MASTER DEED AND DECLARATION
OF
CONDOMINIUM PROPERTY REGIME
OF THE VILLAGE OF SPRINGMEADOWS
CONDOMINIUMS
MICHAEL A. YOUNG, INC., a Kentucky Corporation, 9310 New LaGrange Road,

Louisville, KY 40222. (“Developer”) declares this as its plan of ownership in condominium of

certain property located in Jefferson County, Kentucky (the “Declaration”).

WITNESSETH:

Developer submits the following described real property and improvements now or

hereafter constructed on such real property (“Land”) to a horizontal [condominium} property

regime (the “Regime”) under the Kentucky Horizontal Property Law, Sections 38 1.805 through

381.910 of the Kentucky Revised Statutes, as amended from time to time (the “Act”):

BEING a portion of Tract 16 as shown on the unnamed plat recorded in Plat Book 42, Page 71 of record in the Office of the Clerk of Jefferson County, Kentucky, and further described as follows:

Beginning at the intersection of the Southeast corner of Lot 519 Springhurst Phase lOB,
Plat Book 43, page 66 and the Southwest corner of the subject property; thence
continuing with the East line of Springhusrt Phase lOB the following calls; North 45 16’
10” East, 110.00 feet, North 18 ° 16’ 10” East, 230.00 feet, North 01 ° 43’ 50” West
210.00 feet, North 16 ° 58’ 50” West 119.32 feet to the South line of Springhurst Garden
Homes, Plat Book 43, page 17; thence with the South line of said subdivision North 70
15’ 05” East, leaving said South line at 352.53 feet, 1176.57 feet in all; thence South 37
49’ 23” East, 64.21 feet; thence South 68 ° 37’ 51” East, 188.41 feet; thence South 55
21’ 44” East, 184.08 feet; thence South 35 18’ 39” West, 263.34 feet; thence South 74
02’ 29” West, 505.76 feet; thence South 29 C 27’ 07” West, 544.90 feet; thence South 15
50’ 15” West, 169.78 feet; thence North 82 13’ 19” West, 515.98 feet to the point of
beginning containing 21.17 acres.

Being a part of the same property conveyed to Michael A. Young, Inc by deed dated May
15, 1997 of record in Deed Book 6884, Page 335 in the office of the Clerk of Jefferson
County, Kentucky.
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ARTICLE I
DEFINITIONS
The following words and phrases shall have the following meaning in the Declaration:

Section 1.1 “The Village of Springmeadows Condominiums Association, Inc.,”

Council of Co-owners” or “Council” means all of the Unit Owners acting as a group in

accordance with this Declaration, any amendments thereto, the Bylaws, rules and regulations,

and any other governing documents. The “Council of Co-owners” has been or will be

incorporated as “ The Village of Springmeadows Condominiums Association, Inc,” a Kentucky

corporation, or a similar name and references to Council shall include successors and assigns of

that corporation.

Section 1.2 “Common Elements” means the general common elements of the Regime,

as stated in the Act, and shall include (if actually built and except as otherwise provided

or stipulated in this Declaration and amendments to this Declaration) the following:

(a) the land on which buildings stand;

(b) the foundations, main walls, roofs;

(c) the grounds, landscaping, walkways, roadways and parking areas that are not allocated by the Board, pursuant to this Declaration or amendments to this

Declaration, for the exclusive use of a Unit owner;

(d) all other devices or installations existing for common use, and all

other elements of the buildings rationally of common use or necessary to their existence, upkeep

and safety.

Section 1.3 “Limited Common Elements” means those Common Elements which are

covered by this Declaration or amendments to this Declaration, by the recorded floor plans, or by
agreement of all Owners, for the use of a certain Unit or number of Units to the exclusion of

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other units including without limitation.

(a) interior unfinished surfaces of each Unit’s perimeter walls,

ceilings and floors and space between floors;

(b) entrances and exits to the Unit;

(c) attics (meaning any space between the roof of a building and the

ceiling of a Unit), crawl spaces, basements (if any, and if not included in a Unit as shown on the

final “as built” plans referred to in Section 2.2), slabs, balconies, stoops, porches, patios and

decks, if any, now (or hereafter if approved by the Board) attached to a particular Unit and

whether or not shown on the “as built” plans;

(d) garages, if assigned to a Unit and if not shown as part of the Unit

on the final “as built” plans, and driveways serving one Unit;

(e) utility service facilities serving a Unit, including the air

conditioning and heating equipment and systems;

(f) door and window frames for each Unit; and

(g) back yard areas, meaning one of the following, as applicable. If the

rear of a Unit is enclosed by a fence permitted by Developer or the Board pursuant to Section

5.4, then the back yard area shall mean that enclosed area. If there is no fence, the back yard area

shall be the area in the rear of each Unit bounded as follows: (A) by the rear exterior wall of the

Unit, (B) by two imaginary lines extending straight back from each side wall of the Unit, and (C)

by one of the following imaginary lines, determined based on which line creates the smallest

“back yard area” - either (I) the boundary line of the Land, or (II) a line that is one-half the

distance between the rear wall of the Unit for which the “back yard area” is being determined

and the closest wall of the closest Unit, or (III) the line of any easement, or (IV) a line 50 feet from

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and parallel to the rear wall of the Unit, or (V) with respect to any Unit of which a different

limited common element line is shown on the plans contemplated by sections 2.2 and 2.4 (c),

that the line shown on such plans.

(h) “side yard areas”, meaning one of the following, as applicable. If the

side of a Unit is enclosed by a fence permitted by Developer or the Board pursuant to Section

5.4, then the side yard area shall mean that enclosed area. If there is no fence, the side yard area

shall be the area in the side of each Unit bounded as follows: (A) by the side exterior wall of the

Unit, (B) by two imaginary lines extending parallel from the rear and front wall of the Unit, and

(C) by one of the following imaginary lines, determined based on which line creates the smallest

“side yard area” - either (I) the boundary line of the Land, or (II) a line that is one-half the

distance between the side wall of the Unit for which the “side yard area” is being determined and

the closest wall of the closest Unit, or (III) the line of any easement, or (IV) a line 25 feet from

and parallel to the side wall of the Unit, or (V) with respect to any Unit of which a different

limited common element line is shown on the plans contemplated by sections 2.2 and 2.4 (c),

that the line shown on such plans. Conflicts involving intersecting lines between side and back

yard shall be resolved by developer or its successor the Condominium Association, Inc.

Section 1.4 “Use of Other Structures and Vehicles”

(a) No structure of a temporary character shall be permitted on any lot except temporary

tool sheds or field offices used by a builder or Developer, which shall be removed when

construction or development is completed.

(b) No outbuilding, trailer, basement, tent, shack, garage, barn or structure other than the

main residence erected on a lot shall at any time be used as a residence, temporarily or permanently.

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(e) No trailer, truck, motorcycle, commercial vehicle, camper trailer, camping vehicle or

boat shall be parked or kept on any lot at any time unless housed in a garage or basement. No

automobile which is inoperable shall be habitually or repeatedly parked or kept on any lot

(except in the garage) or on any street in the subdivision. No trailer, boat, truck, or other vehicle,
except an automobile, shall be parked on any street in the subdivision for a period in excess of

twenty-four hours in any one, calendar year.

(c) No automobile shall be continuously or habitually parked on any Street or public
right-of-way in the subdivision.

All garage doors shall remain closed at all times except when required to be open for
the entrance or exit of a vehicle housed therein.

Section 1.5 “Unit of “Condominium Unit” means the enclosed space consisting of one or

more rooms as measured form interior unfinished surfaces, having direct access to the Common

Elements. The location and extent of each Unit are as shown on the plans of the Regime

recorded with this Declaration and include garage, if made part of the Unit on the plans.

Notwithstanding that some of the following might be located in the Common Elements or

Limited Common Elements, the plumbing heating, and air conditioning equipment (including all

ducts and pipes), electrical wiring and equipment, hot water heater, telephone lines, cable

television lines, window panes, doors (including storm and screen doors, if any), windows, halls,

stairways and other equipment located within or connected to a Unit for the sole purpose of

serving that Unit exclusively, are a part of the Unit, the maintenance repair and replacement of

same being the responsibility of the Unit owners.

Section 1.6 “Common Expenses” means the includes all charges, costs and expenses

incurred by the Council for and in connection with the administration and operation of the

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Regime, including without limitation: maintenance, repair, replacement and restoration (to the

extent not covered by insurance) of the Common Elements; any additions and alterations thereto; all

labor, services, materials, supplies and equipment therefor; all liability for loss or damage arising out of

or in connection with the Common Elements and their use; all premiums of hazard, liability and other

insurance with respect to the Regime; all liabilities incurred in acquiring a Unit pursuant to judicial sale,

administrative, accounting, legal and managerial expenses: amounts incurred in replacing or

substantially repairing capital improvements of the Regime, including roof repair and replacement, and

road, driveway and parking area resurfacing; all reserve funds established by the Council; all charges for

utilities not separately metered; provided, however, if the rate of any of the common utilities increased

as a result of a particular owner’s excessive usage, the Board may collect such increase from the Unit

owner.

Section 1.7 “Co-Owner” or “Owner” or “Unit Owner” means the record owner, one of

more persons or other legal entities, of a fee simple title to any Unit, but excluding those having an

interest in the Unit merely as security for the performance of an obligation.

Section 1.8 “Board” or “Board of Administration” shall mean Board of Directors of

the Council, having certain responsibilities delegated to it by the Council.

Section 1.9 “Bylaws” shall mean the Bylaws as amended from time to time, of the

Council.



Section 10.0 “Rules and Regulation” means the rules made from time to time by the

Council.



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ARTICLE 11
UNITS AND COMMON ELEMENTS

Section 2.1 Description and Number of Units. The general description and the number each

Unit, expressing its area, location and other data necessary for identification, is contained in

Exhibit A attached as a part of this Declaration. Additional Units may be brought in to the Regime

pursuant to Section 2.4.

Section 2.2 Floor Plans. Simultaneously with recording of this Declaration, there has

been filed in the Office of the Clerk of Jefferson County, Kentucky, a set of "as built” floor

plans showing the layout, location, Unit numbers and dimensions of the initial Units and, if

applicable, the initial Limited Common Elements; stating the name of the Regime and

bearing the verified statement of a registered architectural professional engineer certifying

that the plans fully and accurately depict the layout, location, unit number and dimensions

of the existing Units as built. The Initial floor plans are of record in Apartment Ownership

Book 82, Pages 7-9 in the office of the Clerk of Jefferson County Kentucky. Additional

Units may be brought into the Regime by filing and recording supplemental floor plans as

provided in Section 2.4.

Section 2.3 Percentage of Common Interest. Appurtenant to each Unit is that Unit’s

percentage of common interest, as set forth in Exhibit A. This percentage is computed by

taking as a basis the floor area of the individual Unit in relation to the floor area of all

existing Units, Except as otherwise provided in this Declaration (see Section 2.4) and

except as otherwise provided by the Act, the percentage of common interest is permanent

and shall not be altered without the acquiescence of the Owners representing all Units in
the Regime. If the Regime is expanded as contemplated by Section 2.4 ,the percentage of
common interest appurtenant to each Unit will be altered and redistributed on an as built
basis and without the acquiescence of the Owners representing all of the Units, pursuant to the power of attorney and rights reserved in

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this Declaration.

Section 2.4 Expandable Regime. This is an expandable condominium regime.

In other words, additional buildings may become a part of this Regime at the option of

Developer, it successors and assigns, as follows:

(a) Developer currently contemplates that the Regime will consist of
approximately 90 Units, but this expression of intent does not obligate Developer, its successors or

assigns, to construct all such Units, nor does this expression of intent prohibit Developer from

constructing more Units.

(b) Developer currently intends to expand the Regime only on the Land

described in the first paragraph of this Declaration.

(c) If expanded, the percentage of common interest appurtenant to each

Unit in the Regime shall be distributed on an as-built basis upon completion or additional Units.

The redistribution shall be done by aim amendment or amendments to this Declaration.

(d) Developer hereby reserves for itself, its successors and assigns, for

a period of 10 years from the date of this Declaration, the right to execute on behalf of all contract

purchasers, Unit Owner, mortgagees or other lien holders, or other parties claiming a legal or

equitable interest in the Regime, any amendment, agreement or supplement that may be required to

expand the Regime, and by taking any interest in the Regime or by taking any interest in a Unit,

each such person or entity shall be deemed to have granted to Developer a power of attorney for

such purposes, coupled with an interest running with the Regime or Unit, as applicable, and binding

upon the successors or assigns of any of the foregoing parties, with that power of attorney not being

affected by the death or disability of any principal. Developer, for itself, and for it successors and

assigns, reserve an interest in any real estate, including the

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Regime and each Unit, for these purposes. This interest reserved by Developer and the power of

attorney hereby granted by each interest holder includes the right to amend the percentage of

common interest appurtenant to each Unit and otherwise to amend this Declaration to supplement

the floor plans to accomplish the expansion of the Regime, as contemplated by this Section.

ARTICLE III
EASEMENTS
Section 3.1 Easements for Encroachment, Access and Utilities. The Units

Common Elements and Limited Common Elements shall have and be subject to the following

easements:

(a) An easement exists for any maintenance, repair and replacement of any and
all pipes, wires, conduits, or other utility lines running through or around any Unit (including those

common facilities located above a suspended ceiling), which facilities serve more than one Unit

and are part of the Common Elements.

(b) An easement exists for ingress and egress for the maintenance, repair and

replacement of any load bearing wall located within a Unit.

(c) If any part of the Common Elements encroaches upon any Unit or Limited
Common Element, and easement shall exist for the encroachment, the maintenance, repair and

replacement thereof, so long as it continues. If any building of the Regime shall be partially or

totally destroyed and then rebuilt, minor encroachments on any parts of the Common Elements due

to reconstruction shall be permitted, and easements shall exists for the encroachments.

(d) An easement exists for ingress, egress and maintenance in favor of any

public utility providing utility service to the Regime and the Units.

(e) An easement exists in favor of the Council of Co-owners, exercisable by

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the Board of Administration and its agents, to enter any unit or any Limited Common Element

from time to time during reasonable hours, as may be necessary for the operation of the Regime

(including the right to inspect Common Elements), on the event of emergency, for necessary action

to prevent damage to any part of the Regime.

(e) Developer reserves the right during development to grant, transfer, cancel,

relocate, and otherwise deal with all utility and other easements now or hereafter affecting the

Common Elements.

Section 3.2 Reservation of Easements by Developer. To benefit land that may never be

brought into the Regime, Developer reserves any and all sanitary sewer lines, storm sewer lines,

telephone lines, electricity or other power lines, cable television lines, rights of way for ingress and

egress and any other lines or accompanying easements. These reservations of easements shall be

construed broadly in favor of Developer to facilitate the development of real estate that may never

be brought into the Regime.

ARTICLE IV
PERMANENCY OF INTEREST

Section 4.1 Alteration and Transfer of Interests. The Common Elements and

easements appurtenant to each Unit shall have a permanent character and shall not be altered

without the consent of the Board of Administration and the Unit owner affected. The Common

Elements and easements shall not be separated from the Unit to which they appertain, and shall be

deemed to be conveyed, leased or encumbered with the Unit even though the Common Elements or

easements are not expressly mentioned or described in the conveyance or other instrument.

Section 4.2 Partition. The Common Elements shall remain undivided and shall not be

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D807651PGO673

the object of any action for partition or division of any part thereof except as provided by the Act.

ARTICLE V
RESTRICTIONS

The Units and the Common Elements and Limited Common Elements shall be subject to

the following restrictions, which restrictions shall be permanent:

Section 5.1 Use. The Unit shall be used only for single family residential purposes. The

Unit shall be subject to such limitations and conditions as may be contained herein, or in the

Bylaws of the Council, or any Rules and Regulations which may be adopted from time to time by

the Board as to the use and appearance of the Units and the Common Elements.

Section 5.2 Subdivision. There shall be no subdivision or partition of any Unit without the

prior written approval of the majority of the Board. If such approval is granted, such subdividing

shall not alter or diminish the voting rights or the percentage of interest in the Common Elements

previously allocated to the Unit undergoing such subdividing.

Section 5.3 Leases. Any Unit lease shall be in writing and shall be subject to this

Declaration, the Bylaws and Rules and Regulation, and a copy of such lease shall be delivered to

the Board.

Section 5.4 Fences and Back and Side Yard Areas. No fence, patio, wall, above or below

ground pool, hot tub, antenna or receiver/transmitters (including there commonly known as

“satellite dishes”), outbuilding or shed, or any other structure or placement of any kind of any kind

or nature shall be erected or located anywhere in the Common Elements or Limited Common

Elements (including within the “back yard area” and “side yard area” constituting Limited Common

Area) without the prior written approval of Developer or the Board. Anytime an approved fence is

in place; it must at no time have a locked gate, to allow the Council’s

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maintenance personnel access.

Section 5.5 Penalties. Violation of this Declaration , the Bylaws or any rules

adopted by the Board of Administration, may be remedied by the Board, or its agent, by the

imposition of reasonable fines or by legal action for damages, injunctive belief, restraining order, or

specific performance. In addition, an aggrieved Unit owner may maintain a legal action for similar

relief. A Unit owner in accepting ownership of a Unit agrees to become subject to this enforcement

in the event of violation.

ARTICLE VI
ADMINISTRATION

Section 6.1 Council of Co-Owners; Voting. The administration of the Regime shall be

vested in a Council of Co-owners consisting of all the Unit owners of the Regime. The owner of

any Unit, upon acquiring title, shall automatically become a member, each Unit owner shall have

one vote for each Unit owned. If more than one person or entity owns a Unit, their one vote shall be

exercised as they determine among themselves, but no vote may be split, and, if the owners of a

Unit cannot agree among themselves as to the vote, no vote shall be allowed.

Section 6.2 Developer’s Proxy Rights. The administration of the Regime, including the

adoption and amendment of Bylaws, adoption of rules, assessment of Common Expenses and all

other matters relating to the administration of the Regime, is vested in the Developer until (I) 120

days from the date at least 100% of the Units contemplated for the Regime have been conveyed to

third parties; (ii) until the Developer elects to surrender this power to the Unit owners; or (iii) until

the release of all bonds executed for Development by Developer, whichever first occurs. Until that

time, the Developer shall constitute the Council of Co-owners and the Board of Administration, and

shall possess the irrevocable proxy of the Unit owners to operate and administer the Regime during

this time, which proxy each Unit owner automatically grants upon

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acceptance of a deed to a Unit. All Unit owners, by acceptance of a deed to a Unit, agree to this

administration of the Regime by the Developer.

Section 6.3 Administration of the Regime. Administration of the Regime, including the

use, maintenance, repair, replacement and restoration of the Common Elements, and any additions

and alterations to them, shall be in accordance with the provisions of the Act, this Declaration, the

Bylaws of the Council, and all rules adopted by the Board of Administration. Specifically (but not

exclusively) the Council shall:

(a) Maintain, repair and replace all improvements in the Common Elements
(b)
which are required by law to be maintained, repaired, and replaced upon, adjoining, or in

connection with, any part of the Regime.

(c) Keep all Common Elements in a clean and sanitary condition and observe
(d)
and all laws, ordinances, rules and regulations now or hereafter made by any governmental unit

where applicable to the Regime.

(c) Well and substantially repair, maintain and keep all Common Elements of

the Regime in good order and condition; maintain and keep said land and all adjacent land between

any boundary of the Regime and the established street line in a neat and attractive condition,

keeping all trees, shrubs and grass in good cultivation; replant the same as may be necessary and

make good all defects in the Common Elements of the Regime required in this Master Deed to be

repaired by the Council.

(e) Except as may be provided herein, in the Bylaws and Regime Rules, keep all

Common Elements in a clean and sanitary condition and well and substantially repair, and maintain

them in good order and condition.

(e) Observe any setback lines affecting the Regime as shown on the plans


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herein.

(1) Regulate the use of the Common Elements and Limited Common Elements.

Section 6.4 Board of Administration. Administration of the Regime shall be conducted for

the Council by a Board of Administration (the Developer during the period outlined in Section 6.2)

for Counsel of Co-Owners in accordance with the Bylaws. The Board shall be authorized to

delegate administration of its duties and powers by written contract to a professional managing

agent or administrator employed for that purpose by the Board so long as such contract does not

exceed three years duration and is cancelable by the Board upon ninety days prior written notice. It

shall be the responsibility of the Board to determine annually, subject to the approval of the

Council, the estimated Common areas expenses of the Regime for the succeeding twelve months,

and, having so determined, to make and collect the assessment monthly from each Unit owner, as

set forth in Article VII. Where no such determination is formally made for any year, the

calculations utilized for the previous twelve months shall remain in effect until such oversight is

corrected. The Board shall keep detailed accounts of the receipts and expenditures affecting the

Regime and its administration. Such books and records shall be available for examination by any

Unit owner upon reasonable request and at such reasonable times and location as maybe specified

by the Board.

ARTICLE VII
ASSESSMENTS

Section 7.1 Covenant for Assessments. The proportionate share of each owner of each Unit

in the common surplus and the Common Expenses of the condominium project is equal to the

percentage of common interest appurtenant to the Unit of that Owner. The initial percentage of

common interest appurtenant to each Unit has been set out in Exhibit A to this Declaration,


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with such percentage to be altered by amendment to this Declaration in accordance with Section

2.4 of this Declaration. Each person and/or entity who becomes an Owner of a Unit whether or not

it shall be so expressed in any such deed or other form of conveyance, shall be deemed to covenant

and agree to pay to the council the Unit’s share of assessments as fixed, established, and collected

from time to time as hereinafter provided. All assessments, together with interest thereon at the rate

of ten (10%) percent per annum and costs of collection (including a lien preparation charge, filing

fees, court costs and reasonable attorneys fees) shall be a charge and a continuing lien upon the Unit

against which the assessment is made, and shall also be the personal obligation, jointly and

severally, of the Owner or Owners of the Unit at the time when the assessment fall due.

Section 7.2 Determination of Regular Assessment, Reserves, Special

Assessments, Fine Assessments, Expansion, Start Up Assessment.
(a) The Council, acting through the Board, shall, from time to time, but not less than once

every twelve (12) months, determine the amount of the regular total assessment necessary to defray

the Common Expenses for a give period not to exceed twelve (12) months. When setting the regular

total assessment, the Council should include both (A) those funds required during the period for

general operating purposes, and (B) those reserve funds estimated to be necessary for future capital

improvement. All funds required for general operating purposes under (A) above may be held in the

name of the Council. All funds required for reserves for capital improvements under (B) above shall

be in an account in the name of the Council, for the benefit of all of the Unit owners in the Regime.

Any Unit owner, by the acceptance of a deed, does authorize the disbursal of any and all of the

escrow funds solely upon the written authorization of the Board.

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(b) Each Unit Owner is liable to pay that percentage of the regular total assessment

hat is applicable to his or her Unit’s percentage of the common interest, as determined by the

Council. Not withstanding the foregoing sentence, for an unoccupied Unit owned by the Developer,

the developer is only liable for sixty (60%) percent of the assessment which it would otherwise

have to pay for the Unit. If the Unit becomes occupied, the Developer must thereafter begin paying

a full assessment for that Unit.

(b) The Council may from time to time levy special assessments for reasonable purposes. A

special assessment may be levied against one Unit, or a group of Units or all of the Units, as

circumstances reasonably warrant according to the Unit or Units benefited by the assessment. If the

assessment is apportioned among Units, the method of apportionment shall be based upon square

feet unless for some reason that method would be very unfair. In that case, Council can determine

another reasonable method of apportionment.

(d) If the Regime is expanded during a given year and additional Units are brought into the

Regime, the new Unit shall pay the same assessment per square foot as the existing Units are

paying for assessment year. If in the Council’s sole discretion, such a rate would not be reasonable,

the Council may adjust the rate up or down for those new Units until the next annual assessment is

made

(e) The Council may levy a reasonable assessment, as a fine or penalty for violation of this

declaration. A lien may be filed for this assessment and this assessment may be enforced by

foreclosure and otherwise treated as a regular assessment.

(f) A special assessment, due immediately, arises against a Unit upon the initial transfer of

record of the Unit from the Developer (or successor developer or designated developer) to the Unit

owner (other than a successor developer or designated developer). The


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special assessment shall be in an amount equal to the sum of one month of the full regular

assessment. It shall be collected at closing and paid to the Council for use by the Council for

Common Expenses. This special assessment is in addition to the regular assessment. Any reduced

assessment on the Unit ends as of the first day of the month immediately following the month in

which title was transferred of record from the Developer (or successor developer or designated

developer).

Section 7.3 Billing. The Council shall inform each Unit owner of the amount of the total

assessment due from the Owner of that particular Unit. The Owner of each Unit must pay his or her

Unit’s required assessment in advance each month. Payment is to be made to such person at such a

address as Council determines. Payment shall be due on the first day of each month, unless the

Council otherwise directs. Special assessments are due thirty (30) days after the bill for the special

assessments has been mailed or otherwise sent out by Council, unless the Council otherwise directs.

If the Regime is expanded and additional Units are brought into the Regime during a given

assessment year, those additional Units shall begin paying an assessment on the first day of the

month immediately following the month after the Units were brought, of record, into the Regime.

Section 7.4 Limited Common Element Assessment. An additional assessment may be

made by the Council against any Unit to pay any expense resulting from a Limited Common

Elements benefiting that Unit. The assessment must be reasonable. The assessment should be

apportioned among the Units (if more than one) using the Limited Common Element in a fair and

reasonable manner. The assessment may be a regular annual assessment and may be billed and

included as part of the regular annual assessment described in Section 7.2 above.

Section 7.5 Assessment Certificate. The Council, shall upon demand, at any reasonable


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time, furnish to any owner liable for assessment a certificate in writing signed by an officer or

other authorized agent of the Council, setting forth the status of said assessment; i.e., “current,” and

if no current, “delinquent” and the amount due. Such certificate shall be conclusive evidence of the

payment of any assessment therein stated to have been paid. A reasonable charge to cover labor and

material may be made in advance by the Council for each Certificate.

Section 7.6 Non-Payment of Assessment. Any assessments (including special

assessments) levied pursuant to this Declaration which is not paid on the date when due shall be

delinquent and shall, together with such interest and other costs as set out elsewhere in the

declaration, thereupon become a continuing lien upon the Unit which shall bind the Unit in the

hands of the Owner and the Owner’s successors and assigns.

If the assessment is not paid within fifteen days after the due date, the assessment shall bear

interest at a reasonable rate set by the Board in it minutes, and the Council may bring an action at

law against the Unit owner personally obligated to pay the same and/or foreclose the lien against

the Unit. Interest, costs and reasonable attorneys fees shall be added to the amount of assessment.

No Owner may waive or otherwise escape liability for the assessments by non-use of the Common

Elements or by abandonment of his Unit.

Section 7.7 Priority of Council Lien. The lien provided for in this Article shall take

priority over any lien or encumbrance subsequently arising or created, except liens for real estate

taxes assessments and liens of bona fide first mortgages or vendor’s liens which have been filed of

record unless notice of this lien has been filed of record, and may be foreclosed in the same manner

as a mortgage on real property in an action brought by Council. The Council is entitled to recover

its reasonable attorneys fees and court costs and collection costs, as part of the lien. In any such

foreclosure action, the Council shall be entitled, but not obligated, to become a


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purchaser at the foreclosure sale.

Section 7.8 Disputes as to Common Expenses; Adjustments. Any owner who believes some

portion of common expenses chargeable to her Unit, for which an assessment lien has been levied

by the Council, has been improperly charged against that owner or the Unit, may bring action in

appropriate court of law. The Council in its reasonable discretion may, in order to prevent manifest

injustice, adjust (increase or decrease) the assessment for any Unit based upon a consideration of

the following factors: the floor area of the Unit; the number of occupants in the Unit; or the demand

on utilities by the occupants of the Unit; the accessibility of the Unit to Limited Common Areas.

Council in its reasonable discretion may abate or reduce a Unit’s assessment for a reasonable period

of time, during which a Unit uninhabitable, through no fault of the Owners, as a result of damage or

destruction.

Section 7.9 Purchaser at Foreclosure Sale Subject to Declaration, Bylaws, Rules and Regulations of the Council.

Any purchaser of a Unit at a foreclosure sale shall automatically become a member of the

Council and shall be subject to all the provisions of this Declaration, the Bylaws and the Rules and

Regulations.

Section 7.10 Non-Liability of Foreclosure Sale Purchaser for Past Due Common Expenses.

When the mortgagee of a first mortgage of record or other purchaser of a Unit requires title

to the Unit as a result of foreclosure of the first mortgage or by deed in lieu of foreclosure, such

acquirer of title shall not be liable for the share of the Common Expenses or other assessments by

the Council chargeable to such Unit which became due prior to the acquisition of title to the Unit by

such acquirer. Such unpaid share of Common Expenses or assessments shall


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DB07651PG0682
be deemed to be Common Expenses collectible for all of the Units, including that of such acquirer,

its successors or assigns. However, the Council’s lien rights may be asserted against surplus

proceeds of any judicial sale or against any payments made by the mortgagee to the owner

mortgagor in the case of a deed in lieu of foreclosure

Section 7.11 Liability for Assessments Upon Voluntary Conveyance

The personal obligation of each Owner to pay the assessment against the Unit shall pass to

any subsequent grantee who takes title through contract, operation of law, or through any other

method or instrument other than a commissioner’s deed or other court ordered deed or other than a

deed to a mortgagee in lieu of foreclosure. The original owner shall not be released from the

obligation of the assessment, but instead will be jointly and severally liable with the subsequent

grantee. However, any such grantee or proposed grantee shall be entitled to an assessment

certificate as described elsewhere in this Article, and such grantee shall not be liable for, nor shall

the Unit be conveyed subject to a lien for, any unpaid assessment made by the Council against the

grantor in excess of the amount set forth in the assessment certificate for the period reflected in the

assessment certificate. This section shall not prejudice the right of the grantee to recover from the

grantor the amounts paid by the grantee for the assessment which was also the obligation of the

grantor.

Section 7.12 Late Charge. The Council may make a reasonable late charge or charges for

any assessment, or installment of an assessment, not paid when due. This late charge shall also be a

part of the assessment and shall also be a continuing lien upon the Unit and shall otherwise be

treated and collected in the same manner as the assessment.

Section 7.13 Miscellaneous.
(a) The Council may change the interest rate due on delinquent assessments,


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except that the rate cannot be changed more often than once every six months. As of its effective

date, the new interest rate will apply to all assessments then delinquent.

(b) The Unit owner has the sole responsibility of keeping the Council informed

of owner’s current address if different from the Unit owned. Otherwise, notice sent by the Council

to Unit address is sufficient for any notice requirement under this Declaration.

(c) The lien under this Article arises automatically, and no notice of lien need be

recorded to make the lien effective.

(c) The assessment lien includes all collection costs, including demand letters, preparation

of documents, reasonable attorneys fees, court costs, filing fees, and any other expenses occurred

by the Council in enforcing or collecting the assessment.

(e) If any Common Element, including any Limited Common Area, is intentionally or

negligently damaged or destroyed through the act or omission of any Unit owner, the Council may

issue an individual assessment against the owner and the owner’s Unit for the expenses involved in

doing repairs and in making and/or enforcing the assessment, including reasonable attorneys fees.

(f) Any assessment otherwise payable in installments, shall become immediately due

and payable in full without notice upon default in the payment of any installment. The acceleration

will be at the discretion of the Board.

ARTICLE VIII
COMMUNITY ASSOCIATION

Section 8.1 Springhurst Community Association. Springhurst Community

Association, Inc. (“Community Association”) has been created to maintain certain “Common

Property” as defined in the Declaration of Covenants, Conditions and Restrictions dated

September 17, 1996, of record in Deed Book 6789, Page 353 in the Office of the Clerk of

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DB0765PG0684
Jefferson County, Kentucky (“Master Declaration”). Pursuant to the Master Declaration , every

owner of a Unit in The Village of Springmeadows Condominiums shall be automatically a Class A

member of the Community Association and shall be required to pay to the Community Association

on an annual basis the “Maintenance Assessment” as defined therein. By acceptance of a deed, each

owner of a lot in The Village of Springmeadows Condominiums shall comply with the provisions

of the Master Declaration as well as the Articles of Incorporation, Bylaws, Rules and Regulations

of the Community Association. No owner of any lot in The Village of Springmeadows

Condominiums shall be entitled to have Clubhouse membership privileges unless Zaring Homes

Kentucky LLC (“Zaring”) or the Community Association determines to make such memberships

available and then only on such terms and conditions as Zaring (or the Community Association)

may require.

Section 8.2 Maintenance Assessment. The “Maintenance Assessment” means the annual

assessment levied from time to time by the Community Association for the maintenance of the

Common Property but which does not include any obligations or expenses with respect to the

Clubhouse. Currently the Maintenance Assessment is $312.00 per unit per year.

Section 8.3 Master Declaration. The terms and provisions of the Master Declaration

recorded in Deed Book _____, Page ____ are incorporated herein by reference and made a part

hereof.

Section 8.4 Rights, Duties and Obligations. Except as set forth above, every unit owner in

The Village of Springmeadows Condominiums shall have the same rights, duties and obligations

with respect to the Community Association (and the Community Association shall have the same

rights, duties and obligations with respect to each such unit owner) as are found in the Master

Declaration and the previously recorded Declaration of Covenants, Conditions and

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DBO7651PGO685
Restrictions for other sections of Springhurst.

Upon initial conveyance of each Unit in The Village of Spring Meadows

Condominium (excluding, if applicable, any conveyance by Developer pursuant to a single

transaction of all or substantially all of the Units), the respective Owners purchasing such Units

shall pay the Springhurst Community Association, Inc. a non-refundable initial assessment in the

amount of $300. This initial assessment shall be used as working capital for the Springhurst

Community Association and is not collected in lieu of any installments of the Maintenance Assessment.

ARTICLE IX
INSURANCE

Section 9.1 General Insurance. The Council shall carry a master policy of fire and

extended coverage, vandalism, malicious mischief and liability insurance, and if required by law,

worker’s compensation insurance with respect to the Regime and the Council’s administration

thereof in accordance with the following provisions:

(a) The master policy shall be purchased by the Council for the benefit of the

Council, the Unit Owners and their mortgagees as their interest may appear, subject to the

provisions of this Declaration and the Bylaws. The “master policy” may be made up of several

different policies purchased from different agencies and issued by different companies.

(b) All buildings, improvements, and other Common Elements shall be insured

against fire and other perils covered by a standard extended coverage endorsement, in an amount

not less than one (100%) percent of the replacement value of the exterior of the building, the

brick, window, framing, roofing and rough in mechanicals, interior walls, partitioning, finished dry

wall, in furnished by the Developer and other improvements and betterments, as determined from

time to time by the Council. The Council may elect to carry insurance to cover such other

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perils from time to time shall be customarily covered with respect to buildings and improvements

similar in construction, location and use.

(d) The unit owner shall be responsible to obtain fire and other perils coverage for the:

interior finish of the Unit, but not limit to all fixtures, trim, carpet, appliances, HVAC, ceramic tile,

hardwood floors plumbing fixtures and appliances.

(e) The Council shall try to have its liability insurance contain cross-liability endorsements

or appropriate provisions to cover liability of the Unit Owners, individually and as a group (arising

out of their ownership interest in the Common Elements), to another Unit Owner. The amount of

the such insurance shall be reasonably determined by the Council.

Section 9.2 Fidelity Insurance. The Council shall carry fidelity coverage against dishonest

acts on the part of officers and employees, members of the Council, members of the Board,

trustees, employees, or volunteers responsible for the handling of funds collected and held for the

benefit of the Unit Owners. The fidelity bond or insurance must name the Council as the named

insured and shall be written in an amount sufficient to provide protection which is not less than the

total annual assessments plus all accumulates reserves and all other funds held by the Council either

in its own name or for the benefit of the Unit Owners.

Section 9.3 Directors’ and Officers’ Errors and Omissions Insurance. The Council may

purchase insurance to protect itself and to indemnify any director or officer, past or present, against

expenses actually and reasonably incurred by a director or officer in connection with the bringing of

any action, suit proceeding, civil or criminal, to which he is made a party by reason of being or

having been such director or officer, except in relation to matters as to which, he shall be adjudged

in action, suit or proceeding to be liable for negligence or misconduct in the performance of duty to

the Council; or to obtain such fuller protection and indemnification for
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DBO7651PG0687

directors and officers as the law of Kentucky pe1~mits. The policies shall be in an amount to be

reasonably determined by the Council.

Section 9.4 Premiums. The premiums upon insurance purchased by the Council shall be

Common Expenses.

Section 9.5 Proceeds. Proceeds of all insurance policies owned by the Council shall be held

by the Council for the use of the Unit Owners and their mortgagees as their interest may appear,

provided, however, the proceeds of any insurance received by the Council because of property

damage shall be applied to repair and reconstruction of the damaged property, except as may

otherwise permitted by this Declaration.

Section 9.6 Power of Attorney. Each Unit Owner shall be deemed to appoint the Council its

true and lawful attorney-in-fact to act in connection with all matters concerning the maintenance of

the master policy or any other insurance policy obtained by the Council. Without limitation on the

the foregoing, the Council as said attorney shall have full power and authority to purchase and

maintain such insurance, to collect and remit the premiums therefore, to collect proceeds and to

route the same to the Council, the Unit Owners and their respective mortgagees as their interest

appear, to execute releases of liability and to execute all documents and to do all things on behalf of

the Unit Owners and the Regime as shall be necessary or convenient to the accomplishment of the

foregoing; and any insurer may deal exclusively with the Council in regard to such matters.

Section 9.7 Responsibility of Unit Owner. The Council shall not be responsible for

procurement or maintenance of any insurance covering the contents or the interior of any Unit nor

the liability of any Unit Owner for injuries therein not caused by or connected with the Council’s

operation, maintenance or use of the Regime. Each Unit Owner shall obtain insurance


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DB07651PG0688
coverage at his own expense upon his Unit’s furnishings personal property and these items under

9.1 (c) above; and, in addition, shall obtain comprehensive personal liability insurance covering

liability for damage to persons or property of others located within such Unit Owner’s Unit, or in

another Unit in the project or upon the Common Areas, resulting from the negligence of the insured

Unit Owner, in such amounts as shall from time to time be determined by ‘the Council.

Section 9.8 Release. All policies purchased under this Article by either the Council or the

individual Unit Owners shall provide for the release by the issuer thereof of any and all rights of

subrogation or assignment and all causes and rights of recovery against any Unit Owners, member

of their family, their employees, their tenants, servants, agents and guests, the Council, any

employee of the Council, the Board, or any occupant of the Regime, for recovery against any one of

them for any loss occurring to the insured property resulting from any of the perils insured against

under the insurance policy.

Section 9.9 Approximate Coverage. If any of the required insurance coverage under this

Article becomes or is impossible to obtain or can be obtained only at an unreasonable cost, the

Council shall obtain coverage which most closely approximates the required coverage, if such

substitute insurance is available.

Section 9.10 Additional Policy Requirements. All such insurance coverage obtained by the

Council shall be written in the name of the Council, for the use and benefit of the Council, the Unit

Owners and their mortgagees, as further identified below. Such insurance shall be governed by the

provisions hereinafter set forth:

(a) Exclusive authority to adjust losses under policies in force on the Regime obtained by

the Council shall be vested in the Council provided, however, that no mortgagee having an interest

in such losses may be prohibited from participating in the settlement
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DB07651PG0689
negotiations, if any, related thereto.

(b) In no event shall the insurance coverage obtained by the Council hereunder be brought

into contribution with insurance purchased by individual Owners, occupants, other their

mortgagees, and the insurance carried by the Council shall be primary.

(c) All casualty insurance policies shall have an agreed amount endorsement with an annual

review by one or more qualified persons.

(d) The Council should make reasonable efforts to secure insurance policies that provide for

the following:

(I) a waiver of subrogation;

(II) that no policy may be canceled, invalidated, or suspended on account of the acts

of any one or more individual Owners;

(III) that no policy may be canceled; invalidated or suspended on account of the

conduct or any director, officer or employee of the Council or its duly authorized manager without

prior demand in writing delivered to the Council to cure the defect and the allowance of a

reasonable time thereafter within which the defect may be cured by the Council, its manager, any

owner or mortgagee; and

(IV) that any “other insurance” clause in any policy exclude individual Owner’s

policies from consideration.

Section 9.11 Other Insurance Requirements. If this Project is intended to be qualified under the requirements of FHLMC, FNMA, HUD, FHA, VA or other similar program, the

insurance

requirements of that program are incorporated herein by reference. If any insurance company is

unsure of the coverage intended, it should ask for an interpretation from the Board. Otherwise, the

broadest coverage shall be presumed, if there is an ambiguity.

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DB07651PG0690

ARTICLE X
ALTERATIONS

Section 10.1 Alteration of Regime. Restoration or replacement of the Regime (unless

resulting from casualty destruction), or construction of any additional buildings (other than those

initially contemplated in the Regime including those contemplated by Section 2.4 of this

Declaration), material alterations or additions to any building of the Regime, shall be undertaken by

the Council or unit Co-owners only after unanimous approval of all Co-Owners, and with written

consent of the holders of all liens on units affected and in accordance with the complete plans and

specifications approved in writing by the Board. Promptly upon completion of such restoration,

alteration or replacement, the Board of Administration shall duly record the amendment with a

complete set of floor plans of the Units of the Regime as so altered, certified as built by a registered

architect or engineer.

Section 10.2 Reconstruction. Where casualty destruction, partial or total, of the building

occurs, whether arising from events covered by insurance or not, the determination as to

reconstruction shall be governed by the Act, more particularly KRS 381.890, as may be amended or

supplemented from time to time.

ARTICLE XI
INDEBTEDNESS

Section 11.1 Incurrence and Retirement of Indebtedness. The Council of Co-Owners, acting by unanimous vote of the Board, may borrow money from time to time for the following

purposes:

(a) To cover any budgetary deficit for operational expenses, so long as such loan can be

repaid within six months from anticipated Common Expense income not needed for ongoing

operations;
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DB07651PG0691
(b) To buy a Unit in the Regime at a foreclosure sale;

(b) To pay costs of reconstruction, major repair, replacement or alteration of the Common

Elements (to the extent not covered by insurance proceeds). There shall be no more than one

authorized loan outstanding at any one time. When it is necessary to effect such a loan, the Council,

acting through the Board, may pledge, as security thereon, its rights to receive that part of the

monthly Common Expense income that is necessary to amortize the payoff of the loan

ARTICLE XII
GENERAL

Section 12.1 Eminent Domain. The following provisions shall control upon any taking by

eminent domain:

(a) In the event of the taking of an entire Unit by eminent domain, the Unit owner and the

Unit owner’s mortgagee(s), as their interest may appear, shall be entitled to receive to award for

such Unit taking and, after acceptance thereof, the Unit owner, the Unit owner’s mortgagee(s) and

other interest holder shall be divested of all interest in the Regime. If any condemnation award shall

become payable to any owner whose Unit is not wholly taken by eminent domain, then such award

shall be paid by the condemning authority to the Council of Co-owners on behalf of such owner. In

that event, the Council shall rebuild the Unit as is necessary to make it habitable and remit the

balance, if any of the condemnation proceeds pertinent to the Unit owner thereof and the Unit

owner’s mortgagee(s), as their interests may appear.

(b) If there is any taking of any portion of the Regime other than any unit, the

Condemnation proceeds relative to such taking shall be paid to the Council. The affirmative vote of

a majority of the Unit owners shall determine whether to rebuild, repair or replace the portion so

taken or take such other action as they deem appropriate. If no such affirmative vote is obtained,

such condemnation proceeds shall be remitted to the Unit owners in accordance with
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DB07651PG0692

their respective percentages of common interest.

(c) If the Regime continues after taking by eminent domain, then the remaining portion of

the Regime shall be re-surveyed and this Master Deed amended accordingly by the Board, if any

Unit shall have been taken, then the amended Master Deed shall reflect such taking and shall

proportionately readjust the percentage of common interest of the remaining Unit owners based

upon a total percentage of common interest of 100%.

Section 12.2 Amendment of Declaration. Except as otherwise provided in this

Declaration, or in the Kentucky Condominium Property Law, this Declaration may be amended

from time to time by a majority of the Unit owners, effective only upon recording of the signed

instrument setting forth the amendment.


WITNESS the signature of Developer on 22 day of May, 2001
MICHAEL YOUNG, INC.
COMMON WEALTH OF KENTUCKY)
)SS
COUNTY OF JEFFERSON)

The foregoing instrument was acknowledge before me on 5/22. , 2001, by
,President. of Michael A. Young, Inc., a Kentucky

corporation-on behalf of the corporation
Notary Public
Commission expires: August 24, 2003

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07651PG0693

BANK ONE’S ACCEPTANCE:

The foregoing Master Deed and Declaration of Condominium Property Regime of The Village of Springmeadows Condominiums is agreed to and acknowledged this 18 day of May
Commission expires 6/16 ,2005




BANK ONE, KENTUCKY, NA

BY:_____
‘JIL.

This Instrument Prepared By:



William P. O’Brien
Karem & Karem, Attorneys
Suite 312-Speed Bldg.
333 Guthrie Green
Louisville, KY 40202
(502) 587-6659
DATE:

STATE OF KENTUCKY
COUNTY OF JEFFERSON . .-.

The foregoing instrument was acknowledged before me on 5/18, 2001, by Richard J. Blahauvietz as First Vice President of Bank One Kentucky, NA, a national banking association.



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