ARTICLE 1

Definitions

Unless otherwise expressly provided, the following words and phrases, when used in this Declaration and in the Project Documents, shall have the following meanings:

1.1 Annual Budget: The projected budget for each calendar year of the various costs necessary to maintain the Project by the Association. The Annual Budget will be the basis for establishing the annual regular assessments, provided, that neither Declarant nor the Association shall necessarily be bound by the Annual Budget as it is an estimated projection only.

1.2 Architectural Committee: The Architectural Committee created pursuant to Article 7.1 of this Declaration.

1.3 Articles: The Articles of Incorporation of the Association as amended from time to time.

1.4 Apartment Development: Shall mean a parcel or portion thereof which is described in a Supplemental Declaration, is limited by the Supplemental Declaration to residential use, and is comprised of rental apartments and surrounding area which are intended, as shown by the site plan thereof approved by the County of Spokane and the Architectural Committee or otherwise, as one integrated apartment operation under the same ownership. Such apartment development as contained in the property set forth on Exhibit “A" may or may not be subject to a Supplemental Declaration and may or may not be annexed into the overall Project. Declarant shall have the sole discretion as to whether to annex any apartment development into the overall Project at a later date. Declarant and/or the Association, by majority vote pursuant to Article 5.5, may choose to treat the residents in any apartment development as licensees with authority to utilize certain Common Areas of the Project pursuant to specific arrangements entered into between the Association and the owners of the apartment development. In the event Declarant chooses to annex an apartment development into the project or to treat a residence in an apartment development as licensees as provided herein such decision shall be [finding upon the Association irrespective of the Association having been activated. Any decision by Declarant to treat the residence of an apartment development as licensees shall not be revocable by the Association when activated.

1.5 Assessment: That portion of the cost of maintaining, improving, repairing, operating, and managing the Property which is to be paid by the Lot Owners as determined by the Association under this Declaration. Assessments may be designated as Regular Assessments, Extraordinary Assessments, or Special Assessments, as those terms are more specifically defined in Article 6 of this Declaration.

1.6 Association: SHELLEY LAKE HOMEOWNERS' ASSOCIATION, a Washington nonprofit corporation, registered with the State of Washington under UBI No. 601 752 027, formed by Declarant in conjunction with the establishment of the planned lot development, the Members of which shall be the owners of lots in the Project.

1.7 Board, Board of Directors or Board of Trustees: The governing body of the Association.

1.8 Bylaws: The Bylaws of the Association as amended from time to time. The initial Bylaws shall be as adopted by the incorporating Members of the Board of Directors.

1.9 Common Area: Common Area and Common Areas shall mean all land within the Project which the Declarant, by this Declaration or other recorded instrument, makes available for use by Members of the Association and evidences its intent to convey to the Association at a later date or winch the Declarant indicates on a recorded subdivision plat or Supplemental Declaration is to be used for landscaping, drainage, recreation, and/or flood control for the benefit of the project and all areas shown on the dedication of a plat for any Phase within the Project which is established as a Common Area and to be utilized for the benefit of the Members of the Project.

1.10 Common Expenses: The actual estimated expenses of maintenance, improvement, repair, operation, and management of the Common Area, expenses of administration of the Association, and any reasonable reserve for such purposes as determined by the Board, and all sums designated Common Expenses by or pursuant to the Project Documents. Without limiting the generality of the foregoing, Common Expenses shall also include the costs of any and all commonly metered charges for the Property; costs of maintenance, snow removal, cleaning and repair of the Roads; construction, maintenance and power for lighting; compensation paid by the Association to managers, accountants, attorneys and other employees; the costs of all gardening, security and other services benefiting the Common Area; the costs of fire, casualty and liability insurance, worker's compensation insurance, errors and omissions and director, officer and agent liability insurance, if the directors choose to acquire such errors and omissions insurance, and other insurance coveting the Property and the directors, officers and agents of the Association; and any other costs incurred by the Association pursuant to its authority for any reason whatsoever, for the common benefit of the owners.

1.11 Initial Phase: The First Phase of the overall Project, the legal description of which is set forth on Exhibit "B" and which shall be known as SHELLEY LAKE FIRST ADDITION.

1.12 Lake: That particular body of water or lake shown on the Master Development Plan for Shelley Lake and actually designated as Shelley Lake and including the shoreline trail and all trail access, a sketch of which is set forth on the Plat shown as Exhibit "C." The lake shall include the land underlying such lake and shall be a part of the Common Area except for that portion set forth on Exhibit "E," which portion shall be subject to the recreational easement in favor of the Association and the high water inundation easement. Declarant intends to convey fee title to the lake to the Association at a later date.

1.13 Declarant: Shelley Lake Developments, a Washington general partnership, and its successors-in-interest and assigns with respect to the Property, but shall not include Members of the public purchasing completed lots. For purposes of Declarant serving on the Board of Directors or Trustees, Declarant shall mean Robert L. Heitman.

1.14 Declaration: This Declaration of Covenants, Conditions and Restrictions and Reservation of Easements, as it may be amended from time to time.

1.15 Dwelling: That portion of any building which is located on a single Lot and which is designed and intended for use and occupancy as a residence by a single-family lot.

1.16 Landscape Common Areas: Those portions of the Common Area for the Project which consist of landscaping and entrance areas for any portion or Phase of the Project and which are designated as such on the dedication of plat for any given Phase, which landscape Common Areas shall be owned and maintained by the Association. Landscape Common Areas shall also include any entry areas common to the overall Project but which are not located within any specific Phase, including entry statements, lighting or landscaping along Fourth Avenue, Conklin Road or Rotchford Drive, the maintenance of which shall nevertheless be the obligation of the Association with possible contribution by other commercial properties adjacent to such landscape Common Areas.

1.17 Lot: Any residential Lot shown upon the recorded Plat Map for the Project, created for the construction of a private Dwelling. The term "Lot" does not include any portion of the Common Area.

1.18 Master Development Plan: The overall Shelley Lake Project Plan approved by the County of Spokane, as the same may be from time to time amended, a copy of which shall be on file at all times in the office of Declarant or the Association.

1.19 Member: A person entitled to membership in the Association as provided herein.

1.20 Mortgage: Includes a recorded mortgage, deed of trust, real estate contract, or other instrument creating a security interest in any lot.

1.21 Mortgagee: Includes a mortgagee, beneficiary or holder of a deed of trust, real estate contract vendor, or other holder of a mortgage on any lot.

1.22 Mortgagor: Includes a mortgagor, the trustor of a deed of trust, real estate contract vendor, or other individual granting a security interest in any lot.

1.23 Overall Shelley Lake PUD: A group of subdivision Phases currently being developed pursuant to these overall Covenants by Shelley Lake Developments, a Washington general partnership, in the Shelley Lake area of Spokane County, Washington, and approved pursuant to a preliminary plat as the Shelley Lake PUD Plat under number PE 1750-94. The overall Shelley Lake PUD may alternatively be referred to as the Property or the Project and is generally located east of Sullivan Road and south of Interstate 90 in the Spokane Valley and legally described on Exhibit "A."

1.24 Owner or Owners: The record holder or holders of title to or a contract vendee's interest in a lot in the Project. This shall include any person having a fee simple title to any lot, but shall exclude persons or entities having any interest merely as security for the performance of any obligation. Further, if a lot is sold under a recorded contract of sale to a purchaser, the purchaser, rather than the fee owner, shall he considered the "owner," and the fee owner shall be considered as a mortgagee.

1.25 Person: Any natural person, corporation, partnership, association, director, or other legal entity.

1.26 Plat Map: The recorded map (and further maps relating to subsequent Phases) prepared by or for Declarant showing the surface of the Property and the division thereof into lots and commons area, landscape Common Areas and Roads.

1.27 Phase: A separate plat within the overall Project, Shelley Lake PUD, which shall he created by the recordation of an individual Final Plat and shall he made subject to these Covenants and the Association by annexation.

1.28 Preliminary Budget. The projected budget necessary to maintain the Project for the first year during which lots are sold by Declarant. The Preliminary Budget will serve as a basis for Declarant establishing the annual regular assessments, provided, that neither Declarant nor the Association shall necessarily he bound by the Preliminary Budget as it is an estimated projection only.

1.29 Project Documents: This Declaration, the Plat Map, the Articles and Bylaws of the Association, and any architectural or other rules promulgated by the Declarant or the Association pursuant to this Declaration or the Articles or Bylaws, as each shall be amended from time to time.

1.30 Property or Project (synonymous): The real property covered by this Declaration, all easements, rights and appurtenances belonging thereto, and all improvements erected or to be erected thereon.

1.31 Rice Lot: The existing developed lot including a residence and outbuildings owed by Ralph and Lula Rice as of the filing of this Declaration and located on what will likely be known as Lot 1, Tract B of one of the early phases of the Project.

1.32 Rice Parcel: A parcel of forested land located at the easterly end of Shelley Lake and retained by the Rice Family in conjunction with the conveyance of the remainder of the real estate set forth on Exhibit "A" for the development of this Project. The legal description of the Rice Parcel is set forth on Exhibit "D" which is by this reference incorporated herein. The Rice Parcel is subject to the easement on behalf of the Association for the recreational trail which traverses through the Rice Parcel near the eastern boundary of Shelley Lake.

1.33 Roads: Those portions of the Common Area consisting of private streets and roadways providing access from the Lots to the public right of way, designated as such on the Plat Map for the Property to be owned in fee and maintained by the Association.

1.34    Supplemental Declaration:  A declaration recorded pursuant to Article 4.

 

END OF ARTICLE 1

DEFINITIONS