ARTICLE III • Page 6
Property Rights

ARTICLE IV • Page 12
Assessments

ARTICLE V • Page 15
The Atlantic Palace Condominium Association

ARTICLE VI • Page 18
Easement and Restrictions

ARTICLE VII • Page 20
By-Laws

ARTICLE VIII • Page 20
Use, Occupancy and Maintenance

ARTICLE IX • Page 24
Certain Rights of Developer

ARTICLE X • Page 27
Reconstruction or Repair of Casualty Damage

ARTICLE XI • Page 28
Insurance

ARTICLE XII • Page 33
Eminent Domain; Obsolescence

ARTICLE XIII • Page 34
Termination of Condominium

ARTICLE XIV • Page 35
Amendment of Master Deed

ARTICLE XV • Page 35
Provision for the Benefit of Institutional Mortgage Lenders

ARTICLE XVI • Page 36
Miscellaneous Provisions

EXHIBITS

Exhibit A
Legal Description of the Property

Exhibit B
Survey

Exhibit C
Graphic Description of the Condominium

Exhibit D
Unit Percentage Interests

Exhibit E
By-Laws

Exhibit F
Articles of Incorporation

Exhibit G
Floor Area of Units

R. 2-16-87

MASTER DEED CREATING AND ESTABLISHING

THE ATLANTIC PALACE, A CONDOMINIUM

THIS MASTER DEED, made this 19^th day of February, 1987, by RESORT DEVELOPMENT CORPORATION, a Delaware Corporation(Developer), with offices at P.O. Box 11496, Columbia, South Carolina, 29211, and with local offices at 2727 Boardwalk at Iowa, Atlantic City, New Jersey, 08401.

W I T N E S S E T H:

WHEREAS, Developer is the owner in fee simple of all that certain lot, tract and parcel of land situated, lying and being in the City of Atlantic City, County of Atlantic and State of New Jersey,bounded and described in Exhibit A attached hereto and made a parthereof by this reference thereto (hereinafter, the Propertyä); and

WHEREAS, Developer intends to establish and create a condominium form of ownership of the Property, together with improvements to be constructed, in accord and with and subject to the Condominium Act, R.S. 46:8B-1, et seq. (hereinafter, the Condominium Act), under the name of The Atlantic Palace, a Condominium (hereinafter The Condominium);

NOW, THEREFORE, Developer does hereby submit the Property to the provisions of the Condominium Act, and hereby publishes its plan for the division of the Submitted Property and the imposition of conditions, restrictions, reservation, thereof, and Developer hereby specifies that his Declaration of Condominium and the declarations herein shall constitute convenants, conditions, reservations, and restrictions which shall run with the Submitted Property and shall bind and inure to the benefit of the Developer, its successors and assigns and all subsequent owners of any interests in the Submitted Property, their grantees, successors,
heirs, executors, administrators, legatees and/or assigns.

 

ARTICLE XV

 

Provisions for the Benefit of Institutional Mortgage Lenders

 

Notwithstanding anything to the contrary in the Condominium Documents, the following provisions shall apply to each Institutional Mortgage Lender holding a first mortgage on any condominium unit:

 

1. Any Institutional Mortgage Lender holding a first mortgage on a Unit in the Condominium may upon request:

(i) Inspect the books and record of the Condominium during normal business hours;

(ii) Receive an annual financial statement of the Condominium; and

(iii) Receive written notice of all meeting of the Association and be permitted to designate a representative to attend the meetings.

 

2. The Institutional Mortgage lender holding a first mortgage on a Unit, in the event of substantial damage to or destruction of any Unit or any part of the Common Elements, is entitled to timely written notice of any such damage or destruction, No Unit Owner or other party shall have priority over such Institutional Mortgage lender with respect to the distribution to such Unit of any insurance proceeds.

 

3. The Institutional Mortgage lender holding a first mortgage on a Unit, in the event any Unit or the Common Elements is the subject matter of any condemnation or eminent domain proceedings, is entitled to timely written notice of any such proceeding.Ê No Unit Owner or other party shall have the priority over such Institutional Mortgage lender with respect to the distribution to such Unit of the proceeds of any award or settlement.

 

4. If an Institutional Mortgage Lender holding a first mortgage on a Unit obtains title to the Unit as a result of foreclosure of the first mortgage, then such Institutional Mortgage lender, his successors and assigns, it not liable for the share of Common Expenses or other assessments by the Association pertaining to such Unit prior to the acquisition of title as a result of the foreclosure.Ê Such unpaid share of Common Expenses or other assessments shall be deemed to be Common Expenses collectible from all the remaining Unit Owners including such acquirer, its successors and assigns.

 

5. Without the prior written consent of each Institutional Mortgage Lender holding a first mortgage on any Unit, no Unit Owner shall have the right to bring any action for partition, nor shall any Unit Owner have the right to subdivide any Unit.

 

6. Without the prior written consent of each Institutional Mortgage Lender holding a first mortgage on any unit, no Unit Owner may change the percentage interest in Common Elements.

 

7. Any lien the Association may have on any Unit in the Condominium for the payment of Common Expense assessments attributable to such Unit is subordinate to the lien or equivalent security interest of any first mortgage on the Unit recorded prior to the date of any such Common Expense assessments become due.

 

For the purposes of this article, an Institutional Mortgage Lender holding a construction mortgage on the Condominium Property shall be considered as holding a first mortgage on a Unit.