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SECTION 1. General Powers and Privileges. The Board shall have those powers which include but which are not necessarily limited to the following, together with such other powers as may be granted herein or by law, or in the Condominium Declaration, or which may be necessarily implied:

(a) Employ by contract or otherwise, a manager, managing agent or an independent contractor, to oversee, supervise and follow out the responsibilities of the Board. Said manager or said independent contractor shall be compensated upon such terms as the Board deems necessary and proper; and

(b) To employ any person, firm or corporation to repair, maintain or renovate the Common Elements of the Condominium; lay pipes or culverts; to bury utilities; to put up lights or poles; to erect signs and traffic and safety controls of various sorts on said Property; and

(c) To employ professional counsel and obtain advice from persons, firms or corporations such as, but not limited to, landscape architects, architects, engineers, lawyers and accountants; and

(d) To employ or contract for water and sewer, electricity and gas or other forms of utilities, cable or master antenna television; and

(e) To employ all managerial personnel necessary, or enter into a managerial contract for the efficient discharge of the duties of the Board hereunder; and

(f) To adopt, amend, and publish Rules and Regulations covering the details of the operation and use of the Common Elements, including but not limited to those relating to the pet controls; and

(g) Secure full performance by Unit Owners or occupants of all items of maintenance for which they are responsible; and

(h) Set minimum standards for floor coverings installed by all Unit Owners in Buildings, with the exception of Declarant; and

(i) Coordinate the plans of Unit Owners and occupants of Units for moving their personal effects or property into the Unit or out of it, with a view towards scheduling such movements so that there shall be a minimum of inconvenience to others; and

(j) Establish and enforce Rules and Regulations for parking by, and the assignment of parking spaces to, Unit Owners, subject to the provisions of the Condominium Declaration, Articles of Incorporation and these By-laws; and

(k) Arrange for security protection as necessary; and

(1) Enforce obligations of the Unit Owners and do anything and everything else necessary and proper for the sound management of the Condominium, including the right to bring or defend lawsuits to enforce the terms, conditions and restrictions contained in the Condominium Declaration, these By-laws or the Rules and Regulations.

(m) Borrow and repay monies giving notes, mortgages or other security upon such term or terms as it deems necessary; and

(n) Invest and reinvest monies, sue and be sued; collect interest, dividends, and capital gains; exercise rights, pay taxes; make and enter into contracts; enter into leases or concessions; make and execute any and all proper affidavits for various purposes; compromise any action without leave of court; and all other powers contained herein, and those necessary and incidental thereto; and

(o) Grant and obtain easements, licenses and other rights with respect to contiguous lands; and

(p) Purchase or lease or otherwise acquire in the name of the Association or its designees, corporate or otherwise, on behalf of all Unit Owners within the Condominium, Units offered for lease or lease or surrendered by their Owners to the Board; and

(q) Purchase Units within the Condominium at foreclosure or other judicial sales in the name of the Association or its designees, corporate or otherwise, on behalf of all Unit Owners; and

(r) sell, lease, mortgage (but not vote the votes appurtenant thereto) or otherwise deal with Units acquired by the Association, and sublease any such Units leased by the Association or its designees, on behalf of all Unit Owners; and

(s) Bring and defend actions against or by one or more Unit Owner(s) which are pertinent to the operation of the Condominium the health, safety or general welfare of the Unit Owners, or any other legal action to which the Unit Owners may consent in accordance with these By-laws.

(t) Appoint an Insurance Trustee, who shall not be a member of the Association, an employee of the Declarant, or the Manager, who shall discharge his duties in accordance with these By-laws. In the absence of such an appointment, the Board shall be responsible for the disposition of all insurance proceeds.

(u) In its sole discretion, designate from time to time certain Common Elements as "Reserved Common Elements" and impose such property restriction and conditions on the use thereof as the Board deems appropriate.

(v) Create, appoint members to, and disband such committees as shall from time to time be deemed appropriate or necessary by the Board to aid it in the discharge of its duties, functions and powers.

SECTION 2. Duties and Responsibilities. It shall be the affirmative and perpetual obligation and duty of the Board to perform the following:

(a) Cause the General and Limited Common Elements to be maintained according to accepted standards and as set forth in the Condominium Declaration, including, but not limited to such maintenance, painting, replacement and repair work as may be necessary, lawn maintenance and clearing of snow from roadways and walkways as the Board may deem appropriate. All repairs and replacements shall be substantially similar to the original construction and installation and shall be of first class quality.

(b) To investigate, hire, pay, supervise and discharge the personnel necessary to be employed, and provide the equipment and materials necessary, in order to properly maintain and operate the Common Elements. Compensation for the services of such employees (as evidenced by certified payroll) shall be considered an operating expense of the Association.

(c) Cause to be kept a complete record of all its acts and business affairs and to present a summary report thereof to the members at the annual meeting or at any special meeting when requested in writing at least twenty-one (21) days in advance by Members entitled to cast at least twenty-five (25%) percent of the total votes of the Association.

(d) Allocate common surplus or make repairs, additions, improvements to, or restoration of the Common Elements in accordance with the provisions of these By-laws and the Condominium Declaration after damage or destruction by fire or other casualty, or as a result of condemnation or eminent domain proceedings.

(e) Take such action as may be necessary to comply promptly with any and all orders or requirements affecting the premises maintained by the Association placed thereon by any federal, state, county or municipal authority having jurisdiction thereover, and order of the Board of Fire Underwriters or other similar bodies.

(f) Place and keep in force all insurance coverages required to be maintained by the Association, applicable to its property and members including, but not limited to:

(i) Physical Damage Insurance. Broad form insurance pursuant to RSA 365-8:43, against loss by fire and against loss by lightning, windstorm and other risks normally included within all risk extended coverage, including vandalism and malicious mischief, insuring all improvements to individual units and the Common Elements, together with all service machinery appurtenant thereto, and covering the interest of the Association, the Board, the Declarant, and all Unit Owners and Institutional Lenders as their respective interests may appear, in an amount equal to the full replacement value of such improvements (exclusive or foundations and footings), without deduction for depreciation. Each policy shall contain a standard mortgage clause in favor of each Institutional Lender, which shall provide that the proceeds, if any, thereunder, shall be payable to each Institutional Lender as its interest may appear, subject to the loss payment provisions set forth in Article XI of these By-laws. Prior to obtaining any policy of fire insurance or any renewal thereof, the Board shall obtain a qualified appraisal of the full replacement value of the Units and Common Elements and the Improvements located thereon, without deduction for depreciation, for the purposes of determining the amount of fire insurance to be effected pursuant to the subparagraph.

(ii) Public Liability Insurance. Pursuant to RSA 356-8:43, to the extent obtainable, public liability insurance for personal injury and death from accidents occurring within the entire Condominium, including the Common Elements and individual units, and the defense of any actions brought by injury or death of a person or damage to property, occurring within such Common Elements. said insurance shall be in such limits as the Board may, from time to time, determine, covering each Member of the Board, the managing agent, the manager, and each Member, and shall also cover cross liability claims of one insured against another. Until the first meeting of the Board following the first annual meeting, such Public Liability Insurance shall be in a single limit of at least $l,000,000.00 covering all claims for personal injury or property damage arising out of any one occurrence. The Board shall review such limits once a year.

(iii) Directors and Officers Liability Insurance. Liability insurance indemnifying the Directors and Officers of the Association against the liability for errors and omissions occurring in connection with the performance of their duties, shall be obtained by the Board in an amount of $1,000,000.00, with any deductible amount to be in the sole discretion of the Board. (iv) Workers Compensation Insurance. Workers compensation and New Hampshire disability benefits insurance as required by law.

(v) Motor Vehicle Liability Insurance. Automobile liability insurance to cover all motor vehicles owned and operated by the Association.

(vi) Water Damages. Water damage legal liability insurance.

(vii) Other Insurance. Such other insurance as the Board may determine.

All policies shall: (i) provide that adjustment or loss shall be made by the Board of Directors with the approval of the Insurance Trustee, if any, and that the net proceeds thereof, if $25,000.00 or less shall be payable to the Board, and if more than $25,000.00 shall be payable to the Insurance Trustee, if any; (ii) require that the proceeds of physical damage insurance be applied to the restoration of such Common Elements and structural portions and service machinery as is required by the Condominium Declaration and these By-laws; (iii) to the extent obtainable contain waivers of subrogation and waivers of any defense based on coinsurance or of invalidity arising from any acts of the insured, and (iv) provide that such policies may not be canceled without at least thirty (30) days prior written notice to all the named insureds, including all Unit Owners and Institutional tenders.

Any insurance maintained by the Board may provide for such deductible amount as the Board may provide for such deductible amount as the Board may determine.

Unit Owners shall not be prohibited from carrying additional insurance for their own benefit provided that all such policies shall contain waivers of subrogation; and, further provided that liability of the carriers issuing insurance obtained by the Board shall not be affected or diminished by reason of any such additional insurance carried by any Unit Owner.

The premiums for all insurance and fidelity bonds carried by the Association shall be a Common Expense and shall be borne by the Unit Owners in equitable proportions among them, with due consideration to the respective risks, liability and replacement values applicable to each Unit (as determined by the respective insurance carriers thereof or their agents, brokers or such other parties designated by the Board), If no such determination is made or if there is a disagreement by or dispute between the Directors, the matter shall be determined by arbitration as provided in Article XVII hereof.

(g) To manage the fiscal affairs of the Association as hereinafter provided in Article VI.

(h) To establish a Covenants Committee as hereinafter provided in Article IX.



1998 Royale Sands Beach Club Condominium Association.  All rights reserved