THE STATE OF TEXAS § FIRST AMENDED CONDOMINIUM DECLARATION § FOR THE PADDOCK CONDOMINIUM COUNTY OF TRAVIS J ?/}/£ J~i # / C S' ^ WHEREAS, on the 26th day of January, 1983 the Hamlets Corporation (Declarant) acting by and through its duly authorized President filed of record in the Condominium Declaration for the Paddock Condominium which Declaration and the Exhibit thereto, including the By-Laws for the Paddock Home Owners Association were filed in Volume 7973, Page 71, Travis County Condominium Records; d ' 3-32-1736 WHEREAS, Declarant reserved the right to amend said Declaration to conform said Declaration to the Requirement of the Federal National Mortgage Association; and NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS the Condominium Declaration for the Paddock Condominium is amended as follows: (1) Exhibit "B" pages 1-22 are amended to show the designation of parking spaces as Limited Common Elements, said parking space being shown on Exhibit "B" pages 1-22 attached hereto and incorporated herein by reference for all purposes. (2) Article II. § 2.03 "Description of Condominium Unit" is amended to read as follows: § 2.03 Description of Condominium Units Ingress and Egress Easement. Every deed, Teased mortgage^ trust deed or other instrument may legally describe a condominium unit by its identifying unit number, followed by the words THE PADDOCK CONDOMINIUMS and by a reference to this recorded Declaration and Map. Every such description shall be deemed good and sufficient for all purposes to convey, transfer, encumber or otherwise affect the general common elements. The grantee of said ed shall, whether or not specifically stated in said Deed, have an unrestricted right of ingress and egress over the general common elements to his or her condominium unit, said right to be perpetual and shall pass to subsequent owners of said Unit. (3) Article IV § 4.01 "Monthly Maintenance, Management and Insurance Assessment" is amended to read as follows: § 4.01 Monthly Maintenance, Management and Insurance Assessment. The assessments made shall be based upon the cash requirements deemed to be such aggregate sum as the Managing Agent or Board of Directors of the Association shall from time to time determine is to be paid by all of the owners, including Declarant, to provide for the payment of all estimated expenses growing out of or connected with the maintenance and operation of the general common elements, which sum may include, among other things, cost of management, assessments, fire insurance with extended coverage and vandalism and malicious mischief with endorsements attached, issued in accordance with the provision of this Declaration, casualty and public liability and other insurance premiums, landscaping and care of grounds, common lighting, repairs and renovations, garbage collections, wages, water charges, electricity charges, gas charges, legal and accounting fees, management fees, expenses and liabilities incurred by the Managing Agent or Board of Directors under or by reason of this Declaration, the payment of any deficit remaining from a previous period, the creation of a reasonable contingency or other reserve or surplus funds as well as other costs and expenses relating to the general common elements. The limited common elements shall be maintained as general common elements and owners having exclusive use thereof shall not be subject to any special charges or 8209 . 849 assessments for the repair or maintenance thereof. The omission or failure of the Board to fix the assessment for any month shall not be deemed a waiver, modification, or a release of the owners from the obligation to pay. The assessments shall commence as of the first day of the month following the month in which the first unit is conveyed. Taxes are not part of the common expenses except as otherwise provided in Article VIII, § 8.04 hereof. Each owner shall pay for his own utilities which are separately metered and billed to each unit by the respective utility companies. Utility expenses which are not separately billed or metered shall be part of the common expenses and each unit owner shall pay his pro-rata share thereof as in the case of other common expenses. (4) Article IV § 4.05 "Assessment Lien" is amended to read as follows: § 4.05 Assessment Lien. All sums assessed by either regular or special assessments but unpaid for the share of common expenses chargeable to any condominium unit, including interest thereof at ten (10%) per cent per annum, shall constitute a lien on such unit superior {prior) to all other liens and encumbrances, except only for: (a) Tax and special assessment liens in favor of any assessing unit, and (b) All sums unpaid on a first mortgage or first Deed of Trust of record, if the mortgage or Deed of Trust was recorded before the Assessment was due, including all unpaid obligatory sums as may be provided by such encumbrance, and including additional advances made thereon prior to the arising of such a lien. To evidence such lien the Board of Directors or Managing Agent may, but shall not be required to, prepare a written notice setting forth the amount of such unpaid indebtedness, the name of the owner of the condominium unit and a description of the condominium unit. Such a notice shall be signed by one of the Board of Directors or by the Managing Agent and may be recorded in the Office of the County Clerk of Travis County, Texas. Such lien for the common expenses shall attach from the date of the failure of payment of the assessment. Such lien may be enforced by foreclosure of the defaulting owner's condominium unit by the Association in like manner as a mortgage on real property upon the recording of a notice or claim thereof. In any such foreclosure, the owner shall be required to pay the costs and expenses of such proceedings, the costs and expenses for filing the notice or claim of line and all reasonable attorney's fees. The owner shall also be required to pay to the Association a reasonable rental for the condominium unit during the period of foreclosure, and the Association shall be entitled to a receiver to collect the same. The Association shall have the power to bid on the condominium unit at foreclosure sale and to acquire and hold, lease, mortgage and convey the same. The amount of the common expenses assessed against each condominium unit shall also be a debt of the owner thereof at the time the assessment is made. Suit to recover a money judgment for the unpaid common expenses shall be maintained without foreclosure or waiving the lien securing same. Any encumbrancer holding a lien on a condominium unit may pay any unpaid common expense payable with respect to such unit, and upon such payment such encumbrancer shall have a lien on such unit for the amounts paid of the same rank as the lien of his encumbrance. 8209 , 850 -2- Each owner, by acceptance of a deed to a condominium unit, hereby expressly vests in the Association or its agents the right and power to bring all actions against such owner personally for the collection of such charges as a debt, and to enforce the aforesaid lien by all methods available for the enforcement of such liens, including non-judicial foreclosure pursuant to Article 3810 of the Texas Revised Civil Statutes, or any other duly enacted law of the State of Texas, and such owner hereby expressly grants to the Association a power of sale in connection with said lien. 3-32-1738 (5) Article IV § 4.06 Liability for Assessment Upon Transfer of Condominium Unit** is amended to read: § 4.06 Liability for Assessment upon Transfer of Condominium Units. Upon payment To the Association of a reasonable fee not to exceed Twenty-Five and No/100 ($25.00) Dollars, and upon the written request of any owner or any encumbrancer or prospective encumbrancer of a condominium unit, the Association, by its Managing Agent or Board of Directors, shall issue a written statement setting forth the unpaid common expenses, if any, with respect to the subject unit, the amount of the current monthly assessment and the date that such assessment becomes due, credit for advanced payments or for the prepaid items, including but not limited to insurance premiums, which shall be conclusive upon the Association in favor of all persons who rely thereon in good faith. Unless such request for a statement of indebtedness shall be complied with within ten (10) days, all unpaid common expenses which become due prior to the date of making of such request shall be subordinate to the lien of the person requesting such statement. The grantee of a unit shall not be liable with the grantor for all unpaid assessments against the latter for his proportionate share of the common expenses up to the time of the grant or conveyance unless the grantee assumes liability for the payment thereof. Nothing herein shall be construed to invalidate or release the lien or liens placed on the unit for nonpayment of Assessments, (6) Article V § 5.01(A) Fire and Extended Coverage11 is amended to read as follows: 5 5.01(A).Fire and Extended Coverage. The Managing Agent or Board of Directors shall maintain at all times Texas Multi-Peril Condominium Insurance insuring such risks as are customarily covered with respect to condominium buildings including the entire premises", insuring one hundred percent (100%) of the current replacement cost of the condominium including all general and limited common elements, fixtures and improvements including fixtures and improvements within the condominium units constituting THE PADDOCK CONDOMINIUMS. This insurance shall be issued by "responsible insurance companies authorized to do business in the State of Texas preferably upon forms prescribed or approved by the Texas State Board of Insurance naming the insured as "Association of the Owners of the Paddock Condominium for the Use and Benefit of the Individual Owrer" which policy or policies indemnify the interests of each condominium unit owner, shall provide for the standard non-contributory mortgagee clause in favor of each mortgagee and which policies shall be endorsed with such endorsement as may be required by the mortgagee of a unit, FHLMC, or FNMA, including the following endorsements (1) Agreed Amount and reflation Guard Endorsement: (2) Construction Code Endorsement: (3) Steam Boiler Coverage Endorsement, of Boilers are used. The "Loss payable clause" of the master policy should show the Owners' association as a Trustee for each unit owner and the holder of each units mortgage, and which must contain the 8209 851 -3 standard mortgage clause naming each mortgagee of a condominium unit, its successors and assigns, or at the written direction of the mortgagee, shall name its assignee, such a FNMA, or FHLMC. If any part of the project is in a special flood hazard area, as defined by the Federal Emergency Management Agency, the owners' association must maintain a "master" or "blanket" policy of flood insurance and provide for the premiums to be paid as a common expense. The policy should cover the buildings and any other property located within the designated hazard area. The amount of which insurance should be at least equal to the lesser of (1) 100% of the current replacement cost of all buildings and other insurable property located in the flood hazard area; or (2) the maximum coverage available for the property under the National Flood Insurance Program. All policies shall also provide that they cannot be canceled or substantially changed by either the insured or the insurance company until after ten (10) days prior written notice to each first mortgagee. Said Managing Agent or Board of Directors shall, upon request of any first mortgagee, furnish a certified copy of such blanket policy and the separate certificate identifying the interest of the mortgagor. All policies of insurance shall provide that the insurance thereunder shall be invalidated or suspended only in respect to the interest of any particular owner guilty of a breach of warranty, act, omission, negligence or non-compliance of any provision of such policy, including payment of the insurance premium applicable to that owner's interest, or who permits or fails to prevent the happening of any event, whether occuring before or after a loss, which under the provisions of such policy would otherwise invalidate or suspend the entire policy, but the insurance under such policy, as to the interests of all other insured owners not guilty of any such act or omission, shall not be invalidated or suspended and shall remain in full force and effect. Provided further, the Home Owner's Association, in order to preserve the integrity of the Condominium Project, shall be deemed to have an "insurable interest" in each condominium unit and the property contained within the unfinished interior surface of the perimeter walls, floors and ceiling of cadi unit, and may insure such property and improvements within the interior unfinished perimeter walls, floors, and ceiling of each condominium unit, and may insure fixtures, installations or additions comprising a part of the building within the unfinished interior surfaces of the perimeter walls, floors and ceilings of individual condominium units initially installed, or replacements thereof, in accordance with the original condominium plans and specifications, (7) Article V § 5.02 "Liability Insurance" is amended to read as follows: 5 5.02. Liability Insurance. The Board of Directors shall maintain a policy of comprehensive public liability insurance in an amount not less than one million dollars ($1,000,000.00) and property damage insurance against claims for personal injury or death, or property damage suffered by the public, or any owner, family, agent, employee, or invitee of an owner, occurring in, or on or about the limited or general common elements hereof, including, but not limited to walkways, terraces, passageways, driveways, roadways, stairs, or property adjoining the condominium, which public liability and property damage insurance shall afford protection to such limits and extent as the Board of Directors deems desirable. Said liability insurance should also provide coverage for any legal liability that results from law suits related to employment contracts in which the owners1 association is a party. Provided further that such liability and property damage insurance policy shall contain a cross-liability endorsement wherein the rights of named insured under the policy or policies shall not prejudice his, her, or their action or actions against another named insured. This liability coverage does not insure the individual unit owner for liability or damages arising out of the use of his individual condominium unit as 8209 852 -4 distinguished from the common elements of the condominium project. Such policies must provide that they may not bo cancelled or substantially modified, by any party, without at least ten (10) days' prior written notice to the Home Owners Association and to each holder of a first mortgage which is listed as a scheduled holder of a first mortgage in the insurance policy. (8) Article V | 5.03 "Fidelity Bond" is amended to read as follows: § 5.03. Fidelity Bond. The Association shall maintain a blanket fidelity bondwith the Home Owner Association named as obligee, for all the officers, directors, trustees, and employees of the Association, and all other persons handling or responsible for funds of or administered by the Home Owner's Association and that such bond shall at all times satisfy the requirements of FNMA/FHLMC. The Fidelity Bond must include a provision requiring a ten (10) day written notice to the owners' association, and mortgagee of a unit before the bond can be substantially modified or cancelled. § (9) Article VI §6.02 is amended to read as follows: §6.02. Damage to LESS Than Two-Thirds of Common Elements - Procedure for Repair and Restoration. I £ the insurance proceeds are insufficient to repair and reconstruct the "improvements", and if such damage is less than two-thirds (2/3) of all of the common elements, not including land, such damage or destruction shall be promptly repaired and reconstructed by the Association, as attorney-in-fact, using the proceeds of insurance and the proceeds of an assessment to be made against all of the owners and their condominium units. The cost of restoration and repair in excess of the insurance proceeds shall be a common expense made pro-rata according to each owner's percentage interest in and Lu the general common elements and shall be due and payable within thirty (30) days after written notice thereof. The Association shall have the authority to cause the repair or reconstruction of the "improvements" using all of the insurance proceeds for such purpose notwithstanding the failure of an owner to pay the assessment. The assessment provided for herein snail be a debt of each owner and a lien on his condominium unit and may be enforced and collected as is provided in Article IV, §4.05. The proceeds derived from the sale of such condominium unit upon foreclosure of a lien for non-payment of assessments shall be used and disbursed by the Association, in the following order: (1) For payment of the balance of the lien of any first mortgage; (2) For payment of taxes and special assessment liens in favor of any assessing entity; (3) For payment of unpaid common expenses including cost and expenses provided for m Article IV, §4.05; (4) For payment of junior liens and encumbrances in order of and to the extent of their priority; and (5) The balance remaining, if any, shall be paid to the condominium unit owner. Any restoration or repair of the project shall be performed substantially in accordance with the declaration and the original plans and specifications, unless other action is approved by eligible holders holding mortgages on unit estates which have at least fifty-one percent (51%) of the votes of unit estates subject to eligible holder mortgages. 5- 8209 . 853 (10) Article VI §6.03 is amended to read as follows: §6.03. Damage to Two-Thirds or MORE of Common Elements - Procedures for Repair and Restoration. If more than two-thirds (2/3) of all of the general" common elements, not including land, are destroyed or damaged, and if the owners representing an aggregate ownership interest of one hundred percent (100%) of the condominium units do not voluntarily, within one hundred (100) days thereafter, make provision for reconstruction, which plan must have the unanimous approval or consent of the holders of all ^ the first mortgages, the Association shall forthwith record a notice setting forth such fact or facts, and upon the recording of OJ such notice by the Association's president and secretary, the ; entire remaining premises shall be sold by the Association, as jvj attorney-in-fact, for all of the owners, free and clear of the t provisions contained in this Declaration, the Map and the By-Laws. Z3 The insurance settlement proceeds shall be collected by the .p*. Association, and such proceeds shall be divided by the Association -- according to each unit owner's interest (as such interest appear on the policy or policies), and such divided proceeds shall be paid into individual separate accounts, each such account representing one of the condominium units. Each such account shall be in the name of the Association, and shall be further identified by the number of the apartment unit and the name of the owner. From each separate account, the Association, as attorney- in-fact, shall use and disburse the total amount (of each) of such accounts, without contribution from any account to another, toward the full payment of the lien of any first mortgage against the condominium unit represented by such separate account. There shall be added to each such account, the apportioned amount of the proceeds derived from the sale of the entire property. Such apportionment rhall be based upon each condominium unit owner's interest in the general common elements. The total funds of each account shall be used and disbursed, without contribution from one account to another, by the Association, as attorney-in-fact, for the same purposes and in the same order as is provided in §6.02 above. If the owners representing an aggregate ownership interest of one hundred percent (100%) of the condominium units adopt a plan for reconstruction, which plan has the unanimous approval of all first mortgages, then all of the owners shall be bound by the terms and other provisions of such plan. Any assessment made in connection with such plan shall be a common expense and made pro rata according to each owner's interest in the general elements and shall be due and payable as provided by the terms of such plan but not sooner than thirty (30) days after written notice thereof. The Association shall have the authority to cause the repair or restoration of the improvements using all of the insurance proceeds for such purpose notwithstanding the failure of an owner to pay the assessment. The assessment provided for herein shall be a debt of each owner and a lien on his condominium unit and may be enforced and collected as is provided in Article IV, §4.05. The proceeds derived from sale of such condominium unit upon forclosure of a lien for non-payment of assessments shall be used and disbursed by the Association, as attorney-in-fact, for the same purposes and in the same order as is provided in subparagraph (b) (1) through (5) of §6.02 above. (11) Article VI §6.05 is amended to read as follows: §6.05. Obsolescence of Common Element - Abandonment, Sale and Distribution of Proceeds^ The owners representing an aggregate ownership interest 'of ninety (90%) percent of the condominium units, or more, with the unanimous consent of the condominium units, or more, with the unanimous consent of the holder of all the first mortgages, may agree that the general common elements of the property are obsolete and that the same should be sold. In such instance, the Association shall forthwith -6- 8209 . 854 record a notice setting forth such fact or facts, and upon the recording of such notice by the Association, as attorney-in-fact, for all of the owners, free and clear of the provisions contained in this Declaration, the Map and the By-Laws, the Association shall serve as agent for the owners in any proceedings, negotiations, settlements or agreements regarding liquidation or termination. The sames proceeds shall be paid to the Association for the beneift of the unit owners and their mortgagees, and apportioned between the owners and their mortgagees on the basis of each owner's interest in the general common elements, and such apportioned proceeds shall be paid into individual separate accounts, each such account representing one condominium unit. Each such account shall be in the name of the Association, and shall be further identified by the number of the condominium unit and the name of the owner. From each separate account, the Association, as attorney-in-fact, shall use and disburse the total r t amount (of each) of such funds, without contributuion from one I fund to another, for the same purposes and in the same order as is ^ provided in subparagraph (b) (1) through (5) of §6.02 above. | (12) Article VII § 7.02, subparagraph (c) "Examination of Books" is amended to read as follows: (c) Examination of Books. The Association shall permit first mortgagees, insurers or guarantors of first mortgagees to examine the declaration, by-laws, rules promulgated by the board, books, records and financial statements of the Association during normal business hours. (13) Article VIII § 8.06 "Eminent Domain'1 is amended to read as follows: § 8.06. Eminent Domain. In any and all Eminent Domain or condemnation proceedings, where all, or any portion of the common elements are subject to being taken, the Paddock Home Owner's Association is herein designated as agent, and attorney-in-fact for the unit Owners, and shall represent the unit Owners m all proceedings, negotiations, settlements or agreements involving such eminent domain and condominium proceedings the award for the taking of the common elements, whether by judicial decree, or settlement, shall be payable to the association for the benefit of the unit Owners and their mortgagees. If any repair or rebuilding of the remaining portions of the Project is required as a result of such taking, the remaining Owners shall determine by the affirmative vote or written consent of Owners owning a majority of the Common Interest owned by said remaining Owners, either to rebuild or repair the Project or to take such other action as such remaining Owners may deem appropriate. If no repair or rebuilding shall be required, or shall be undertaken, the remaining portion of the Project shall be re-surveyed, and the Declaration and Master Deed shall be amended to reflect such taking and to proportionately readjust the percentages of ownership of the remaining Owners based upon a continuing total ownership of the Project of one hundred percent (100%). The award shall be utilized for the repair and rebuilding as a majority has determined necessary. If as a result of the eminent domain or condemnation the Owners pursuant to Article 6.05 of this Declaration vote to abandon and terminate the project, the award will be added to the funds acquired pursuant to the sale of the remaining common element pursuant to Article 6.05, and distributed according to the priorities established in Article 6.02(b)(1) through (5). In the event of taking of any condominium unit as distinguished from the physical common elements by eminent domain or sale or other transfer in lieu thereof, the Owner of such Unit and the mortgagee as their interests may appear shall be entitled to receive the award for such taking and after acceptance thereof, he and his Mortgagee shall be divested of all interest in the -7- 8209 855 Project if such Owner shall vacate and abandon his Unit by virtue of such taking. No condemnation or sale in lieu thereof shall affect the lien priority of an Institutional Lender on the Unit on which it holds a Mortgage or on proceeds of condemnation of that Unit. (14) Exhibit "D", By-Laws, Article I, Section 1 is amended to read as follows; The purpose for which this non-profit corporation is formed is to govern the condominium property situated in the County of Travis, State of Texas, which property is described on Exhibit A", attached to the Condominium Declaration for THE PADDOCK CONDOMINIUMS, which by this reference is made a part hereof, and which property has been submitted to the provisions of the Condominium Act of the State of Texas. All the terms, conditions, definitions and covenants of the said Condominium Declaration for THE PADDOCK CONDOMINIUMS, hereinafter referred to as the "Declaration" are incorporated herein by reference for all purposes. (15) Exhibit "D" By-Laws, Article II, Paragraph 2, "Voting" is anended to read as follows; 2. Voting. Voting shall be based upon the undivided interest of each unit owner in the general common elements. An owner of an undivided interest in and to a condominium unit shall be entitled to a vote ecjual to his ownership interest in such unit, multiplied by that unit's percentage of ownership in the common elements. Cumulative voting is prohibited. (16) Exhibit "D" By-Laws, Article VIII, Paragraph 1 is amended to read as fo)lows: 1. By-Laws. These By-Laws may be amended by the Association at a duly constituted meeting for such purpose, and no amendment shall take effect unless approved by owners representing at least 75% of the aggregate interest of the undivided ownership of the general common elements, and 67% of the first Mortgagees have also given their approval. In addition for any amend to be valid it must, after approved as required above, be filed in the Travis County Condominium Records as an Amendment to Exhibit "D" of the Declaration for the Paddoc^ Condominium. Executed this day off , 1983. THE HAMLETS CORPORATION A Texas Corporation Secretary -8- 8209 . 856 THE STATE OF TEXAS § § COUNTY OF TRAVIS § Before me, the undersigned authority, on this day personally appeared McClure Bintliff, President, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said The Hamlets Corporation, a Texas Corporation, and that he executed the same as the act of said Texas Corporation for the purposes ana consideration therein expressed. . ^ Given under my hand and seal of office on this the n v day of fUuy ,Y , 1983. -9- 8209 ,857 xcft*r f NUft&ER. op ComDOAINIU/^ - \Ol. JoJaL KIUABER. Op ; op iwjeK^ecpoN^ except poR. osjiys wi-yi-i ^Lopeo CCGlLlNEXo. plAMES op y-HC VaLL<3 4.RE pCB. pEUO iCuL AR, fo aLL pLooR'S op aLL Ot-ll "p?. -y-Ht: pLANlES op fHE 'VaLL5 are pERp£h-JDI Cu L AR fo f-Ht. pLAxje.'-i op acL o- aLL OKuy-s^ tXCEpf pop. 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I"- Ao' BUlt-CiuC, k 4 plvf nop- it. 3~32-| SB A® } 7 j|H ng: 2s STATE Of TEXAS COUNTY OF TRAVIS I hereby cerbly that this msbcmeifl was FtLEO rn the date and at the bine 'unified hereon by rre, and vias duly RECORDED, in the Volume and Page of the named RE CORDS ol Travis County. Teias. as stamp heieon by me, on AUG 17 1983 [I /C/ ,.y \ \ V-l Y"\ Vi COUNTY CIER* TRAVIS COUNTY, TEXAS 8209 880