Rules and Regulations

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APPLEWOOD PARK VILLAS

Article I – Declarant  1

ARTICLE II – Name of real estate  1

ARTICLE III – Definitions  1

3.1 – Unit  1

3.2 – Association  1

3.3 – Limited Common Areas  1

3.4 – Common Area  2

3.5 – Common expense  2

3.6 – Declarant  2

3.7 – Gender  2

ARTICLE IV – Future Expansion, Location of Unites, Common Area, 

and Other Improvements  2

4.1 – Expansion of units  2

4.2 – General plan of development  2

4.3 – Subsequent Phases  2

ARTICLE V – Unit Ownership  3

5.1 – Unit Owners  3

5.2 – Ownership  3

5.3 – Unit ownership and Limited Common Area   3

5.4 – Agreement upon acceptance of deed  3

(A) Common Areas undivided  3

(B) Unit occupancy  3

(C) Easement(s) upon Common Areas, etc  3

(D) Membership in Association  3

(E) Administration of Condominiums  4

(F) Compliance with Declaration, By-Laws  4

(G) Contribution of common expenses  4

(H) Liability for unpaid assessments  4

(I) Maintenance and repair of Unit  4

(J) Irrevocable power of attorney  4

 (K) Damage or destruction of Unit  4

ARTICLE VI – Common Areas  5

ARTICLE VII – Easements and Reservations  5

7.1 Easements – Units and Common Areas  5

7.2 Declarant’s easement – Common Areas  5

7.3 Declarant’s easement – Limited Common Areas, etc.  5

7.4 Perpetual easement to lawful agencies  5

7.5 Unit Owner’s easement  6

(i)

ARTICLE VIII - Unit Mortgages 6 

8.1 Abandonment of Units 6

8.2 Liens of Association 6

8.3 Inspection of books / records of Association 6

8.4 Written notice of damage, etc.  6

ARTICLE IX - The Association 7

9.1 Membership 7

9.2 Voting 7 

9.3 Board of Directors 7

9.4 Limitation upon liability 8

9.5 Agent to receive process 8

9.6 Property in trust 8

9.7 Insurance 8

9.8 Insurance obtained by Unit Owners 8

9.9 By-Laws 9

ARTICLE X – Use Restrictions 9

10.1 Units 9

10.2 Leasing 9

10.3 Common Areas 9

10.4 Limited Common Areas 9

10.5 Nuisances 9

10.6 Lawful use 9

10.7 Regulations 10

10.8 Abatement and enforcement of restrictions and regulations 10

10.9 “For Sale,” “For Rent,” or advertising signs 10

ARTICLE XI – Amendments to Master Deed 11

11.1 Rights of Declarant to execute amendments to Declaration, etc. 11

11.2 Expiration of reservation of Declarant [see Section 11.1 (C)] 11

ARTICLE XII – Assessments for Common Expenses 12

ARTICLE XIII – Invalidity 12

ARTICLE XIV – Waiver 12

ARTICLE XV – Captions 13

(ii)

FILED

APPLEWOOD PARK VILLAS

(Condominiums)

THIS DECLARATION, made December 20, 1993 by Lifestyle Building Corp.,

of Delaware County, Indiana.

ARTICLE I 

ARTICLE II

APPLEWOOD PARK VILLAS

APPLEWOOD PARK VILLAS.

ARTICLE III  

Definitions

3.1 Unit means Unit as defined by the Horizontal Property Law. Each Unit has been assigned a distinct four-digit number, which is located within the perimeter lines of the Unit on the drawing attached hereto and marked "Exhibit B." The Unit owner shall have the exclusive right of use and quiet enjoyment to such Unit, except as may be provided herein.

PARK VILLAS ASSOCIATION, and its successors.

3.4 Common Area shall consist of all parts of the property other than the Units and Limited Common Areas, including those listed in the definition of "Common Areas and Facilities" contained in the Horizontal Property Law.

3.5 Common expenses include:

(A) Any valid charge against the Condominiums, as a whole, and snow removal and trash removal.

(B) Common expenses as defined by the Horizontal Property Law.

3.6 Declarant shall mean Lifestyle Building Corp. until such time as it specifically conveys, by deed, its interest as Declarant to a successor for the purpose of continuing development; thereafter, such obligations and powers shall be binding upon and vested only in the successor of said Declarant.

3.7 Whenever the context so permits, the use of the plural shall include the singular, the singular the plural, and the use of any gender shall be deemed to include all genders.

ARTICLE IV 

Future Expansion Location  of  Units, Common Areas, and Other Improvements

4.1 The Condominiums shall be expandable to a maximum of 80 residential units. This Declaration shall consist of Tract #1, consisting of 4 residential units located as shown on Exhibit B. Expansion of the Condominiums to a total of 80 units may be made by the construction of 76 units in subsequent Tracts. The certified set of as-built floor plans for Tract #1, showing the elevation and perimeter dimensions of the units, prepared by Keith L. Gary, Registered Architect, Reg. #870124, is attached hereto and marked "Exhibit C."

4.2 The general plan of development, showing the location and limitations on the expandable portion of the Condominiums proposed for development as subsequent Tracts and the legal description of the contiguous area subject to expansion is attached hereto and marked "Exhibit D."

4•3 Subsequent Tracts may become a part of the Condominiums if at least one Tract is developed within five (5) years from the recordation of this Declaration. Thereafter, additional Tracts must be developed not later than ten (10) years from the recordation of this Declaration.

ARTICLE V

Unit Ownership

5.1 Unit Owners shall mean the person or persons owning a Unit in fee simple, or whose estates, or interests individually or collectively aggregate fee simple absolute ownership of a Unit. 

5.3 Unit ownership shall include the use and primary control of the respective Limited Common Areas associated with each Unit, as described above at 3.3, subject to the rights reserved to the Association and other Unit Owners in this Declaration.

(A) That the Common Areas shall remain undivided’ and no Owner shall being any action for partition, it being agreed that this restriction is necessary in order to preserve the rights of the Owners with respect to the operation and management of the Condominiums. .

(C) The Owners of the respective units agree that if any portion of the Common Areas, Limited Common Areas, including any driveway, walkway, parking area, or utility line, encroaches upon the Unit, a valid easement for the encroachment and for the maintenance of  same, so long as it remains, shall and does exist.

(E) The Owners of the Units covenant and agree that the administration of the Condominiums shall be in accordance with the provisions of this Declaration and the By-Laws of the Association.

(F) Each Owner, tenant, or occupant, of a Unit, shall comply with the provisions of this Declaration, the By-Laws of the Association, decisions, and resolutions of the Association, or its representative, or successor, each as lawfully amended from time to time, and failure to comply with any such provisions, decisions, or resolutions, shall be grounds for an action to recover sums due, for damages, or for injunctive relief. Any lessee of a Unit shall be subject to the covenants and restrictions contained in this Declaration, the By-Laws of the Association, and the decisions and resolutions, and any lawful amendments thereto.

(G) No Owner of a Unit may exempt himself from liability for his contribution toward the common expenses by waiver of the use of enjoyment of any of the Common Areas, or by abandonment of his Unit. 

{H) In any conveyance of a Unit, the grantee of the Unit shall be jointly and severally liable with the grantor of such Unit for all unpaid assessments by the Association against the Unit for common expenses up to the time of the grantor's conveyance, without prejudice to the grantee's right to recover from such granter the amount paid by the grantee therefor. Where the grantee is the first mortgagee of the Unit, this provision shall not apply.

{I) Each Unit Owner shall administer, maintain, and repair his Unit at his own expense.

(J) Each Unit Owner shall, by reason of acceptance of his deeds, grant to the Association, on behalf of himself and all Unit Owners, an irrevocable power of attorney coupled with an interest, to acquire title to, or lease any Unit whose owner desires to surrender, sell or lease the same, or that may be subject to foreclosure or other judicial sale, and to convey sell, lease, sublease, mortgage, or otherwise deal with any unit so acquired. Any unit leased or acquired by the Association, in any manner whatsoever, shall be held by the Association on behalf of all Unit owners, in proportion to the respective common interest of such Owners as set forth above; provided, however, that the Association may act with regard to any such Unit leased or acquired, as the Association, in its discretion, deems appropriate.

(K) In the event of damage or destruction of any Unit, or Units, of a building, a two-thirds (2/3) majority vote of all Unit Owners of such building (each Unit having one vote) shall determine whether the improvements shall be rebuilt. In the event of a tie vote, the decision of the Board of Directors of the home owner’s association shall control.

ARTICLE VI

Common Areas

The Common Areas shall  include  the  land and all other parts of the Condominiums which are not Units or Limited Common Areas.

ARTICLE VII 

Easements and Reservations

7.1 Easements are reserved throughout the Condominiums property Units and Common Areas, as may be required for utility services, in order to adequately serve the Units. This Declaration is subject to all easements of record. 

7.2 The Declarant hereby reserves unto itself, its successors and assigns, an easement in, upon, through and over the Common Areas for as long as the Declarant, its successors, and assigns, shall be engaged in the construction, development, and sale of Units, which easement shall be for the purpose of construction, installation, maintenance, and repair of ·existing improvements and appurtenances thereto, for ingress and egress, for the use of all roadways, existing and future dwelling unit models for sales promotion and exhibition.

7.3 The Declarant reserves unto itself, its successors, assigns, and agents, an easement in, upon, through and over the lands comprising the Limited Common Areas, Common Areas, and respective Units for the purpose of installation, maintenance, repair, and replacement of all sewer, water, power, and telephone lines, pipes, mains, conduits, waters, poles transformers, and any and all other equipment or machinery necessary or incidental to the proper functioning of any utility systems servicing the Condominiums.

7.4 The Declarant, for itself, its successors, and assigns, hereby declares that the lawful agencies of the City of Muncie, County of Delaware, and the State of Indiana (but not the public in general), shall have a perpetual nonexclusive easement to enter upon all roadways and driveways, not otherwise dedicated to the public, for purposes of maintaining the safety, health, welfare, police, and fire protection of the citizens of the City, County, and State, including the residents of the Condominiums.

7.5 The Declarant, for itself, its successors and assigns, hereby declares that each Unit Owner, respectively, shall have the exclusive easement of use, occupancy, and quiet enjoyment over its Unit, subject to the restrictions set forth in this Declaration and By-Laws.

ARTICLE VIII

Unit Mortgages

The holder of any first mortgage, or purchase money mortgage, on a Unit, unless the mortgage itself expressly provides otherwise, shall be deemed to include the following privileges:

8.1 The Condominiums may not be abandoned, or terminated without the prior written approval of the above Unit mortgagees. Any material amendment to the Declaration, or the By-Laws of the Association, including but not limited to, any amendment which would change the percentage interests of the Unit Owners in the project, shall not take effect, until or unless the written approval of the above Unit mortgagees is obtained in proportion to the number of Unit Owner approvals required for any such amendments, except as provided in Article XI hereof.

8.2 Any lien which the Association may have on any Unit for the payment of common expenses, or for assessments attributable to such Unit is subordinate to the lien of the first Unit mortgagee, or purchase money mortgagee as to that Unit, provided that such mortgage was recorded prior to the date of the filing by the Association of any claim of lien for unpaid assessments in the Delaware County Recorder’s Office. 

8.3 A first mortgagee, or purchase money mortgagee of a unit shall, upon request, be entitled to inspect the books and records of the Association during normal business hours, and to receive an annual audited financial statement of the Association within 90 days following the end of any fiscal year of the Association, and to written notice of all meetings of the Association and to designate a representative to attend any or all such meetings.  

8.4 Upon written request to the Association, any first mortgagee, or purchase money mortgagee, shall be entitled to written notice of any substantial damage to, or destruction of, the Unit upon which the mortgage is held, or any part of the common areas, and to any condemnation, or eminent domain proceedings wherein the mortgagee might be entitled to an award, or settlement by reason thereof.

ARTICLE IX

The Association

The Association shall be a nonprofit corporation under the laws of the State of Indiana, subject to the following:

9.1 Membership. The members of the Association shall consist of all the record owners of Units. Upon the recording of a Unit Deed, which conveys title to the Unit, the grantee of such deed shall become a member of the Association, and the membership of the Unit granter shall be thereby terminated.

9.2 Voting. Each member of the Association shall be entitled to cast one vote for each Unit owned by him; provided, however, that no more than one vote shall be allowed for any one Unit. If a Unit is owned by more than one person, or owned by a corporation, a certificate of appointment, designating the individual entitled to cast the vote for the unit, shall be filed with the Secretary of the Association. Such certificate shall be until revoked, or until superseded by a subsequent certificate, or until a change of ownership in the Unit occurs. A certificate designating the person entitled to cast the vote of the Unit may be revoked by any owner of the Unit. The Secretary may waive the filing of the certificate where the Unit is owned by a married couple and only the husband or   wife votes.

9.3 Board of Directors. The affairs of the Association shall be conducted by a Board of Directors, each of whom shall be bonded and who shall be designated in the manner provided in the By-Laws. Notwithstanding any provision of  the By-Laws of APPLEWOOD PARK VILLAS ASSOCIATION, the Declarant for itself, and for its successors Declarant as provided in Article III, Section 3.5 hereof, reserves the right and shall be entitled to elect a majority of the Board of Directors of the APPLEWOOD PARK VILLAS ASSOCIATION until the expiration of  ten  (10) years from the date of the recording of this instrument or, if sooner, until the sale and transfer of title of all of the units of the Condominiums. The within reservation may not be amended, rescinded, revoked, modified, or altered without the express consent of the Declarant, or its successors Declarant.

Every Director and every officer of the Association shall be indemnified by the Association against all expenses and liabilities, including counsel fees, reasonably incurred by or imposed upon him, in connection with any proceeding to which he may be a party, or in which he may become involved, by reason of his being, or having been, a Director or officer of the Association, or any settlement thereof, whether or not he is a Director or officer at the time such expenses are incurred, except in such cases wherein the Director or officer is adjudged guilty of willful misfeasance or malfeasance in the performance of his duties.

9.4 Limitation upon liability. Notwithstanding the duty of the Association to maintain, operate, replace, and repair the Limited Common Areas and Common Areas of the Condominiums, the Association shall not be liable for injury or damage, other than the cost of maintenance, operation, replacement, and repair, caused by a latent condition of the property to be maintained, operated, replaced, and repaired by the Association, or by the elements, or by other Owners or persons.

9.5 Agent to receive process. The following person, a resident of the State of Indiana, is designated as the Agent to receive service of process upon the Association: Lifestyle Building Corp., 2200 North Halifax, Muncie, Indiana 47304

9.6 Property in trust. All funds and title to property acquired by the Association, and the proceeds thereof, shall be held in trust for the members of the Association in accordance with the provision of this Declaration and the By-Laws; provided, however that the Association may deal with such funds and title as it deems to be in the best interest of the Association. 

9.7 Insurance. The Association shall obtain, and continue in effect, blanket property and casualty insurance on the Common Areas, in an amount equal to the maximum insurable replacement value of the Common Areas as determined annually by the Board of Directors of the Association. Such insurance shall afford protection against loss or damage by fire, or other hazards covered by a standard extended coverage endorsement, and such other loss or risk as the Board of Directors of the Association shall deem appropriate. Such policy of insurance shall name the Association, the individual Unit Owners, and the institutional first mortgagees as insureds and shall insure the Units, if the Board of Directors deems such additional insurance coverage appropriate. The Association shall also obtain, and continue in effect, public liability insurance in such amounts and with such coverage as shall be required by the Board of Directors of the Association, including, but not limited to, hired automobile and non-owned automobile coverage, and with cross liability endorsement to cover liabilities of the Unit Owners as a group to a Unit Owner; workers compensation policy to meet the requirements of the law; and such other insurance as the Board of Directors of the Association shall determine from time to time to be desirable. All proceeds covering property losses shall be paid to the Association, and the Association shall have the sole right and duty to promptly settle, litigate, or otherwise dispose of any property loss claim on behalf of the named insureds. Premiums for insurance policies purchased by the Association shall be paid by the Association as a common expense, to be included in the monthly assessment for common expenses.

9.8 Nothing contained herein shall bar a Unit Owner from obtaining insurance on his individual Unit; and individual Unit. Owners shall have the exclusive right to settle, adjust, or litigate any claims under any policies purchased by, and paid for by, the respective Unit Owners individually.

9.9 The By-Laws of the Association shall be in the form attached hereto as "Exhibit E."

ARTICLE X

Use Restrictions

The use of the property of the Condominiums shall be in accordance with the following provisions so long as the Condominiums exists:

10.1 Units. Each of the Units shall be occupied only by a single family, its servants, and guests, as a residence and for no other purpose.

10.2 Leasing. No Unit shall be rented by the Owners thereof for transient or hotel purposes, which shall be defined as "any rental for any period less than six months." All prospective tenants must be approved in writing by the Board thirty (30) days before occupancy. The Board shall have absolute discretion to reject any prospective tenant so long as such rejection is not on the basis of race, creed, or national origin.

10.3 Common Areas. The Common Areas shall be used only for the purposes for which they are intended or established, in the furtherance of the services and facilities for the enjoyment of the Units. 

10.4 Limited Common Areas. Limited Common Areas shall be for the exclusive use of the respective adjoining Unit Owner and may be used in such manner as shall not be inconsistent with the rules and regulations of the Association.

10.5  Nuisances. No nuisance shall be allowed upon the Condominiums property, nor shall any use or practice which is the source of annoyance to residences, or which interferes with the peaceable possession and proper use of the property by the residents, be allowed. All parts of the property shall be kept in clean and sanitary condition, and no rubbish, or garbage, or refuse shall be allowed to accumulate, nor shall any fire hazard be allowed to exist.

10.6 Lawful use. No immoral, improper, offensive, or unlawful use shall be made of the Condominiums property, or any part thereof; and all valid laws, zoning ordinances, and regulations of all governing bodies having jurisdiction shall be observed.

10.7 Regulations. Reasonable regulations concerning the use of the Condominiums property may be made and amended from time to time by the Board of Directors of the Association; provided, however, that all such regulations and amendments thereto shall be approved by not less than a majority of the voters of the Association before such shall become effective.

10.8 Abatement and enforcement of restrictions and regulations.

(A) In the event of the violation of any restriction or regulation in the Declaration, or duly adopted by the Board of Directors of the Association, the Board may, after not less than ten (10) days' written notice received at any reasonable hour on any day, enter upon that part of any Unit, Limited Common Area, or Common Area where such violation or breach exists, and summarily abate and remove such violation, at the expense of the defaulting Unit Owner, any structure, thing, or condition that may exist thereon  contrary to the  intent  and  meaning of the provisions of the Declaration and regulations of the Association, and  the  actions by the Board, or its agents, shall not be deemed a trespass; or

(B) Enjoin, abate, or remedy by appropriate legal proceedings, either at law or in equity, the continuance of any such breach.

All expenses of the Board in connection with such actions or proceedings, including court costs and attorney fees, and other fees and expenses, and all damages, liquidated or otherwise, together  with  interest  thereon  at the  highest  rate  then  allowed by law until paid, shall be charged and assessed against such defaulting Unit Owner, and  shall  be  added  to and deemed  part  of  his respective share of the common expenses, and the Board shall have a lien for all of the same upon the Unit of such defaulting Unit Owner and upon all of his additions and improvements thereto and upon  all  of  his  personal property located therein. Any and all of such rights and remedies may be exercised at any time and from time to time cumulatively, or otherwise, by the Board. In addition, any aggrieved Unit Owner shall have the same rights and remedies as the Board hereunder in connection with any such violation. It is expressly agreed by each Unit Owner that the Board has the lien rights described herein. 

10.9 No "For Sale" or "For Rent" signs, advertising, or other displays, shall be maintained or permitted on any part of the Common Area or Limited Common Area. Notwithstanding the forgoing, the Declarant reserves unto itself and its agents the right to place and maintain on the Common Area such signs and advertising displays in such locations and such forms as may, from time to time, be determined to be advantageous by the Declarant, and such privilege of the Declarant shall continue until such time as all units have been sold.

ARTICLE XI

Amendments to Declaration

11.1 The Declarant expressly reserves for itself, and for its successors Declarant, as provided in Article IV, Section 4.3 hereof, for a period of ten years from the date hereof, unless otherwise stated herein, or until the closing of title of not less than 80 Condominiums Units within the confines of the lands owned by the Declarant depicted in "Exhibit A" and "Exhibit D," attached hereto, whichever event occurs first, the right to execute on behalf of all contract purchasers, Unit Owners, mortgagees, other lien holders, and parties claiming any legal or equitable interest in the Condominiums, or in any Unit, any amendments to the Declaration which it may deem appropriate, including, but not limited to:

(A) Adding to or altering the location, size and/or purpose of easements and larids for utilities, roads, access, egress, drainage, and/or financing purposes.

(B) To permit the users or occupants of lands owned by, or controlled by, the Declarant to utilize easements, roads, drainage facilities, utility lines, and the like within or servicing the Condominiums, on fair and equitable terms and conditions to be negotiated with the APPLEWOOD PARK VILLAS ASSOCIATION.

(C) To surrender or modify rights of the Declarant in favor of the Unit Owners and/or the APPLEWOOD PARK VILLAS ASSOCIATION, and/or their respective mortgagees.

(D) Any amendment to the Declaration will become effective upon the recording of an amendment to the Declaration in the Office of the Recorder of Delaware County. The Declarant will, thereafter, provide copies of said amendment to each Owner and mortgagee affected. 

11.2 Upon the expiration of the reservation of the Declarant, as set forth in Section 11.1 of this Article, or upon surrender or modification of the rights reserved by the declarant, in accordance with Section 11.l(C) of this Article, then the following shall apply:

This Declaration may be amended or supplemented by the affirmative vote of those Unit Owners entitled to exercise 75% of the total voting power of the Association, cast in person, or by proxy, at a meeting duly called and held in accordance with the By­Laws of the Association; provided, however, that any such amendment or supplement must first have been approved in writing by first mortgagees and purchase money mortgagees holding mortgages on not less than 75%, of the Units subject to mortgages. No such amendment shall be effective unless recorded in the Office of the Recorder of Delaware County, Indiana. 

ARTICLE XII

Assessments for Common Expenses

 Common expenses shall be assessed by the Board of Directors annually, but shall be payable in equal monthly installments, expect that upon default in the payment of any monthly installment, the Board of Directors may elect to accelerate the amount due, and charge interest on the amount due at the maximum rate allowed by law, plus reasonable attorneys’ fees, accrued as of the date of default. Only Units for which certificates of occupancy have been issued shall be assessed, and each Unit’s share of such assessment shall be determined by dividing one by the total number of Units for which certificates of occupancy have been issued on the first day of each year, anything to the contrary herein or in the By-Laws of the Association notwithstanding. The amount payable monthly be the existing Units, multiplied by the number of months remaining in the Association’s fiscal year. If the total assessments exceed the costs for that year, such excess shall be applied to costs and reduce the assessments for the following year. Special assessments may be made if deemed appropriate by the Board of Directors. 

ARTICLE XIII

Invalidity

If any one or more provision of the Declaration are declared invalid, such invalidity shall in no way impair, or affect the validity, enforceability, or effect of the remainder of this Declaration. 

ARTICLE XIV

Waiver

No provision contained in this Declaration shall be deemed waived by reason of any failure to enforce the same, irrespective of the number of violations, or the consistency of such failure of enforcement. 

ARTICLE XV

Captions

STATE OF INDIANA COUNTY OF DELAWARE

SS:

WITNESS my hand and Notarial Seal this December, 1993.

day of

NOTARY PUBLIC· STATE OF INDIANA

Resident Delaware County ,

My Commission expires December 22,

This instrument prepared by Fredrick w. Wenger, Attorney at Law

STATEMENT FOR DECLARATION OF HORIZONTAL PROPERTY FILING FOR APPLEWOOD PARK VILLASc

A  CONOOMINIUH  PROJECT  IN  DELAWARE  COUNTYc INDIANA

Keith L. Gary hereby certifies as follows:

1. That he is a Registered Architect, with the State of Indiana, holding Reg. #870124.

2. That he has examined the Project Survey as drawn by Samuel R. Morrison, Indiana Registered Land Surveyor No. S0155, dated November 15, 1993, Exhibit B (attached to the Declaration) which makes provisions for four (4) Units, namely: Units 2901, 2903, 2905, and 2907.

3. That he has examined the plans of the building for Tract #1, as filed with and approved by the Building Commissioner of City of Muncie, Muncie, Indiana, the Agency having jurisdiction over the issuance of permits for the construction of buildings in Muncie, Indiana.

4. That said plans, and the attachments hereto, fully and accurately depict the layout, elevation, unit number, location, and dimensions of the Units as built on Tract #1 in Applewood Park Villas, a Condominium.