DECLARATION OF UNIT OWNERSHIP

FOR

COUNTRY CLUB CONDOMINIUM,

an Oregon condominium

THIS DECLARATION submits to the provisions, restrictions and limitations of Oregon Unit Ownership Law, land hereinafter described and all improvements now existing or to be constructed on such property to be known as "Country Club Condominium," a condominium described on Exhibit "A" attached hereto and incorporated herein by reference;

WITNESSETH:

WHEREAS WILLIAM S. WALKER INVESTMENT COMPANY, an Oregon corporation, is owner in fee simple of the above-described property and desires to submit said property to the condominium form of ownership to be converted, handled and used in the manner provided by the Oregon Unit Ownership Law.

NOW, THEREFORE, Declarant hereby declares on behalf of itself, its successors, grantees and assigns as well as to any and all persons having, acquiring, or seeking to have or to acquire, any interest of any nature whatsoever in and to any part of the property as follows:

(1)  DEFINITIONS.  Each of the terms herein shall have the meaning set forth in the Oregon Unit Ownership Law, ORS 91.500, et seq. (hereinafter called the "Act" or the "Law") and said statute and definitions are incorporated herein by reference.

In addition, the following terms shall have special meaning:

(a)   "Mortgage" and/or "Mortgages" shall include a deed of trust.

(b)   "Mortgagee" and/or "Mortgagees" shall include a deed of trust beneficiary and shall also include a mortgagee of the condominium development and a mortgagee of a unit.

(c)   "Person" and/or "Persons" shall include natural persons, partnerships, corporations, associations and personal representatives.

(d)   "Residential Unit" and/or "Residential Units" shall mean a part of the property, including a building or one or more rooms occupying one or more floors of the building or part or parts thereof intended for any type of independent use and with direct access to a public street or highway or to a general common element or to general common elements leading to a public street or highway.

(e)   "Unit" and/or "Units" shall mean a residential unit as defined above, together with limited common elements of appurtenant thereto and undivided interests in general common elements appurtenant thereto.

(f)   "Interior Surfaces" (where that term is used in defining boundaries of units or limited common elements) shall not include paint, wallpaper, paneling, carpeting, tiles or other such decorative surfaces, coverings or finishes.

(2)  LAND DESCRIPTION.  The land is located in Washington County, State of Oregon and is more particularly described on Exhibit "A".

(3)  ACCESS.  Each unit, at; herein described, has direct access to general common elements, stairways, walks, parking areas and driveways. Such general common elements as hereinafter described have direct access to Southwest Neakahnie Avenue.

(4)  NAME.  The name by which the property submitted hereunder shall be known is "Country Club Condominium."

(5)  UNIT DESCRIPTION.  Each unit shall consist of the following:

(a) One residential Unit as defined in this article;

(b) Limited common elements appurtenant to that residential unit as specified in Article (8) herein below;

(c) An interest in the general common elements as set forth in Article (8) herein below; subject to the rights and restrictions sot forth in this Declaration and in the Exhibits attached to it.

The land submitted by this Declaration will have six buildings thereon. The buildings are designated on the survey map and plat plan marked Exhibit "B" attached hereto and by this reference incorporated herein. The exact location of each unit is shown in the plat forming Exhibit "B". All residential units shall exist within those six two-story buildings. Each building incorporates two different floor plans. Each residential unit is of a single story. Each residential unit that is on an upper floor will have an entry that is accessible by exterior stairs that rise one floor.

Each building and dwelling unit contained therein, and all other buildings on the land consist of wood-frame construction with a concrete foundation and post beam and deck floor system. All of the buildings containing residential units are two stories in height. All lower units are totally covered by an upper unit with separation of units accomplished by an insulated (R-11 batt) wood-frame floor/ceiling structure with insulation in between. Vertical separation between side by side units is accomplished with double wall wood-frame construction incorporating one layer of R-11 batt insulation and two-hour fire rating techniques. The roofing system over upper units incorporates attic space. All roofing uses wood-frame construction incorporating R-19 batt insulation. All exterior walls incorporate R-11 batt insulation and insulated glass windows.

The residential units, the buildings within which they are sited, the floors on which they are located, the number by which they are identified, the number of square feet which they contain, the number and types of rooms which they contain and the garage space assigned to them are all identified as follows:

Unit # Bed rooms Bath rooms Total rooms Interior useable floor area (Sq. Footage, interior partitions) Assigned Garage #
Building A
Lower Floor
1 2 1 6 827 G1
3 2 1 6 827 G3
5 2 1 6 827 G5
7 2 1 6 827 G7
Upper Floor
2 2 1 6 827 G2
4 2 1 6 827 G4
6 2 1 6 827 G6
8 2 1 6 827 G8
Building B
Lower Floor
9 2 1 6 827 G9
11 2 1 6 827 G11
13 2 1 6 827 G13
15 2 1 6 827 G15
17 2 1 6 827 G17
19 2 1 6 827 G19
Upper Floor
10 2 1 6 827 G10
12 2 1 6 827 G12
14 2 1 6 827 G14
16 2 1 6 827 G16
18 2 1 6 827 G18
20 2 1 6 827 G20
Building C
Lower Floor
21 2 1 6 827 G21
23 2 1 6 827 G23
25 2 1 6 827 G25
27 2 1 6 827 G27
Upper Floor
22 2 1 6 827 G22
24 2 1 6 827 G24
26 2 1 6 827 G26
28 2 1 6 827 G26
Unit # Bed rooms Bath rooms Total rooms Interior useable floor area (Sq. Footage, interior partitions) Assigned Garage #
Building D
Lower Floor
29 2 7 872 G29
31 2 7 872 G31
33 2 7 872 G33
35 2 7 872 G35
Upper Floor
30 2 7 872 G30
32 2 7 872 G32
34 2 7 872 G34
36 2 7 872 G36
Building E
Lower Floor
37 2 7 872 G37
39 2 7 872 G39
41 2 7 872 G41
43 2 7 872 G43
45 2 7 872 G45
47 2 7 872 G47
Upper Floor
38 2 7 872 G38
40 2 7 872 G40
42 2 7 872 G42
44 2 7 872 G44
46 2 7 872 G46
48 2 7 872 G48
Building F
Lower Floor
49 2 7 872 G49
51 2 7 872 G51
53 2 7 872 G53
55 2 7 872 G55
57 2 7 872 G57
59 2 7 872 G59
Upper Floor
50 2 7 872 G50
52 2 7 872 G52
54 2 7 872 G54
56 2 7 872 G56
58 2 7 872 G58
60 2 7 872 G60

Each of the above-identified units shall contain one kitchen, one living-dining room and one hallway. Each unit has direct access to general common element stairways, walks, parking areas and driveways.

Other than in common, the owners of the units shall not be deemed to own the undecorated and/or unfinished surfaces of the perimeter walls, floors and ceilings surrounding their respective units nor shall said owners be deemed to own pipes, wires, conduits or other public utility lines running through said respective units which are utilized for or serve more than one unit. Neither shall they be deemed to own limited common elements surrounding their units, as those limited common elements are hereinafter defined and identified. Said owners, however, shall be deemed to own the interior walls and partitions that are contained within said owners' respective unit and also shall be deemed to own the inner decorative and/or finished surfaces of the perimeter walls, floors and ceilings, including paint, wallpaper and/or other type decorations.

(6)  EASEMENTS.  Every owner of a unit shall have a right and easement of ingress, egress and enjoyment in and to the general common elements as defined in this Declaration. Furthermore, it is intended, that in addition to rights under the Act, each unit and each general or limited common element has an easement in and through each other unit and general and limited common element for all support elements and utilities, electrical wiring, plumbing, heat and service elements and for reasonable access thereto as required to effectuate and continue proper operation of this condominium plan. Without limiting the generality of the foregoing, each unit and all general and limited common elements are specifically subject to an easement for the benefit of each of the other units in the building for all duct work for the several units, for fireplaces and for associated flues or chimneys. In addition, each unit and all the general and limited common elements are specifically subject to easements as required for the master antenna cable system. Finally, each unit, as it is constructed, is granted an easement, to which each other unit and all general and limited common elements are subject, for the location and maintenance of all the original equipment and facilities and utilities for such unit. The specific mention or reservation of any easement in this declaration does not limit or negate the general easement for common facilities reserved by the Act.

Each unit and all general and limited common elements are hereby declared to have an easement over all adjoining units and general and limited common elements for the purpose of accommodating any encroachment due to engineering errors, errors in original construction, settlement or shifting of the building, reconstruction, repair, movement or any other similar cause and any encroachment due to building overhang or projection. There shall be valid easements for the maintenance of said encroachments so long as they shall exist and the rights and obligations of unit owners shall not be altered in any way by said encroachment settling or shifting. Provided, however, that in no event shall a valid easement for encroachment be created in favor of a unit owner or owners if said encroachment occurred due to the willful act or acts with full knowledge of said owner or owners. In the event a unit or general or limited common element is partially or totally destroyed and then repaired or rebuilt, the unit owners agree that minor encroachments over adjoining units and general and limited common elements shall be permitted and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist. The foregoing encroachments shall not be construed to be encumbrances affecting the marketability of title to any unit.

There is hereby reserved to Declarant and to the Association or to their duly authorized agents and representatives such easements as are necessary to perform the duties and obligations of the Association as are set forth in the Declaration or in the Association rules.

(7)  GENERAL COMMON ELEMENTS.  Except as otherwise specifically reserved, assigned or limited by the provisions of Articles (5) and (7) of this Declaration, the general common elements consist of the following:

(a) The land described in Exhibit "A";

(b)  The roofs, foundations, columns, girders, studding, joist beams, supports, main walls (excluding only non-weight-bearing interior partitions of units) and all other structural parts of the buildings to the interior surfaces of the units, perimeter walls, floors, ceilings, windows and doors, that is to the boundaries to the units and any replacements thereto;

(c)  Installations of central services such as power, light, hot and cold water, heating pipes, conduits and wires (wherever they may be located, whether in partitions or otherwise), tanks, pumps, motors, fans, compressors, ducts and, in general, all apparatus and insulations existing for common use;

(d)  The driving areas which provide access to the limited common elements for parking and any guest parking or other parking areas not assigned to units;

(e)  The yards, gardens, landscaped areas and walkways that surround and provide access to the buildings or are used tor recreational purposes;

(f)  The storage areas not assigned to units, stairways, stairs and entrances and exits of the buildings;

(g)  The premise for the lodging or use of persons in charge of or maintaining the property, if any;

(h) The recreation building, the tennis courts and walkways as described in Article (9) of this Declaration and identified on Exhibit "B" attached to this Declaration;

(i) All other parts of the property that are necessary or convenient to its existence or to maintenance of safety or that are normally in common use;

(j) Certain items which could ordinarily be considered general common elements such as, but not limited to, screen doors, window screens, awnings, storm windows, and planter boxes may, pursuant to a decision of a majority of unit owners and specifications in the administrative rules of the Board, be designated as items to be furnished and maintained by unit owners at their individual expense in good order according to standards and requirements set by the Board by rules or regulation.

Nothing shall be altered or constructed in or removed from the general common elements, except upon the written consent of the Board and after procedures required herein or by law.

(8)  LIMITED COMMON ELEMENTS.  The limited common elements are reserved for the exclusive use of the owner or owners of the unit or units to which they are adjacent or assigned and consist of:

(a)  The individual garage that is assigned to each unit as more particularly shown on Exhibit "B", the boundaries of said garage being defined by the interior surfaces of the walls, floors, doors and stripping enclosing said garage (those garage assignments are set forth more fully in paragraph (5) Unit Description on pages 5, 6 and 7 of this Declaration);

(b)  The deck or patio that is adjacent to each unit as more particularly shown on Exhibit "B", the boundaries of said deck or patio being defined by the interior surfaces of the item or ground enclosing said deck or patio;

(c)  The fireplace and storage area that are adjacent to each unit as more particularly shown on Exhibit "B".

The unit owner shall be responsible for keeping the limited common elements adjacent to and assigned to his unit clean and free of any debris or rubbish. Further, the owner of a residential unit shall use the limited common elements adjacent to his unit or assigned to his unit in ways that conform with this Declaration, the Bylaws of the Country Club Condominium Homeowner's Association and the rules and regulations validly promulgated by that Association.

(9)  RECREATIONAL FACILITIES.  Recreational facilities shall include the following:

(a)   Two lighted tennis courts surrounded by plastic coated steel fabric fencing on wood frames;

(b)   One single story wood-frame recreational building with a concrete foundation and post beam and deck floor system and a shingle roof. The recreational building shall contain a recreation-meeting area of approximately 800 square feet, together with a compact kitchen, toilet facilities for men and women and shower and sauna facilities for men and woman; and

(c)   Gravel walkways generally throughout the project and concrete walkways in front of parking areas.

(10)  LIMITED AND GENERAL COMMON ELEMENTS.  The limited and general common elements shall be used in accordance with and subject to the following provisions:

(a)  Rules and Regulations Promulgated by the Association. No person shall use the common elements, or any part thereof, in any manner contrary to, or not in accordance with, such rules and regulations pertaining thereto as from time to time may be promulgated by the Association. Without in any manner intending to limit the generality of the foregoing, the Association shall have the right but not the obligation to promulgate rules and regulations limiting the use of the common elements to the members of the Association and their respective families, guests, invitees and servants. Such use may be conditioned upon, among other things, the payment by the unit owner of such assessments as may be established by the Association for the purpose of defraying the cost thereof.

(b) Income from Common Elements.  All income derived from any coin operated vending machines and/or any other income derived from the common elements shall be divided among the unit owners in the same proportions as their percentage interest in the common elements. The Board of Directors may, in its discretion, disburse such income directly to the unit owners or use the funds to help meet the expense of maintaining the common elements.

(11)  USE OF PROPERTY.  The general common elements shall be used for the furnishing of services and facilities and for the enjoyment of the units. No immoral, improper, offensive or unlawful use shall be made of the property or any part thereof and all valid laws, zoning ordinances and regulations of the governing bodies having jurisdiction thereof shall be observed. The buildings and units shall be used for single family residential purposes only on an ownership, rental or lease basis and for the common social, recreational or other reasonable uses normally incident to such purposes and also for such additional uses or purposes as are from time to time determined to be appropriate by the Board. Units of the buildings may be used for the purposes of operating the Association and for the management of the condominium, if required. No unit may be leased for transient or hotel purposes, except for a lender in possession of a condominium unit following a default in a first mortgage, a foreclosure proceeding or any deed or other arrangement in lieu of foreclosure. Lease or rental of a unit must be in writing. The leasing of less than an entire unit is prohibited. All the lease agreements shall provide that the terms of the lease shall be subject in all respects to the provisions of this Declaration and the Bylaws of the Homeowner's Association and that any failure by the lessee to comply with the terms of such document shall be a default under the lease.

Parking spaces are restricted to use for parking of operative automobiles. Other items and equipment may be parked or kept therein only subject to the rules or regulations of the Board. The Board shall require removal of any inoperative or unsightly vehicle and any other equipment or item improperly stored in garages or parking spaces. If the same is not removed, the Board shall cause removal at the risk and expense of the owner thereof.

Common drives, walks, corridors and stairways shall be used exclusively for normal transit and no obstructions shall be placed thereon or therein, except by express written consent of the Association.

(12)  MAINTENANCE.  Each unit owner shall, at his sole expense, have the right and the duty to keep the interior of his unit and its equipment, appliances and appurtenances in good order, condition and repair and shall do all redecorating and painting at any time necessary to maintain the good appearance and condition of his unit. Each unit owner shall be responsible for the maintenance, repair or replacement of any plumbing fixtures, water heaters, fans, heating or other equipment, electrical fixtures or appliances which may be in or connected with his unit.

Without limiting the generality of the foregoing, each unit owner shall have the right and the duty at his sole cost and expense to maintain, repair, paint, paper, panel, plaster, tile and finish the windows, window frames, glass, doors, door frames, trim, interior surfaces of the ceilings, floors and perimeter walls of the unit, and the surfaces of the weight-bearing walls located in his unit and shall not permit or commit waste in using it or the common elements. Each unit owner shall have the right to substitute new finished surfaces for the finished surfaces then existing on said ceilings, floors and walls. Each unit owner and his agent has the right to maintain, repair, paint, finish, alter, substitute, add or remove any fixtures attached to said ceilings, floors or walls. This paragraph shall not be construed as permitting an interference with or damage to the structural integrity of the building or interference with the use and enjoyment of the common elements or of the other units or any of them. Nor shall it be construed to limit the powers or obligations of the Association hereunder.

Limited common elements as defined in this Declaration are for the sole and exclusive use of the units for which they are reserved or assigned, provided that the use, condition and appearance thereof may be regulated under provisions of the rules of the Association or of this Declaration, including the following:

(a) Decisions with respect to the standard of appearance and condition of limited common elements and with respect to the necessity and manner of caring for, maintaining, repairing, repainting or redecorating limited common elements ("Maintenance Work") herein shall be made by the Association.

(b)   Performance of such maintenance work shall be carried out by the Association on behalf of the owner or owners of units to which the limited common element in question is assigned or reserved, provided that by written notice the Board may permit such owner or owners to perform such maintenance work themselves.

(c)   Unit owners may not, however, modify, paint, otherwise decorate or in any way alter their respective limited common elements without prior written approval of the Association.

(d)   Unit owners will be responsible for the cost of such maintenance work for the limited common elements reserved for or assigned to their units.

(e)  With respect to any such maintenance work performed by the Board, the cost thereof shall be levied as a special charge against the unit to which such limited common element is assigned or reserved.

(f)  The Association (or the Declarant or Declarant's managing agent) shall have the duty to keep the general common elements in good order, condition and repair and shall do all redecorating and painting at any time necessary to maintain the good appearance and condition of the general common elements.

(13)  PERCENTAGE OF UNDIVIDED INTEREST IN COMMON ELEMENTS.  Each unit includes all the limited common elements appertaining thereto and the percentage of undivided interest in the general common elements appertaining thereto. Each unit is attributed with an undivided 1.666666% interest in the general common elements. The voting rights attributable to any one unit may be exercised by any one of the record owners of that unit. In the event of a dispute among owners, no one co-owner shall be entitled to vote without the approval of all co-owners.

(14)  MANAGEMENT OF AFFAIRS OF COUNTRY CLUB CONDOMINIUM HOMEOWNER'S ASSOCIATION.  The affairs of the Country Club Condominium Homeowner's Association shall be managed by a Board of Directors and by officers consisting of a President of the Board of Directors, a Secretary and a Treasurer. The Board of Directors shall adopt administrative rules and regulations governing details of the operation, maintenance and use of the property and to prevent unreasonable interference with the use of the respective units and common elements by the several unit owners. The Board of Directors may retain an individual, a firm or a corporation to act as manager of the property.

(15)  HOMEOWNER'S ASSOCIATION.  There shall be established an Association known as Country Club Condominium Homeowner's Association for the purposes of administering the condominium, approving the annual budget, establishing and collecting monthly assessments and arranging for the operation, management and maintenance of the condominium, including negotiating, contracting with and supervising any person, persons or business entity with respect to such matters. Initially the Association may be an unincorporated Association. The Board of Declarant, until such time as the initial Board of Directors is selected, may at any time in the exercise of its sole discretion, without necessity of prior approval or other action by the members being necessary, cause such unincorporated Association to be converted to a non-profit corporation under the laws of the State of Oregon, provided that from and after the formation of such non-profit corporation, the rights and duties of the members of such corporation shall continue to be governed by the provisions of the Act and of this Declaration.

The Association, whether incorporated or unincorporated, shall carry out its purposes in accordance with this Declaration and the Bylaws attached hereto as Exhibit "C."

The Association shall have the authority to assess a monthly common expense charge and/or a special charge against unit owners and contract purchasers of units for which the same are assessed or charged. Assessments for the monthly expense charge shall commence on the first day of each month; assessments for any special charge shall commence on the first day of the month or the first day of the time period to which they are attributable, whichever is sooner. Assessments against each unit owner or contract purchaser shall commence on the date the unit owner or contract purchaser is entitled to possession. If such date does not fall on the first day of the month or on the first day of a time period to which a special assessment is attributable, the amount of the assessment shall be prorated. Each common monthly expense assessment and each special charge shall be joint and several personal debts and obligations of the unit owner or owners and contract purchasers of units for which the same are assessed or charged as of the time the assessment or charge is made and shall be collectible as such. The amount of any assessment or charge (whether regular or special) assessed or charged to any unit, and the owner and/or purchaser of any unit, plus interest at the maximum rate allowed by law, costs and reasonable attorney's fees shall be a lien upon such unit, the appurtenant limited common elements and the exclusive use thereof and the unit's undivided interest in the general common elements. If the Association complies with the Act, the lien for payment of such assessments and charges shall have priority over all other liens and encumbrances except tax and assessment liens, except a first mortgage of record and except that such priority shall be limited as provided in Article XI of the Bylaws attached hereto as Exhibit "C," and in the Act. Suit to recover any money judgment for unpaid assessments or charges shall be maintainable without foreclosure or waiver of the lien securing the same.

(16)  ASSOCIATION EASEMENT.  There is hereby reserved to Declarant and the Association or their duly authorized agents and representatives such easements as are necessary to perform the duties and obligations of the Association as are set forth in the Declaration, in the Association Bylaws or in the Association Rules.

(17)  MANAGEMENT OF PROJECT BY DECLARANT.  Until the date within sixty (60) days of three (3) years from the date of recording this Declaration, or the date on which Declarant shall have closed the sales of sixty percent (60%) of the units or the date on which the Declarant elects to relinquish permanently all of its authority under this Article (17) by written notice to all unit owners, whichever date first occurs, the project shall be managed and the Association organized as follows in the exercise of the sole discretion of the Declarant:

(a)  So long as no temporary board is then entitled to exercise management authority under Article 17, paragraph (b), Declarant or a managing agent selected by Declarant shall have the power and authority to exercise all of the rights, duties and functions of the Board, including but not limited to enacting reasonable administrative rules, contracting for required services, property and insurance and collecting and expending all assessments and Association funds. The Declarant or any such managing agent shall have the exclusive right to contract for all goods and services, payment for which is to be made from any common or maintenance fund.

(b)   Declarant may, at such times as Declarant deems appropriate, select as a temporary board three (3) to seven (7) persons who own or are purchasers of units or are officers of corporations, trusts, partnerships or ether entities owning or purchasing such units. This temporary board shall have the full authority and all rights, responsibilities, privileges and duties to manage the project under this Declaration and shall be subject to all provisions of the Declaration, provided that, after selecting any such temporary board, Declarant, in the exercise of its sole discretion, may at any time terminate such temporary board and reassume its management authority under Article (17), paragraph (a) or select a new temporary board under Article (17), paragraph (b).

(c) These requirements and covenants are made in order to assure that the property and project will be adequately administered in the initial phases of development and to assure an orderly transition to Association operations.

(18)  SERVICE OF PROCESS.  The name of the person to receive service of process in cases provided in Subsection (1) of ORS 91.578 is Raul Fonda, Rt. 3, Box 118X, Hillsboro, Oregon 97123.

(19)  BYLAWS.  The undersigned declarant, subject to this Declaration, has adopted pursuant to the requirements of the Act, the Country Club Condominium Homeowner's Association Bylaws (herein referred to as the "Bylaws") attached hereto, marked Exhibit "C" and incorporated herein by reference. The Bylaws shall govern the administration of the property. The bylaws may be amended from time to time as therein provided. Any amendment thereto shall be recorded in the official records of Washington County, Oregon.

(20)  COMPLIANCE WITH BYLAWS AND OTHER RESTRICTIONS.  Each unit owner shall comply with the Bylaws and with the administrative rules and regulations adopted pursuant thereto and with the covenants, conditions and restrictions in this declaration or in the deed to his unit.

(21)  LEGAL PROCEEDINGS.  Failure to comply with the terms of the Declaration, Bylaws and Association Rules and Regulations adopted pursuant thereto shall be grounds for relief which may include, without limiting the same to, an action to recover sums due, damages or a suit for injunctive relief or to foreclose a lien or any combination thereof. Relief may be sought by the Association or by the manager of the Association or, if appropriate, by an agreement of the unit owner.

(22)  COSTS AND ATTORNEYS' FEES.  In any proceeding arising because of an alleged default by a unit owner, the prevailing party shall be entitled to recover the costs of the proceedings and such reasonable attorneys' fees as may be determined by the court for the trial or on any appeal thereof.

(23)  WAIVER OF RIGHTS.  The failure of the Association or of a unit owner to enforce any right, provision, covenant or condition that may be granted by a condominium document shall not constitute a waiver of the right of the Association or any unit owner to enforce such right, provision, covenant or condition. in the future.

(24)  MORTGAGEES.

(a)  Priority of Mortgages.  Notwithstanding all of the provisions hereof and as provided in the Act, the liens created under the Declaration and under these Bylaws, which the Association may have upon any unit for common expense assessments, shall be subject and subordinate to the rights (lien or equivalent security interest) of the secured party in the case of any indebtedness secured by mortgages which were recorded prior to the date any such common expense assessment became due. Where such mortgagee of the unit or other purchaser of a unit obtains possession of a unit as a result of mortgage foreclosure (or of taking a deed in lieu of foreclosure), such possessor and his successors and assigns shall not be liable for the share of the common expense or assessment by the Association chargeable to such unit, which became due prior to such possession but will be liable for the common expenses and assessments accruing after such possession. Such unpaid share of common expenses or assessments shall be deemed to be common expenses, collectible from all of the unit owners, including such possessor, his successor and assigns.

(b)  Change in Manager. At least thirty (30) days' notice of any cancellation of professional management and assumption of self-management shall be given to every first mortgagee; the effectuation of any such decision shall not be valid without the prior approval of the holders of seventy five percent (75%) of the first mortgages on the units. The agreement with such professional manager shall permit cancellation on thirty (30) days written notice without payment of any cancellation fee, and shall have a term not in excess for one (1) year, renewable by agreement of the parties, for successive one (1) year periods.

(c)  Abandonment of Condominium Status. Except when acting pursuant to the provisions of the Act involving substantial destruction by fire or other casualty or a taking by eminent domain or condemnation, the Owners or the Association shall not, without written consent of seventy five percent (75%) of the first mortgagees of the units, seek by act or omission to abandon or to terminate the condominium status of the project, or to abandon, encumber, sell or transfer any of the common elements.

(d)  Partitions and Subdivisions. The Owners of the Association shall not partition or subdivide any unit or appurtenant limited common elements, nor abandon, partition, subdivide, encumber or sell any general common elements or accept any proposals to do so without the prior written approval of Seventy Five percent (75%) of the first mortgagees of the units.

(e)  Change in Percentages. The Owners of the Association shall not change the percentages of interest in the general common elements without the prior written approval of Seventy Five percent (75%) of the first mortgagees of units.

(f)  Copies of Notices.  Written notice that an owner/mortgager of a unit has, for more than thirty (30) days, failed to meet an obligation under the condominium documents shall be given by the Association to any mortgagee of any such unit.

(g)  Effect of Declaration Amendments.  No amendment shall be made to this Declaration modifying, changing, limiting or altering the rights expressly conferred upon mortgagees in this instrument without prior written approval of all mortgagees.

(h) Insurance. With respect to every mortgagee of a unit, the Board shall:

(i) Furnish the mortgagee with a copy of any insurance policy or evidence thereof which is intended to cover the unit on which said mortgagee has a lien;

(ii) Require any insurance carrier to give the Board and such mortgagee at least thirty (30) days written notice before cancelling or reducing the coverage or limits of any insurance with respect to the property on which the mortgagee has a lien (including cancellation for a premium nonpayment);

(iii) Not make any settlement of any insurance claim for loss or damage to any such unit, general common elements or limited common elements exceeding $5,000.00 without the approval of such mortgagee, provided however, that withholding of such approval shall not be unreasonable or in conflict with the provisions of Article VIII, Exhibit C;

(iv) Give the mortgagee written notice of any loss or taking affecting general common elements if such loss or taking exceeds $5,000.00;

(v) Give the mortgagee written notice of any loss, damage or taking affecting any unit or limited common elements in which it has an interest if such loss, damage or taking exceeds $1,000.00;

(vi) The Board shall exercise its reasonable best efforts to obtain insurance policies containing the following provisions:

(aa)  Provide that the liability of the insurer thereunder shall not be affected by and that the insurer shall not claim any right of setoff counterclaims, apportionment, proration or contribution by reason of any other insurance obtained by or for any unit owner;

(bb)  Contain no provision relieving the insurer from liability for loss occurring while the hazard to such buildings is increased whether or not within the knowledge or control of the Board or because of any breach of warranty or condition or any other act or neglect by the Board or any unit owner or any other person or either of them;

(cc)  Contain a waiver of subrogation by the insurer as to any and all claims against the Association, the owner of any unit and/or their respective agents, employees or tenants and of any defenses based upon co-insurance or upon invalidity arising from the acts of the insured,

(vii)  In addition, the insurance policy required under Article VII(l) (a) of Exhibit C shall contain the standard mortgagee clause which shall:

(aa)  Provide that any reference to any mortgagee in such policy shall mean and include all holders of mortgages of any unit or units, lease or sublease of the condominium in their respective order and preference whether or not named therein;

(bb)  Provide that such insurance as to the interest of any mortgagee shall not be invalidated by any act or neglect of the Board or unit or any persons under any of them;

(cc)  Waive any provision invalidating such mortgage clause by reason of:

(1)  The failure of any mortgagee to notify the insurer of any hazardous use or vacancy;

(2)  Any requirement that the mortgagee pay any premium thereon; and

(3)  Any contribution clause.

(25)  AMENDMENTS TO DECLARATION.  Amendments to this Declaration shall be made by an instrument in writing entitled "Amendment to Declaration," which sets forth the entire amendment. Except as otherwise specifically provided for in this Declaration, and except for the right of Declarant upon Declarant's sole signature to amend the Declaration to conform to federal, state and local laws, regulations, ordinances and rules, and except as required by those persons who must approve the condominium development, any proposed amendment must be approved by a majority of the Board of Directors of the Association prior to its adoption by the unit owners. Amendments may be adopted at a meeting of the owners if seventy five percent (75%) of the unit owners vote for such amendment or without any meeting if all unit owners have been duly notified and seventy five percent (75%) of the unit owners consent in writing to such amendment. In all events, the amendment, when adopted, shall bear the signature of the President of the Association, shall be attested by the Secretary, who shall state whether the amendment was properly adopted, and shall be acknowledged by them as officers of the Association. Amendments, once properly adopted, shall be submitted to the Oregon Real Estate Division and to the Washington County Department of Assessment for approval. Amendments, once properly adopted, approved by the Oregon Real Estate Division and approved by the Washington County Department of Assessment, shall be effective upon recording in the Washington County Records. Any decision changing the percentage of interest expressed herein, except as provided herein, shall require the unanimous consent of the unit owners and their mortgagees.

Except as otherwise provided herein, Exhibit "B" shall be amended by revised versions or revised portions thereof referred to and described as to effect in an amendment to the Declaration, adopted as provided for herein. Copies of any such proposed amendment to the plat shall be made available for the examination of every unit owner. Such amendment to the plat shall be effective when properly adopted and recorded in the appropriate county offices in conjunction with the Declaration amendment.

The Declarant may, at any time until all units have been sold by Declarant, record an amendment to the declaration in the manner prescribed by ORS 91.563(4) revising the assignment of garage spaces to units. Such amendment need not otherwise comply with the requirements of this article.

Declarant on Declarant's sole signature, may at any time until all units have been sold by Declarant file an amendment to the Declaration and to the plat to conform them to the actual location of any of the constructed improvements and to establish, vacate and relocate utility easements, access road easements and parking areas. Any decision or any failure to act on the part of the unit owners that intends or requires discontinuance of this condominium or that intends or requires removal of the property from the provisions of the Act shall, if such decision or failure to act is sufficient with respect to condominiums under the Act, also terminate and discontinue the effect of any and all of the covenants, conditions and restrictions set forth herein, and all the covenants, conditions and restrictions sot forth on any exhibit attached hereto and all the provisions of the plat attached hereto, unless other specific provision is made for recorded amendments to the Declaration and (if required) to the plat.

(26)  SUBDIVISION.  Subdividing and/or combining of any land, building or buildings, unit or units, general common elements and facilities or limited common elements and facilities are authorized only as follows:

(a)   Any owner of any unit may propose any subdividing or combining of a unit or units and the appurtenant common elements or limited common elements, by submitting in writing to the Association's Board of Directors, a proposed amendment to the Declaration, a proposed revised plat covering such subdividing or combining, together with complete plans and specifications for accomplishing the same, which shall then notify all of the unit owners of the requested subdivision or combination.

(b)   Subject to Article 26(a), upon written approval of such proposal by one-hundred percent (100%) of the unit owners and upon approval of all first mortgagees, the unit owner making a proposal may proceed according to such plans and specifications, provided that the Board of Directors of the Association may in its discretion require that the Board administer the work or that provisions for the protection of other units or general or limited common elements or reasonable deadlines for completion of the work be inserted in the contracts for the work. It is not mandatory that the Board exercise this authority.

(c) The changes in the plat, it any, and the changes in the plans and Declaration shall be recorded as amendments to the plat and Declaration in accordance with the provisions of Article (25), including those provisions requiring the approval of the Oregon Real Estate Division and the Washington County Department of Assessment.

(27)  ANNEXATION.  There shall be no annexation of any land, building or buildings, unit or units, general common elements or limited common elements to the property described in this Declaration.

(28)  COVENANT RUNNING WITH LAND.  It is intended that this Declaration shall be operative as a set of covenants running with the land or equitable servitudes supplementing and interpreting the Act and operating independently of the Act should the Act be, in any respect, inapplicable.

(29)  MORTGAGEE'S ACCEPTANCE.  This Declaration shall not initially be binding upon any mortgagee of record at the time of recording said Declaration, but rather shall be subject and subordinate to said mortgagee.

Declarant shall not consummate the conveyance of title of any unit until said mortgagee shall have accepted the provisions of this Declaration and made appropriate arrangements in accordance with the Act for partial release of units with their appurtenant limited common elements and percentages of interest in general common elements from the lien of said mortgagee. The issuance and recording of the first such partial release by said mortgagee shall constitute its acceptance of the provisions of this Declaration and the condominium status of the units remaining subject to its mortgage, as well as its acknowledgment that such appropriate arrangements for partial release of units have been made, provided that, except as to units so released, said mortgage shall remain in full effect as to the entire property.

(30)  EFFECTIVE DATE.  This Declaration shall take effect upon recording.

declarant signature

STATE OF OREGON     )
                    )   ss.
County of Multnomah )

Personally appeared WILLIAM S. WALKER and RAUL FONDA, who, being duly sworn, each for himself and not one for the other, did say that the former is the President and that the latter is the Secretary of WILLIAM S. WALKER INVESTMENT COMPANY, an Oregon corporation, and that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors; and each of them acknowledged said instrument to be its voluntary act and deed.

notary

WASHINGTON COUNTY APPROVAL OF



The Declaration of  Country Club Condominiums  is herewith approved,



DATED this  7th  day of  September  1979.



DEPARTMENT OF ASSESSMENT AND TAXATION
Donald w. Mason, Director

assessment and taxation signature



APPROVAL OF


The undersigned, Real Estate Commissioner of the State of Oregon, herewith approves the declaration and By-Laws of  Country Club Condominium , a condominium in Washington County, Oregon.

Real Estate Commisioner signature

Country Club Condominium, a condominium located in the John S. White Donation Land Claim No. 51 in Section 24, Township 1 North, Range 2 West, of the Willamette Meridian, Washington County, Oregon, more particularly described as follows:

Beginning at an iron pipe that bears North 88° 02' 17" West 278.99 feet and South 02° 08' 02" East, 279.48 feet and South 49° 13' 43" West 205.19 feet from the Southeast corner of the Stephan A. Holcomb Donation Land Claim No. 67 said initial point being a point on the Southerly line of a 380.00 foot-wide power transmission line easement granted to Portland General Electric Company; thence leaving said Southerly line North 49° 13' 43" East, 55.37 feet; thence North 02* 59' 27" East, 91.36 feet to a point of curvature; thence 129.84 feet along the arc of an 80.00 foot radius curve to the left through a central angle of 92° 59' 57" to a point of tangency; thence West 112.87 feet to a point of curvature; thence 141.37 feet along the arc of a 180.00 foot radius curve to the right through a central angle of 45 00' 00" to a point of tangency; thence North 45° 00' 00" West 143.67 feet to a point of curvature; thence 85.75 feet along the arc of a 120.00 foot radius curve to the left through a central angle of 40° 56' 26" to a point of tangency ; thence North 85° 56' 26" West 196.50 feet to a point of curvature; thence 23.83 feet along the arc of a 20.0C foot radius curve to the left through a central angle of 68° 15* 29" to a point on the arc of a 439.26 foot radius curve to the left, said point and said curve being on the Easterly right-of-way of Northwest Neakahnie Avenue; thence Northerly 99.35 feet along the arc of said 439.2"S foot radius curve to the left through 8 central angle of 12° 57* 34" to a point of intersection with a 20.00 foot radius curve to the left and concave to the Northeast; thence Southeasterly 34.48 feet along the arc of said curve through a central angle of 98° 46' 57" to a point of tangency; thence South 85° 56' 26" East 169.21 feet to a point of curvature; thence 128.62 feet along the arc of a 180.00 foot radius curve to the right through a central angle of 40°56'26" to a point of tangency ; thence South 45° 00' 00" East 143.67 feet to a point of curvature; thence 94.25 feet along the arc of a 120.00 foot radius curve to the left through a central angle of 45° 00' 00" to a point of tangency; thence East 112.87 feet to a point of curvature; thence 227.22 feet along the arc of a 140.00 foot radius curve to the right through a central angle of 92° 59* 27" to a point of tangency; thence South 02° 59' 27" West 131.26 feet to a point on the Southerly line of the aforementioned power transmission easement, said point bears South 86° 05' 39" East 100.00 feet from the initial point; thence along said Southerly line South 86° 05' 39" East 253.18 feet; thence South 08° 47' 39" East 76.91 feet; thence South 13° 30' 00" West 190.00 feet; thence South 25° 17' 00" West 120.00 feet; thence South 52° 20' 00" West 190.00 feet; thence South 02° 20' U0" West 165.00 feet; thence South 42° 36' 00" West 140.00 feet to a point on the Southwesterly line of Parcel IV conveyed to Gregory C. Walker, et al by deed recorded April 24, 1978, in fee No. 78-18493 rerecorded May 1, 1978 in fee No. 78-18493; thence North 33° 04' 39" West 605.00 feet;thence North 49° 13' 43" East 87.00 feet; thence South 30° 50' 03" East 30.98 feet; thence North 60° 22' 56" East 125.25 feet; thence North 29° 49' 05" West 55.76 feet; thence North 49° 13' 43" East 198.91 feet; to the initial point end point of beginning.

EXHIBIT "A"

map of buildings condo unit property dimensions driveway map