07-15-2022 Applicant Response to Hualalai Comm. Assoc. Testimony (REMAND SPP-16-188)

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ARTICLE X11. SECURITY DISCLAIMER...............................................................................34 ARTICLE X111. INSURANCE ..................................................................................................34 Section 13.1 Authority to Purchase.............................................................................34 Section 13.2 Non-Liability of Association, Board and Officers.....................................34 Section13.3 Premiums...............................................................................................34 Section 13.4 Insurance Claims ...................................................................................35 Section13.5 Benefit...............1....I...............................................................................35 Section 13.6 Provisions Common to Association Insurance........................................35 Section 13.7 Annual Insurance Review.......................................................................35 Section 13.8 Individual Insurance...............................................................................36 ARTICLE XIV. RIGHTS OF MORTGAGEES..........................................................................36 Section 14.1 General Provisions.................................................................................36 Section 14.2 Subordination of Lien .............................................................................36 Section 14.3 No Personal Liability ..............................................................................37 Section 14.4 Enforcement After Foreclosure Sale.......................................................37 Section 14.5 Exercise of Owner's Rights ....................................................................37 Section 14.6 Subject to Declaration and Subdistrict Declaration.................................37 Section 14.7 Notices of Action............................................................... ....................37 Section 14.8 Other Provisions for First Mortgagees....................................................37 Section 14.9 Applicability of Article XIV.......................................................................38 Section 14.10 Failure of Mortgagee to Respond...........................................................38 ARTICLE XV. ANNEXATION OF ADDITIONAL PROPERTY...............................................38 Section 15.1 Annexation.............................................................................................38 Section 15.2 Approval of Association............................................. ............................38 Section 15.3 Withdrawal of Property...........................................................................38 ARTICLE XVI. EASEMENTS .................................................................................................39 Section 16.1 Reservation of Easements....................... .............................................39 Section 16.2 Easements for Surrounding Uses...........................................................39 Section 16.3 Easement for Ongoing Construction.......................................................40 Section 16.4 Recorded Easements.............................................................................40 Section 16.5 Maintenance Easement..........................................................................40 Section 16.6 Drainage Easements..............................................................................40 Section 16.7 Easements for Encroachment................................................................40 Section 16.8 Easements for Sales Activities...............................................................41 Section 16.9 Repair Easement ...................................................................................41 Section 16.10 Storm Sewer..........................................................................................41 Section 16.11 Further Encumbrances...........................................................................41 Section 16.12 Common Area........................................................................................41 Section16.13 Views.....................................................................................................42 ARTICLE XVII. SURROUNDING USES AND COMMUNITY CONDITIONS............................42 Section 17.1 Surrounding Uses ..................................................................................42 Section 17.2 Adjacent Agricultural and Farming Uses ................................................42 Section 17.3 Condition of Land...................................................................................43 Section 17.4 Other Environmental Issues...................................................................44 Section 17.5 Nuisances Related to the Community and Adjacent Properties..............45 Section 17.6 Assumption of Risk, Waiver of Claims, Hold Harmless and Defend........46 Pualani Kona 10-9-03 22594-174/282690.9 Page 3