Condo Documents: Article 9 | 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 IX

Certain Rights of Developer

1. Until the conveyance of title to the first Unit, Developer shall be solely responsible for all Common Expenses. Thereafter, as individual Units are conveyed, Developer shall remain responsible for the Common Expenses attributable to unsold Units, and those Unit Owners to whom title has been conveyed shall be responsible for their proportionate share of the Common Expenses, as set forth on Exhibit D attached hereto an made a part hereof.

2. Notwithstanding any other provisions herein contained, for so long as the Developer continues to own one Unit in the ordinary course of business, the following provisions shall be in full force and effect:

(i)The Developer reserves the unrestricted right to sell or lease Units which are owned by the Developer.

(ii)The Developer reserves the unrestricted right to maintain and use any units which it owns for model units and sales and leasing offices.

(iii)The Developer reserves the right to change the interior or exterior design and arrangement of Units and to alter boundaries between Units so long as the Developer owns the Unit so changed or altered. No such change shall increase the number of Units or alter the boundaries of the Common Elements without amendment of the Condominium Documents as herein provided. If Developer shall make any changes to the Units, such changes shall be reflected as an amendment in the Condominium Documents; provided, however, that no such change shall affect another Unit Ownerâs percentage interest in the Common Elements.

(iv)The Developer reserves the right to enter upon the Property and in the Building to show the Units, to use the Common Elements and to do any and all things deemed necessary or appropriate by Developer to sell or rent the Units, as provided herein, all without charge and without the need to comply with any provisions of this Master Deed.

(v)The Developer shall have the power, but not the obligation, acting alone, at any time, and from time to time, so long as the Developer owns or holds a mortgage upon at least one (1) Unit to amend this Master Deed or any other Condominium Document to cause the same to conform to the requirements of the Federal National Mortgage Association and/or the Federal home Loan Mortgage Corporation, as set forth, respectively, in “FNMAä Conventional Home Mortgage Selling Contract Supplementä land ãSellerâs Guide Conventional Mortgagesä as the same be amended from time to time.

3.Developer hereby reserves unto itself, its successors and assigns, an easement upon, through and over the Common Elements so long as the Developer, its successors and assigns, shall be engaged in the development and sale of the Units, which easement shall be for the purpose of construction, installation, maintenance and repair of the Building and appurtenances thereto, for ingress and egress to all Units, all Common Elements and for existing and future model units for sale, promotion and exhibition.

4.Developer shall not make structural alterations, additions, or improvements that will require a special assessment or substantial increase in a Unit Ownerâs monthly assessments.

5. Anything to the contrary herein or in the Article of Incorporation or By-Laws of the Association notwithstanding, the Developer hereby reserves for itself, its successors and assigns, for as long as it owns one (1) or more Units in the Condominium in the ordinary course of business, the right to sell, lease, mortgage or sublease any unsold Units within the Condominium without approval of the Board of Trustees.

6. Notwithstanding any provision to the contrary in the Master Deed, By-Laws or other Condominium Documents, no amendment shall be made to the Condominium Documents that shall impair or adversely affect the rights of the Developer or cause the Developer to suffer any financial, legal or other detriment, including but not limited to any direct or indirect interference with Developerâs sale or lease of Units.

7. When Unit Owners other than the Developer own 25% or more of the Units in the Condominium, the Unit Owners other than the Developer shall be entitled to elect not less than 25% of the member of the Board of Trustees of the Association.Ê Unit Owners other than the Developer shall be entitled to elect not less than 40% of the members of the Board of Trustees upon the conveyance of 50% of the Units in the Condominium.Ê Unit Owners other than the Developer shall be entitled to elect all of the members of the Board of Trustees upon the conveyance of 75% of the Units of the Condominium.Notwithstanding any of the provisions herein, however, the Developer shall be entitled to appoint at least one member of the Board of Trustees of the Association as long as the Developer holds for sale in the ordinary course of business one (1) or more Units in the Condominium.

8. As long as the Developer holds one or more Units for sale in the ordinary course of business, none of the following actions may be taken without approval in writing by the Developer.

(i) Assessment of the Developer as a Unit Owner for capital improvements; or

(ii) Any action by the Association that would be detrimental to the sales of Units by the Developer; however, an increase in assessments for Common Expenses without discrimination against the Developer shall not be deemed to be detrimental to the sales of Units.

9. Prior to, or not more than sixty (60) days after, the time that Unit Owners other than the Developer elect a majority of the members of the Board of Trustees of the Association, the Developer shall relinquish control of the Association, and the Unit Owners shall accept control. Simultaneously, the Developer shall delivery to the Association all property of the Unit Owners and of the Association held or controlled by the Developer.

10. The Developer specifically disclaims any intent to have made any warranty or representation in connection with the Condominium Property (including any warranties as to merchantability or fitness for use of fitness for a particular purpose) except those warranties and representations explicitly set forth in this Master Deed, or in the Agreement of Sale or Application for Registration pertaining to this Condominium (Collectively, the Condominium Documents). No person shall be entitled to rely upon any warranty or representation not explicitly set forth in the Condominium Documents.

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EXHIBITS

Certain Rights of Developer