DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
PAGE 51

ARTICLE XII (cont.)

(ii) (cont.)
requesting entity within one hundred twenty (120) days of the end of the Fiscal Year; and

(iii)  receive written notice of all meetings of Owners;

(iv)  designate in writing a representative authorized to attend all meetings of Owners.

(f)  All Beneficiaries, insurers and guarantors of first Mortgages, upon written request, shall be given thirty (30) days' written notice prior to the effective date of (i) any proposed material amendment to the Restrictions or Condominium Plans; (ii) any termination of an agreement for professional management of the Property following any decision of the Owners to assume self-management of the Project; and (iii) any proposed termination of the Property as a condominium project.

(g)  The Reserve Fund described in Article V of this Declaration must be funded by regular scheduled monthly, quarterly, semiannual or annual payments rather than by large special assessments.

(h)  The Board shall secure and cause to be maintained in force at all times a fidelity bond for any person handling Association fonds, including, but not limited to, employees of the professional Manager.

(i)  The Board may enter into such contracts or agreements on behalf of the Association as are required in order to satisfy the guidelines of VA, FHA, FHLMC, FNMA or GNMA or any similar entity, so as to allow for the purchase, guaranty or insurance, as the case may be, by such entities of first Mortgages encumbering Condominiums. Each Owner hereby agrees that it will benefit the Association and the Members, as a class of potential Mortgage borrowers and potential sellers of their residential Condominiums, if such agencies approve the Property as a qualifying subdivision under their respective policies, rules and regulations. Each Owner hereby authorizes his Mortgagees to furnish information to the Board concerning the status of any Mortgage encumbering a Condominium.

(j)  When professional management has been previously required by a Beneficiary, insurer, or guarantor of a first Mortgage, any decision to establish self-management by the Association shall require the approval of sixty-seven percent (67%) of the voting power of the Association and the Beneficiaries of fifty-one percent (51%) of the first Mortgages of Condominiums in the Project.

(k)  All intended Improvements in any Phase other than Phase 1 must be substantially completed or the completion of such Improvements must be

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