval of all holders of Security Interests in the affected Units shall be endorsed thereon. On recordation, the amendment shall be indexed in the name of the grantor and the grantee, and in the grantee's index in the name of the Association.

Section 14.2
Recording Amendments

The Association shall prepare and record Surveys or Plans necessary to show the altered boundaries between adjoining Units, and their dimensions and identifying numbers. The applicants shall pay for the costs of preparation of the amendment and its recording.

Article XV

Amendments to Declaration

Section 15.1
General

Except in cases of amendments that may be executed by the Declarant in the exercise of its Development Rights or by the Association under Sections 12.1 and 14.1, this Declaration may be amended only by vote or agreement of Unit Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are allocated.

Section 15.4
When Unanimous Consent Required

No amendment may create or increase Special Declarant Rights, increase the number of Units, change the boundaries of any Unit, the Allocated Interests of any Unit, or the uses to which any Unit is restricted, in the absence of unanimous consent of the Unit Owners.

Article XVI

Amendments to Bylaws

The Bylaws may be amended only by vote of two-thirds (2/3) of the members of the Executive Board, following Notice and Comment to all Unit Owners, at any meeting duly called for such purpose.

Article XVII

Termination

Termination of the Common Interest Community may be accomplished only in accordance with Section 47-237 of the Connecticut General Statutes.

Article XVIII

Mortgagee Protection

Section 18.3
Notice of Actions

The Association shall give prompt written notice to each Eligible Mortgagee and Eligible Insurer of any condemnation or casualty loss, any delinquency in Common Expense assessments remaining uncured for sixty (60) days, any lapse or cancellation of insurance, any proposed action requiring Eligible Mortgagee consent, and any judgment rendered against the Association.

Section 18.7
Financial Statements

The Association shall provide any Eligible Mortgagee or Eligible Insurer which submits a written request with a copy of an annual financial statement within ninety (90) days following the end of each fiscal year. Such financial statement shall be audited by an independent certified public accountant if the Common Interest Community contains fifty or more Units.

Article XIX

Assessment and Collection of Common Expenses

Section 19.1
Definition of Common Expenses

Common Expenses shall include:

  • Expenses of administration, maintenance, and repair or replacement of the Common Elements;
  • Expenses declared to be Common Expenses by the Documents or by the Act;
  • Expenses agreed upon as Common Expenses by the Association; and
  • Such reserves as may be established by the Association for repair, replacement or addition to the Common Elements or any other real or personal property acquired or held by the Association.
Section 19.2
Apportionment of Common Expenses

Except as provided in Section 19.3, all Common Expenses shall be assessed against all Units in accordance with their percentage interest in the Common Expenses as shown on Schedule A-2 to this Declaration.

Section 19.3
Common Expenses Attributable to Fewer than All Units

Certain Common Expenses may be assessed against fewer than all units, including expenses for elevators, the chimney serving Unit 1-9, services provided to an individual Unit at the request of the Unit Owner, insurance premium increases attributable to a particular Unit, assessments to pay a judgment, expenses caused by the misconduct of a Unit Owner, and fees, charges, late charges, fines and interest charged against a Unit Owner.

Section 19.4
Lien

The Association has a statutory lien on a Unit for any assessment levied against that Unit or fines imposed against its Unit Owner from the time the assessment or fine becomes delinquent. A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within two (2) years after the full amount of the assessments becomes due.

Section 19.5
Budget Adoption and Ratification

Within thirty (30) days after adoption of any proposed budget for the Common Interest Community, the Executive Board shall provide a summary of the budget to all the Unit Owners, and shall set a date for a meeting of the Unit Owners to consider ratification of the budget not less than fourteen (14) nor more than thirty (30) days after mailing of the summary. Unless at that meeting a majority of all Unit Owners reject the budget, the budget is ratified, whether or not a quorum is present. In the event the proposed budget is rejected, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify a subsequent budget proposed by the Executive Board.

Section 19.6 — KEY PROVISION
Ratification of Non-Budgeted Common Expense Assessments

If the Executive Board votes to levy a Common Expense assessment not included in the current budget, other than one enumerated in Section 19.3 of this Declaration, in an amount greater than fifteen percent (15%) of the current annual operating budget, the Executive Board shall submit such Common Expense to the Unit Owners for ratification in the same manner as a budget under Section 19.5.

Sections 19.7 – 19.12
Additional Assessment Provisions

19.7 Certificate of Payment. The Association on written request shall furnish to a Unit Owner a statement in recordable form setting forth the amount of unpaid assessments against the Unit within ten business days after receipt of the request.

19.8 Monthly Payment. All Common Expenses assessed under Sections 19.2 and 19.3 shall be due and payable monthly.

19.9 Acceleration. In the event of default for a period of ten (10) days by any Unit Owner in the payment of any Common Expense assessment, the Executive Board shall have the right, after Notice and Hearing, to declare all unpaid assessments for the pertinent fiscal year to be immediately due and payable.

19.10 Commencement. Common Expense assessments shall begin on the first day of the month in which conveyance of the first Unit to a Unit Owner other than the Declarant occurs.

19.11 No Waiver. No Unit Owner may exempt himself or herself from liability for payment of the Common Expenses by waiver of the use or enjoyment of the Common Elements or by abandonment of the Unit.

19.12 Personal Liability. The Owner of a Unit at the time a Common Expense assessment is due and payable is personally liable for the assessment.

Article XX

Right to Assign Future Income

The Association may assign its future income, including its right to receive Common Expense assessments, only by the affirmative vote of Unit Owners of units to which at least fifty-one (51%) percent of the votes in the Association are allocated, at a meeting called for that purpose.

Article XXI

Persons and Units Subject to Documents

Section 21.1
Compliance with Documents

All unit Owners, tenants, mortgagees and occupants of Units shall comply with the Documents. The acceptance of a deed or the exercise of any incident of ownership or the entering into of a lease or the entering into occupancy of a Unit constitutes agreement that the provisions of the Documents are accepted and ratified by such Unit Owner, tenant, mortgagee or occupant, and all such previsions recorded on the Land Records of the Town of Vernon are covenants running with the land and shall bind any Persons having at any time any interest or estate in such Unit.

Section 21.2
Adoption of Rules

The Executive Board may adopt Rules regarding the use and occupancy of units, Common Elements, and Limited Common Elements and the activities of occupants, subject to Notice and Comment.

Article XXII

Insurance

Section 22.1
Coverage

To the extent reasonably available, the Executive Board shall obtain and maintain insurance coverage as set forth in Sections 22.2 and 22.3 of this Article. If such insurance is not reasonably available, and the Executive Board determines that any insurance described herein will not be maintained, the Executive Board shall cause notice of that fact to be hand-delivered or sent prepaid by United States mail to all Unit Owners and Eligible Mortgagees at their respective last known addresses.

Section 22.2
Property Insurance

- Property insurance covering: - Ihe project facilities {which term means all buildings on the Property, including the Units and all fixtures, equipment and any improvements and betterments whether part of a Unit or a Common Element, and such personal property of Unit Owners as is normally insured under building coverage), but excluding land, excavations, portions of foundations below the undersurfaces of the lowest basement floors, underground pilings, piers, pipes, flues and drains and other items normally excluded from property policies; and - All personal property owned by the Association. - Amounts. The project facilities for an amount equal to one hundred percent (100%) of their replacement cost at the time the insurance is purchased and at each renewal date. Personal property owned by the Association for an amount equal to its actual cash value. The Executive Board is authorized to obtain appraisals periodically for the purpose of establishing said replacement cost of the project facilities and the actual cash value of the personal property, and the cost of such appraisals shall be a Common Expense. - Risks Insured Against. The insurance shall afford protection against "all risks" of direct physical loss commonly insured against. - Other Provisions. Insurance policies required by this Section shall provide that: (i) The insurer waives its right to subrogation under the policy against any Unit Owner or member of his or her household; - No act or emission by any Unit Owner, unless acting within the scope of his or her authority on behalf of the Association, will void the policy or be a condition to recovery under the policy. - If, at the time of a loss under the policy, there is other insurance in the name of a Unit (Xmer covering the same risk covered by the policy, the Association's policy provides primary insurance. - Loss shall be adjusted with the Association. - Insurance proceeds shall be paid to any insurance trustee designated in the policy for that purpose, and, in the absence of such designation, to the Association, in either case to be held in trust for each Unit Owner and such Unit Owner's mortgagee. - The insurer may not cancel or refuse to renew the policy until thirty (30) days after notice of the proposed cancellation or non-renewal has been mailed to the Association, each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued, at their respective last known addresses. - The name of the insured shall be substantially as follows: "Sherwood Arms Association, Inc. for the use and benefit of the individual Owners".

Section 22.3
Liability Insurance

Liability insurance, including medical payments insurance, in an amount determined by the Executive Board but in no event less than $1,000,000 covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements. - Other Provisions. Insurance policies carried pursuant to this Section shall provide that: - Each Unit Owner is an insured person under the policy with respect to liability arising out of his or her interest in the Gannon Elements or membership in the Association. - The insurer weaves its rights to subrogation under the policy against any Unit Owner or member of his or her household. - No act or emission by any Unit Owner, unless acting within the scope of his or her authority on behalf of the Association, will void the policy or be a condition to recovery under the policy. - If, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the Association's policy provides primary insurance. - The insurer may not cancel or refuse to renew the policy until thirty (30) days after notice of the proposed cancellation or non-renewal has been mailed to the Association, each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued, at their respective last known addresses.

Section 22.4
Fidelity Bends

The Executive Board shall obtain and maintain a blanket fidelity bond for anyone who either handles or is responsible for funds held or administered by the Association, whether or not they receive compensation for their services. The bond shall name the Association as obligee and shall cover the maximum funds that will be in the custody of the Association or the manager at any time while the bond is in force, and in no event less than the sum of three months' assessments plus reserve funds. The bold shall include a provision that calls for ten (10) (fays' written notice to the Association, to each holder of a Security Interest in a Unit, to each servicer that services a FNMA-owned or FHLMC-owned mortgage on a Unit and to the insurance trustee, if any, before the bend can be cancelled or substantially modified for any reason.

Section 22.5
Out Owner Policies

An insurance policy issued to the Association does not prevent a Unit CWner from obtaining insurance for his or her own benefit.

Section 22.6
Workers' Compensation Insurance

The Executive Board shall obtain and maintain Workers' Compensation Insurance to meet the requirements of the laws of the State of Connecticut.

Section 22.7
Directors' and Officers' liability Insurance

The Executive Board shall obtain and maintain directors' and officers' liability insurance, if available, covering all of the Directors and officers of the Association in such limits as the Executive Board may, from time to time, determine.

Section 22.8
other Insurance

The Association nay carry other insurance which the Executive Board considers appropriate to protect the Association or the unit Owners.

Section 22.9
Premium

Insurance premiums shall be a Common Expense.

Article XXIII

Damage To Or Destruction of Property

Section 23.1
Duly to Restore

Any portion of the Property for which insurance is required under Section 47-255 of the Connecticut General Statutes or for which insurance carried by the Association is in effect, whichever is more extensive, shall be repaired or replaced promptly by the Association unless: - The Common Interest Community is terminated; - Repair or replacement would be illegal under any state or local statute or ordinance governing health or safety; - Eighty percent (80%) of the Unit Owners, including every owner of a Unit or assigned Limited Common Element that will not be rebuilt, vote not to rebuild.

Section 23.2
Cost

The cost of repair or replacement in excess of insurance proceeds shall be a Common Expense.

Section 23.3
Flans

The Property must be repaired and restored in accordance with either the original plans and specifications or other plans and specifications which have been approved by the Executive Board, a majority of Unit Owners and fifty-one (51%) of Eligible Mortgagees.

Section 23.4
Replacement of Less Than Entire Property

- The insurance proceeds attributable to the damaged Common Elements . shall be used to restore the damaged area to a condition compatible with the remainder of the Common Interest Community; - Except to the extent that other persons will be distributees; - The insurance proceeds attributable to Units and Limited Common Elements that are not rebuilt shall be distributed to the owners of those Units and the owners of the Units to which those Limited Common Elements were allocated, or to lien holders, as their interests may appear; and - The remainder of the proceeds shall be distributed to all the Unit Owners or lien holders, as their interests may appear, in proportion to the Common Expense liabilities of all the Units; - If the Unit Owners vote not to rebuild any Unit, that Unit's Allocated Interests are automatically reallocated on the vote as if the Unit had been condemned under Subsection (a) of Section 47-206 of the Connecticut General Statutes, and the Association shall promptly prepare, execute and record an amendment to this Declaration reflecting the reallocations.

Section 23.5
Insurance Proceeds

The insurance trustee, or if there is no insurance trustee, then the Association, shall hold any insurance proceeds in trust for the Association, Unit Owners and lienholders as their interests may appear. Subject to the provisions of Subsection 23.1(a) through Subsection 23.1(c), the proceeds shall be disbursed first for the repair or restoration of the damaged Property, and the Association, Unit Owners and lien holders are net entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the Properly has been completely repaired or restored, or the Common Interest community is terminated.

Section 23.6
Certificates by the Executive Board

A trustee, if any, may rely on the following certifications in writing made by the Executive Board: - Whether or not damaged or destroyed Property is to be repaired or restored; - The amount or amounts to be paid for repairs or restoration and the names and addresses of the parties to whom such amounts are to be paid.

Section 23.7
certificates by Attorneys

If payments are to be made to Unit Owners or mortgagees, the Executive Board, and the trustee, if any, shall obtain and nay rely on an attorney's certificate of title or a title insurance policy based on a search of the Land Records of the Town of Vernon from the date of the recording of the original Declaration stating the names of the Unit Owners and the mortgagees.

Article XXIV

Rights to Notice and Comment; Notice and Hearing

Section 24.1
Right to Notice and Comment

Before the Executive Board amends the Bylaws or the Rules, and whenever the documents require that an action be taken after "Notice and Comment," the Unit Owners have the right to receive notice of the proposed action and the right to comment orally or in writing. Notice of the proposed action shall be given to each Unit Owner in writing not less than five (5) days before the proposed action is to be taken.

Section 24.2
Right to Notice and Hearing

Whenever the Documents require that an action be taken after "Notice and Hearing," written notice of the proposed action shall be given to all Unit Owners or occupants of Units whose interest would be significantly affected by the proposed action. At the hearing, the affected person shall have the right to give testimony orally, in writing or both.

Article XXV

Executive Board

Section 25.1
Minutes of Executive Board Meetings

The Executive Board shall permit any Unit Owner to inspect the Minutes of Executive Board meetings during normal business hours. The Minutes shall be available for inspection within fifteen (15) days after any such meeting.

Section 25.2
Powers and Duties

The Executive Board may act in all instances on behalf of the Association, except as provided in this Declaration, the Bylaws or the Act. The Executive Board shall have, subject to the limitations contained in this Declaration and the Act, the powers and duties necessary for the administration of the affairs of the Association and of the Common Interest Community.

Section 25.3
Executive Board Limitations

The Executive Board may not act on behalf of the Association to amend this Declaration, to terminate the Common Interest Community, or to elect members of the Executive Board or determine the qualifications, powers and duties, or terms of office of Executive Board members, but the Executive Board may fill vacancies in its membership for the unexpired portion of any term.

Article XXVI

Condemnation

If part or all of the Common Interest Community is taken by any power having the authority of eminent domain, all compensation and damages for and on account of the taking shall be payable in accordance with Section 47-206 of the Connecticut General Statutes.

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Article XXVII

Miscellaneous

27.3 Waiver. No provision contained in the Documents is abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.

27.4 Invalidity. The invalidity of any provision of the Documents does not impair or affect in any manner the validity, enforceability or effect of the remainder.

27.5 Conflict. In the event of any conflict between the Documents and the provisions of the statutes, the provisions of the statutes shall control. In the event of any conflict between this Declaration and any other Document, this Declaration shall control.

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