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6.1. B. - Page 98 A. Amendments: (1) Amendments of a material adverse nature to First Lenders require the approval of at least fifty -one percent (51 %) of First Lenders (based on one (1) vote for each First Mortgage owned); (2) any action to terminate the legal status of the Project, or to use insurance proceeds for any purpose other than to rebuild, requires approval of at least fifty -one percent (51 %) of First Lenders (based on one (1) vote for each First Mortgage owned); and, (3) Implied approval may be assumed when a Mortgagee fails to submit a response to any written proposal for an amendment within sixty (60) days after the Mortgagee actually receives proper notice of the proposal, provided the notice was delivered by certified or registered mail, with a "return receipt' requested. B. Notice of Action: Upon written request to the Association, identifying the name and address of the Eligible Mortgage Holder or Eligible Insurer or Guarantor, and the Condominium number or address, such Eligible Mortgage Holder or Eligible Insurer or Guarantor will be entitled to timely written notice of: (1) Any condemnation loss or any casualty loss that affects either a material portion of the Project or any Condominium on which there is a First Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, as applicable; (2) any default in performance of obligations under the Governing Documents or delinquency in the payment of Assessments or charges owed by an Owner of a Condominium subject to a First Mortgage held, insured or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, which remains uncured for a period of sixty (60) days; (3) any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; and, (4) any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders. The Association shall discharge its obligation to notify Eligible Mortgage Holders or Eligible Insurers or Guarantors by sending written notices required by this Declaration to such parties, atthe address given on the current request for notice, in the manner prescribed by Section 10.10. C. Reserves: The Association shall establish and maintain a Reserve Fund for replacements and a general operating reserve sufficient in amount to satisfy the minimum amounts necessary to comply with the requirements of FNMA, FHLMC, and FHA. D. First Lenders Rights Confirmed: Any First Lender who comes into possession of the Condominium by virtue of Foreclosure of the Mortgage, or any purchaser at a Foreclosure, will take the Condominium free of any claims for unpaid Assessments and fees, late charges, fines or interest levied in connection with such claims, against the Condominium which accrue more than six (6) months prior to the time such First Lender or purchaser at a Foreclosure takes title to the Condominium, except for fees or costs related to the collection of the unpaid Assessments, claims for a pro rata share of such Assessments or charges to all Condominiums 54 03/06/12 TAWPWINOPROJECTS1333 MAIN STREET\DEC - DRAFTING FORM17][03 06 12].doc