New Residents

BYLAWS
of
PARK GROVE ESTATES HOMEOWNERS’ ASSOCIATION

Table of Contents

I. Authority and Precedence 1
II. Members and Meetings 2
III. Board of Directors 6
IV. Officers 8
V. Miscellaneous Provisions 9
VI. Amendment 11

ARTICLE I
Authority and Precedence

1.01 Authority. These Bylaws are adopted and promulgated by the Board of Directors of the Association pursuant to Arizona Revised Statutes § 10-1012 and the authority granted in the articles of incorporation of the Association filed with the Arizona Corporation Commission, as the same may be amended from time to time.

1.02 Declaration Controls. This Association was formed and incorporated, in the first instance, pursuant to that certain Declaration of Covenants, Conditions and Restrictions of Park Grove Estates Homeowners’ Association, placed of record in the Office of the Maricopa County Recorder, as it may be amended from time to time, which is referred to in these Bylaws and generally in the affairs of the Association as the “Declaration’. No provision of these Bylaws or other governing document of the Association shall prevail over a Bylaws of Park Grove Estates Homeowners’ Association
conflicting provision of the Declaration, nor shall any act be authorized or taken, nor any policy be proposed or promulgated by or under the authority of the Association by any means other than an amendment of that Declaration, if the effect of same is to accomplish a purpose or result that would otherwise require an amendment thereof. Nothing in these Bylaws shall be deemed to restrict the Association from any action or provision that is not in conflict with the Declaration, unless expressly stated.

1.03 Precedence. In the event a conflict arises over the power and authority of the Association or one of its members, directors, officers, employees or agents to act or refrain from acting in a particular fashion, or any other conflict regarding the Association, the same shall be resolved according to the definitive provision, if any, of the governing document of the Association with the highest precedence. The precedence of such documents, from highest to lowest, is:
A. The Declaration (CC&Rs).
B. Articles of Incorporation.
C. Bylaws.
D. Resolutions of the members in meeting assembled, duly adopted and entered in the minutes.
E. Resolutions of the Board of Directors duly adopted and entered in the minutes.
F. Rules, regulations and policies established in writing by the officers of the Association.

1.04 Principal Office. The principal place of business of the Association shall be in the Park Grove Estates subdivision, or in Gilbert, Arizona from and after the time the Declarant under the Declaration ceases to hold any votes in the Association.

ARTICLE II
Members and Meetings

2.01 Membership Classes and Qualifications. The members of this Association shall be of one class, and have equal rights, privileges, responsibilities and liabilities. To be qualified for membership, a person shall meet the qualification stated in the Declaration and in these Bylaws.
A. No person under 18 years of age shall be entitled to be a member of the Association.
B. Memberships are not transferable except by transfer of title to the lot upon which membership is predicated.
C. A member must be current in the payment of the annual assessments to validate the membership and to entitle the member to all rights and privileges of same.
D. No member or group of members, or any other person or persons, shall so conduct themselves in or on Association property as to jeopardize the rights and privileges of other Association members, their guests or any other person or persons. A cease and desist order may be issued by the Association Board of Directors against such infractions and, upon failure of such infractors to comply with said order, denial of the use of Association property and suspension of other rights and privileges of membership may be ordered by the Board for such practices.
E. If ordered by the Board of Directors, each member may receive a certificate of membership in the Association, which shall be prima facie proof of membership until
evidence to the contrary is presented. Any member may be required to surrender his certificate for reissuance, cancellation or other action upon order of the Board.

2.02 Annual Meetings. A meeting of the members shall be commenced annually at such places within the State of Arizona, Maricopa County, as shall be designated by the Board of Directors, between the hours of nine o’clock a.m. and eight o’clock p.m. on the fourth Friday in April of each year, for the purpose of electing directors and for the transaction of any other business that may properly come before it. If no location is specified by the Board, the meetings shall be at the principal office of the Association.

2.03 Special Annual Meetings. Whenever from any cause an annual meeting of the members be not held on the day provided, a special annual meeting may be called by the Board in the manner and at such place as is prescribed for the holding of annual meetings of members, at which special annual meeting directors shall be elected, and shall hold office until the regular annual meeting in the year next succeeding and until others are elected and have qualified in their stead.

2.04 Special Meetings. Special meetings of the members for any purpose or purposes (except as hereinafter provided) may be called by the President, or by the Board upon a vote of the majority, and shall be called by the President upon written application to him by members holding one-tenth of the votes of the Association, such application stating the purpose or purposes of such meeting. The business transacted at any special meeting shall be limited to the purposes stated in the notice of such meeting. Provided, however, that as to any special meeting of the members held to conduct any business authorized under sections of the Declaration relating to annual, enforcement-fund and capital improvement assessments, written notice of such special meeting shall be sent to all members of record of the Association not less than thirty days nor more than sixty days in advance of said meeting. At the first meeting so called, the presence at the meeting of members or of proxies entitled to cast 60 percent of all votes shall constitute a quorum. If the required quorum is not forthcoming at such meeting, a second special meeting may be called, subject to the same notice requirement, and the required quorum at such second meeting shall be one-half of the required quorum at the preceding meeting. A third subsequent meeting may be held upon the same terms, including a further reduced quorum. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

2.05 Notice.
A. Notices of all member meetings shall conform to the provisions of these Bylaws, and in the absence of a specific conflicting provision shall be in writing, and be signed by a director or officer of the Association. All notices shall include or have appended to them an agenda or other statement of the business to be conducted at such meeting. Notices shall be delivered to all members in hand or by U.S. first-class mail, postage prepaid, to the member at his or her last known address shown on the records of the Association, not less than ten nor more than thirty days before such meeting. The affidavit of the person making delivery, placed in the minute book of the Association together with the minutes of the meeting, shall be prima facie proof of the fact of delivery of notice.
B. Notwithstanding any provision of these Bylaws, a meeting (except meetings under sections 4.03, 4.05 and 4.06 of the Declaration) may be held on four hours oral notice if (1) the President certifies that an emergency exists, (2) a director or officer certifies that reasonable efforts have been made to notice all members, and (3) there are present at such meeting in person or by proxy holders of at least 25 percent of all Association votes.
C. Whenever members holding at least 90 percent of the votes meet in person or by proxy, such meetings shall be valid for all purposes without notice, and at such meetings any Association action may be taken.

2.06 Organization. The President, or in his absence the Vice President, shall call meetings of members to order and shall act as chairman thereof. The Secretary shall act as secretary at all meetings of the members, or in his absence the presiding officer may appoint any person to act as secretary.

2.07 Quorum. Members present either in person or by proxy entitled to cast ten percent of all Association votes, shall constitute a quorum at all meetings of members. A quorum shall be presumed in the absence of a challenge.

2.08 Adjournment. If at any annual or special meeting a quorum shall fail to attend in person or by proxy, a majority of the members then represented in person or by proxy at such meeting may, at the end of an hour, adjourn the meeting from time to time without further notice until a quorum shall attend, and thereupon any business may be transacted which might have been transacted at the meeting as originally called. No single adjournment shall exceed 30 days, nor shall all such adjournments be longer than 90 days.

2.09 List of Members. At each meeting of members, a full, true and correct list, in alphabetical order, of all the members entitled to vote at such meeting, certified by the Secretary,
shall be made available for examination upon written request by any member, director or officer.

2.10 Voting and Proxies.
A. At all annual and special meetings of members, every member, either in person or by proxy, shall have a right to vote on every question. There shall be one vote for each lot in the subdivision (as defined in the Declaration) which may be cast by any member holding that vote. If two or more members are qualified to vote by reason of an interest in the same lot, then the vote of that lot shall be counted according to these rules:

1. If only one votes, his act binds.

2. If more than one votes, the act of the majority so voting binds all.

3. If more than one votes, but the vote is evenly split on any particular matter, each faction may cast the vote in question proportionally by fractions.

B. In all elections for directors of this Association, each member shall have the right to cast as many votes in the aggregate as is equal to his or her one vote multiplied by the number of directors to be elected at such election. Each member may distribute such votes among one or more such candidates as he wishes.
C. All proxies shall be in writing, shall be dated and signed by the member, shall designate the person selected as proxy and shall set forth the nature of the powers granted to the proxy. Such proxy shall be filed with the Secretary before or at

the time of the meeting, and shall be placed in the minute book. No proxy shall be valid after eleven months from the date of its execution unless otherwise provided in the proxy.

2.11 Inspectors. At all elections of directors, the proxies shall be received and taken in charge, all questions touching the qualification of voters and the validity of proxies and the acceptance or rejection of votes shall be decided, and all ballots shall be received and counted by two inspectors who shall be appointed by the presiding officer of the meeting and who shall, in writing,
certify to the returns. No action need be taken by the inspectors if a unanimous voice vote of those present is received.

2.12 Financial Statements. When the Association shall have more than ten members, a copy of the financial statements of the Association for the preceding fiscal year shall be delivered to each member at the annual meeting.

2.13 Objections. All informalities and/or irregularities in calls, notices of meetings and in the matter of voting, form of proxies, credentials, and method of ascertaining those present, shall be deemed waived if no objection is made at the meeting.

ARTICLE III
Board of Directors

3.01 Size. The business and affairs of the Association shall be managed and controlled by a Board of not less than three nor more than seven directors (referred to in these Bylaws as the Board), as may be determined from time to time by resolution of the Board.

3.02 Term. The directors shall be elected at the annual meeting of members, except as provided in the next succeeding section of this article, and each director shall hold office until the next annual meeting of members or until his successor shall have been duly elected and qualified.

3.03 Vacancies. In case of any vacancy among the directors through death, resignation, disqualification, increase in the Board or other cause, a majority of the remaining directors, whether or not constituting a quorum, may at any regular or special meeting elect a successor to hold office for the unexpired portion of the term of office.

3.04 Regular Meetings and Organization. The Board shall hold an annual organizational meeting at such place as it shall designate immediately after the adjournment of each annual members meeting, at which it shall conduct such business as is required or appears appropriate. The Board shall also meet at such other times at regular intervals as it may from time to time by resolution provide.

3.05 Special Meetings. Special meetings of the Board may be called by the President, and shall be called by the Secretary on the written request of a majority of the Board. Unless otherwise specified in the notice thereof, any and all business may be transacted at a special meeting.

3.06 Place of Meeting. The directors shall hold their meetings, both regular and special, at such places within the State of Arizona as the Board may from time to time determine.

3.07 Notice of Meeting. No notice shall be required to be given of any regular Board meeting unless held outside the subdivision or Gilbert, Arizona. The Secretary shall give notice to each director of each regular meeting for which notice is required, and of each special meeting, by mailing the same at least three days before the time of each meeting or by telegraphing or telephoning not less than two days before the time of the meeting. Whenever all of the directors meet, such meetings shall be valid for all purposes without notice. No notice of any meeting of directors shall be necessary if waiver of notice is signed by a quorum of directors.

3.08 Quorum. A majority of the Board in office at the time shall constitute a quorum for the transaction of business, but a majority of those present at the time and place of any regular or special meeting, although less than a quorum, may adjourn from time to time, without notice, until a quorum be obtained. The vote of a majority of the directors present at any meeting in favor of or against any proposition shall prevail.

3.09 Committees. From time to time, the Board may appoint committees for any purpose or purposes, whose powers shall be specified in the resolution of appointment. The committees shall keep regular minutes of their proceedings and report the same to the Board.

3.10 Compensation. The directors of the Association and all members of committees shall serve without salary, except as may be determined by the Board.

3.11 Action by Resolution. Except as otherwise provided by law, the Board shall have power to act in the following manner: A resolution in writing, signed by all the members of the Board, shall be deemed to be action by the Board to the effect therein expressed, with the same force and effect as if the same had been duly passed by the same vote at a duly convened meeting, and it shall be the duty of the Secretary to record such resolution in the minute book of the corporation under its proper date.

3.12 Transactions with Directors. No contract or other transaction between the Association and any other person shall be affected or invalidated by the fact that any one or more of the directors or officers of the Association is interested in, or is a partner, shareholder, director or officer of such other person, and no contract or other transaction between the Association and any other person or firm shall be affected or invalidated by the fact that any one or more directors of this association is a party to, or interested in, such contract or transaction; provided that in each such case the nature and extent of the interest of such director or officer in such contract or other transaction, and/or the fact that such director or officer has the stated affiliation, is known to the Board ‘or is disclosed at the meeting of the Board at which such contract or other transaction is authorized.

ARTICLE IV
Officers

4.01 Executive. The officers of the corporation shall be a President, a Vice President, a Treasurer, a Secretary, and such additional officers as the Board may determine, who shall be elected by the Board at its annual meeting. One person may hold more than one office, except the President shall not be the Secretary. Officers need not be directors, nor directors be officers.

4.02 Subordinates. The Board may appoint such other officers, including one or more assistants in each office except President, as it shall deem necessary, who shall have such authority and shall perform such duties as may be prescribed by the Board from time to time.

4.03 Tenure of Officers. All officers and agents shall be subject to removal at any time, with or without cause, as determined by the Board. The term of each officer shall in any case expire upon the adjournment of the annual meeting of directors next succeeding his election.

4.04 President. The President shall be the chief executive officer of the Association. He shall preside at all meetings of the members and of the Board. He shall have general and active management of the business of the Association, and shall see that all orders and resolutions of the Board are carried into effect. He shall execute on behalf of the Association, and may affix the Association’s seal or cause it to be affixed to all instruments requiring such execution except to the extent the signing and execution thereof shall be expressly delegated by the Board to some other officer or agent of the Association.

4.05 Vice President. In case of the absence or disability of the President, the duties of the office shall be performed by the Vice President.

4.06 Secretary. The Secretary shall keep the minutes of all proceedings of the Board and of all meetings of the members; he shall attend to the giving and serving of all notices for the Association when directed by the President; he shall sign with the President or the Vice President when required to do so, in the name of the Association, all contracts authorized by the Board, and shall affix the seal of the Association thereto; he shall have charge of the Association’s seal, certificate books, and such other books and papers as the Board may direct; and he shall in general perform all the duties incident to the office of Secretary, subject to the control of the Board.

4.07 Treasurer. The Treasurer shall have custody of all funds and securities of the Association which may come into his hands; he shall endorse, on behalf of the Association for collection, checks, notes and other obligations, and shall deposit the same to the credit of the Association in such bank or banks, or other depositories as the Board may designate; he may sign receipts and vouchers for payment made to the Association; he shall sign checks made by the Association and payout and dispose of the same under the direction of the Board; he shall sign, with the President or such other person or persons as may be designated by the Board, all authorized promissory notes and bills of exchange of the Association; whenever required by the Board, he shall render a statement of his cash accounts; he shall enter regularly, in the books of the Association to be kept by him for that purpose, full and accurate accounts of all monies received and paid by him on account of the Association; and he shall perform all other duties incident to the position of Treasurer, subject to the control of the Board.

ARTICLE V
Miscellaneous Provisions

5.01 Indemnification. The Association shall indemnify any and all of the directors or former directors of the Association, their personal representatives and heirs, and the Board may, in
its sole discretion, determine to indemnify any and all of the members, officers, employees and agents, or former members, officers, employees and agents of the Association, their personal representatives and heirs, against expenses incurred by them or judgments or penalties rendered or levied against any such person in a legal action (whether civil, criminal, administrative or other) brought against any such person for actions or omissions alleged to have been committed by any such person while acting within the scope of his employment as a director, officer employee or agent of the Association as provided in Arizona Revised Statutes, as amended. Provided however, that in all cases the Board shall determine in good faith that such person did not act, fail to act, or refuse to act willfully and in good faith, or with gross negligence, or with fraudulent or criminal intent with regard to the matter involved in the action. If such person is both a director and an officer, he shall be entitled to indemnity as a matter of right only if the alleged actions or omissions pertain to his position as a director or as both a director and an officer. A member of any committee appointed by the Board shall have the same right of indemnification as a director with respect to alleged acts or omissions by him as a member of such committee.
A. The term “expenses’ as used herein shall include all obligations incurred by such person for the payment of money, including without limitation legal fees and amounts paid in settlement of any such action. A judgment or conviction (whether based on a plea of guilty or nolo contenders or its equivalent, or after trial) shall not be conclusive as to whether the person against whom judgment is rendered acted, or failed to act, or refused to act willfully or with gross negligence or with fraudulent or criminal intent with regard to the matter involved in the action.
B. Any determination with respect to indemnity shall be made by resolution adopted by a majority of the Board, excluding from such majority any directors who have incurred expenses, judgments or penalties in connection with such action; and if there is no quorum of directors who are not so excluded, then by resolution adopted by a majority of a committee of nonexcluded directors and/or shareholders, appointed by the Board (all directors being eligible to participate in such appointment). the right of indemnification provided herein shall be in addition to any other right which such directors, officers, employees and agents of the Association may have or hereafter acquire.

5.02 Association Seal. The Board shall provide a suitable seal, circular in design, bearing on its outer rim the name of the Association, and in the center the year of incorporation, which
the seal shall be in the charge of the Secretary, to be used as directed by the Board and as required by law.

5.03 Fiscal Year. The fiscal year of the Association shall be established by resolution of the Board.

ARTICLE VI
Amendment

These Bylaws may be amended by the affirmative vote of a majority of the Board, all then-authorized seats on the Board being counted, and in accordance with the Association articles of incorporation.

KNOW ALL MEN BY THESE PRESENTS:
I, the duly elected Secretary of Park Grove Estates Homeowners’ Association, an Arizona corporation, do hereby certify that the above and foregoing Bylaws were duly adopted as the Bylaws of said Association at the meeting of directors held on Friday, April 27, 1984; and the same do now constitute the Bylaws of said Association. Certified and the seal of the corporation impressed hereon at Gilbert, Arizona on Friday, April 27, 1984.

Richard C. Walpole
Secretary

*** BELOW TRANSCRIPTION IS FOR REFERENCE ONLY *** Please download original as needed

FIRST AMENDED

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF PARK GROVE ESTATES

DATE: June 5, 1984

DECLARANT:

SIERRA BUILDING CORPORATION, An Arizona Corporation (referred to herein as “Declarant” or as “Developer”).

SUBJECT PROPERTY:

That certain real property in Maricopa County, State of Arizona situated in and comprising: A part of the Southeast Quarter of Section 7, Township 1 South, Range 6 East (SE4, Sec. 7, TlS, R6E) of the Gila and Salt River Base and Meridian, more particularly described as follows:

Lots one through sixty, “Tract A” and every part of PARK GROVE ESTATES, a subdivision, according to the map or plat of record in Book 264 of Maps, Page 18, in the office of the Maricopa County Recorder; As such further real property as may be subject to this Declaration by amendment by Declarant. All are referred to herein as the “Properties,” or as the “Subdivision”.

RECITALS:    Declarant has heretofore caused to be imposed upon the Subdivision a Declaration of Covenants, Conditions, and Restrictions dated March 23, 1984, which was placed on record April 3, 1984 recording number 84 138235, in the office of the Maricopa County Recorder.  This First Amended Declaration is a restatement and amendment and complete replacement of the original Declaration dated March 23, 1984; provided, however, that the same shall be considered in full force and effect from March 23, 1984 without interruption.

Declarant is the owner of both legal and equitable title in and to all the Properties, and desires to provide an orderly plan of development by imposing upon the properties the covenants herein contained.

Declarant further desires to establish for its own benefit and for the mutual benefit of all future owners or occupants of the Properties, or any part thereof, certain easements and rights in, over and upon said Properties and certain mutually beneficial restrictions and obligations with respect to the proper use, conduct and maintenance thereof.

Declarant desires and intends that the Owners, Mortgagees, beneficiaries and trustees under trust deeds, Occupants and all other persons hereafter acquiring an interest in the Properties shall at all times enjoy the benefits of, and shall hold their interests subject to, the rights, easements, privileges, covenants, conditions and restrictions hereinafter set forth, all of which shall run with the land and be binding upon the said Properties and all parties having or acquiring any right, title or interest in or to said Properties, or any part thereof, and shall inure to the benefit of each owner thereof, and all of which are planned to promote and protect the cooperative use, conduct and maintenance of such Properties and are established for the purpose of enhancing and perfecting the value, desirability and attractiveness thereof.

Declarant has caused or will cause to be incorporated under the laws of the State of Arizona a non-profit corporation, styled PARK GROVE ESTATES HOMEOWNERS ASSOCIATION, to administer the covenants and to exercise the rights, powers and duties set forth in this Declaration.

DECLARATION:

DECLARANT HEREBY DECLARES that all of the Properties described above shall be held, sold and conveyed subject to the following rights, easements, privileges, covenants, conditions, and restrictions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the Properties described above.  These rights, easements, privileges, covenants, conditions, and restrictions shall be deemed to run with the land and shall be binding upon all parties having or acquiring any right, title or interest in the properties described above, or any part thereof, and shall inure to the benefit of each Owner thereof.

ARTICLE I

Definitions

As used in this Declaration, and unless otherwise defined herein or the context requires otherwise, the following terms shall have the meaning stated:

                   1.01        “Association” means PARK GROVE ESTATES HOMEOWNERS ASSOCIATION, an Arizona corporation, its agents, successors and assigns.

1.02 “Board of Directors” means the Board of Directors of PARK GROVE ESTATES HOMEOWNERS ASSOCIATION.

                   1.03      “Common Area” means those areas of land shown as “Tract A” on the recorded subdivision plat of the Properties and intended to be devoted to the common use and enjoyment of the Owners of the Properties.

                   1.04     “Declaration” means this instrument and all amendments to it that are duly recorded.

                   1.05  “Lot” means any separate plot of land shown and defined on the recorded subdivision-plat of the Properties (as defined herein) with the exception of the Common Area.

                   1.06      “Member” means every person or entity who holds membership in the Association.

                   1.07      “Mortgage” means any recorded, filed or otherwise perfected instrument given in good faith and for valuable consideration, which is not a fraudulent conveyance under Arizona law, as security for the performance of an obligation (including without limitation deeds of trust), but shall not include any instrument creating or evidencing solely a security interest arising under the Uniform Commercial Code.  “First Mortgage’ means a purchase-money mortgage that is the first and most senior of all mortgages upon the same property.

                    1.08      “Mortgagee” means a person secured by a Mortgage, including the trustee and the beneficiary under any deed of trust.

                    1.09  “Mortgagor” means the party executing a Mortgage, including the trustor under any deed of trust.

                    1.10 “Occupant” means a person or persons, whether or not an Owner, in rightful possession of a Lot.

                   1.11  ‘Owner’ means the record owner, including Declarant, whether one or more persons or entities, of fee simple title to any Lot which is part of the Properties, including vendees under a contract for sale. The foregoing excludes those persons or entities having such interest merely as security for the performance of an obligation, nor shall the term “Owner” include a: developer or contractor holding the title for development or construction purposes, other than Declarant.  No assessment or other requirement of this Declaration shall be waived for contractors or developers even though they do not have voting rights for lots they own.

                   1.12  “Person” means any individual, corporation, partnership, trustee or other entity capable of holding title to real property.

1.13 “Properties” means that certain real property hereinbefore described, to which this Declaration applies.

                   1.14  “Record” or “Recording” means to record or the recording of a document in the office of the County Recorder of Maricopa County, State of Arizona.

                   1.15  “Residence” means any portion of a building situated upon the Properties designed and intended for use and occupancy as a residence by a single family.

                    1.16 “Subdivision” means Properties.

                    1.17 References.  In all terms hereof, the singular shall include the plural, the plural includes the singular, and words of one gender shall include all genders, unless the context requires otherwise.

ARTICLE II

The Association

                   2.01      Declaration Controls.  No provision of the articles of incorporation, bylaws, or other governing documents of the Association shall prevail over a conflicting provision of this Declaration, as it may be amended from time to time.  Nor shall any act be authorized or taken, nor any policy is proposed or promulgated by or under the authority of the Association by any means other than an amendment of this Declaration if the effect of same is to accomplish a purpose or result that would otherwise require an amendment hereof.  Nothing herein shall be deemed to restrict the Association from any action or provision in its articles or bylaws that is not in conflict with this Declaration.

                   2.02      Membership.  Every person or entity who is a record Owner of a fee or undivided percentage fee interest in a Lot that is subject by covenants of record to this Declaration and to assessment by the Association, including a vendee under a recorded agreement for sale, but excluding developers other than Declarant as provided in section 1.11, shall be a member of the Association.  The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation.  Membership shall be appurtenant to and may not be separated from ownership of any Lot that is subject to assessment by the Association. ownership of a Lot shall be the sole qualification for membership.

                      2.03   Voting Rights.  A member shall be entitled to one vote for each lot in which he holds the interest required for membership by this Article II; provided, that until the date when 75 percent of the Lots have been sold by Declarant, Declarant shall be entitled to 100 percent of the votes of the Association, to the exclusion of other Owners, regardless of the number of Lots it may own.  When more than one person holds an interest in any Lot, all such persons shall be members, but the single vote for such lot shall be exercised as they among themselves may determine.  In no event shall more than one vote be cast with respect to any one Lot.

                   2.04       Special Meeting Notice and Quorum Requirements.  A special meeting of the members of the Association may be held to conduct any business authorized under Article IV, Sections 4.03, 4.05, or 4.06, provided that written notice of such special meeting shall be sent to all members of record of the Association not less than thirty days nor more than sixty days in advance of said meeting.  At the first meeting so-called, the presence at the meeting of members or of proxies entitled to cast 60 percent of all votes shall constitute a quorum.  If the required quorum is not forthcoming at such meeting, a second special meeting may be called, subject to the same notice requirement.  The required quorum at such second meeting shall be one-half of the required quorum at the preceding meeting, and upon attendance, in person or by proxy of the stated quorum the meeting shall be valid for the purposes called.  A third subsequent meeting may be held upon the same terms, including a further reduced quorum.  No such subsequent meeting shall be held more than sixty days following the preceding meeting.

                   2.05     Compensation of the Board of Directors.  No member of the Association or member of the Board of Directors shall be given any compensation, except the President of the Association shall be entitled to have lawn maintenance cared for by the entity, person, or business that is hired by the Association to maintain and water the landscaping on the Town of Gilbert easements along Elliott Road and Lindsay Road, and in “Tract A.” Any contract let for such maintenance shall include the work on the Presidents’ lawn.

ARTICLE III

The Common Area

                   3.01     Title to the Common Area.  Declarant hereby grants and conveys to the Association, its successors and assigns, fee ..simple title to the Common Area as defined herein, subject to the easements, terms, and conditions provided in this Declaration.

                   3.02      Owners’ Easements of Enjoyment.  Every Owner shall have a right and easement of enjoyment in and to the Common Area as a tenant in common with every other Owner and such easement shall pass with the title to every Lot.

                   3.03      Maintenance Responsibility.  The Association shall assume responsibility for the maintenance and repair of the Common Area and portions of the public rights-of-way adjacent to the properties on Elliott Road and Lindsay Road, as herein provided.

ARTICLE IV

Covenants for Assessments

                   4.01        Creation of Lien and Personal Obligation of Assessments.  Each Owner of a Lot within the Properties, by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed or other conveyance, is deemed to covenant and agrees to pay to the Association: (a) annual assessments or charges, and (b) special assessments for capital improvements and other purposes, such assessments to be fixed, established and collected from time to time as herein provided.  The annual and special assessments, together with interest thereon and expenses of the collection as herein provided, shall be a charge upon a Lot and shall be a continuing lien upon any Lot against which each assessment is made.  Each such assessment, together with interest and expenses, shall also be the personal obligation of any person who was the Owner of such property at the time the assessment fell due.

                   4.02    Purpose of Assessments.  The assessments levied by the Association shall be used (a) for the maintenance, repair and improvement of the Common Properties including landscaping in “Tract A”and for the maintenance of the landscaping on the easements granted to the Town of Gilbert along Elliott Road and Lindsay Road, (b) for the purchase of liability insurance to cover the liability of the Association and its members for the use of “Tract A,” and (c) for such other use as the Board of Directors may approve by majority vote at any regular or special annual or other meetings.

4.03          Annual Assessments.  The first annual assessment on each Lot shall be due January 1, 1984, and be delinquent after January 15, 1984.  Thereafter each annual assessment shall be due on January 1 and be delinquent after January 15 of each year.

1. The first annual assessment shall be One Hundred Twenty Dollars ($120.00) per Lot.
2. From and after January.1, 1985, the maximum annual assessment may be increased (1) by the Board of Directors without a vote of the members, by not more than ten percent of the annual assessment established for the previous year, or (2) by more than ten percent upon an affirmative vote of two-thirds of the Owners at an annual or a special Association meeting duly called for the purpose.

• Separation of Assessment Funds.  The Board of Directors shall establish two separate funds into which the receipts of the annual assessments shall be deposited.  One fund shall be designated “Capital Improvement Fund,” shall be used only as a sinking fund to make capital improvements on the streets, curbs, and other improvements in “Tract A,” and shall accumulate until revenues are needed for that purpose.  No less than 35 percent of the annual assessment receipts shall be allocated to the Capital Improvement Fund.  The balance of the receipts shall be deposited into a “General Fund” and may be used in any manner provided under Article IV, section 4.02 of this Declaration.

• Deed-Restriction Enforcement Fund.  In addition to the annual assessment created herein, there shall be a special “Deed-Restriction Enforcement Fund” which shall be created at the time of the sale by the Declarant of any Lot in the subdivision.  At the time of such sale, each purchaser shall pay into this special fund the sum of One Hundred Dollars ($100.00). Said Fund shall be restricted for use only in the enforcement of these deed restrictions and shall be administered by the Board of Directors of the Association.  The Board of Directors may use this special fund to retain counsel, to seek court injunctions, to hire contractors, or to do any other thing which may in their sole discretion be necessary, reasonable, or proper to carry out and enforce this Declaration.  The Deed Restriction Enforcement Fund shall remain in effect for a period of five years from the date of the last original sale by Declarant of a Lot in the subdivision.  At the end of the said five-year period, the fund may be dispersed in equal proportions to the then lawful Owners of record, provided that a two-thirds majority of the members approve of said distribution at a special Association meeting, or at an annual meeting for which such proposal is duly noticed, or may be deposited in the general account of the Association free of this covenant.

• Special Assessments for Capital Improvements.  In addition to the annual assessment authorized above, the Association may levy, in any assessment year subsequent to 1984, a special assessment applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a described capital improvement for any purpose not in conflict with this Declaration, upon any property owned by the Association or by the Owners in common, including the necessary fixtures and personal property related thereto, provided that any such assessment shall be passed in the affirmative by a majority of all votes cast at a regular or special Association meeting duly called or noticed for such purpose, a quorum being present.

• Uniform Rate of Assessment.  All assessments shall be fixed at a uniform rate for all Lots and may be collected on a monthly or annual basis, as may be determined by the Board of Directors.
• Date and Certificate of Assessments.  The annual assessments provided for herein shall commence as to any Lot on the first day of the month following the conveyance of an individual Lot to an Owner (including to a developer or contractor), and shall be prorated according to the number of months remaining in the calendar year.  The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty days in advance of each annual assessment period.  All other assessments shall commence upon Board authorization and be due and delinquent as the Board shall provide.  Written notice of every assessment shall be sent to every Owner subject thereto, but failure to do so shall not affect the validity of the assessment or any lien premised on it. The Association shall upon demand at any time furnish a certificate in writing signed by an officer of the Association stating whether on that date the assessments on a specified Lot have been paid.  A reasonable charge may be made by the Board for the issuance of such certificates, which shall be conclusive evidence of payment of any assessment therein stated to have been paid.

• Priority of Assessment Liens.  Liens imposed upon the Properties by this Declaration shall have the same effect and priority as a lien for real property taxes or other liens imposed for the common welfare and benefit of the Owners, and as such shall without the necessity of recording be superior to all mortgages and other conveyances or other non-governmental liens, however, imposed.  Without limiting the generality of that principle, the following specific terms shall apply to such liens:

1. The sale or transfer of any Lot shall not affect an assessment lien.  No sale or transfer shall relieve any Lot from liability for any assessments thereafter becoming due or from the lien thereof.

• The lien of the assessments provided for herein shall be subordinate to the lien of any First Mortgage made in good faith and for value.  The sale or transfer of any Lot pursuant to foreclosure of such mortgage, or any proceeding in lieu thereof, shall extinguish the lien of such assessment as to payments that became due prior to such sale or transfer, provided, however, all of the covenants, conditions, and restrictions in this Declaration shall be binding upon any.  An owner whose title is derived through such foreclosure or exercise of a power of sale.  No breach of the covenants, conditions, or restrictions in this Declaration, nor the enforcement thereof, shall defeat or adversely affect the lien of any such First Mortgage.

• Evidence of Lien.  It shall not be necessary to the validity, enforceability, or binding effect of any lien imposed by authority of this Declaration that it be evidenced by a recorded document other than this Declaration. It shall be sufficient to establish the amount of the lien in a lien-foreclosure action that the complaint describes the unpaid assessments with particularity.  Notwithstanding other provisions of this section, a certificate stating the amount of any unpaid assessment acknowledged and recorded by the secretary or treasurer of the Association, shall be prima facie evidence of the amount of the lien.

• Effect of Nonpayment of Assessments; Remedies of the Association.  Except as is specifically otherwise provided herein, any assessment not paid on or before the due date shall be delinquent and shall bear interest from the date of the delinquency at the rate of fifteen percent per annum.  The Association may employ attorneys or other agents for the collection of delinquent assessments, and all expenses so incurred, including a reasonable attorney fee, shall be added to the assessment and bear interest accordingly.  The Association may bring an action at law against the Owner personally obligated to pay the same, and/or foreclose the lien against the property in accordance with Arizona law relative to realty mortgages or to other realty liens, and interest, all expenses, and costs of any action shall be added to the amount of such assessment.  No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area, abandonment of his Lot, or other means.

ARTICLE V

Use Restrictions

                   5.01       Residential Use.  The Properties shall be known, described, and used as residential property and no more than one detached, single-family Residence may be constructed on any Lot as shown on the plat of the Properties, except that more than one Lot may be used for one Residence, in which event, all restrictions contained herein shall apply to such Lots as if they were a single Lot.

5.02          Restrictions Apply to All Structures.  All structures as defined in the Town of Gilbert Zoning Regulations in effect as of the date of recording this Declaration (“Structures”), including without limitation tennis courts and swimming pools, must be constructed on the Properties in compliance with these restrictions. All building structures must be architecturally compatible with the residence on the lot and must have the approval of the Deed Restriction Review Committee prior to construction.

                   5.03     Condition Precedent to Construction.  No building permit shall be deemed valid unless before issuance thereof construction plans are on file with the Town of Gilbert that have been approved by the Deed Restriction Review Committee.  No construction of a residence shall be started prior to this requirement being met.

                   5.04      Residence Specifications.  No single-story residence shall have a ground-floor livable area of less than eighteen hundred (1800) square feet, exclusive of accessory buildings, breezeways, screened porches, terraces, patios, storage rooms, and garages.  A basement shall not be deemed a “story”.  No more than one existing tree may be removed for construction of the residence without Deed Restriction Review Committee approval.  All residences shall have at least one two-car garage.  No open carports will be permitted.  All residences shall have at least two inside bathrooms.  All driveways shall be constructed with concrete, brick, or asphaltic concrete.  No residence shall be built using any plastic or aluminum siding and each residence roof shall be constructed with concrete or clay tiles, wood shingles, or a four-wall parapet flat roof.  There shall be no roof-mounted antennas, except on four-wall parapet flat roof homes; and such antennas shall not project above the top of the parapet walls.

                   5.05 Landscaping and Grounds.  All residences shall have landscaping from the side fence (as defined in section 5.07) to the front Lot line of the Lot completed within ninety days of possession of the residence. No landscaping shall be of anything other than natural organic material and shall specifically not be of desert landscaping, rock, or decomposed granite.  The Deed Restriction Review Committee shall have complete control and discretion of approval or disapproval of any rock or decomposed granite used as an accent item in a green organic lawn.  All residences shall have installed in the yard area an au-automatic-drip irrigation system for the watering of the Trees and an automatic sprinkler system for the watering of the landscaping, which shall be maintained on an annual basis.

                   5.06      Typical Setback Requirements.  No building shall be located on any Lot nearer to the front line than twenty feet, no buildings shall be located nearer than five feet to any interior lot lines, nor closer than ten feet to a side lot line adjacent to a street, except that (a) side yards in respect of detached garages and other permitted accessory buildings located in the rear one-half of the Lot, need only conform to the requirements of the Town of Gilbert, and (b) a variance may be granted by the Deed Restriction Review Committee for good cause shown due to the need to preserve an existing tree or other design requirements in furtherance of the general plan of development and this Declaration.  For the purpose of this restriction, eaves, steps, and open porches shall not be considered as a part of a building, provided, however, that the same shall not be construed to permit any portion of a building on a Lot to encroach upon another Lot.

                   5.07      Walls and Fences.  Fences shall be erected on every Lot having a Residence thereon, along the rear lot line (“rear fence”), along the side Lot lines from the rear fence to the side fence (“lot line fence”), and from the Residence to each lot line fence (“side fence”).  No fence or wall higher than seven feet or less than six feet shall be constructed across the rear or along the side of any Lot, nor shall any fence or wall other than of brick, cement-block, or ornamental-iron construction be placed upon any Lot, except gates thereof may be of wood construction.  In addition, the side fences, or in the case of a corner lot the side fences and the lot line fence on the street side of the Residence, shall be of the same architectural style as the Residence and shall be approved by the Deed Restriction Review Committee.  All walls or fences shall be erected prior to the Owner of any Lot taking possession of a residence on the Lot.  Fences or walls constructed within the area of the minimum front or side setback line shall not exceed two feet six inches (2.5 feet) in height, and fences or walls constructed on any side lot line shall not exceed seven feet in height.  No fence, wall, hedge, or shrub planting that obstructs sightlines at elevations between two and six feet above adjacent roadways shall be permitted to remain on any corner lot within the triangular area formed by the street property lines and a line connecting them at points thirty-three (33) feet from the intersection of the street lines, or in the case of a rounded property corner from the intersection of the street property lines extended.  No tree shall be permitted to remain within the described triangle at such intersections unless the foliage line is maintained at sufficient height to prevent obstruction of such sight lines.

                   5.08       No Obstruction of Easements.  Easements, as indicated upon the recorded map or plat of this subdivision, are reserved for the installation and maintenance of public service utilities and other uses for public or quasi-public goods.  No buildings or other structures shall be placed upon such easements or interference be made with the free use of the same for the purposes intended.  No fences will be allowed in the front public utility easements of individual lots.

                   5.09      Prohibited Structures.  No tent, shack, garage, barn, or other outbuildings shall, at any time, be erected and used temporarily or permanently as a residence or for any other purpose, nor shall any recreation vehicle be used as a residence or for any other purpose on any of the Lots or streets in the Properties. No structure of any kind shall be moved into any part of the Properties except temporary buildings used by contractors in connection with construction work, it being the intent of this Declaration that all structures on any Lot shall be newly and permanently constructed thereon.

                   5.10    Business Prohibited.  No trade, business, profession, or other types of commercial activity shall be carried on upon any Lot, except that real estate brokers, owners, and their agents may show dwelling in the Properties for sale or lease, nor shall any Lot be used as a hospital or sanitarium or other places for hire for the care or entertainment of persons suffering from any disease or disability whatsoever; nor shall anything be done on any Lot which may become an annoyance or nuisance to the neighborhood.  Every person purchasing a Lot in the Properties recognizes that Declarant, its agents or assigns, has the right to conduct construction and sales activities in the Properties until all of the Lots in the Properties have been sold.

                   5.11     Advertising Prohibited.  With the exception of one “For Rent” or “For Sale” sign (which shall not exceed 24 x 24 inches in size) no advertising, signs, billboards, handbills, unsightly objects, or nuisances shall be erected, placed, or permitted to remain on any lot or portion thereof.  Nothing contained in this Declaration shall be construed to prevent the erection or maintenance by the Developer or its duly authorized agent, of structures or signs necessary or convenient to the development, sale, operation other disposition of property within the subdivision.

                   5.12 Animals Prohibited.  No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any Lot, except that cats, dogs, and other household pets may be kept, provided they are not kept, bred, or maintained for any commercial purpose and provided further that no person owning or in the custody of a dog shall allow the dog to stray or go upon another Lot without the consent of the owner of such Lot.

                   5.13    Vehicle Use.  NoOccupant’s vehicles shall be parked on any part of the Properties except on paved concrete, brick, or asphalt driveways provided on the Owner’s Lot.  No overnight parking shall be permitted on “Tract A.”No trailers, trucks or commercial vehicles, other than those temporarily present on business may be parked in the Properties and no overnight parking of such vehicles shall be permitted.  Boats, boat trailers, and other recreational vehicles shall be parked inside of garages or may be concealed from public view behind the side lot fence line if a paved brick or concrete pad is provided for the storage of said vehicle.  No vehicle of any type that is abandoned or inoperable shall be stored or kept on any Lot within the subdivision in such a manner as to be seen from any other Lot or from any streets or alleyways within the subdivision, and the same shall be removed from the subdivision as soon as may reasonably and conveniently be accomplished.

                   5.14   Vehicle Repair.  All abandoned or junked vehicles, while being repaired or restored, shall be stored in an enclosed garage or in such a manner as not to be visible from any point lying without the lot where the abandoned or junked vehicle is stored or parked.  For the purposes of this section: (a) “abandoned or junked vehicle” means a vehicle or any major portion thereof which is incapable of movement under its own power and will remain so without major repair or reconstruction; (b) “major repair” means the removal from any vehicle of a major portion thereof including but not limited to the differential, transmission, head, engine block or oil pan; (c) “vehicle” means any self-propelled device in, upon, or by which any person or property is or may be transported upon a public highway.

                   5.15      Trash Removal.  Trash, garbage or other waste shall not be kept except in sanitary containers, as approved by the Town of Gilbert.  Such refuse containers shall not be permitted in the front yard and shall be screened from street view.  Each Residence shall provide an area for the storage of said trash containers, which area shall not be visible from any other adjoining lot and shall be used to house the container when it is not placed on the street for pickup.  Trash and garbage containers may be placed on the street on normal pickup days but shall be removed to their proper storage area as soon as possible after they have been emptied by sanitation workers. All incinerators or other equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition subject to the governing zoning ordinances of the Town of Gilbert.

                   5.16     Clothes Hanging.  No clothing or household fabrics shall be hung in the open on any Lot unless the same are hung from an umbrella or clothes hanging device which is located in the rear yard and does not exceed the height of the fence.

                   5.17   Roof-Mounted Equipment.  No residence shall be constructed with any air-conditioning, heating, or environmental enhancement device on the roof except on four-wall parapet flat roof homes if the units are screened by the parapet wall from adjacent one-story dwellings on all adjoining land and lots.  Solar-energy units may be mounted on pitched-roof Residences provided that (a) the solar unit is screened from view from all adjoining land and lots, or (b) a variance is obtained from the Deed Restriction Review Committee for good cause shown.

                   5.18       Electronic Gates.  No electronically operated gates shall be erected across any street.

                   5.19     Nuisances Prohibited.  No unlawful, offensive, noxious, or immoral activity or condition shall be carried on or maintained upon any lot or portion thereof, nor shall anything be done or permitted thereon which may be or become a nuisance or annoyance to the neighborhood, or unnecessarily result in substantial reduction of the market value of the Lots.

                   5.20      Water Drainage and Easements.  To assure the proper flow of surface water within the subdivision, each Lot and its Owner shall conform to these requirements:

1. Every Lot shall be so graded and maintained that surface water from rain or other storms falling upon such Lot is retained on that Lot.  The Association Deed Restriction Review Committee shall adopt specifications and regulations for the enforcement of this provision.  All landscaping or other relevant plans for a Lot shall be subject to review and approval for purposes of this section by the Town of Gilbert Design Review Board.

• An Owner or Occupant of a Lot shall not at any time fill, block, or obstruct any drainage easements and drainage structures on the Properties, nor shall any Owner cause or suffer to be erected on any Lot, any building or obstruction for the purpose, directly or indirectly, of obstructing, blocking or filling any such drainage easement or drainage structure, and each Owner agrees to repair and maintain all such drainage easements and drainage structures on a Lot, making good nevertheless, at his own expense, all damage which may be caused to the said drainage easements and structures on the Properties, and each owner agrees to repair at his own expense, all damage to any structure or any Lot which may be caused, directly or indirectly, by his obstructing, blocking or filling any such drainage easement.

• Reasonable Progress of Construction.  All buildings in the Properties shall be of new construction and shall be completed within 18 months of commencement.  For violation of this section, the Association acting through its Board of Directors may (a) cause the uncompleted improvements to be torn down and removed from the properties, (b) impose an assessment and a lien upon the Owner and the subject Lot in the amount of $1,000.00 for every month past the permitted 18 months that construction remains incomplete, (c) pursue any remedy permitted at law or in equity, either singly or in combination with other remedies, and (d) collect from the Owners and impose upon the Lot in question a lien for all loss, cost or expense, including a reasonable attorney fee, incurred by the Association for enforcement of this section.

• Physical Condition of Lots.  All vacant Lots shall be at all times kept free of rubbish and litter, subject to the normal requirements of construction activities upon each Lot; weeds and grass shall be disked out or kept well mowed so as to present a tidy appearance.  The yards and grounds in connection with all improved properties shall be cultivated and planted to the extent sufficient to maintain an appearance not out of keeping with that of typical improved properties in this subdivision.  Lot Owners agree they will arrange for the care of their Lots during the prolonged absence.

• Enforcement of Lot Maintenance Restrictions.  In the event, a Lot Owner does not maintain his Lot in a neat and proper manner as provided herein, the Association may cause such Lot to be cleaned and restored to proper condition.  Upon the Lot Owner’s refusal to pay the cost of such cleanup within thirty (30) days after presentation of a bill therefor, the Association may record an affidavit in the Office of the County Recorder of Maricopa County, State of Arizona, stating that said Owner refused to maintain said Lot in a neat and proper manner, the amount of cleanup cost, and to whom it was paid and the date, and such amount shall thereupon constitute a lien against said Lot subject to and enforceable in accordance with the provisions of Article IV hereof.  The Deed Restriction Enforcement Fund or other funds of the Association may be used to carry out any purpose mentioned in this section.

• Interpretation of Restrictions.  In the event of any ambiguity in any provision of these restrictions, the interpretation of the Deed Restriction Review Committee as to the meaning intended shall prevail.

ARTICLE VI

Deed Restriction Review Committee

6.01 Creation.  There is hereby established the Deed Restriction Review Committee of PARK GROVE ESTATES HOMEOWNERS ASSOCIATION, which committee shall have the purpose, power and obligation to review all plans for all Residences and lots to ensure that they comply with the restrictions, covenants, and conditions of this Declaration.

                   6.02      Membership.  The committee shall be composed of three members, who shall select a chairman.  The members shall be appointed by and serve at the pleasure of Declarant until such time as Declarant no longer owns any Lot or parcel in the subdivision.  Thereafter, the members shall be elected by the Board of Directors of the Association upon such terms as shall be provided in the bylaws.

                   6.03     Committee approval required.  No construction may begin on any residence until the approval of the Deed Restriction Review Committee has been obtained, which shall require the signatures of two of the three members of the committee.  In the event that front-yard landscaping has not been completed at the time, an Owner wishes to take possession of a residence, then said Owner may post a bond insuring that the landscaping will be completed within ninety days after his possession.

                   6.04      Conflicts of decision.  No waivers of these restrictions may be made by the committee,

except as is specifically provided in this Declaration.  In the event of irreconcilable conflict between this Declaration and the decisions of the committee, this Declaration shall control, and the burden of compliance shall remain always on the Owner and Occupant.  The committee, its members, and the Association shall not have any liability for acts or omissions done in good faith.

ARTICLE VII

General Provisions

                   7.01      Binding Effect of Declaration.  The covenants, restrictions, reservations, and conditions contained herein shall run with the land and shall be binding upon and inure to the benefit of all Declarant’s successors in title, interest, or possession in all and every part of the Properties or portion thereof after the date on which this instrument has been recorded.

                   7.02     Dominant Tenement.  Each of the Lots shall constitute the dominant tenement and be entitled to the benefit of the covenants herein contained as against all of the other Lots in the Properties which shall constitute the servient tenements.

                   7.03   Effective Date.  This Declaration and the covenants herein contained shall be effective on the date first stated on page one hereof, or on the date, the same is placed of record in the office of the Maricopa County Recorder, whichever first occurs.

                   7.04    Term.  These covenants shall remain in force until thirty years from the effective date and thereafter said covenants shall be automatically extended for successive periods of ten years, unless and until the then Owners of a majority of the Lots affected hereby, before the end of one of such periods, shall amend or revoke the same by written instrument, duly acknowledged and recorded, and ratified by the holder(s) of the first mortgage against a Lot.

                   7.05  Deeds.  Deeds of conveyance of all or any of the Lots shall incorporate by reference all the provisions contained in this document provided that whether or not recited in such deeds of conveyance, these restrictions shall be binding upon every person affected by its terms.

                   7.06   Enforcement.  These covenants, restrictions, reservations, and conditions may be enforced by the Association or by the beneficial owner of any lot, or portion thereof, in the Subdivision, or by any one or more of said owners, provided, however, that except as may otherwise be provided herein any breach of the covenants, restrictions, reservations, and conditions, or any right of re-entry by reason thereof, shall not defeat or affect the lien of any mortgage or deed of trust made in good faith and for value upon said land, but each and all of said covenants, restrictions, reservations and conditions shall be binding upon and effective against any owner of said premises whose title thereto is acquired by foreclosure, trustee’s sale or otherwise, and provided also that the breach of any of said covenants, restrictions, reservations and conditions may be enjoined, abated or remedied by appropriate proceedings, notwithstanding the lien or existence of any such deed of trust or mortgage.

Failure by the Association or by any Owner to any covenant or restrictions herein contained shall in no event be deemed a waiver of the right to do so thereafter or a consent to further or subsequent breach.  Violation of any one or more of these restrictions, conditions, covenants, reservations, liens, and charges may be enjoined by any court of competent jurisdiction, and/or damages may be sought and awarded.  In the event, an action is taken into court for the enforcement of any provision in this Declaration, reasonable expenses including attorney fees, court costs, title search fees, interest, and all other costs and expenses shall be allowed to the extent permitted by law.

                   7.07  Severability.  Invalidation of one of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect.

                    7.08         Amendment.

1. The provisions of this Declaration may be changed, modified, or rescinded by an instrument in writing setting forth such change, modification, or rescission, signed by Owners of not less than seventy-five percent of the Lots; provided, however, that no amendment limiting, rescinding, or otherwise modifying in any respect any right, power, privilege, immunity, or easement granted or reserved to Declarant in this Declaration shall be effective unless such instrument is also signed and acknowledged by Declarant; and provided further that all First Mortgagees shall have consented in writing to each such material change, modification or rescission, which consent shall not be unreasonably withheld.

• Notwithstanding the provisions of the foregoing paragraph “A”, if any legislative act, this Declaration, the Association articles or its bylaws require the consent or agreement of all of the Owners, or a specified percentage of owners exceeding seventy-five percent, for any such amendment or for any action specified in this Declaration, then any instrument so changing, modifying or rescinding this Declaration or any provision hereof with respect to such action shall be executed and acknowledged by the Owners of not less than such specified percentage, as well as the Declarant (if Declarant then holds any interest in the Properties) and any First Mortgagees or beneficiaries required by the foregoing paragraph.

• Anything to the contrary herein notwithstanding, until such time as deeds to all of the Lots shall have been delivered by Declarant to purchasers thereof, Declarant reserves the right to amend this Declaration in any manner whatsoever without the consent of any Owner; provided, however, that all First Mortgagees shall have consented to each such material amendment, which consent shall not be unreasonably withheld.

ARTICLE VIII

Town of Gilbert Declaration Review

Insofar as this Declaration is subject to the conditions of approval by the Gilbert Town Council, it has been reviewed and approved as follows:

IN WITNESS WHEREOF, Declarant has caused its corporate name to be signed by the duly authorized undersigned officers effective on the date first appearing hereon.

SIERRA BUILDING CORPORATION

An Arizona Corporation

STATE OF ARIZONA )

) ss.

County of Maricopa )

On this day, personally appeared before me RONALD H. McGEE, and GENE C. MORRISON, who are known to me to be the persons whose names are above subscribed, and after being duly sworn, acknowledged themselves to be the President and Vice President respectively of Sierra Building Corporation, and upon their oaths acknowledged they executed the foregoing Declarant on for the purposes therein contained, being authorized to do so.

IN WITNESS WHEREOF, I hereunto set my hand and official seal on June 5, 1984.

My Commission Expires:

APPROVAL OF FIRST MORTGAGEES

We, the undersigned, are bona fide holders of First Mortgages upon one or more Lots in the Subdivision (as defined in the foregoing Declaration), and each of us consents to and approves the foregoing

Declaration of Covenants, Conditions and Restrictions of Park Grove Estates, pursuant to section 7.08 thereof.

IN WITNESS WHEREOF, we have signed our names below, or in the case of corporations and associations, have caused our names to be signed by the duly authorized officers undersigned.

WESTERN SAVINGS AND LOAN ASSOCIATION,

an Arizona corporation

STATE OF ARIZONA )

) ss.

County of Maricopa )

On this day, personally appeared before me MAUREEN KOERNER, who is known to me to be the person whose name is above subscribed, and after being first duly sworn, acknowledged herself to be the Assistant Vice President of Western Savings and Loan Association, and upon her oath acknowledged she executed the foregoing Declaration for the purposes therein contained, being authorized so to do.

IN WITNESS WHEREOF, I hereunto set my hand and official seal on March 17, 1984.

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TRASH

Park Grove Estates is in Bulk Trash Zone “C”. Each month the town of Gilbert will come and collect bulk trash items from your curbside. We prefer your grass clippings and loose trash items are securely bagged. Gilbert will not accept any construction material in your bulk trash such as bricks, block, etc..