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25 <br />6557.03/12309 <br />facilities, amenities and improvements located thereon or related thereto, including without limitation any <br />private exclusive use patios appurtenant to Owners’ Units, by all Owners and tenants, and their respective <br />family members, guests, and invitees; however, the Association Rules shall not be inconsistent with nor <br />materially alter any provisions of this Declaration, the Articles, or the Bylaws. In a conflict between a <br />provision of the Association Rules and the provisions of this Declaration, the Articles, or Bylaws, the <br />conflicting provision of the Association Rules shall be deemed to be superseded by the provisions of this <br />Declaration, the Articles, or the Bylaws to the extent of such inconsistency. A copy of the Association <br />Rules as adopted, amended, or repealed shall be mailed or otherwise delivered to each Owner and a copy <br />shall be posted in a conspicuous place within the Development. <br /> <br />The Rules of the Association must apply uniformly to all Owners. The rights of Owners to <br />display typical and unobtrusive religious, holiday and political signs, symbols and decorations inside their <br />Units of the kinds normally displayed in single family residential neighborhoods shall not be abridged, <br />except the Association may adopt time, place and manner restrictions for such displays if they are visible <br />outside of the Unit. No modification to the Rules of the Association may require an Owner to dispose of <br />personal property that was present in a Unit prior to the adoption of such modification if such personal <br />property was in compliance with all rules previously in force; however, this exemption shall apply only <br />during the period of such Owner’s ownership of the Unit. The exemption shall not apply to (i) <br />subsequent Owners who take title to the Unit after the modification is adopted, or (ii) clarifications to the <br />Association Rules. <br /> <br />Section 3.9 Penalties; Fines; Disciplinary Action. The Board shall have the power to <br />impose fines, penalties or take disciplinary action against any Owner for failure to pay Assessments (as <br />further described in Article 4 below) or for violation of any provision of the Condominium Documents or <br />the Association Rules. Penalties may include but are not limited to fines, suspension of all voting rights <br />and other privileges of Association membership, or other appropriate discipline, provided that the <br />Member is given notice and a hearing as provided in the Bylaws before the imposition of any fine, <br />penalty or disciplinary action. The Association shall have the power to adopt a schedule of reasonable <br />fines and penalties for violations of the terms of this Declaration and the Association Rules as further <br />described in the Bylaws. All fines, penalties, or disciplinary actions against Owners shall comply with <br />the notice and procedural requirements of this Declaration and the California Civil Code. <br /> <br />Section 3.10 Capitalization Fund. The Association, through the Board, shall have the power <br />to maintain and disburse all monies deposited into and accumulated by the Fund in accordance with this <br />Declaration and the Bylaws. <br /> <br />Section 3.11 Authority Over Common Area. The Board or Declarant (as long as Declarant <br />owns one or more Condominiums in the Development) shall have the power and the right in the name of <br />the Association and all of the Owners as their attorney-in-fact to grant, convey, or otherwise transfer to <br />any Owner or any other person fee title, easements, leasehold estates, exclusive use easements or rights, <br />licenses, lot-line adjustments, rights-of-way, or dedications in, on, over, or under the Common Area or <br />other property interests in order to (i) construct, erect, operate, maintain, or replace lines, cables, wires, <br />conduits, or other devices for electricity, cable television, internet services, fiber optics, <br />telecommunication equipment, power, telephone and other purposes, public sewers, storm water drains <br />and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes, and any similar public <br />or quasi-public Improvements or facilities; (ii) accommodate any encroachment that in the sole discretion <br />of the Board or Declarant does not unreasonably interfere with the use and enjoyment of the Common <br />Area; or (iii) accomplish any other purpose that in the sole discretion of the Board or Declarant is in the <br />interest of the Association and its Members and does not unreasonably interfere with the use and <br />enjoyment of the Common Area. Each Owner in accepting a deed to a Condominium expressly consents <br />to such action and authorizes and appoints the Association and Declarant (as long as Declarant owns one <br />7.1.K. - Page 29