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7.1.F. - Page 98 <br /> M. Security: The Board shall have the power (but not the obligation) to <br /> contract for security service for the Common Area. Notwithstanding the foregoing, if the Association <br /> elects to provide any security services or systems, neither the Association nor the Board shall be <br /> deemed to have made any representation or warranty to any Owner or Occupant, nor to any other <br /> Person using the facilities or Improvements within the Project regarding security or safety. Each <br /> Owner shall be responsible for the security and safety of Persons who occupy or use the <br /> Condominium owned by the respective Owner. The Association shall not be subject to any claims <br /> or liability in connection with the provision of any security service or security system, or the failure <br /> to provide any security service or security system, within any portion of the Project. <br /> N. Appointment of Trustee: The Board acting on behalf of the Association, has <br /> the power to appoint or designate a trustee to enforce Assessment Liens by sale as provided in <br /> Section 4.9 and Civil Code § 5700(a). <br /> 0. Litigation/Arbitration: The Board of Directors has authority to enter into a <br /> contingent fee contract with an attorney in a matter involving alleged design or construction defects <br /> in the Project, only as to the facilities or improvements the Association is responsible for <br /> maintaining as provided herein, only if the matter is not resolved pursuant to the procedures set <br /> forth in Section 9.15, and only after getting the vote at a duly noticed and properly held <br /> membership meeting, of a majority of the Members other than Declarant. <br /> If, and to the extent that, there is any inconsistency between this Section 5.2.0 and <br /> applicable provisions of the Civil Code pertaining to the commencement of an action by the <br /> Association for construction defect litigation, the applicable provisions of the California statutes shall <br /> control. <br /> P. Other Powers: In addition to the powers contained herein, the Board may <br /> exercise the powers granted to a nonprofit mutual benefit corporation under California Corporations <br /> Code § 7140. <br /> Q. Common Area Improvements: The Board shall have the authority and <br /> power to demolish, remove and reconstruct any and all improvements on or over or under the <br /> Common Area in a manner not inconsistent with this Declaration, and to construct, improve and <br /> repair improvements that are appropriate for the use and benefit of the Members of the <br /> Association, and to charge for the use of such improvements, provided that the Board shall not <br /> include in any Regular Assessment or Special Assessment the cost of any new capital <br /> improvement which exceeds $50,000 in cost to be expended in any one calendar year, unless <br /> fifty-one percent (51%) or more of the voting power of the Association previously shall have <br /> approved said expenditure. <br /> R. Granting Rights: The power to grant exclusive or non-exclusive easements, <br /> licenses, rights of way or fee interests in the Common Area, to the extent any such grant is <br /> reasonably required: (a) for utilities and facilities to serve the Common Area and the <br /> Condominiums; (b) for purposes of conformity with the as-built location of improvements installed <br /> or authorized by Declarant or the Association; (c) in connection with any lawful lot line adjustment; <br /> or (d) for other purposes consistent with the intended use of the Project. This power includes the <br /> right to create and convey Exclusive Use Common Areas to the extent provided for in Section <br /> 5.2.A. The Association may deannex any real property from the encumbrance of this Declaration in <br /> connection with any lawful lot line adjustment. <br /> 5.3. Commencement of Association's Duties and Powers: Upon conveyance of title to <br /> the first Unit, the Association shall assume all duties and powers, and Declarant shall be relieved <br /> of any further liability for those duties and powers. <br /> 35 <br /> [DRAFT][05.03.14] C:\Program Files\Neevia.Com\Document Converter\temp\4056.doc <br />