Condo Documents: Article 2 | Atlantic Palace Condominium Association

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 II

Special Provisions for the State of New Jersey Department of Community Affairs Notwithstanding any provision in the Master Deed and Exhibits to the contrary, the following provisions shall be controlling:

1. Nothing contained herein to the contrary shall serve to exculpate members of the Board of Trustees appointed by Developer from their fiduciary responsibilities.

2. While Developer maintains a majority of the Board of Trustees, it shall make no additions, alterations, improvements or purchases not contemplated in this Master Deed which would necessitate a special assessment or a substantial increase in the monthly assessment unless required by a government agency, title insurance company, mortgage lender or in the event of an emergency.

3. The Developer shall not be permitted to cast any votes held by it for unsold units or interests for the purpose of amending the Master Deed, By-Laws or any other document for the purpose of changing the permitted use of a unit or interest, or for the purpose of reducing the Common Elements or facilities.

4. There shall be no restrictions on the right of a Unit Owner to rent. Lease or sell his Unit provided that all occupants or new owners of a Unit shall at all times be subject to the provisions contained in this Master Deed and in the other Condominium Documents.

5. This Condominium is subject to the Hotel and Multiple Dwelling Law (N.J.S.A. 55:13A-1 et seq.). The Condominium Association is considered as the owner for purposes of the Hotel and Multiple Dwelling Law and
is held responsible for the abatement of all violations which it has the power to abate and for the payment of registration and inspection fees. Unit owners may be required to abate violations within their
Units. If a penalty has been assessed against a former Owner of a Unit, it is a personal debt of the former Owner and is not chargeable as a lien against the Association unless a court judgment on the penalty has been obtained.Ê The Bureau of Housing Inspection, which administers the Hotel and Multiple Dwelling Law, gives every new owner an opportunity to correct existing violations without penalty and only imposes a penalty after the new owner has been notified of the violations, been given an opportunity to abate them, and has failed to do so.

6. When a member of the Board of Trustees who has been elected by Unit Owners other than Developer is removed or resigns, that vacancy shall be filled by a Unit Owner other than Developer.

7. While Developer maintains a majority of representation on the Board of Trustees, he shall post a fidelity bond or other guarantee acceptable to the Department of Community Affairs in an amount equal to the annual
budget.Ê For the second and succeeding years, the bond or other guarantee shall include accumulated reserves.

8. While Developer maintains a majority of the Board of Trustees, he shall have an annual audit of Association funds prepared by an independent accountant, a copy of which shall be delivered to each Unit Owner within ninety (90) days of the expiration of the fiscal year of the Association. The audit shall cover the operating budget and reserve accounts.

TABLE OF CONTENTS

EXHIBITS