Article IV – Administration of the Association

Note: The “Covenants” posted on these pages have been reformatted slightly to make the suitable for Internet posting. Although it is believed that the content is accurate, in any situation where there is discrepancy between this posted document and the official covenants filed with DuPage County, the legally filed document will take precedence.

AMENDED
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
OF THE ORCHARD BROOK HOME ASSOCIATION

ARTICLE IV: ADMINISTRATION OF THE ASSOCIATION

4.1 Duties of the Association: The Association acting exclusively through its Board of Directors shall

a) provide for the operation, care, upkeep, maintenance, replacement and improvement of the Common Areas;

b) provide for the employment and dismissal of the personnel necessary or desirable for the operation, care, upkeep, maintenance, replacement and improvement of the Common Areas and the administration of the Association;

d) acquire and maintain comprehensive public liability, property damage, worker’s compensation, employer’s liability Insurance, officers’ and directors’ liability insurance and other insurance in such limits as the Board shall from time to time deem necessary or desirable, insuring the Association, its Board of Directors, officers, managers, agents, employees, and Members from liability;

e) pay Common Expenses;

f) pay real property taxes, special assessments, and any other special assessments, taxes or charges of the State of Illinois or of any political subdivision thereof, or other lawful taxing or assessing body, which are authorized by law to be assessed and levied upon the real property of the Association;

g) pay such income, employer, unemployment, sales and other taxes as the Association is legally obligated to pay;

h) levy and collect assessments in accordance with this Amended Declaration and collect all other amounts due to the Association;

i) impose charges for late payment of assessment or any other expenses lawfully agreed upon, and after notice and an opportunity to be heard, levy reasonable fines for violation of this Amended Declaration, the Association’s By-laws, and the Rules and Regulations;

j) prepare and mail or deliver to the Members the annual budget -for the Association not less than thirty (30) days prior to the meeting of the Board of Directors concerning the adoption of the proposed budget;

k) adopt, amend and publish, from time to time, Rules and Regulations governing the Common Areas and use of the Common Areas by Members and all other persons or entities (“Rules and Regulations”), architectural controls as provided in Article X of this Amended Declaration and those aspects relating to the use and maintenance of the exterior of the Lots of the Subject Properties provided in this Amended Declaration; provided that no Rule or Regulation may conflict with this Amended Declaration;

l) keep, maintain and furnish to all Members of the Association an itemized accounting of the common expenses for the preceding year actually incurred or paid, together with a tabulation of the amounts collected pursuant to the budget or assessment, and showing the net excess or deficit of income over expenses, plus reserves;

m) encourage and sponsor activities and functions which promote a sense of community within the Subdivision and Subject Properties, including social activities for Members and their families;

n) seek relief, when necessary, on behalf of all Owners from or in connection with the assessment or levying of real property taxes, special assessments, and any other taxes or charges of the State of Illinois or of any political subdivision thereof or of any taxing or assessing body in connection with the Common Areas;

o) obtain approvals and present, enforce or defend the rights or interests of the Owners in matters of common interest before public bodies, administrative agencies or courts having competent jurisdiction;

p) perform the duties and fulfill the responsibilities of the Association set forth elsewhere in this Amended Declaration;

4.2 Real Property: The Association shall have the right to own, convey, encumber, lease and otherwise deal with real property owned or conveyed to it or purchased by it, to dedicate a portion of the Common Areas to a public body for use as, or in connection with, a street, utility, recreational area or other public use; provided however, in no event may the Association sell or dedicate real property except with the assent of two-thirds of the Members. In no event may the Association purchase real property except with the assent of two-thirds of the Members in good standing voting in person or by proxy at a meeting duly called for this purpose at which a quorum described in paragraph 11.6 is present. The Association shall further have the power to grant easements in the Common Areas for public use, public utilities, television cable and communications lines.

4.3 Capital Improvements: The Association shall have the right to make or cause to be made alterations, capital improvements or additions to the Common Areas including lands and waterways dedicated for public use.

4.4 Right to Borrow and Service Debt: The Association shall have the power to borrow funds and in connection therewith to grant a security interest in all or any part of the Common Areas for the purpose of making, renovating, repairing or replacing capital improvements to the Common Areas and to refinance or restructure any debt of the Association; provided however, that in no event may the Association increase the then current aggregate borrowings of the Association in excess of $ 100,000 except with the assent of two-thirds of the Members in good standing voting in person or by proxy at a meeting duly called for this purpose at which a quorum described in paragraph 11.6 is present. With respect to any debt authorized hereby, the Association shall have the power and authority to execute such loan documents as are customarily required in the Chicago Metropolitan Area. The maximum amount by which the then current aggregate borrowings may be increased without vote of the Members shall be adjusted annually after the date hereof by any increase in the Consumer Price Index (U.S. City Averages for Urban Wage Earners and Clerical Workers, All Items, of the United States Bureau of Labor Statistics).

4.5 Association’s Authority to Employ Others: The Association may employ such persons and entities and the services of such accounting, architectural, construction, design, environmental, engineering, finance, insurance, legal, management, maintenance, planning, real estate, tax or other expertise or professional or consulting services as the Board may from time to time determine necessary or desirable to assist it in fulfilling its duties and responsibilities or to act on behalf of the Members. All agreements, contracts, vouchers for payment of expenditures and other instruments shall be signed on behalf of the Association in accordance with the Association’s By-laws.

4.6 Authority of Association to Lease or License: The Association shall have the right to lease or to grant licenses or concessions with respect to the Common Areas, when reasonably deemed to be in the best interests of the Members.

4.7 Business or Political Activity: Nothing in this Amended Declaration shall be construed to give the Association authority to conduct a business for profit on a continuing basis on the Common Areas or any part of the Subject Properties or otherwise. Nothing contained herein, however, shall prohibit the Association from conducting, engaging in or permitting activities from time to time which are designed to raise money for the Association’s use and benefit or for charitable causes. The Association shall not support a political party, a political position which does not directly effect the interest of the Association in carrying out its functions in accordance with this Amended Declaration or an individual political candidate in any public election without in each case the affirmative vote of two-thirds of the Members in good standing voting in person or by proxy at a meeting duly called for this purpose at which a quorum described in paragraph 11.6 is present. 9

4.8 Books and Records: The Association shall maintain the following records and make them available for examination and copying at convenient hours of weekdays by any Member or Owner or their duly authorized agents or attorneys:

a) Copies of this Amended Declaration as recorded, the Association’s Articles of Incorporation and By-laws, and the Rules and Regulations adopted by the Association, together with* any amendments thereto and any other recorded documents effecting the Association or the Subject Properties;

b) Detailed and accurate records in chronological order of the receipts and expenditures effecting the Association, specifying and itemizing the maintenance and repair expenses of the Common Areas and any other expenses incurred;

c) Copies of all contracts, leases or other agreements entered into by the Association;

d) Minutes of all meetings of the Association and the Board of Directors for not less than the immediately preceding seven (7) consecutive years;

e) Ballots and proxies related thereto, if any, for any election held for the Board of Directors and for any other matters voted on by the Members of the Association for the period of not less than the immediately preceding (1) one year;

f) Such other records as are available for inspection by members of a not-for- profit corporation organized under Illinois law. The Association may charge a reasonable fee for fulfilling a request for copies of any records.

4.9 Audit: The Association shall cause its accounting records to be audited and certified annually by an independent certified public accountant prepared in accordance with generally accepted accounting principles consistently applied.

4.10 Information to Purchasers of Lots: In the event of the sale of a Lot in the Subject Properties, the Association shall, within not more than thirty (30) days of the written request from the Owner of the Lot, make available to the prospective purchaser for inspection or copying, the following:

a) A copy of this Amended Declaration, other instruments effecting the use of the Subject Properties and any Rules and Regulations duly adopted by the Association in accordance herewith;

b) A statement of any liens, including a statement of the account of the Lot in question setting forth the amounts of unpaid assessments and other charges, if any, then currently due and owing;

c) A statement of any capital expenditures anticipated by the Association within the current or succeeding two (2) fiscal years;

e) A statement of the status and amount of any reserve for replacement fund and any portion of such fund earmarked for any specified project by the Board of Directors;

f) A copy of the statement of financial condition of the Association for the last fiscal year for which such a statement is available;

g) A statement of the status of any pending suits or judgments in which the Association is a party;

h) A statement as to whether or not any improvements or alterations made with respect to any Lot by the prior Owner or Member are in good faith believed to be in compliance with the standards set forth in this Amended Declaration. A reasonable fee covering the direct out-of-pocket cost of copying and providing such information may be charged by the Association or its Board of Directors and paid by the seller of the Lot.

4.11 Funds and Titles for the Benefit of Owners: All funds and all property, whether real or personal, acquired by the Association, and the proceeds thereof, shall belong to and shall be held for the benefit of the Members for the purposes stated in this Amended Declaration. The Association shall have no authority to voluntarily forbear collection of assessments from any Owner.

4.12 Qualify Under the Forcible Entry and Detainer Act: The Association shall comply with the requirements prerequisite to having the rights available to Common Interest Communities under the Illinois Code of Civil Procedure or other statute to maintain an action in forcible entry and detainer to enforce collection of assessments or expenses of the Association.