AgdaPkt 2014-06-23 Closed and Joint SA

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7.1.L. - Page 95 Condominiums, provided that proceeds for any recreational facilities shall be disbursed equally among the Condominiums. In the case of a partial sale or taking of the Development, meaning a sale or taking that is not a total taking as described above,the proceeds from the sale or taking shall be paid or applied in the following order of priority; and any judgment of condemnation shall include the following provisions as part of its terms: (i) to the payment of the expenses of the Association in effecting the sale or to any prevailing party in any condemnation action to whom such expenses are awarded by the Court to be paid from the amount awarded; then (ii) to Owners and their respective Mortgagees as their interests may appear whose Condominiums have been sold or taken in an amount up to the fair market value of such Condominiums as determined by the Court in the condemnation proceeding or by an independent, qualified appraiser selected by the Board, less such Owner's share of expenses paid pursuant to the preceding subsection (i) (which share shall be allocated on the basis of the fair market value of the Condominium). After such payment,the recipient shall no longer be considered an Owner,and the Board or individuals authorized by the Board acting as attorney-in-fact of all Owners shall amend the Condominium Plan,the subdivision map(if necessary),and this Declaration to eliminate from the Development the Condominium so sold or taken and to adjust the undivided ownership interests of the remaining Owners in the Common Area based on the ratio that each remaining Owner's undivided interest bears to all of the remaining Owners'undivided interest in the Common Area; then (iii) to any remaining Owner and to his or her Mortgagees,as their interests may appear, whose Condominium has been diminished in fair market value as a result of the sale or taking disproportionately to any diminution in value of all remaining Condominiums but, as of a date immediately after any announcement of condemnation, in an amount up to the disproportionate portion of the total diminution in value; then (iv) to all remaining Owners and to their respective Mortgagees, as their interests may appear,the balance of the sale proceeds or award in proportion to the ratio that the fair market value of each remaining Owner's Condominium bears to the fair market value of all remaining Owners'Condominiums as determined by the Court in the condemnation proceeding or by an independent, qualified appraiser selected by the Board. Notwithstanding the foregoing, if the amount from the sale or taking is less than$50,000,the Board may elect to retain the amount as a part of the Association's operating or reserve funds in lieu of making a distribution to the Owners. 10.11 Dispute Resolutions. If there are any disputes regarding the rights and/or duties of the Owners or the Association under this Article 10,the dispute shall be submitted to mediation and, if necessary binding arbitration, to the American Arbitration Association (AAA), any successor thereto or any other alternative dispute resolution provider acceptable to the parties for resolution. If the mediation is unsuccessful,the dispute shall be resolved by binding arbitration in accordance with AAA's commercial rules. The mediation and arbitration shall be held in the county where the Development is located. The parties shall be entitled to the discovery rights provided by Code of Civil Procedure section 1283.05. The arbitrator may award costs and attorneys' fees to the prevailing party. The arbitrator's decision shall be binding on the parties and may be enforced in any court of competent jurisdiction. ARTICLE 11 Rights of Mortgagees 11.1 Lender Definitions. Unless the context indicates otherwise, the following terms as used in this Article 11 shall have the definitions contained in this Section 11.1. An"institutional"Mortgagee is a first Mortgagee that is: (i) a federally or state chartered or licensed bank or savings and loan association; (ii) a CLSS\51643\927586.5 41 June 16,2014