3.1 Administration of the Development
The Owners covenant and agree that the administration of the Property shall be in accordance with the provisions of this Declaration and the Bylaws of the Association which are made a part hereof.
3.2 Management by Declarant.
The Property shall be managed by the Declarant until the earlier of: (a) one hundred twenty (120) days after all Class B membership terminates; or (b) the date on which Declarant elects to permanently relinquish all of its authority under this Section 3.2 by written notice to all Owners. Declarant, so long as it is managing the Property, shall have the exclusive power and authority to exercise all the rights, duties and functions of the Board set forth or necessarily implied in the Declaration; provided, however, that the Association may not, however, be bound directly or indirectly to any contracts or leases without the right of termination exercisable without cause and without penalty at any time after transfer of control to the Board elected pursuant to Section 3.3, upon not more than ninety (90) days’ notice to the other party to the contract.
3.3 Management by Elected Board of Directors
At the expiration of Declarant’s management authority under Section 3.2, administrative power and authority shall vest in a Board of Directors elected from among the Lot Owners. The number of directors shall be specified in the Bylaws and shall be sufficient to adequately handle the affairs of the Association. All Board offices shall be open for election at an organizational meeting. The Board shall elect from among its members a president who shall preside over meetings of the Board and the meetings of the Association.
3.4 Authority and Duties of the Board
On behalf of and acting for the Association, the Board (or the Declarant as provided in Section 3.2 hereof), for the benefit of the Project and the Owners, shall have all powers and authority permitted to the Board under this Declaration, including but not limited to the following:
3.4.1 Assessments.
Levy, collect, and enforce the collection of, assessments, as more particularly set forth in Article 6 hereof, to defray expenses to carrying out the duties and functions of the Association hereunder.
3.4.2 Fidelity Bonds.
Require any officer or employee of the Association handling or responsible for Association funds to furnish adequate fidelity bonds, the premiums on such bonds to be paid by the Association.
3.4.3 Maintenance of Rights of Way, etc.
To the extent deemed advisable by the Board, pay for the costs of maintaining and landscaping rights of way, traffic islands and medians, or other similar areas which are within or adjacent to the Project boundaries, and which are owned by or dedicated to a governmental entity, if said governmental entity fails to do so
3.4.4 Fences, etc.
To the extent deemed advisable by the Board, pay for the cost of maintaining, repairing and replacing (or at its option require a Lot Owner at the Owner’s expense to maintain, repair and replace): perimeter fences, if any; and landscaping and improvements on easements, if any, which are located on or across Lots.
3.4.5 Contracting and Payment for Materials, Services, etc.
Contract and pay for any materials, supplies, labor or services which the Board should determine are necessary or proper for the enforcement of this Declaration, including legal, accounting, management or other services; provided that if for any reason any materials, supplies, labor or services are provided for particular Lots or their Owners, the cost thereof shall be specially charge to the Owner of such Lots.
3.4.6 Attorney-in-Fact
Each Owner, by the mere act of becoming an Owner, shall irrevocably appoint the Association as his attorney-in-fact, with full power of substitution, to take such action as reasonably necessary to promptly perform the duties of the Association and Board hereunder, including but not limited to the duties to maintain, repair and improve the Property, to deal with the Property upon damage or destruction, and to secure insurance proceeds.
3.4.7 Borrowing of Funds.
In the discharge of its duties and the exercise of its powers as set forth in Article 6 hereof, but subject to the limitations set forth therein, the Board may borrow funds on behalf of the Association.
3.4.8 Adoption of Rules and Regulation.
When and to the extent deemed advisable by the Board, to adopt reasonable rules and regulations governing the maintenance and use of the Property and other matters of mutual concern to the Lot Owners, which rules and regulations are not inconsistent with this Declaration and the Bylaws and which treat all Owners fairly and on a non-discriminatory basis.
3.4.9 Additional Powers of Association.
In addition to the duties and powers of the Association, as specified herein, and elsewhere in this Declaration, but subject to the provisions of this Declaration, the Association, acting through its Board, shall have the power to do all other things which may be deemed reasonably necessary to carry out its duties and the purposes of this Declaration