The Sea Ranch Restrictions Articles 6 to 9 – The Sea Ranch Association

Article VI.
Funds and Assessments.

Section 6.01. Operating Fund.

There shall be an operating fund, into which the Association shall deposit all monies paid to it as

(a) maintenance assessments;
(b) recreational assessments;
(c) special assessments;
(d) use fees paid by users of public recreational facilities;
(e) use fees paid by participating facilities;
(f) management fees paid by Project Committees under agreements entered into pursuant to paragraph (f) of section 5.05;
(g) miscellaneous fees; and
(h) income and profits attributable to the operating fund; and from which the Association shall make disbursements in performing the functions for which the foregoing assessments are levied.

Section 6.02. Maintenance Assessment.

(a) Within thirty (30) days prior to the commencement of each fiscal year the Association shall estimate the costs and expenses to be incurred by the Association during such fiscal year in performing its functions under Article V (including a reasonable provision for contingencies and replacements), and shall subtract from such estimate:

(1) the estimate of costs and expenses referred to in section 6.03;

(2) an amount equal to the anticipated balance (exclusive of any reserves for contingencies and replacements) in the operating fund at the start of such fiscal year which is attributable to maintenance assessments; and

(3) the estimated receipts for all use fees to be collected from users of public recreational facilities and from participating facilities during the next fiscal year.

(b) The sum or net estimate determined pursuant to paragraph (a) above shall be assessed to the Owners as a maintenance assessment in the following manner:

(1) an equal amount, to be fixed by the Association but not more than three hundred sixty dollars ($360) for any fiscal year, shall be assessed to the Owner of each lot in The Sea Ranch; provided that said maximum amount may be adjusted upward in direct proportion to any increase in the Cost of Living Index measured from January, 1965, to the January immediately preceding the assessment, and

(2) if the assessments mace pursuant to subparagraph (1) above are maximum assessments and if the aggregate of said assessments does not cover said sum or net estimate determined pursuant to paragraph (a) above, then the balance of said sum or net estimate shall be assessed to the Owner of each lot in The Sea Ranch in accordance with the proportion that the assessed value of such lot bears to the assessed value of all lots in The Sea Ranch at the time such assessment is made.

(c) If at any time and from time to time during any fiscal year the maintenance assessment proves inadequate for any reason, including nonpayment of any Owner’s share thereof, the Association may levy a further assessment in the amount of such actual or estimated inadequacy, which shall be assessed to the Owners in the manner set forth in paragraph (b) above.

(d) Maintenance assessments shall be due and payable by the Owners to the Association in equal monthly installments, on or before the first day of each month during the fiscal year, or in such other manner as the Association shall designate.

(e) Any provision in this section 6.02 to the contrary notwithstanding, the aggregate amount of all maintenance assessments from time to time levied during any fiscal year shall not, without first complying with the provisions of paragraph (f) below, exceed the sum of the following:

(1) the aggregate cost and expense incurred or to be incurred by the Association during such fiscal year in performing its functions under paragraphs (f), (g) and (h) of section 5.04 and paragraph (b) (5) of section 5.05;

(2) Three hundred sixty dollars ($360) (as such figure may be adjusted upward in direct proportion to any increase in the Cost of Living Index measured from January, 1965, to the January immediately preceding the start of the fiscal year involved) multiplied by the number of lots within The Sea Ranch at the time such assessment is made;

(3) Five percent (5%) of the aggregate assessed value of all lots within The Sea Ranch at the time such assessment is made; and

(4) the aggregate amount of all additional maintenance assessments from time to time theretofore approved pursuant to the provisions. of paragraph (f) and which approval has not by its terms expired.

(f) No maintenance assessment which exceeds the sum determined pursuant to paragraph (e) above shall be levied unless the Association has approved such assessment by the unanimous action of the Board or by the vote or written consent of Owners owning not less than fifty-one percent (51%) of the lots then within The Sea Ranch. Such approval shall set forth the dollar amount by which the maintenance assessment may exceed the sum determined pursuant to paragraph (e) above, and may by its terms be limited to a specified fiscal year or years; provided, however, that if such approval relates to the maintenance of one or more designated public recreational facilities, then such approval shall be deemed to have been given with respect to any and all maintenance assessments levied thereafter with respect to such public recreational facilities which do not exceed the dollar amount set forth in such approval.

Section 6.03. Recreational Assessment.

(a) Within thirty (30) days prior to the commencement of each fiscal year the Association shall estimate the costs and expenses to be incurred by the Association during such fiscal year in performing its functions with respect to each private recreational facility developed pursuant to Article VII, and shall subtract from each such estimate the amount, if any, of the anticipated balance in the operating fund at the start of the next fiscal year attributable to recreational assessments for each such private recreational facility.

(b) The sum or net estimate determined pursuant to paragraph (a) above for each private recreational facility shall be assessed equally to the Owners of the lots then listed in the Development Assessment Certificate recorded with respect to each such private recreational facility as a recreational assessment.

(c) If at any time and from time to time during the fiscal year any recreational assessment proves, or appears likely to prove, inadequate for any reason, including nonpayment of any Owner’s share thereof, the Association may levy a further assessment in the amount of such actual or estimated inadequacy, which shall be assessed to each Owner in the manner and to the extent provided for in paragraph (b) above.

(d) Recreational assessments shall be due and payable by Owners to the Association in equal monthly installments, on or before the first day of each month during the fiscal year, or in such other manner as the Association shall designate.

Section 6.04. Special Assessment.

The Association shall levy a special assessment against any Owner as a direct result of whose acts, or failure or refusal to act or otherwise to comply with The Sea Ranch Restrictions, The Sea Ranch Rules or the Design Committee Rules, monies were expended from the operating fund by the Association in performing its functions under The Sea Ranch Restrictions. Such assessment shall be in the amount so expended, and shall be due and payable to the Association when levied.

Section 6.05. Development Fund.

There shall be a development fund, into which the Association shall deposit all monies paid to it as:

(a) Public facility development assessments;

(b) Private facility development assessments; and

and from which the Association shall make disbursements in performing the functions for which the foregoing assessments are levied.

Section 6.06. Public Facility Development Assessment.

(a) To provide for the development of public recreational facilities, the Association may, subject to the provisions of paragraph (h) below, from time to time assess to the Owners as a public facility development assessment such amount or amounts as the Association may determine to be appropriate in the following manner:

(1) an equal amount, to be fixed by the Association but not more than thirty-six dollars ($36) for any fiscal year shall be assessed to the Owner of each lot in The Sea Ranch; provided that said maximum amount may be adjusted upward in direct proportion to any increase in the Cost of Living Index measured from January, 1965, to the January immediately preceding the assessment; and

(2) if the assessments made pursuant to subparagraph (1) above are maximum assessments, an amount shall be assessed to the Owner of each lot in The Sea Ranch in accordance with the proportion that the assessed value of such lot bears to the assessed value of all lots in The Sea Ranch at the time such assessment is made.

(b) No public facility development assessment pursuant to subparagraph (2) of paragraph (a) above shall be levied unless the Owners of lots equal to at least seventy-five percent (75%) of the assessed value of all lots in The Sea Ranch have approved such assessment by filing a written consent thereto with the Association or by voting in favor thereof at a meeting of the Association. No such assessment shall be made in an aggregate amount greater than the amount approved pursuant to this paragraph; provided, however, that approval hereunder of any assessment for the development of a given public recreational facility pursuant to section 7.02 shall also constitute approval of any subsequent public facility development assessment with respect to such facility.

(c) Public facility development assessments shall be due and payable by the Owners to the Association in such installments and during such period or periods as the Association shall designate.

Section 6.07. Private Facility Development Assessment.

Upon the recordation of a Development Assessment Certificate pursuant to section 7.03, the Association shall levy a private facility development assessment prorated equally among all of the Owners of the lots then listed in such Development Assessment Certificate, in the aggregate amount of the estimated total cost of the private recreational facility referred to therein. Such assessment shall be due and payable by such Owners to the Association in such installments and during such period or periods as the Association shall designate.

Section 6.08. Default in Payment of Assessments.

(a) Each assessment under this Article VI shall be a separate, distinct and personal debt and obligation of the Owner against whom it is assessed. If the Owner does not pay such assessment or any installment thereof when due, the Owner shall be deemed to be in default, and the amount of the assessment not paid, together with the amount of any subsequent default, plus interest at seven percent (7%), and costs, including reasonable attorneys’ fees, shall become a lien upon the lot or lots of such Owner upon recordation by the Association of a notice of default. Such lien shall be subject and subordinate to the lien of any mortgage upon the lot or lots of such Owner which is made in good faith and for value and is recorded prior to the recordation of such notice of default. The Association shall record such notice of default within sixty (60) days following the occurrence of such default, and shall commence proceedings to enforce such lien within six (6) months following such recordation. The foregoing remedy shall be in addition to any other remedies provided by law for the enforcement of such assessment obligation.

(b) The Association shall execute and acknowledge a certificate stating the indebtedness secured by the lien upon any lot or lots, and such certificate shall be conclusive upon the Association and the Owners, in favor of all persons who rely thereon in good faith, as to the amount of such indebtedness on the date of the certificate. The Association shall furnish a copy of such certificate to any Owner upon request, at a reasonable fee.

Article VII.
Development and Use of Recreational Facilities.

Section 7.01. Introduction.

In order to promote the beneficial recreational use of common and restricted common area in a manner which fosters the diverse recreational interests of Owners or groups of Owners and which is compatible with the rights of other Owners in their enjoyment of the environment of The Sea Ranch, provision is hereby made in this Article for the development by the Association of public recreational facilities, which shall be for the use and enjoyment of any Owner or Guest, and of private recreational facilities, which shall be for the use and enjoyment of those Owners who are permitted users pursuant to section 7.04.

Section 7.02. Public Recreational Facilities; Procedure for Development.

(a) One or more Owners may from time to time petition the Association for the development of a public recreational facility on any portion of common area reserved on a subdivision map for such development, or on any portion of restricted common area reserved on a subdivision map for such development and contiguous to common area. Such petition shall be in such form and shall contain such information as the Association may require, including, among other things, the following:

(1) the names and addresses of the petitioning Owners;

(2) the location of the common or restricted common area; and

(3) the type of public recreational facility which the petitioning Owners wish to have developed.

The Association may from time to time and on its own motion move for the development of a public recreational facility, in which case such motion shall be treated as if it were a petition submitted by one or more Owners.

(b) The Association shall tentatively approve the petition if it finds that the proposed public recreational facility is financially feasible and is compatible with The Sea Ranch. Among the factors which the Association shall consider in making such finding are the following:

(1) the suitability of the proposed use of the location;

(2) the suitability of the proposed use as opposed to other possible recreational uses on such location;

(3) the suitability of the public character of the proposed recreational facility as opposed to a private character;

(4) the anticipated volume of use; and

(5) the estimated cost of development and operation.

(c) After tentative approval of the petition the Association shall prepare, or cause to be prepared, and submit to the Design Committee pursuant to paragraph (b) of section 3.07, two sets of plans and specifications for the proposed recreational facility Upon the request of the Design Committee, such plans and specifications shall be prepared by an architect and/or engineer.

(d) If the Design Committee approves such plans and specifications, the Association shall obtain firm bids on the total cost of constructing and otherwise developing the proposed public recreational facility, and the lowest acceptable bid or bids shall be deemed the estimated total cost of development of such facility.

(e) If the Design Committee rejects such plans and specifications for failure of the same to satisfy the conditions set forth in clause (dd) of subparagraph (1) or in subparagraph (3), both of paragraph (b) of section 3.07, the Association shall reconsider the petition in the light of the reasons given for such rejection by the Design Committee. If upon such reconsideration the Association reaffirms the finding made pursuant to paragraph (b) above, such plans and specifications shall be deemed approved by the Design Committee.

(f) The Association shall give final approval to the petition if it finds on the basis of the plans and specifications approved by the Design Committee and the estimated total cost of development that the proposed public recreational facility is financially feasible and is compatible with The Sea Ranch. In its final approval the Association may impose such restrictions upon the use and operation of the facility, including reasonable use fees to be charged Owners and Guests for the use thereof, as it may deem advisable to assure the satisfactory functioning and financial stability of the facility, or to protect other Owners in their use and enjoyment of The Sea Ranch.

(g) After its final approval of the petition, the Association shall allocate for the development of the proposed public recreational facility an amount equal to the total estimated cost of development of such facility (including a reasonable provision for contingencies) from the portion, if any, of the development fund attributable to public facility development assessments levied for the development of such facility. If no such assessments have been made, the Association shall allocate such amount from the unallocated balance of such fund.

(h) After allocation of monies pursuant to paragraph (g) above, the Association, at such time and on such terms and conditions as it may deem appropriate but not exceeding the estimate total cost of development determined pursuant to paragraph (d) above, shall commence or contract for the development and construction of the public recreational facility in accordance with the plans and specifications approved by the Design Committee.

(i) If the amount allocated from the development fund pursuant to paragraph (g) above from time to time proves or appears to be inadequate to cover the actual cost of development of the public recreational facility, the Association shall at its option and from time to time.

(1) levy an additional public facility development assessment pursuant to section 6.06 in an amount sufficient to cover such actual or estimated inadequacy and allocate such amount to the development of such facility; or

(2) allocate an amount sufficient to cover such actual or estimated inadequacy from the unallocated balance of the development fund to the development of such facility.

(j) Any monies allocated to the development of a given recreational facility pursuant to paragraph (g) or (i) above which are not expended for such purpose shall, upon completion of the development of such facility, become part of the unallocated balance of the development fund.

(k) If for any reason the Association does not give final approval to the petition pursuant to paragraph (f) above, all expenses incurred by the Association in obtaining plans and specifications pursuant to paragraph (c) above shall be paid out of the unallocated balance of the development fund.

(l) Any improvement constructed or to be constructed by Grantor on any portion of common area reserved on a subdivision map for development as a public recreational facility or on any portion of restricted common area reserved on a subdivision map for such development and contiguous to common area shall be deemed to be a public recreational facility developed by the Association upon completion of such improvement by Grantor.

Section 7.03. Private Recreational Facilities.

(a) One or more Owners may from time to time petition the Association for the development of a private recreational facility on any portion of common area reserved on a subdivision map for such development, and one or more Owners of condominiums within one or more projects may petition the Association for the development of a private recreational facility on any portion of restricted common area which is contiguous to such project or projects and which is reserved on a subdivision map for such development. Such petition shall be in such form and shall contain such information as the Association may require, including among other things the following:

(1) the names and addresses of the petitioning Owners;

(2) the location of the common or restricted common area and the type of private recreational facility which the petitioning Owners wish to have developed; and

(3) the maximum private facility development and recreational assessments the petitioning Owners are willing to pay.

(b) The Association shall tentatively approve the petition if it finds that the proposed private recreational facility is financially feasible and is compatible with The Sea Ranch. Among the factors which the Association shall consider in making such finding are the following:

(1) the suitability of the proposed use to the location;

(2) the suitability of the proposed use as opposed to other possible recreational uses on such location;

(3) the suitability of the private character of the proposed recreational facility as opposed to a public character;

(4) the proximity of the lots of the petitioning Owners to the location;

(5) the number of petitioning Owners;

(6) the anticipated volume of use;

(7) the estimated cost of development and operation; and

(8) the ability of the petitioning Owners to bear private facility development and recreational assessments.

(c) After tentative approval of the petition the Association shall prepare, or cause to be prepared, and submit to the Design Committee pursuant to paragraph (b) of section 3.07, two sets of plans and specifications for the proposed private recreational facility. Upon the request of the Design Committee, such plans and specifications shall be prepared by an architect and/or engineer.

(d) If the Design Committee approves such plans and specifications, the Association shall obtain firm bids on the total cost of constructing and otherwise developing the proposed private recreational facility, and the lowest acceptable bid or bids shall be deemed the estimated total cost of development of such facility.

(e) If the Design Committee rejects such plans and specifications for failure of the same to satisfy the conditions set forth in clause (dd) of sub-paragraph (1) or in subparagraph (3), both of paragraph (b) of section 3.07, the Association shall reconsider the petition in the light of the reasons given for such rejection by the Design Committee. If upon such reconsideration the Association reaffirms the finding made pursuant to paragraph (b) above, such plans and specifications shall be deemed approved by the Design Committee.

(f) The Association shall give final approval to the petition if it finds on the basis of the plans and specifications approved by the Design Committee and the estimated total cost of development that the proposed private recreational facility is financially feasible and is compatible with The Sea Ranch. In its final approval the Association may impose such restrictions upon the use and operation of the facility as it may deem advisable to assure the satisfactory functioning and financial stability of the facility, or to protect other Owners in their use and enjoyment of The Sea Ranch.

(g) If within three (3) months after the date of final approval of the petition by the Association pursuant to paragraph (f) above, a number of Owners at least equal to the number of petitioning Owners shall file with the Association their consent to the development of the private recreational facility in accordance with the terms and conditions of said final approval, the development of the proposed private recreational facility shall be deemed approved. Each such written consent shall, among other things, identify the Owner’s lot or lots to be benefited by the development and use of such facility. Each Owner by filing such consent shall be deemed to have consented to any and all private facility development assessments and recreational assessments from time to time levied in connection with such facility pursuant to Article VI.

(h) After the development of the proposed private recreational facility has been approved in the manner set forth in paragraph (g) above, the Association shall record a Development Assessment Certificate identifying each lot to be benefited by the development and use of such facility and certifying that the Owner of each such lot has consented to any and all private facility development assessments and recreational assessments to be levied in connection with such facility pursuant to Article VI.

(i) After the levy of the private facility development assessment pursuant to section 6.07, and at such time and upon such terms and conditions as the Association may deem to be appropriate, but not exceeding the estimated total cost of development determined pursuant to paragraph (d) above, the Association shall commence or contract for the development and construction of the private recreational facility in accordance with the plans and specifications approved by the Design Committee.

(j) If for any reason the Association does not give final approval to the petition pursuant to paragraph (f) above within six (6) months after the petition is filed, or if the development of the proposed recreational facility is not approved pursuant to paragraph (g) above, then in either event the petitioning Owners shall reimburse the Association for all expenses incurred by the Association in obtaining plans and specifications pursuant to paragraph (c) above.

Section 7.04. Users of Private Recreational Facilities.

(a) Any Owner who has filed a consent pursuant to paragraph (g) of section 7.03 with respect to any private recreational facility and is not in default in the payment of any private facility development assessment or any recreational assessment levied with respect thereto shall be permitted to use such facility.

(b) The right to use any private recreational facility may from time to time be extended to one or more Owners in addition to those referred to in paragraph (a) above if:

(1) seventy-five percent (75%) of the Owners then permitted to use a given private recreational facility shall file with the Association a written petition recommending that such additional Owners be permitted to use such facility,

(2) each such additional Owner shall file with the Association a written consent which identifies his lot to be benefited by the development and use of such facility and consents to any and all private facility development assessments and recreational assessments that may from time to time be levied in connection with such facility pursuant to Article VI, and

(3) the Association shall find that increased number of Owners permitted to use such facility is within the capacity of such facility and does not adversely affect other Owners in their use and enjoyment of The Sea Ranch.

Upon satisfaction of the foregoing conditions, the Association shall record an amendment to the Development Assessment Certificate previously recorded with respect to such facility, which amendment shall identify the additional lot or lots to be benefited by the development and use of such facility. Upon recordation of such amendment such additional Owner shall be permitted to use such facility so long as he is not in default in the payment of any private facility development assessment or any recreational assessment levied with respect thereto.

(c) The right to use any given private recreational facility shall be appurtenant to the lot identified in the consent filed by each Owner pursuant to paragraph (b) above or paragraph (g) of section 7.03, and any sale, transfer or conveyance of such lot shall operate to transfer the appurtenant right to use such facility without the requirement of express reference thereto, and the transferee shall thereupon be permitted to use such facility; provided, however, that the right to use such facility may be severed from such lot by the Owner thereof and transferred separately if the proposed transferee of the right to use is an Owner and files with the Association a written consent which identifies the transferee Owner’s lot to be benefited by the development and use of such facility and consents to any and all private facility development assessments and recreational assessments that may from time to time be levied in connection with such facility pursuant to Article VI. After the filing of such consent, the Association shall record an amendment to the Development Assessment Certificate previously recorded with respect to such facility, which amendment shall identify the lot to be benefited by the development and use of such facility and substitute such lot for the lot of the transferor Owner. Upon recordation of such amendment, no further private facility development assessments or recreational assessments shall be levied against such transferor Owner with respect to such facility, and the transferee Owner shall be permitted to use such facility so long as he is not in default in the payment of any private facility development assessment or any recreational assessment levied with respect thereto.

Article IX.
Miscellaneous Provisions.

Section 9.01. Amendment or Repeal; Duration.

(a) In addition to the rights reserved to Grantor pursuant to section 2.02 to modify or supplement The Sea Ranch Restrictions with respect to property annexed to The Sea Ranch, and unless specifically provided to the contrary herein, The Sea Ranch Restrictions, or any part thereof, as from time to time in effect with respect to all or any part of The Sea Ranch, and any limitation, restriction, covenant or condition thereof, may, at any time with the written consent of Grantor, or at any time from and after five (5) years from the date and year first above written without the consent of Grantor, be amended or repealed upon the happening of the following events:

(1) the vote or written consent of Owners owning not less than three-fourths (3/4) of the lots within The Sea Ranch, approving the proposed amendment or amendments to The Sea Ranch Restrictions; and

(2) the recordation of a certificate of the Secretary or an Assistant Secretary of the Association setting forth in full the amendment or amendments to The Sea Ranch Restrictions so approved, including any portion or portions thereof repealed, and certifying that said amendment or amendments have been approved by Owners owning not less than three-fourths (3/4) of the lots within The Sea Ranch.

(b) All of the limitations, restrictions, covenants and conditions of The Sea Ranch Restrictions shall continue and remain in full force and effect at all times with respect to all property, and each part thereof, included within The Sea Ranch, to the Owners and to the Association, subject, however, to the right to amend and terminate as provided for in paragraph (a) above, for a period of twenty-one (21) years following the death of the survivor of all the living descendants of Lyndon B. Johnson, President of the United States, but not beyond the year 2000 A.D.: provided, however, that unless within one (1) year prior to the expiration of said twenty-one (21) year period or prior to December 31, 1999, whichever, occurs first, there shall be recorded an instrument directing the termination of The Sea Ranch Restrictions signed by Owners of not less than two-thirds (2/3) of the lots within The Sea Ranch, The Sea Ranch Restrictions in effect immediately prior to the expiration date shall, subject to the provisions of paragraph (a) above, be continued automatically, without any further notice, for an additional period of ten (10) years and thereafter for successive periods of ten (10) years unless within one (1) year prior to the expiration of any such period The Sea Ranch Restrictions are terminated as set forth above in this paragraph (b).

Section 9.02. Enforcement; Non-waiver.

(a) Except to the extent otherwise expressly provided herein, the Association or any Owner or Owners shall have the right to enforce any and all of the limitations, restrictions, covenants, conditions, obligations, liens and charges now or hereafter imposed by The Sea Ranch Restrictions upon other Owners, or upon any property within The Sea Ranch.

(b) Except to the extent otherwise expressly provided herein, any Owner or Owners shall have the right to enforce any and all limitations, restrictions, covenants, conditions and obligations now or hereafter imposed by The Sea Ranch Restrictions upon the Association.

(c) Every act or omission whereby any restriction, condition or covenant of The Sea Ranch Restrictions is violated in whole or in part is hereby declared to be and to constitute a nuisance and may be enjoined or abated, whether or not the relief sought is for negative or affirmative action, by the Association or by an Owner or Owners, as provided for in pare graphs (a) and (b) above; provided, however, that any provision to the contrary notwithstanding, only the Association or its duly authorized agents may enforce by self-help any limitation, restriction covenant, condition or obligation herein set forth.

(d) Each remedy provided for in The Sea Ranch Restrictions is cumulative and not exclusive.

(e) The failure to enforce the provisions of any limitation, restriction, covenant, condition obligation, lien or charge of The Sea Ranch Restrictions shall not constitute a waiver of any right to enforce any such provision or any other provision of The Sea Ranch Restrictions.

Section 9.03. Construction; Compliance with Laws; Severability Singular and Plural; Titles.

(a) All of the limitations, restrictions, covenants, and conditions of The Sea Ranch Restrictions shall be liberally construed, together, to promote and effectuate the fundamental concepts of The Sea Ranch, as set forth in the introductory paragraphs of this declaration,

(b) No provision of The Sea Ranch Restrictions shall be construed to excuse any person from observing any law or regulation of any governmental body having jurisdiction over such person or The Sea Ranch or any part thereof.

(c) Notwithstanding the provisions of paragraph (a) above, the limitations, restrictions, covenants and conditions of The Sea Ranch Restrictions shall be deemed independent and severable, and the invalidity or partial invalidity of any provision, or portion thereof, of any of such limitations, restrictions, covenants or conditions shall not affect the validity or enforceability of any other provision.

(d) The singular shall include the plural and the plural the singular unless the context requires the contrary, and the masculine, feminine and neuter shall each include the masculine, feminine or neuter, as the context requires.

(e) All titles used in The Sea Ranch Restrictions including those of articles and sections, are intended solely for convenience of reference and the same shall not nor shall any of them affect that which is set forth in such articles, sections, nor any of the terms or provisions of The Sea Ranch Restrictions.

Section 9.04. Lot Splitting; Consolidation.

(a) No lot within The Sea Ranch of less than two (2) acres shall be split. No other lot within The Sea Ranch shall be split unless the minimum area of each resulting lot is one (1) acre, or if the lot splitting is for a project, the ratio of condominiums to acres within the resulting project area does not exceed 8 to 1, and unless there is filed with respect to the lot being split a subdivision map on which at least two of the three members of the Design Committee shall have endorsed their consent and the Secretary or any Assistant Secretary of the Association shall have endorsed the consent of the Association.

(b) No two or more lots within The Sea Ranch shall be consolidated into one lot unless there is filed with respect to the lots being consolidated a subdivision map on which at least two of the three members of the Design Committee shall have endorsed their consent and the Secretary or any Assistant Secretary of the Association shall have endorsed the consent of the Association.

(c) Nothing contained in paragraph (a) or (b) above shall apply to the splitting of any lot by Grantor or the consolidation of two or more lots into one lot by Grantor.

Section 9.05. Conveyance of Common Area and Restricted Common Area; Reservation of Easements and Rights of Way; Reclassification of Land Area.

(a) Grantor shall transfer and convey to the Association and the Association shall accept, the fee interest to all of the real property designated on a subdivision map as “Common Area” and “Restricted Common Area”. Such real property may be subject to any or all of the following exceptions, liens and encumbrances:

(1) the lien of real property taxes and assessments not delinquent;

(2) such easements and rights of way on, over or under all or any part thereof as maybe reserved to Grantor or granted to any Owner or participating facility for the use thereof in accordance with the provisions of The Sea Ranch Restrictions;

(3) such easements and rights of way on, over or under all or any part thereof as may be reserved to Grantor for access to real property contiguous to common area or restricted common area;

(4) such easements and rights of way on, over or under all or any part thereof as may be reserved to Grantor or granted to or for the benefit of the United States of America, the State of California, or the County of Sonoma, any other political subdivision or public organization, any public utility corporation, any participating facility, any project, or any lot, for the purpose of constructing, erecting, operating and maintaining thereon, therein and thereunder, at that time or at any time in the future

(aa) roads, streets, walks, driveways, parkways and park areas,

(bb) poles, wires and conduits for the transmission of electricity for lighting, heating, power, telephone, television and other purposes and for the necessary attachments in connection therewith, and

(cc) public and private sewers, sewage disposal systems, storm water drains, land drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes and any and all equipment in connection therewith;

(5) the obligations imposed, directly or indirectly, by virtue of any statute, law, ordinance, resolution or regulation of the United States of America, the State of California or any other political subdivision or public organization having jurisdiction over such property, or by virtue of any organization or body politic created pursuant to any such statute, law, ordinance or regulation.

(6) the rights reserved to Grantor pursuant to paragraph (f) of section 3.07; and

(7) any other lien, encumbrance or defect of title of any kind whatsoever (other than of the type which would at any time or from time to time create a lien upon such properly to secure an obligation to pay money) which would not materially and actually prejudice the Owners and Guests in their use and enjoyment of such property.

(b) The land classification of any real property within The Sea Ranch which is neither common area nor restricted common area may be changed to common area or restricted common area by the transfer of such property to the Association from all persons havin9 any right, title or interest therein, The Association shall accept such property and shall file a subdivision map with respect thereto designating the same either “Common Area” or “Restricted Common Area”, as it may elect. Such property shall thereupon become common area or restricted common area in accordance with such designation. Notwithstanding the foregoing, Grantor may change the land classification of any such property as to which it is the Owner by filing a subdivision map designating such property either “Common Area” or “Restricted Common Area”, as Grantor may elect, Grantor shall convey such property to the Association which shall accept the same, and such property shall thereupon become common area or restricted common area, as the case may be.

Section 9.06. Assignment of Powers.

Any and all of the rights and powers vested in Grantor pursuant to The Sea Ranch Restrictions may be delegated, transferred, assigned, conveyed or released by Grantor to the Association, and the Association shall accept the same, effective upon the recording by the Grantor of a notice of such delegation, transfer, assignment, conveyance or release.

Section 9.07. Condemnation of Common Area and Restricted Common Area.

If at any time, or from time to time, all or any portion of common area or restricted common area, or any interest therein, be taken for any public or quasi-public use, under any statute, by right of eminent domain or by private purchase in lieu of eminent domain, the entire award in condemnation shall be paid to the Association and deposited into either the operating fund or the development fund as the Association may, in its sole discretion, determine. No Owner shall be entitled to any portion of such award and no Owner shall be entitled to participate as a party, or otherwise, in any proceedings relating to such condemnation, such right of participation being herein reserved exclusively to the Association which shall, in its name alone, represent the interests of all Owners; provided, however, that the portion of any award relating to improvements which constitute a private recreation facility shall be divided equally among the Owners who, at the time of such taking, are permitted users of such facility.

Section 9.08. Obligations of Owners; Avoidance; Termination.

(a) No Owner, through his non-use of any common area, restricted common area, project area or recreational facility, or by abandonment of his lot, may avoid the burdens or obligations imposed on him by The Sea Ranch Restrictions by virtue of his being an Owner.

(b) Upon the conveyance, sale, assignment or other transfer of a lot to a new Owner, the transferring Owner shall not be liable for any assessments levied with respect to such lot after the date of such transfer, and no person, after the termination of his status as an Owner and prior to his again becoming an Owner, shall incur any of the obligations or enjoy any of the benefits of an Owner under The Sea Ranch Restrictions following the date of such termination.

Section 9.09. Notices; Documents; Delivery.

Any notice or other document permitted or required by The Sea Ranch Restrictions to be delivered may be delivered either personally or by mail. If delivery is made by mail, it shall be deemed to have been delivered twenty-four (24) hours after a copy of same has been deposited in the United States mail, postage prepaid, addressed as follows if to the Association or to the Design Committee, at The Sea Ranch, Sonoma County, California; if to an Owner, then at any lot within The Sea Ranch owned by the Owner; if to Grantor, at One Bush Street, San Francisco, California; provided, however, that any such address may be changed from time to time by any Owner, by the Design Committee, or by Grantor by notice in writing, delivered to the Association, or by the Association, by notice in writing delivered to all Owners.

Public Navigation

Article VI.Funds and Assessments.