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07. Teton Terrace Declaration of CC&Rs; BylawsAGENDA ITEM 7 - TETON TERRACE HOMEOWNERS ASSOCIATION DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND BYLAWS BACKGROUND/CONSIDERATION: As discussed at the work session, we have compiled the new declaration of covenants, conditions, restrictions, and bylaws that will apply to the Teton Terrace project. These are enclosed within this report. RECOMMENDATION: To enable us to continue the project and to cover the City requirements in a legally binding fashion, I recommend approval of the covenants, conditions, restrictions, and bylaws. ACTION REQUIRED: A MOTION to approve the declaration of covenants, conditions, restrictions, and bylaws is required. Declaration of Covenants,• • • Restrictions THIS DECLARATION, made on the date hereinafter set forth, by the City of Kalispell, Montana, hereinafter referred to as Declarant: WITNESSETH: WHEREAS, the Declarant is the owner of the real property situated in Flathead County, Montana, to be developed and known as Lots 1 through 26 of Teton Terrace with the Clerk and Recorder of Flathead County, Montana. WHEREAS, the Declarant is the owner of all the lots in said subdivision and is desirous of subject said real property to the conditions, covenants and restrictions hereafter set forth, each and all of which are for the benefit of said property, each property owner, future owners and themselves; and shall apply to and bind the successors in interest of any owners or contract purchaser thereof; NOW, THEREFORE, the Declarant, having established a general plan for the improvement and development of said property, does hereby establish the conditions, covenants and restrictions upon which and subject to which all the property or any portion thereof shall be improved or sold and conveyed by them as owners and hereby declares that said property is and shall be held, transferred, sold and conveyed subject to the conditions, covenants, and restrictions hereafter set forth which are to run with the land and shall be binding upon all successors in the interest of the present and future owners. Article I DEFINITIONS Unless the context expressly provides otherwise, the following definitions shall pertain throughout this Declaration and its interpretation: 1 1. Aggregate Voting: Means the entire number of votes or persons present or available to vote in person or by proxy in a particular circumstance. 2. Association: Means the Teton Terrace Homeowners Association, its successors and assigns. 3. Board or Board of Directors: Means the Board of Directors of the Association as more particularly defined in the Bylaws, which shall be recorded separately. 4. Building: Means the building containing the individual townhouses to which the lots for the townhouses are contiguous. 5. Bylaws: Means the Bylaws and any amendments thereof promulgated by the Association under this Declaration and hereafter recorded. 6. Common Area: Means all real property owned by the Association for the common use and enjoyment of the members of the Association. 7. Common Elements: Means those areas upon which the Association has primary responsibility for care and maintenance or over which the Unit Owners have rights of access or use. 8. Common Expenses: Means the expenses of administration, maintenance, repair, or replacement of the general Common Elements agreed upon by the Association of all Unit Owners, or made so by this Declaration. 9. Declarant: Means the City of Kalispell, 'its successors and assigns. 10. Living Unit: Means any building, or portion of a building, situated upon the properties and designed and intended for the use and occupancy as a residence by a single family. 11. Lot: Means any plot of land shown upon any recorded subdivision plat of the property with the exception of the common properties or common areas. Every lot shall be conclusively presumed for all purposes hereunder to include one living unit, irrespective of the actual status of the construction thereon. POI 12. Manager: Means the manager, Board of Directors, management corporation or any other person or group of persons retained or appointed by the Board, or by the Homeowners Association for the purpose of conducting the day-to-day operation of the subdivision. 13. Member: Means an owner of a Living Unit which is subject to assessment hereunder. 14. Mortgage: Means the conveyance or assignment of any lot or Living Unit to secure the performance of an obligation and the instrument thereof, and may include a deed of trust, trust indenture, mortgage, assignment, financing statement or any other form of security instrument or agreement as now known or hereafter devised for the purpose of creating a lien to secure an obligation or duty. 15. Mortgagee: Means a person or entity to whom a mortgage is made. 16. Mortgagor: Means a person or entity who mortgages his, her, or its property to another, i.e., the maker of a mortgage. 17. Owner: Means the record owner of a fee simple title to any Living Unit which is part of the property and shall also include a contract buyer. 18. Properties: Means the real property which is part of Lots 1 through 26 of Teton Terrace and as on file with the Clerk and Recorder's Office, Flathead County, Montana. 19. Townhouse: Means any Living Unit. 20. Unit: Means the individual Townhouse and the Lot appurtenant thereto because of the filing of the re -subdivision plat for that phase of this development. 21. Unit Designation: The number which identifies each designated unit. 22. Unit Owner or Owner: Means the person or persons owning a Unit in fee simple absolute, individually or as a co-owner in any real estate tenancy relationship recognized under the laws of the State of Montana. 3 Article II USE OF STRUCTURES The structures shall be used for multi -family residential purposes and the residences thereon shall be constructed on the property and shall not be mobile homes or the like. The property shall be used for townhouses. Type and Style of Home: The buildings erected on the premises shall contain townhouses with each townhouse or unit being a minimum of 1000 square feet and each building having a minimum of two units. Article III RESTRICTION ON USE 1. The structures may not be used for any purpose other than residential. No portion of a unit (other than the entire Unit) may be rented, and no transient tenants may be accommodated therein. 2. Parking: a) The roads in this property are shown on the final plat of Teton Terrace. Parking is allowed on both sides of the streets. b) No large commercial vehicle, trailer, camper or recreational vehicle shall be parked in view of the public on the premises and if parked in the subdivision must be completely contained within a garage. 3. Fences: No fences or walls shall be erected, placed or altered on any lot until construction plans and specifications and a plot plan showing the location of the structure or structures have been approved by the Board of Directors of the Homeowners Association. In no event shall fences exceed six (6) feet in height. Further, no fences shall extend into front or side yards nor more than 10 feet into the back yard as measured from the main walls of the building. The intent is to discourage fences but allow dividing walls between patios. 2 4. Temporary Structures: No structure of a temporary character, or camp trailer, mobile or modular home, tent, shack, garage, or barn shall be permitted on any particular lot or within the Common Area. No other outbuilding shall be used on any particular Lot or within the Common Area at any time as a residence either temporary or permanently. Excluded from this provision for temporary structures are tents placed on lots to give an outdoor camping effect for children. Also excluded are any items allowed in other provisions provided the same are not used for residential purposes. S. Garbage, Rubbish: All waste shall be removed as often as necessary. Trash, garbage, or other waste materials shall not be kept upon any lot except in sanitary containers approved by the City of Kalispell. Equipment for the disposal of such material shall be concealed except for pickup and must be removed from the street by sundown on the day of pickup. This provision can be changed without amendment should the City of Kalispell require a different disposal system. 6. Yard Lights: Outside yard lights are not permitted upon any of the properties until the type and location thereof has first been approved by the Board of Directors of the Homeowners Association, and the owner has received written permission approving the same. 7. Signs: No sign of any kind shall be displayed to the public view on any Lot except one sign of not more than four square feet advertising the property for sale. A sign not to exceed four square feet may be used by a builder to advertise the property during the construction or sale. 8. Nuisance: No noxious or offensive activity or the discharging of firearms shall be carried out or permitted upon any of the Lots, nor shall anything be done thereon which may be or may become an annoyance to the neighborhood. Nor shall the premises be used in annoyance to the neighborhood. Nor shall the premises be used in any way or for any purpose which may endanger the health or safety of, or unreasonably disturb, the residents of any lots. Outdoor barbecues are not considered nuisances under this section. Motorcycles, trail bikes, snowmobiles or like vehicles shall be considered nuisances and are prohibited. 9. Pets: Only small pets shall be allowed in each Unit. A dog and/or cat must be kept primarily within a Unit's confines and the owner remains liable for any and all damage caused to the property of others or common property by the dog and/or cat. 5 Further the owner is responsible for the immediate cleanup of animal waste and must not allow the dog and/or cat off their premises unleashed. 10. Miscellaneous: There shall be no repairing or overnight parking of vehicles in the cul-de-sac or streets at any time, nor shall there be burning of leaves or trash at the curb or on the pavement of any street. 11. Utility Easements: Common utility services are provided to building lines and at times to separate Unit lines. All property covered hereby is subject to an easement for such utility lines and the maintenance thereof. The right and easement to maintain said easements rests primarily with the Homeowners Association and inures to the benefit of the Association, which may assess maintenance costs pursuant to this Declaration and the Bylaws. Should any Units utility service lines, pipes, or wires pass over, under or through another Unit, both the Homeowners Association and the Unit whose service passes through another Unit will bear the cost of repair or maintenance whether covenants granted a permanent right of use, access for maintenance and repair of said wires, lines and pipes. Should repair only beneficially affect one Unit, that Unit will bear the cost of repair or maintenance whether conducted by the Association or the Unit Owner. Should repair or maintenance be of mutual benefit to more than one Unit, the cost of the repair shall be assesses to those Units beneficially affected. 12. Maintenance by Unit Owner: An Owner shall maintain and keep in repair the interior of each Unit and its fixtures. All fixtures, utility lines and equipment installed in the Unit commencing at a point where the utilities enter the Unit shall be maintained and kept in repair by the Owner thereof. An Owner shall do no act nor any work which will impair the structural soundness or integrity of the building or impair any easement. An Owner shall keep all areas appurtenant to his Unit in a clean and sanitary condition. The right of each Owner to repair, alter and remodel is coupled with the obligation to replace any finishing or other materials removed with similar types or kinds of materials. No acts of alteration, repairing or remodeling by any Unit Owner shall impair in any way the structural integrity of the Units of adjoining Owners. Nothing contained in this Declaration or the Bylaws will be construed- as to make the Homeowners Association liable or responsible for any interior repairs. These repairs are the responsibility of the Owner subject to any warranty from his/her builder. The maintenance of the rear yards is the responsibility of the respective Unit Owners. 13. Exterior Alterations: No owner may change; alter or remodel the exterior of his unit without the prior written approval of the Board of Directors of the Homeowners Association. 14. Maintenance by Homeowners Association: The Homeowners Association shall take all necessary steps, including, but not limited to, exterior painting, roof repairs, concrete, exterior brick and stone repairs, repairs to common and fire walls, sidewalk maintenance, repair, snow removal and replacement or repair of all broken or worn exterior parts, to insure that the buildings do not unnecessarily deteriorate. The Homeowners Association shall annually inspect the buildings and proceed with any necessary exterior maintenance or repairs. The Homeowners Association is responsible for lawn planting and maintenance of all common areas as well as all front, side and rear yards. Any Unit Owner creating specialized planting areas on their individual Lots will be solely responsible for the weeding and upkeep of such areas. 15. Liens for Alterations: Labor performed and materials furnished and incorporated into a Unit with the consent of or at the request of the Unit Owner, his agent, his contractor or subcontractor shall be the basis for the filing of a lien against the Unit or the Unit Owner consenting to or requesting the same. Each Unit Owner shall indemnify and hold harmless each of the other owners from and against all liability arising from the claim of any lien against the Unit or building for construction performed or for labor, materials, services, or other products incorporated in the Owner's Unit at such Owner's request. 16. Taxes on Common Areas: The taxes on the common areas shall be assessed against each Unit in proportion with the number of Units built being the denominator and one being the numerator. Article IV SET -BACK RESTRICTIONS All structures erected on any premises covered herein shall be erected so as to comply with the Plat of Teton Terrace, and any amendments or re -subdivisions thereof. 7 Article V TETON TERRACE HOMEOWNERS ASSOCIATION: ESTABLISHMENT, POWERS AND DUTIES 1. For the purposes of maintaining any park land, visible yards and common space, which is under the control of the Homeowners Association, and shared by the Owners, and for the purpose of providing for the collection and payment of necessary common expenses, an Association is hereby formed under the name of Teton Terrace Homeowners Association. 2. Membership: An Owner of a Unit in Teton Terrace shall automatically upon becoming the Owner of such Unit be a member of the Teton Terrace Homeowners Association, hereinafter referred to as the "Homeowners Association", and shall remain a member of such association until such time as his ownership ceases for any reason, at which time his membership in the Homeowners Association shall automatically cease. The membership shall be limited to Unit Owners as defined in this Declaration. 3. Voting: On all matters to be decided by the Homeowners Association, unless excluded by this Declaration, each Unit Owner shall have one vote. A majority of the Unit Owners or a majority of Unit votes represented by the Owners of the votes present at any meeting or by proxy shall be sufficient to act on matters brought before the Homeowners Association. Meetings of the Home Owners Association shall only be conducted when a quorum, as defined in the Bylaws, is present. Each unit shall have one (1) vote, but that vote shall be proportionally distributed between all Owners. As used herein, the Owners of the property shall be the person holding possession and title (including herein a purchaser under direct contract for deed), but shall not include a mortgagee or a contract seller. Until 90% of the presently proposed Units are built and sold, Declarant shall have two (2) votes for each Unit it retained. The presently proposed Unit numbers are twenty-six (26). 4. Function: The Homeowners Association shall have the following functions: (a.) To adopt bylaws for Homeowners Association. the governance of the (b.) To make provisions for the general management of the development. (c.) To levy assessments as provided for in this Declaration and Bylaws. The Homeowners Association shall have the power to collect assessments and cause to be filed a notice of assessment at the Office of the Clerk and Recorder all as provided in the Bylaws. Such notice of assessment shall constitute a lien on the property. (d.) To adopt and implement a policy for the affairs of the Homeowners Association. (e.) To enter into contracts to hire personnel for the management of the affairs of the Homeowners Association and the maintenance and repair of the properties under its control. Article VI BENEFITS These Covenants inure to benefit all Owners of Units which are on Lots previously described, either in existence now or as later divided, and may be enforced by any one of them or by the Homeowners Association as above created. The Association so acting may act in its own name but in doing so is acting for the Owners of all the property except for the Owner which is seeking relief. In any action maintained under these Covenants, the Court shall have authority and shall award reasonable attorneys fees to the availing party. Article VII OWNERSHIP 1. Exclusive Ownership. Each Owner or Owners shall be entitled to exclusive ownership and possession of their Unit. It is understood that the maintenance of the building exteriors and the landscaping and maintenance of the Common Areas is vested in 9 the Homeowners Association which shall by this Declaration be granted and is granted an easement for such maintenance. 2. Removal, Partition and Subdivision. Any Unit or portion of Teton Terrace may only be removed from these conditions, restrictions and covenants or partitioned or sold upon compliance with each of the following conditions: (a.) The Homeowners Association must approve the plans of removal, partition or sale, including the details of how any partition or sale and the distribution of property or funds shall be accomplished. (b.) No Unit may be divided or subdivided into a smaller Unit, nor any portion thereof sold or otherwise transferred, except as provided herein. (c.) This section shall not apply to the sale of individual lots and shall not be considered as a right of first refusal. (d.) No Unit Owner shall execute any deed, mortgage, or other instrument conveying or mortgaging title to his Unit without including therein the appurtenant interest, it being the intention hereof to prevent any severance of such combined ownership. Any such deed, mortgage, or other instrument purporting to affect one or more of such interest, without including all such interest, shall be deeded and taken to include the interest or interests so omitted, even though the latter shall not be expressly mentioned or described therein. No part of the appurtenant interest of any Unit may be sold, transferred, or otherwise disposed of, except as part of a sale, transfer, or their disposition of such part of the appurtenant interest of all Units. No Unit may be partitioned or subdivided. Article VIII AMENDMENTS At any regular or special meeting of the Homeowners Association an amendment of this Declaration may be proposed by a resolution by 10 any Unit Owner. Upon adoption of the resolution by a majority vote of those present, the amendment shall be made a subject for consideration at the next succeeding meeting of the Homeowners Association with notice thereof, together with a copy of the amendment to be furnished to each Owner no later than thirty (30) days in advance of such meeting. At such meeting, the amendment shall be approved upon receiving the favorable votes of 75% of the Unit Owners. If so approved, it shall be the responsibility of the Homeowners Association to file the amendment with the Clerk and Recorder's Office in Flathead County, Montana. To record such amendment, the President and Secretary of the Homeowners Association shall certify on the face of the amendment the vote. The Homeowners Association will maintain for four (4)years records of the Unit Owners votes. The signature of no other party is necessary on the amendment. DATED this 8 th day of October, 1996. CITY OF KALISPELL By: Clarence Krepps Its: City Manager ATTEST: Debbie Gifford, CMC STATE OF MONTANA :ss County of Flathead ) On this 8th day of October 1996, before me, a Notary Public in and for the State of Montana, personally appeared Clarence Krepps and Debbie Gifford, known to me to be the City Manager and Clerk of Council of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such City Manager and Clerk of Council respectively subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for 11 the uses and purposes therein set forth, and that they were duly authorized to execute the same on behalf of said municipality. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. c:\homeownr\site2\cc&rstt 12 Notary Public, State of Montana Residing at Kalispell, Montana My Commission expires: BYLAWS OF TETON TERRACE HOMEOWNERS ASSOCIATION These Bylaws are to govern the course of the conduct of the aforesaid homeowners association. The property affected hereby upon which these Bylaws were on together with covenants and declarations where appropriate is more particularly described as Teton Terrace, a subdivision in Flathead County, Montana, and any resubdivisions or amendments thereof and any areas added thereto as stated in the Declaration of Covenants. ARTICLE I. PLAN OF OWNERSHIP SECTION 1. Applicability of Bylaws: The provisions of these Bylaws are applicable to the townhouses, hereafter referred to as Units, and to the use and occupancy thereof. The term property, as used herein shall include the land, the buildings, and all other improvements thereon, all easements, rights and appurtenances belonging thereto, and all other property, personal or mixed, intended for the use in connection therewith, all of which have been submitted to the provisions of the aforesaid Declaration of Covenants. SECTION 2. Application: All present and future owners, mortgagees, lessees, and occupants of Units and their employees, and any other persons who may use the Units in any manner are subject to these Bylaws, the Declaration of Covenants, and rules and regulations pertaining to use and operation of the property, unless specifically excepted by a provision of the Declaration of these Bylaws. The acceptance of a deed or conveyance, or the entering into a lease, or the act of occupancy of a Unit shall constitute an acceptance of the provisions of these instruments and a agreement to comply therewith. SECTION 3. Office: The office of the Association shall be located at SECTION 4. Sponsor: The term Sponsor as used herein shall mean the developers of the project known as Teton Terrace, a subdivision, as they appear in the Declaration of Covenants herewith. 1 ARTICLE II. BOARD OF DIRECTORS SECTION 1. Qualifications: When these Bylaws refer to a member of the Board of Directors who is a sponsor designate, such designate may be any person of the Sponsor's choosing, including himself. When these Bylaws refer to a member of the Board of Directors elected by the Unit Owners, such a member must be a person holding title to a Unit, whether such title is sole and absolute or in common with others, or in the case of partnership owners or mortgagees, shall be members or employees of such partnership, or in the case of corporate owners or mortgagees, shall be officers, shareholders, or employees of such corporation, or in the case of fiduciary. SECTION 2. Constitution of the Board: The affairs of the Association shall be governed by a Board of Directors constituted as follows: (a.) Until the earliest occurrence of one of the following two events, the Board of Directors shall consist of the "Sponsor" and such people as they may designate in their sole and absolute discretion: (1) Ninety ( 9 0 ) days after twenty-one (21) units representing 800-o of the common interest are sold by the Sponsor, or corporation hereinafter formed by them; or (2) Four (4) years from the date of the first sale to a unit purchaser. (b.) Commencing after the earliest occurrence of one of the events set forth in sub -part (a.) above, the Board shall consist of five members all of whom shall be elected as hereinafter provided. SECTION 3. Powers and Duties: The Board of Directors shall have the powers and duties necessary for the administration of the affairs of the Association, except such powers and duties as by law or by the Declaration, or by these Bylaws, that may not be delegated to the Board of Directors by the Unit Owners. The powers and duties to be exercised by the Board of Directors shall include, but shall not be limited to, the following: 2 (1.) Obtaining insurance if the same is determined to be necessary; (m.) Making repairs, additions, and improvements to, or alterations of the property, and repairs to and restoration of the property in accordance with the other provisions of these Bylaws, after damage or destruction by fire or other casualty, or as a result of condemnation for eminent domain proceedings, if necessary; (n.) Acting as the approving entity for construction and engaging in any other activity authorized by the Bylaws or Declaration. SECTION 4. Managing Agent and Manager: The Board of Directors may employ a managing agent and manager at a compensation established by the Board of Directors, to perform such duties and services as the Board of Directors shall authorize. However, any management agreement for the subdivision will provide a clause to the effect that the agreement is terminable by the Association for causes upon thirty (30) days written notice thereof, and that such an agreement may not exceed one year in duration nor be renewable for more than one year at any given time. SECTION 5. Elections: When the Board of Directors is to be constituted as provided in Article II, Section 2(b.), of these Bylaws, an election shall be held upon call or Sponsor as set forth in Article III, Section 1(a.), with subsequent elections to be held at each annual meeting of Unit Owners thereafter to elect directors as provided in these Bylaws. All members of the Board of Directors which are permitted to be designated as such by the Sponsor, serve at the sufferance of the Sponsor. Unless earlier terminated at the will of Sponsor or by the provisions of Article II, Section 2(b.), of these Bylaws, all members of the Board of Directors designated as such by the Sponsor serve for one year terms, but they may be designated as directors by the Sponsor for more than one term, and their reappointment need not occur at the Annual Meeting of the Unit Owners, nor need it be accompanied by any formal action on the behalf of the Sponsor. SECTION 6. Removal of Members of the Board of Directors: At any regular or special meeting of Unit Owners, any one or more of the members of the Board of Directors, except those designated as 4 such by the Sponsor, may be removed with or without cause by a two-thirds (2/3) vote of the Unit Owners, and a successor may then and there or thereafter be elected to fill the vacancy thus created. Any member of the Board of Directors whose removal has been proposed by the Unit Owners shall be given an opportunity to be heard at the meeting. SECTION 7. Vacancies: Vacancies in the Board of Directors, except a vacancy of a Board Member designated as such by the Sponsor, caused by any reason other than the removal of a member thereof by a vote of the Unit Owners, shall be filled by a vote of a majority of the remaining members at a special meeting of the Board of Directors held for that purpose promptly after the occurrence of any such vacancy, even though the members present at such meeting may constitute less than a quorum, and each person so elected shall be a member of the Board of Directors until the next annual meeting of the Unit Owners, at which time the Unit Owners shall elect a successor by a majority vote who shall serve out the remainder of the unexpired term. SECTION 8. Organization Meeting: The first meeting of the members of the Board of Directors following the Annual Meeting of the Unit Owners shall be held within ten (10) days thereafter, at such time and place as shall be set by the Unit Owners at the meeting at which such Board of Directors shall have been elected, and no notice shall be necessary to the newly elected members of the Board of Directors in order legally to constitute such meeting, providing a majority of the Board of Directors shall be present. SECTION 9. Regular Meetings: Regular meetings of the Board of Directors may be held at such time and place as shall be determined from time to time by a majority of the members of the Board of Directors. Notice of regular meetings of the Board of Directors shall be given to each member of the Board by mail or FAX at least five (5) business days prior to the day named for such meeting. SECTION 10. Special Meetings: Special meetings of the Board of Directors may be called by the president on five (5) business days notice to each member of the Board of Directors, given by mail or FAX, which notice shall state the time, place and purpose of the meeting. Special meetings of the Board of Directors shall be called by the president or secretary in like manner and on 5 like notice on the written request of at least two members of the Board of Directors. SECTION 11. Waiver of Notice: Any member of the Board of Directors may, at any time, waive notice of any meeting of the Board of Directors in writing, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a member of the Board of Directors at any meeting of the Board shall constitute a wavier of notice by him of the time and place thereof. If all the members of the Board of Directors are present at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting. SECTION 12. Quorum of the Board of Directors: At all meetings of the Board of Directors, a majority of the members thereof shall constitute a quorum for the transaction of business, and the votes of a majority of the members of the Board of Directors present at a meeting at which a quorum is present shall constitute the decision of the Board of Directors. If at any meeting of the Board of Directors there shall be less than a quorum present, a majority of those present may adjourn the meeting from time to time. At any such adjourned meeting at which a quorum is present, any business which might have been transacted at the original meeting, may be transacted without further notice. SECTION 13. Fidelity Bonds: The Board of Directors shall obtain adequate fidelity bonds for all officers and employees of the Association handling or responsible for Association funds. The premiums on such bonds shall constitute a common expense. SECTION 14. Compensation: No member of the Board of Directors shall receive any compensation of more than $25.00 per meeting from the Association for acting as such. No compensation will be paid without approval and upon resolution of the Board and approval of the membership at an annual meeting. SECTION 15. Liability of the Board of Directors: The members of the Board of Directors shall not be liable to the Unit Owners for any mistake of judgement, negligence, or otherwise except for their own individual willful misconduct or bad faith. The Unit Owners shall indemnify and hold harmless each member of the Board of Directors against all contractual liability to others arising out of contracts made by the Board of Directors on behalf of the 6 Association. It is also intended that the liability of any Unit Owner arising out of any contract made by the Board of Directors, or out of the indemnity in favor of the members of the Board of Directors, shall be limited to such proportion determined by using the number of Units owned by the owner divided by the number of Units built and having been or being occupied at the time of the claim. Every agreement made by the Board of Directors or by the managing agent or by the manager on behalf of the Association shall provide that the members of the Board of Directors, or the managing agent, or the manager, as the case may be, are acting only as agents for the Unit Owners and shall have no personal liability thereunder (except as Unit Owners), and that each Unit Owner's liability thereunder is limited as above stated. ARTICLE III. UNIT OWNERS SECTION 1. .Annual Meetings: (a.) The first annual meeting of the Unit Owners will be held upon call of Sponsor, within thirty (30) days of the earliest occurrence of one of the two events set forth in Article II, Section 2(a). (b.) Thereafter, the annual meeting of the Unit Owners shall be held on the last Tuesday of July of each succeeding year; unless such date shall occur on a holiday, in which event the meeting shall be held on the succeeding working day. At such meeting the Board of Directors, except those designated as such by the Sponsor, shall be elected by ballot of the Unit Owners in accordance with the requirements of Article II,, Section 5 of these Bylaws. The Unit Owners may transact any other business at such meeting as may properly come before them. SECTION 2. Place of Meeting: Meetings of the Unit Owners shall be held at the principal office of the Association, or at such other suitable place convenient to the owners as may be designated by the Board of Directors. SECTION 3. Special Meetings: It shall be the duty of the president to call a special meeting of the Unit Owners if so directed by resolution of the Board of Directors, or upon a petition signed and presented to the secretary by Unit Owners 7 owning a total of at least twenty-five percent (25%) of the units. The notice of any special meeting shall state the time, place and purpose of the meeting. No business shall be transacted at such special meeting except as stated in the notice. SECTION 4. Notice of Meetings: The secretary shall mail to each Unit Owner of record a notice of each annual or special meeting of the Unit Owners, stating the purpose thereof, as well as the time and place where it is to be held, at the building or at such other address as such Unit Owners shall have designated by notice in writing to the secretary. The mailing of a notice of meeting in the manner provided in this section shall be considered service of notice. SECTION 5. Adjournment of Meetings: If any meeting of Unit Owners cannot be held because a quorum has not attended, either in person or by proxy, the president will adjourn the meeting to a time not less than 48 hours from the time the original meeting was called, in order that a quorum may be obtained. SECTION 6. Order of Business: The order of business at all meetings of the Unit Owners shall be as follows: a. Roll Call b. Proof of Notice of Meeting C. Reading of the minutes of preceding meeting d. Report of Officers e. Report of the Board of Directors f. Report of Committees g. Election of inspectors of election (when so required) h. Election of members of Board of Directors (when so required) I. Unfinished business; and j. New busine.ss. SECTION 7. Voting: On all matters to be decided by the Association, unless excluded by the Declaration or this document, each Unit Owner shall have one vote. A majority of the Unit Owners or a majority of unit votes represented by the owner of the votes present at any meeting or by proxy shall be sufficient to act on matters brought before the Association. Meetings of the Association shall only be conducted when a quorum is present, as defined herein. s Each Unit in the described property shall have one (1) vote, but that vote shall be proportionally distributed between all owners. As used herein, the owners of the property shall be the person holding possession and title including herein a purchaser under direct contract for deed, but shall not include a mortgagee or a contract seller. Until 90% of the presently proposed units are built and sold, developer shall have two votes for each unit retained. The presently proposed number of units is twenty-six (26). SECTION 8. Majority of Unit Owners: As used in these Bylaws, the term "majority of Unit Owners" shall mean those Unit Owners having more than 50% of the authorized votes of all Unit Owners present in person or by proxy and voting at any meeting of the Unit Owners determined in accordance with the provisions of Section 7 of this Article III. SECTION 9. Quorum: Except as otherwise provided in these Bylaws, the presence in person or by proxy of Unit Owners having one-half of the total authorized votes of all Unit Owners shall constitute a quorum at all meetings of the Unit Owners. Upon proof of the notice being sent for the annual meeting to all Unit Owners, the number of Unit Owners present at the annual meeting shall constitute a quorum. SECTION 10. Majority Vote: The vote of a majority of Unit Owners at meeting at which a quorum shall be present shall be binding upon all Unit Owners for all purposes except where a higher percentage vote is required by law, by the Declaration, or by these Bylaws. Meetings of the Association shall only be conducted when a quorum is present, as defined herein. ARTICLE IV. OFFICERS SECTION 1. Designation: The principle officers of the Association shall be the president, the vice-president, the secretary, and the treasurer, all of whom shall be elected by the Board of Directors. The Board of Directors may appoint an assistant treasurer, an assistant secretary, or such other officers as in its judgement may be necessary. The president and vice-president must be members of the Board of Directors. The offices of secretary and treasurer may be combined. 0 SECTION 2. Election of Officers: Officers shall be elected I annually by the Board of Directors at the organization meeting of each new Board of Directors and shall hold office at the pleasure of the Board of Directors. SECTION 3. Removal of Officers: Upon affirmative vote of a majority of members of the Board of Directors, any officer may be removed, either with or without cause, and his successor may be elected at any regular meeting of the Board of Directors, or at any special meeting of the Board of Directors called for such purpose. SECTION 4. President: The president shall be the chief executive officer of the Association. He shall preside at all meetings of the Unit Owners and of the Board of Directors. He shall have all of the general powers and duties which are incident to the office of president of a corporation organized under the Business Corporation Law of the State of Montana, including, but not limited to, the power to appoint from among the Unit Owners any committee which he decides is appropriate to assist in the conduct of the affairs of the Association. SECTION 5. Vice -President: The vice-president shall take the place of the president and perform his duties whenever the president shall be absent or unable to act. If neither the president nor the vice-president is able to act, the Board of Directors shall appoint some other member of the Board of Directors to act in the place of the president, on an interim basis. The vice-president shall also perform any other duties as shall from time to time be imposed upon him by the Board of Directors or by the president. SECTION 6. Secretary: The secretary shall keep the minutes of all meetings of the Unit Owners and of the Board of Directors; he shall have charge of such books and papers as the Board of Directors may direct; and he shall, in general, perform all the duties incident to the office of secretary of a corporation organized under the Business Corporation Law of the State of Montana. SECTION 7. Treasurer: The treasurer shall have the responsibility for Association funds and securities, and shall be responsible for keeping full and accurate financial records and book of accounts showing all receipt and disbursements, and for 10 the preparation of all required financial statements. He shall be responsible for the deposit of all money and other valuable effects in the name of the Board of Directors, or the managing agent, in such depositories as may from time to time be designated by the Board of Directors, and he shall, in general, perform all the duties incident to the office of treasurer of a corporation organized under the Business Corporation Law of the State of Montana. SECTION 8. Agreements, Contracts, Deeds, Checks, Etc.: All agreements, contracts, deeds, leases, checks, and other instruments shall be executed by any two officers or by such other person or persons as may be designated by the Board of Directors. SECTION 9. Compensation of Officers: No officer shall receive any compensation for acting as such unless the same is approved first by the Board of Directors and then by a majority vote of the Unit Owners present in person or by proxy at the annual meeting. ARTICLE V. OPERATION OF THE PROPERTY SECTION 1. Determination of Common Expenses and Common Charges: The Board of Directors shall from time to time, and at least annually, prepare the budget for the Association, determine the amount of the common charges required to meet the common expenses, and allocate and assess such common charges against the Unit Owners in proportion to the number of Units owned by them divided by the number of Units built and at one time occupied. The common expenses shall include, among other things, the cost of all insurance premiums on all policies of insurance, if any, which have been obtained by the Board of Directors. The common expenses may also include such amounts as the Board of Directors may deem proper for the operation and maintenance of the property, including, without limitation, an amount for working capital, for a general operating reserve, for a reserve fund for replacements, and to make up any deficit in the common expenses for any prior year. The common expenses may also include such amounts as may be required for the purchase or lease by the Board of Directors or its designees, corporate or otherwise, on behalf of all Unit Owners, if any Unit whose owner has elected to sell or lease such Unit or of any Unit which is to be sold at a foreclosure or other judicial sale. The Board of Directors shall 11 advise each owner in writing of the amount of common charges payable by him, and shall furnish copies of each budget on which such common charges are based to all Unit Owners and to their mortgagees. SECTION 2. Insurance: The Board of Directors may in their discretion and with the consent of a majority of Unit Owners acquire any type of insurance they and the majority of Unit Owners deem necessary or appropriate. This provision does not require the Board to acquire any insurance. SECTION 3. Payment of Common Charges: All Unit Owners shall be obligated to pay the common charges assessed by the Board of Directors at such time or times as the Board of Directors shall determine. No Unit Owner shall be liable for the payment of any part of the common charges assessed against his unit subsequent to a sale, transfer, or other conveyance by him thereof (made in accordance with the provisions of Section 1 of Article VII of these Bylaws). A Unit Owner may, subject to the conditions specified in these Bylaws, and provided that his Unit is free and clear of liens and encumbrances other than a permissible first mortgage and the statutory lien for unpaid common charges, but not including contracts for deed without the mortgage and the statutory lien for unpaid common charges, but not including contracts for deed without the consent of the seller convey his Unit to the Board of Directors, or its designee, corporate or otherwise, on behalf of all other Unit Owners, and in such event be exempt from common charges thereafter assessed. A purchaser of a Unit shall be liable for the payment of common charges assessed against such Unit, except that a mortgagee, trust indenture beneficiary or other purchaser of a Unit, who comes into possession at a foreclosure sale of such Unit or at other proceeding in lieu of foreclosure, shall not be liable for and such Unit shall not be subject to a lien for the payment of common charges assessed prior to the foreclosure sale. SECTION 4. Collection of Assessments: The Board of Directors shall assess common charges against the Unit Owners from time to time and at least annually and shall take prompt action to collect from a Unit Owner any common charge due which remains unpaid by him for more than thirty (30) days from the due date for payment. 12 t SECTION 5. Default in Payment of Common Charges: In the event of default by any Unit Owner in paying to the Board of Directors the assessed common charges, such Unit Owner shall be obligated to pay interest at the legal rate on such common charges from the due date thereof, together with all expenses, including attorneys fees, incurred by the Board of Directors in any proceeding brought to collect such unpaid common charges. The Board of Directors shall have the right and duty to attempt to recover such common charges together with interests thereon, and the expenses of proceeding, including attorneys fees, in an action brought against such Unit or Unit Owner. SECTION 6. Foreclosure of Lien for Unpaid Common Charges: In any action brought by the Board of Directors to foreclose a lien on a Unit because of unpaid common charges, the Unit Owner shall be required to pay a reasonable rental for the use of his Unit, and the plaintiff in such foreclosure action shall be entitled to the appointment of a receiver to collect such rental. The Board of Directors, acting on behalf of all Unit Owners, shall have power to purchase such Unit at the foreclosure sale and to acquire, hold, lease, mortgage, vote for votes appurtenant to, convey, or other wise deal with the same. A suit to recover a money judgement for unpaid common charges shall be maintainable without foreclosure or waiving the lien securing the same. SECTION 7. Statement of Common Charges: The Board of Directors shall promptly provide any Unit Owner, who makes a request in writing with a written statement of his unpaid common charges. SECTION 8. Abatement and Enjoining of Violations: The violation of any rule or regulation adopted by the Board of Directors or the breach of any Bylaw contained herein, or the breach of any provisions of the Declaration, shall give the Board of Directors the right, in addition to any other right set forth in these Bylaws: (a.) to enter the Unit in which, or as to which, such violation or breach exists and to summarily abate and remove, at the expense of the defaulting Unit Owner, any structure, thing, or condition that may exist therein contrary to the intent and meaning of the provisions hereof, and the Board of Directors shall not thereby be guilty in any manner of trespass; or 13 (b.) to enjoin, abate, or remedy such thing or condition by appropriate legal proceedings. SECTION 9. Maintenance and Repair: (a.) All maintenance of and repair to any Unit, structural or non-structural, ordinary or extraordinary (other than maintenance of any repairs to any common element contained therein not necessitated by negligence, misuse, or neglect of the owner of such Unit) shall be made by the owner of such Unit. Each Unit Owner shall be responsible for all damages to any other units and to the common element resulting from his failure to effect such maintenance and repairs. (b.) All maintenance, repairs, and replacements to the general common elements, whether located inside or outside of the Unit (unless necessitated by the negligence, misuse, or neglect of a Unit Owner, in which case such expense shall be charged to such Unit Owner), shall be made by the Board of Directors and be charged to all the Unit Owners as a common expense. (c.) All maintenance, repairs, and replacements to the limited common elements, whether located inside or outside of the units (unless necessitated by the negligence, misuse, or neglect of a Unit Owner, in which case such expense shall be charged to such Unit Owner), shall be made by the Board of Directors and be charged to the Unit Owners having an interest in the respective limited common elements. SECTION 10. Balconies and Patios: A balcony or patio to which a Unit has sole access from the inside, shall be for the exclusive use of the owner of such Unit. Such unit owner shall keep such balconies and patios free and clear of snow, ice, and accumulation of water and shall make all repairs thereto. SECTION 11. Use of. Units: As restricted in the covenants. SECTION 12. Alterations, Additions, or Improvements by Board of Directors: Whenever, in the judgement of the Board of Directors, the common element shall require additions, alterations, or improvements, costing in excess of $500.00, and the making of such additions, alterations, or improvements shall 14 have been approved by a majority of the Unit Owners, and by those mortgagees or sellers under contracts for deed holding mortgages or contracts constituting first liens upon three or more units, the Board of Directors shall proceed with such additions, alterations, or improvements and shall assess all Unit Owners for the cost thereof as a common charge. Any additions, alterations, or improvements costing $500.00 or less may be made by the Board of Directors without approval of the Unit Owners, mortgagees, or sellers under contracts for deed, and the cost thereof shall constitute a common charge. SECTION 13. Additions, Alterations, or Improvements by Unit Owners: No Unit Owner shall make any structural addition, alterations, or improvement in or to his Unit, without prior written consent thereto of the Board of Directors. The Board of Directors shall have the obligation to answer any written request by a Unit Owner for approval of a proposed structural addition, alteration, or improvement in such Unit Owner's Unit, within thirty (30) days after such request, and failure to do so within the stipulated time shall constitute approval by the Board of Directors to the proposed addition, alteration, or improvement. Any application to any governmental authority for a permit to make any addition, alteration or improvement in or to any Unit shall be executed by the Board of Directors. The Board shall not be liable to any contractor, subcontractor, or materialman, or to any person sustaining personal injury or property damage, for any claim rising in connection with such addition, alteration or improvement. The provisions of this Section shall not apply to Units owned by the Sponsor until such Units have been initially sold by the Sponsor and one-half of the amount paid for. SECTION 14. Right of Access: A Unit Owner shall grant the right of access to his Unit to the manager, the managing agent, and any other person authorized by the Board of Directors, the manager, or the managing agent, to make inspections; to correct any condition originating in his unit, and threatening another Unit or a common element; to install, alter or repair mechanical or electrical services or other common elements in his Unit or elsewhere in the building; and to correct any condition which violates the provisions of any mortgage, or contract for deed, covering another Unit. Requests for such entry shall be made in advance, and such entry shall be scheduled for a time reasonably convenient to the Unit Owner, however, in case of emergency, such W right of entry shall be immediate, whether the Unit Owner is present at the time or not. SECTION 15. Rules of Conduct: Rules and regulations concerning the use of the Units and the common elements may be promulgated and amended by the Board of Directors with the approval of a majority of the Unit Owners. Copies of such rules and regulations shall be furnished by the Board of Directors to each Unit Owner prior to their effective date. Initial rules and regulations which shall be effective until amended by the Board of Directors with approval of a majority of the Unit Owners may be promulgated by the Sponsor. SECTION 16. Utilities and Television to Units: Electricity, water, telephone, television and any gas shall be supplied by the public and private utility companies serving the area directly to each unit through a separate meter and each Unit Owner shall be required to pay the bills for gas and electricity consumed or used in his unit. The utilities serving the common areas shall be separately metered and the Board of Directors shall pay all such as a common expense. Changes in metering shall require approval of the Board of Directors but shall not require a change in these bylaws. ARTICLE VI. MORTGAGES AND CONTRACTS FOR DEED SECTION 1. Notice to Board of Directors: A Unit Owner who mortgages his Unit shall notify the Board of Directors of the name and address of his mortgagee and shall file a conformed copy of the note and mortgage with the Board of Directors. The Board of Directors shall maintain such information in a book entitled "Mortgages of Units". SECTION 2. Notice of Unpaid Common Charges: The Board of Directors, whenever.so requested in writing by a mortgagee of a unit or a holder of contract for deed, shall promptly report any then unpaid common charges or other default by the owner of the mortgaged or contracted unit. SECTION 3. Notice -of Default: The Board of Directors, when giving notice to a Unit Owner of a default in paying common charges or other default, shall send a copy of such notice to each holder of a mortgage or seller under a contract for deed W1 covering such Unit, whose name and address has theretofore been furnished to the Board of Directors. SECTION 4. Examination of Books: Each Unit Owner and each mortgagee or seller under a contract for deed shall be permitted to examine the books of account of the Association at reasonable times, on business days, but not more often than once annually. SECTION 5. First Lien Holder's Rights: (a.) A holder or insurer of a first mortgage, upon written request to the Homeowners Association (such request to state the name and address of such holder or insurer and the Unit number), will be entitled to timely written notice of: (1) Any proposed amendment of the Association instruments affecting a change in (1) the boundaries of any Unit: (2) the undivided interest in the common elements appertaining to any Unit or the liability for common expenses appertaining thereto: (3) the number of votes in the Association appertaining to any Unit; or (4) the purposes to which any Unit or the common elements are restricted; (2) Any proposed termination of the Association regime; (3) Any condemnation or eminent domain proceeding affecting the Association regime or any portion thereof; (4) Any significant damage or destruction to the common elements; (5) Any default under the Declaration or Bylaws which gives rise to a cause of action against the owner of a Unit subject to the mortgage of such holder or insurer, where the default has not been cured in sixty (60) days. (b.) The Declaration shall provide that the holder and insurer of the first mortgage on a Unit shall be entitled, upon - request, to: 17 (1) inspect the books and records of the Association during normal business hours; and (2) Require the preparation of and, if preparation is required, receive an annual audited financial statement of the Association for the immediately preceding fiscal year, except that such statement need not be furnished earlier than ninety (90) days following the end of such fiscal year. The Declaration shall also provide that all Unit Owners shall have reasonable access to inspect the books, records and financial statements of the Association, including annual audited financial statements when such are prepared. ARTICLE VII. SALES AND LEASES OF UNITS SECTION 1. Assumption of Provisions: All deeds shall provide that the acceptance thereof by the grantee shall constitute an assumption of the provisions of the Declaration, the Bylaws and the rules and regulations, as the same may be amended from time to time. All leases shall be consistent with these Bylaws and shall provide than the Board of Directors shall have power to terminate such lease and to bring summary proceedings to evict the tenant in the name of the landlord thereunder in the event of default by the tenant in the performance of such lease. SECTION 2. Payment of Assessments: No Unit Owner shall be permitted to convey, mortgage, pledge, hypothecate, sell, or lease his Unit unless and until he shall have paid in full to the Board of Directors all unpaid common charges theretofore assessed by the Board of Directors against his Unit and until he shall have satisfied all unpaid liens against such Unit, except permitted mortgages and contracts for deed. SECTION 3. Condemnation: In the event of a taking in condemnation or by eminent domain of part of, or all of the common elements, the award made for such taking shall be payable to the Unit Owners in proportion to their ownership in the entire project, with it understood that the developers or Sponsors are determined to be Unit Owners for the sake of this provision. 18 ARTICLE IX. RECORDS SECTION 1. Records and Audits: The secretary shall keep detailed records of the actions of the Board of Directors, minutes of the meetings of the Board of Directors, and minutes of the meetings of the Unit Owners. The treasurer shall keep financial records and books of account of the Association, including a chronological listing of receipts and expenditures, as well as a separate account for each Unit which, among other things, shall contain the amount of each assessment of common charges against such Unit, the date when due, the amount paid thereon and the balance remaining unpaid. A written report, summarizing all receipts and expenditures of the Association shall be rendered by the Board of Directors to all Unit Owners at least quarterly each year. In addition, an annual report offs-t.tr� receipts and expenditures of the Association, te`c by an independent Certified Public Accountant, shall be rendered by the Board of Directors to all Unit Owners and to all mortgagees of Units or sellers under contracts for deed or units who have requested the same, promptly after the end of each fiscal year. ARTICLE X. MISCELLANEOUS SECTION 1. Notices: All notices to the Board of Directors shall be sent by registered or certified mail, in care of the managing agent, or if there is no managing agent, to the office of the Board of Directors, or to such other address as the Board of Directors may hereafter designate from time to time. All notices to any Unit Owner shall be sent by registered or certified mail to the building or to such other address as may have been designated by him from time to time, in writing to the Board of Directors. All notices to mortgagees of Units or sellers under contracts for deed, shall be sent by registered or certified mail to their respective addresses, as designated by them from time to time in writing to the Board of Directors. All notices to the Sponsor, unless hereinafter changed in writing, shall be sent at the address stated opposite the name below and shall be sent registered or certified mail. All notices shall be deemed to have been given when mailed, except notices of change of address which shall be deemed to have been given when received. 19 SECTION 2. Invalidity: The invalidity of any part of these Bylaws shall not impair or affect in any manner the validity, enforceability, or affect of the balance of these Bylaws. SECTION 3. Captions and Gender: The captions herein are inserted only as a matter of convenience and for reference, and in no way define, limit, or describe the scope of these Bylaws, or the intent of any provision thereof. The use of the masculine gender in these Bylaws shall be deemed to include the feminine gender and the use of the singular shall be deemed to include the plural and vice -versa, whenever the context so requires. SECTION 4. Mortgage: As used in these Bylaws, the term mortgage shall include trust indenture and contracts for deed; the term mortgagee shall include trust indenture beneficiary and sellers under a contract for deed, and the term foreclosure shall include any proceedings in lieu of foreclosure. SECTION 5. Waiver: No restriction, condition, obligation or provision contained in these Bylaws shall be deemed to have been abrogated or waived by reasons of any failure to enforce the same, irrespective of the number of violations or breaches thereof which may occur. ARTICLE XI. AMENDMENTS TO BYLAWS Except as hereinafter provided otherwise, these Bylaws may be modified or amended by the vote of 75% in number and in common interest of all Unit Owners at a meeting of Unit Owners duly held for such purpose, but only with the written approval of those mortgagees holding mortgages constituting first liens upon 7501 or more Units or the approval of a seller under a contract for deed holding contacts constituting first liens upon 7511 or more Units. If so approved,, it shall be the responsibility of the Association to file the amendment with the Clerk and Recorder's Office in Flathead County,'Montana. To record such amendment, the president and secretary of the Association shall certify on the face of the amendment the vote. The Association will maintain for four years records of the Unit Owners votes. The signature of no other party is necessary on the amendment. 20 ARTICLE XII. CONFLICTS In case any of these bylaws conflict with the provisions of a statute or of the Declaration, the provisions of such statute or of the Declaration, as the case may be, shall control. DONE AND DATED this 8thday of October, 1996 THE CITY OF KALISPELL BY: Clarence Krepps Its: City Manager ATTEST: Debbie Gifford, CMC CERTIFICATE AND ACKNOWLEDGMENT STATE OF MONTANA ) ss. County of Flathead ) The undersigned, Sponsor, respectively, of Teton Terrace Homeowners Association, hereby certifies and acknowledge as follows: that the copy of the Bylaws of Teton Terrace Homeowners Association to which this Certificate and Acknowledgment is annexed, is a true, compared and correct copy of the Bylaws of said Teton Terrace Homeowners Association, to be passed, approved and adopted by the holders of Teton Terrace Homeowners Association on upon its formation. That the undersigned, Sponsor of Teton Terrace Homeowners Association subscribed to the said Bylaws of Teton Terrace Homeowners Association of which the attached instrument is a copy, and executed the same as Sponsor of Teton Terrace 21 Homeowners Association, respectively, and hereby acknowledge execution thereof. SUBSCRIBED AND SWORN TO before me on this 8th day of October, 1996, by The Sponsor's representative Clarence Krepps known to me to be the City Manager of the City of Kalispell on behalf of Teton Terrace Homeowners Association and who acknowledged to me the execution of the instrument to which this Certificate and Acknowledgment is attached. IN WITNESS WHEREOF, I have hereunto affixed my hand and official seal the day and year in this certificate provided. Notary Public for the State of Montana Residing at Kalispell, Montana My Commission Expires: 22