125 CLIFTON PLACE

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charges, taxes, reserve or working capital fund payments, assessments, payments for repairs and improvements promised in the plan, and payments of underlying mortgages and loans for which shares or units have been pledged or mortgaged for the offering plans listed. Neither the Sponsor nor its Principal have had any bankruptcies material to this offering in the last fifteen (15) years. Sponsor will be the Selling Agent for this project and has experience as a selling agent over the past few years Attorneys The Sponsor is represented by The Law Office of Jay Lichtman, P.C., 68 Jay Street, Suite

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.......................... 117 W. COUNSEL’S INCOME TAX OPINION ............................................................................. 123 X. RESERVE FUND .................................................................................................................. 129 Y. WORKING CAPITAL FUND............................................................................................... 130 Z. IDENTITY OF PARTIES ...................................................................................................... 131 AA. REPORTS TO UNIT OWNERS ........................................................................................ 133 AB. DOCUMENTS ON FILE .................................................................................................... 134 AC. GENERAL .......................................................................................................................... 135 AD. SPONSOR’S STATEMENT OF BUILDING’S CONDITION .........................

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aser will be required to deposit with the Board of Managers two (2) months’ common charges for his Unit to be used as working cap ital. See Section “Working Capital Fund” for details. (f) At closing, the Sponsor will collect each purchaser ’s pro -rated share in the first year ’s insurance premium from the date of the closing until the end of the first year of condominium operation. This amount will be calculated in proportion to each purchaser’s common interest and will be used to reimburse the Sponsor for payment of the first year’s premium. Insurance premiums paid as part of common charges from closing until the end of the budget year wi ll be retained by the Board to pa y toward the premium for the next year. The pro-rated insurance adjustment collected by Sponsor will be in lieu of any other closing adjustments with the Board. See Section “Unit Closing Costs and Adjustments.” 8. THE SPONSOR HAS ACCESS TO SUFFICIENT FUNDS TO COMPLETE THE BUILDING AND/OR RENOVATION,

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ndment. See Section “Rights and Obligations of Board of Managers, Summary of By-Laws” for details. 16. No representation is made that the initial working capital fund will be adequate to cover current or future expenses, including repairs or replacements, and if additional funds are required over

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6 and above the initial capital fund, it may be necessary for the board of managers to increase the common charges. See Section “Working Capital Fund” for details. 17. In order to resolve any dispute, controversy, claim or question arising between Unit owners and the Condominium Board or between Condominium Board Members, with respect to the Condominium, or to break any deadloc k in voting, any disputes involving the condominium shall seek to be settled by arbitration. The Arbitration provisions do not preclude an owner from exercising their rights under Article 23-a of the General Business Law and the regulations promulgated thereunder. The arbitrator shall be a third party mutually agreed upon by affected parties. This procedure precludes the right to a judicial tribunal an d appeal options may be more limited. See Section “Rights & Obligations of Board of Managers, Summary of Bylaws” for details. 18. In the event Purchaser -in-contract enters into an Interim Leas

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ion. In the event there is a need for capital improvements within the next five (5) years, the Sponsor doesn’t anticipate that the contingency and reserve fund will be sufficient to cover capital improvements and the Condominium Board will assess a charge to each Unit Owner in accordance with its percentage of common interest. 39. The roof warranty is a 25 -year no dollar limit warranty on materials from th e manufacturer. There is also a 10 -year labor warranty from the installer. The warranties commenced upon completion of installation, which was October 2019. The warranty is only effective if the roof is not used for traffic. The rear portion of the roof is a terrace for Unit 6. The front portion of the roof is not going to be used as a common terrace. See Section “Description of Property and Improvements”. 40. The rear yard is a limited common element of Unit 2. There is no handicap accessibility to rear yard. See Part II, “Description of Property” for further de

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osing, each Purchaser shall de posit an Initial Capital Payment equal to two (2) months' estimated monthly common charges for the unit. See Section "Working Capital Fund." Note: At closing, each Purchaser shall pay an additional $3,500. 00 to defray Sponsor's costs of forming the condominium. See Section "Unit Closing Costs and Adjustments." *Note: Purchasers are advised that the below-grade cellar space, which shall include equipment spaces and accessory space for Units 1 and 2, may not be used for any residential uses including bedroom, dining room or any other use considered to be a habitable space as defined by the New York City Building Code. Any use of the cellar as a living or sleeping space may result in a violation being issued against the Building and/or the imposition of fines against the Building. Purchasers should note that cellar space has less light and air and is more susceptible to dampness. Note: The Handicap Lift and Terraces may not be used for any type of

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ted. In addition, prospective purchasers will be required to pay at closing, among other things : (i) two (2) months’ common charges to be used as working capital; (ii) New York City and State transfer taxes; (iii) the sum of $3,500.00 to defray t he Sponsor’s costs of creating the condominium, e.g., architectural costs, legal fees and other costs incurred in creating the condominium. See section entitled “Closing Costs and Adjustments” below.

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): $1,400.00 Legal Fees (8): $2,000.00 Building Phone Line (9): $900.00 Fire Alarm Monitoring (10): $1,800.00 Contingency (11): $2,000.00 Reserve Fund (12): $2,424.00 Total: $24,000.00 In the event that the actual or anticipated date of commencement of condominium operation differs from the budget year projected herein by more than six (6) months from the anticipated date of the closing of the first Unit, this plan will be amended to inc lude a revised budget which will disclose new projection. If such new projections exceed the projections contained herein by twenty-five percent (25%) or more, the Sponsor will offer all purchasers the right for fifteen (15) days following the presentation of such amendment within which to rescind their offer to purchase and have their Downpayments refunded.

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nse. The funds for such modifications may be provided by decreasing this budget item or by decreasing one or more items of expense, or both. 12. Reserve Fund This item is to be used as a yearly reserve fund to be set aside and used for periodic capital replacements, or necessary repairs of common elements. The basis of the figure projected for this item is approximately ten percent (10%) o f the entire budget. At this time the Sponsor has no knowledge of any capital improvements that may be have to be made during the first five years of condominium operation. IN THE OPINION OF KING DAVID INTERNATIONAL REALTY, 616 WILLIAMSBURG STATION, BROO KLYN, NEW YORK 11211 , A LICENSED REAL ESTATE MANAGER, THE PROJECTED RECEIPTS ARE ADEQUATE TO MEET THE ESTIMATED EXPENSES FOR THE BOARD OF MANAGERS ’ FIRST YEAR OF OPERATION, ASSUMING SUCH FIRST YEAR TO BE THE FISCAL YEAR COMMENCING SEPTEMBER 1, 2020. THE FORE GOING SCHEDULE, HOWE VER, IS NOT INTENDED AND SHOULD NOT BE TAKEN AS

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nce. (vii) Purchaser will be required to deposit with the Board of Managers two (2) months’ estimated monthly common charges for his Unit for the Working Capital Fund. (viii) Purchaser shall be obligated to pay the following fees to Sponsor’s attorney: (i) $2,000.00 to the law firm of Sponsor’s attorney for services rendered in conne ction with recording the Declaration of Condominium and the preparation of documents (ii) $350.00 if the closing is held at any location other than Sponsor’s attorney’s office at the request of the purchaser (iii) $350.00 payable to Sponsor’s attorney if Purchaser applies for and closes with a mortgage; (iv) $500.00 payable to Sponsor’s attorney if e-forms for New York City Real Property Transfer Tax are prepared by Sponsor’s atto rney; and (v) $500.00 for each time the closing is rescheduled at the request of the purchaser (for the costs to fix a new Closing Date and time, to coordinate the attendance of all persons, to re -date the closing

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he level of Building services, amenities (if any) and facilities in accordance with, and as stated in, this Plan; and (c) the expenditures of the Working Capital Fund (which may be used for operating or working capital and to defray increases in common charges but may not be used to reduce common charges below the projected common charges in SCHEDULE B First Year ’s Budget) as explained below. Sponsor Veto Control During only the Sponsor Veto Control Period (defined below), the Condominium Board and the Unit Owners (as to any vote or action by them) must obtain Sponsor’s prior written Discretionary Approval or Consent to do any of the following (collectively. “Sponsor Veto Control”): (a) To raise Common Charges or levy a Special Assessment for any of the following purposes: (1) to make an Alteration to the Common Elements, the Association ’s Properties (including any Unit owned, leased or otherwise held or Operated by the Board, or its nominee or designee);

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verable from the Units except in accordance with the Real Property Law. M. Capital Reserves The Condominium Board has the power to accumulate reserve funds for capital replacements or other purposes in accordance with the Declaration and By -Laws, as set forth in Documents 6 and 7 in Part II of the Offering Plan. N. Arbitration In order to resolve any dispute, controversy, claim or question arising with respect to the

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n writing of the making of such mortgage and is to be given a copy thereof. Capital Reserves The Condominium Board has the power to accumulate reserve funds for capital replacements or other purposes to meet the needs of the Condominium in accordance with the Declaration and By-Laws, as set forth in Documents 6 and 7 in Part II of the Offering Plan. There are no restrictions on these powers.

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tent such income exceeds expenses properly allocable to such income. Examples of income which is n ot exempt function income are interest earned on reserve funds, amounts received fr om persons who are not members of the Association amounts received for work done on privately owned property which is not Association property, and amounts received from mem bers for special use of the Association's facilities, the use of which is not available to all members as a result of having paid the dues, fees, or assessments required to be paid by all members.

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129 X. RESERVE FUND A reserve fund will be established in the budget. This item is to provide for possible increases in one or more items of operating expense above the amounts projected or for unanticipated expenses. The basis of the figure projected for this item is approximately ten percent (10%) of the entire budget. This fund can also be used as a reserve to pay for periodic capital replacements or repairs. At this time the Sponsor has no knowledge of any capital improvements that may have to be made during the first five years of condominium operation. While the Sponsor is in control of the board of managers , the reserve fund or working capital fund may not be used to reduce projected common charges in the plan. Neither the Department of Law nor any other government agency has passed upon the adequacy of the fund. In the event there is a need for major capital expenditures in excess of the funds available from the contingency and or reserve fund the Condom

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130 Y. WORKING CAPITAL FUND The Sponsor, as agent of the Board of Managers, will collect from each original purchaser at the time of the Closing an initial capital payment equal to two (2) months ’ estimated common charges for each Unit. The Sponsor will deliver the funds so collected to the Boa rd of Managers to provide the necessary working capital for the Condominium. Such funds may be used for certain prepaid items, organizational costs, and for such other purposes as the Board of Managers may determine and may be replenished as the Board sees fit. While the Sponsor is in control of the Condominium Board, the Working Capital Fund shall not be used to r educe estimated Common Charges or as adjustments for prepaid expenses between the Sponsor and the Board of Managers. NO REPRESENTATION IS MADE THAT THE INITIAL WORKING CAPITAL FUND WILL BE ADEQUATE TO COVER CURRENT OR FUTURE EXPENSES, INCLUDING REPAIRS OR REPLACEMENTS, AND IF ADDITIONAL FUNDS ARE REQUIRED OVER AND

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al of the Sponsor is current in its financial obligations including, but not limited to, payment of maintenance or common charges, taxes, reserve or working capital fund payments, assessments, payments for repairs and improvements promised in the plan, and payments of underlying mortgages and loans for which shares or units have been pledged or mortgaged for the offering plans listed. Neither the Sponsor nor its Principal have had any bankruptcies material to this offering in the last fifteen (15) years. Sponsor will be the Selling Agent for this project and has experience as a selling agent over the past few years Attorneys The Sponsor is represented by The Law Office of Jay Lichtman, P.C., 68 Jay Street, Suite

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(vii) Purchaser will be required to deposit with the Board of Managers two (2) months’ estimated monthly common charges for his unit to be used as working capital. (viii) Purchaser shall be obligated to pay the following fees to Sponsor’s attorney: (i) $2,000.00 for services rendered in connection with recording the Declaration of Condominium and the preparation of documents; (ii) $350.00 if the closing is held at any location other than Sponsor’s attorney’s office at the request of the Purchaser; (iii) $350.00 payable to Sponsor’s attorney if Purchaser applies for and closes with a mortgage; (iv) $ 500.00 payable to Sponsor’s attorney if e -forms for New York Cit y Real Property Transfer Tax are prepared by Sponsor’s attorney; and (v) $ 500.00 for each time the closing is rescheduled at the request of the purchaser (for the costs to fix a new Closing Date and time, to coordinate the attendance of all persons, to re-date the closing documents and to recalculate the closi

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and any alteration, addition, or improvement to, the Common Elements; (ii) the establishment and/or maintenance of a general operating reserve or a reserve fund for working capital, for replacements with respect to the Common Elements, or to make up any deficit in the Common Charges for any prior year(s); (iii) the purchase, lease, or sublease by the Condominium Board or its designee, corporate or otherwise, on behalf of all Unit Owners, of any Unit whose owner has elected to sell, lease, transfer, or convey the same or that is to be sold at a foreclosure or other sale; and (iv) generally, the conduct of the affairs of the Condominium. 8. "Common Interest" shall mean the undivided percentage interest of each Unit in the Common 14

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r casualty, or as a result of condemnation or eminent domain proceedings, all in accordance with the terms of these By-Laws; (xii) to accumulate reserve funds for capital replacements or other purposes; (xiii) To accept the surrender of any Unit pursuant to the terms of paragraph (C) of Section 6.2 hereof, in the name of the Condominium Board or its designee, corporate or otherwise,

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tal improvements for the first five year of Condominium Operations and i n the event any capital replacements are necessary, the board may impose a special assessment to cover the cost thereof. See Section “Reserve Fund” for further details. 46. No bond or guarantee other than a limited manufactures warranty on all construction materials

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sidewalks and streets and the lien of any unpaid vault tax (which is to be paid by the Condominium Board); (l) The lien of any Common Charges and Special Assessments, real estate taxes, water frontage and/or meter charges, sewer rents, vault charges and assessm ents, provided that apportionment of such items is made as provided in the Section of the Plan entitled “Unit Closing Costs and Adjustments”; (m) Leases and service, maintenance, employment, concessionaire and license agreements, if any, of other Units or portions of the Common Elements. Service, labor, concessionaire and maintenance agreements contemplated under the Plan; (n) Any Interim Lease with the Purchaser for such Residential Unit and any other leases, tenancies and occupancies permitted by the Purchase O ption Agreement for such residential Unit; (o) Any lien, notice of pendency or other encumbrance either (i) for which the instrument required to remove said lien, notice of pendency or other encumbr

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al limitation on Sponsor’s liability for failure to perform its obligations under the offering plan. 3. Sponsor agrees to pay all common charges, special assessments and real estate taxes with respect to unsold Units. Sponsor represents that it has the financial resources to meet its obligations with respect to unsold Units. Such obligations shall be funded through the rentals and sales of unsold Units and from other funds of the Sponsor. No bond or other security has been posted to secure Sponsor’s obligations. 4. The Sponsor will cause the boa rd of managers to maintain the property in substantially the same condition and manner as on the date of first closing until the Sponsor no longer controls the board of managers. 5. The Sponsor shall retain risk of loss from fire or other casualty until the purchaser shall be conveyed legal title or until the purchaser occupies the Unit. If the Purchaser is or becomes the tenant or the occupant of the Unit before the closing o

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87 So long as Sponsor retains title to any Units, Sponsor shall pay all Common Charges, Special Assessments and real estate taxes with respect to such Units. Sponsor represents that its financial resources will be sufficient to meet i ts obligations described above and its other obligations described in this Plan. Sponsor intends at present to meet its financial obligations under the Plan through profits generated from sales of Unsold Residential Units and income generated from the rental of Unsold Residential Units. Sponsor has not furnished any bond or other security for the performance of its obligations under the Plan , however, and Sponsor’s ability to perform its obligations hereunder will depend solely upon its financial condition if and when called upon to perform. If at any time while Sponsor is making an offering or making sales pursuant to the Plan Sponsor’s financial condition does not permit it to perform its obligations hereunder, Sponsor will amend the Pl

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itten Discretionary Approval or Consent to do any of the following (collectively. “Sponsor Veto Control”): (a) To raise Common Charges or levy a Special Assessment for any of the following purposes: (1) to make an Alteration to the Common Elements, the Association ’s Properties (including any Unit owned, leased or otherwise held or Operated by the Board, or its nominee or designee); (2) to create a reserve fund for non -structural repairs, or for alteration, unanticipated expenses and/or contingencies which, in the aggregate, exceed five percent (5%) of the projected annual residential common expenses (as applicable) for any Budget Year of Condominium operation ; or to increase or decrease or eliminated the mandated minimum ten percent (10%) Reserve for Capital Replacements to be included in each Budget in accordance with this Plan and the Condominium Documents (see below); (3) to increase, decrease or eliminate Building services set forth in said First year’s

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onary Approval or Consent, when added to all other budgeted Common Expenses (as applicable), will not increase the Common Charges, inclusive of any Special Assessment of the Condominium Board, for any budget year of the Condominium , by more than five percent (5%) above the Common Charges for the immediately preceding budget year of the Condominium. Sponsor will have the exclusive right to exercise veto control only during the Sponsor Veto Control Period. A Successor Unsold Unit Owner has the same rights and obligations afforded to the Sponsor; therefore, a Successor Unsold Unit Owner (if any) will have the same right of veto control as Sponsor during the Sponsor Veto Control Period. See Section “Definitions.” Limitations of Veto Control Sponsor may not exercise veto control over expenses described in the First Year’s Budget (Schedule B) or over expenses required: (a) to comply with applicable laws or regulations ; (b) to remedy a government notice or violation; (c)

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ry to discharge the same; (v) to determine the a mount and establish th e means and methods of payment of, and to collect, the Common Charges and Special Assessments from the Unit Owners; (vi) to borrow money on behalf of the Condominium when required in connection with the operation, maintenance, repair , restoration, improve ment, alteration and replacement of the Common Elements, provided, however, that: (a) with respect to the borrowing of any sum in excess of $25,000.00 in any one fiscal year (regardless of the balance of any loans outstanding from previous fiscal years) in addition to the affirmative consent of a majority of the members of the Condominium Board, the affirmative consent of a majority of all Unit Owners shall be required; (b) no lien to secure repayment of any

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nd maintain bank accou nts on behalf of the C ondominium and to designate the signatories required therefor; (viii) to use the Common Charges and Special Assessments collected from Unit Owners, as well as all other funds held by the Condominium Board or received in connection with the operation of the Property, for the administration of the Condominium, including, without limitation: (a) the payment of Common Expenses and (b) the making of restorations, additions, alterations and improvements to the Common Elements; (ix) to obtain insurance for the Property, including the Units, pursuant to the terms of Section 5.4 of the By-Laws; (x) to adjust and settle claims under insurance policies obtained pursuant to the terms of Section 5.4 of the By -Laws, and to execute and deliver rele ases upon such adjustment and settlement on behalf of: (a) all Unit Owners; (b) all holders of mortgages and other liens on Units; and (c) all holders of any other interest in the Property;

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ments. If the Trust Funds shall be less than sufficient to discharge the cost and expense of performing the Work, the Condominium Board shall levy a Special Assessment against all Unit Owners for the amount of such deficiency in proportion to their respective Common Interests, and all pr oceeds of such Special Assessment shall become part of the Trust Funds. However, if the insurance proceeds are not sufficient to discharge the cost and expense of performing any work attributable to any part of the building which is not a “Common Element”, such cost and exp ense must be paid by the owner or owners of the Units or Limited Common Element which were damaged and no special assessment may be levied against the Unit Owners. If, conversely, the Trust Funds shall prove to be more than sufficient to discharge the cost and expense of performing the Work, such excess shall be paid to the Unit Owner of the damaged Unit, except that no payment shall be made to a

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expenses incurred in connection with the Work, any portion of the Trust Funds remains unspent, such excess Trust Funds shall, to the extent of such Special Assessment, be deemed to be, and shall constitute, an unspent Special Assessment and shall be paid to the Unit Owners so assessed in proportion to their respective Common Int erests, free of an y claim of any lienor (including, without limitation, any Permitted Mortgagee). In the event that the damages is caused to both a Unit and Common Elements, the Condominium Board shall retain the services of an insurance adjuster to dete rmine the amount o f damages caused separately by the Unit and Common Element and all the underpayments and overpayments shall be subject to provisions in paragraph (4). 4. If seventy-five (75%) percent or more of the Building is destroyed or substantially damaged and if all Unit Owners do not promptly resolve to proceed with the repair or restoration thereof, the Building will not be repaired

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ge, pledge or hypothecate his or her Unit unless and until he or she shall have paid in full to the Condominium Board all unpaid Common Charges and special assessments theretofore assessed against such Unit and shall have satisfied all unpaid liens, except the liens of Permitted Mortgages levied against such Unit; (b) no Unit Owner shall execute any mortgage or other document mortgaging, pledging or hypothecating title to his or her Unit without including therein its Appur tenant Interests, it being the intention to prevent any severance of such combined ownership. Any mortgage or other instrument purporting to affect one or more of such interests without including all such interests shall be deemed and taken to include the interest or interests so omitted, even though the latter shall not be expressly mentioned or described therein so that at all times, all of the Units interests in the Condominium shall remain and shall not be severed; (c) any mortgage covering a Unit

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ments. If the Trust Funds shall be less than sufficient to discharge the cost and expense of performing the Work, the Condominium Board shall levy a Special Assessment against all Unit Owners for the amount of such deficiency in proportion to their respective Common Interests, and all proceeds of such Special Assessment shall become part of the Trust Funds. However, if the insurance proceeds are not sufficient to discharge the cost and expense of performing any work attributable to any part of the building which is not a “Common Element”, such cost and expense must be paid by the owner or owners of the Units or Limited Common Element which were damaged and no special assessment may be levied against the Unit Owners. If, conversely, the Trust Funds shall prove to be more than sufficient to discharge the cost and expense of performing the Work, such excess shall be paid to the Unit Owner of the damaged Unit, except that no payment shall be made to a Unit Owner until there has

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sidewalks and streets and the lien of any unpaid vault tax (which is to be paid by the Condominium Board); 12. The lien of any Common Charges and Special Assessments, real estate taxes, water frontage and/or meter charges, sewer rents, vault charges and assessments, provided that apportionment of such items is made as prov ided in the Section of the Plan entitled “Unit Closing Costs and Adjustments”; 13. Eases and service, maintenance, employment, concessionaire and license agreements, if any, of other Units or portions of the Common Elements. Service, labor, concessionaire and maintenance agreements contemplated under the Plan; 14. Any Interim Lease with the Purchaser for such Residential Unit and any other leases, tenancies and occupancies permitted by the Purchase Option Agreement for such Residential Unit; 15. Any lien, notice of pendency or other encumbrance either (i) for which the instrument required to remove said lien, notice of pendency or other encumbran

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nt to the terms of the By-Laws, provided that they are not in conflict with the terms of the Condominium Act, the Declaration, or the By-Laws. 33. "Special Assessments" shall mean the charges allocated and assessed by the Condominium Board to the Unit Owners, pro-rata in accordance with their respective Common Interests (except as otherwise provided in the Declaration or in the By-Laws), in accordance with paragraph (C) of Section 6.1 of the By-Laws. 34. "Sponsor" As used in New York State regulations pertaining to newly constructed and vacant condominium, the word "sponsor" means "any person, partnership, joint venture, corporation, company, trust, association or other entity or agent thereof who makes or takes part in a public offering or sale in or from the State of New York of participation interests or investments in real estate including condominium interests in realty." 35. "Sponsor's Initial Control". The Sponsor will control the board of managers whenever the unsol

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BL 3 (v) To determine the amount and establish the means a nd methods of payment of, and to collect, the Common Charges and Special Assessments from the Unit Owners; (vi) to borrow money on behalf of the Condominium when required in connection with the operation, maintenance, repair, restoration, improvement, al teration and replacement of the Common Elements, provided, however, that: (a) the affirmative consent of all of the members of the Condominium Board shall be required for the borrowing of any sum in excess of $25,000.00 in any one fiscal year (regardless o f the balance of any loans outstanding from previous fiscal years); (b) the affirmative consent of all of all Unit Owners shall be required for the borrowing of any sum in excess of $25,000.00 in any one fiscal year (regardless of the balance of any loans outstanding from previous fiscal years); (c) no lien to secure repayment of any sum borrowed may be created on any Unit or its Appurtenant Interests withou

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shall and must obtain Sponsor’s prior written Discretionary Approval or Consent to do any of the following: (a) To raise Common Charges or levy a special Assessment for any of the following purposes: (i) To make an Alteration to the Common Elements or the Association ’s Properties (the latter includes any Unit owner, leased licensed or otherwise held or operated by the condominium Board, or its nominee or designee); (ii) to create a fund for reserves for non -capital Repairs, Alterations, unanticipated expenses and/or contingencies (i.e., a Reserve for Contingencies), which in the aggregate exceed five percent (5%) of the projected annual General Common Expenses or five percent (5%) of the projected annual Residential Common Expenses (as applicable) for any Budget Year of the Condominium Operation or increase, decrease, or eliminate the minimum ten percent (10%) Reserve for Capital Replacement to be included in each Budget in accordance with the Declaration.

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neral Common Expenses (as applicable), will not increase the Residential Common Charges or General Common Charges (as applicable), inclusive of any Special Assessments of the Condominium Board, for the Budget year of the Condominium at issue, by more than 5% above the residential Common Charges or General common Charges (as applicable) for the immedi ately preceding Budget Year of the condominium. In addition, Sponsor may not exercise veto control over expenses included in the first Year ’s Budget or over expen ses required: (a) to comply with applicable Laws; (b) to remedy a governmental notice or viola tion or (c) to remedy a work order of an insurer of the Building, (d) or any matter concerning the health and safety of the occupants of the building. Veto Control of Sponsor and Unsold Unit Owners: Sponsor ’s veto control, as set forth herein, may be exercised during only the Sponsor Veto Control Period and solely by Sponsor while Sponsor owns any Unsold Unit. If Sponsor

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ents. If the Trust Funds shall be less than sufficient to discharge the cost and expense of performing the Work, the Condominium Boar d shall levy a Special Assessment against a ll Unit Owners for the amount of such deficiency in proportion to their respective Common Interests, and all proceeds of such Special Assessment shall become part of the Trust Funds. However, if the insurance proceeds are not sufficient to discharge the co st and expense of performing any work attributable to any part of the building which is not a “Common Element”, such cost and expense must be paid by the owner or owners of the Units or Limited Common Element whic h were damaged and no special assessment ma y be levied against the Unit Owners. If, conversely, the Trust Funds shall prove to be more than sufficient to discharge the cost and expense of performing the Work, such excess shall be paid to the Unit Owner of the damaged unit, except that no payment shall be made to a Unit Owner until there h

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BL 29 contained in Section 2.5 hereof, to levy Special Assessments to meet the Common Expenses. All Special Assessments shall be l evied against all Unit Owners in proportion to their respective Common Interests and may be payable either in one lum p sum or in installments, as the Condominium Board shall determine, provided, however that the Condominium Board shall give each Unit Owner not less than fifteen (15) days’ notice prior to the date upon which such Special Assessment, or the first installment thereof, shall be due and payable, which notice shall set forth, in reasonable detail, the nature and purpose thereof. The Condominium Board shall have all rights and remedies for the collection of Special Assessments as are provided herein for the collection of Common Charges (including, without limitation, the provisions of Section 6.4 hereof). (D) The excess of all rents, profits and r evenues derived from the rental or use of any space forming a part of, or included i

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le, deed in lieu of foreclosure, or otherwise), the defaulting Unit Owner shall remain fully liable for the payment of all unpaid Common Charges and Special Assessments that accrued prior to such foreclosure. Any unpaid Common Charges and Specia l Assessments that are not collected from such defaulting Unit Owner shall be deemed a Common Expense, collectible fr om all those who are Unit Owners at the time that the same is levied. (C) Subject to the terms and conditions contained in these By-¬Laws, any Unit Owner may convey his or her Unit, together with its Appurtenant Interests, to the Condominium Board or to its designee, corporate or otherwise, on behalf of all Unit Owners, without being compensated therefor, and, in such event, be exempt from t he payment of Common Charges and Special Assessments thereafter accruing, provided, however that: (i) all Common Charges and any Special Assessments then due and payable with respect to such Unit have been paid; (ii) such Unit is

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l be permitted to convey or lease his or her Unit unless he or she shall have paid in full to the Condominiu m Board all unpaid Common Charges and Special Assessments theretofore assessed against such Unit and shall have satisfied all unpaid liens, other than that of Permitted Mortg ages, levied against such Unit. Proceeds from lease payments may be used to satisfy the outstanding Common charges. Section 7.4. Power of Attorney. At the time of acquiring title to a Unit and as a condition thereof, the new Unit Owner shall duly execute, acknowledge and deliver to the representative of his or her title insurance compa ny (or, if no such representative is present, to the Condominium Board) for recording in the Register ’s Office, the Unit Owner ’s Power of Attorney required in Article 14 of the Declaration, in the form set forth as Exhibit E to the Declaration. Section 7.5. Transfers by Sale, Gifts and Devises, Etc. Any Unit Owner shall be free to sell, convey, gift or trans

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the Condominium Board shall promptly report to such Permitted Mortgagee any default by his or her mortgagor(s) in the payment of Common Charg es or Special Assessments or in the observance or performance of any of the provisions of the Condominium Documents as to which the Condominium Board has knowledge then exists. The Condominium Board shall, when giving notice to a Unit Owner of any such def ault, also send a copy of such notice to his or her Permitted Mortgagee, if so requested. However, the Condominium Board shall have no liability for any failure, through oversight or negligence, in notifying a Permitted Mortgagee of any default by his or her mortgagor under the Condominium’ Documents, provided that (i) the Condominium Board shall advise such Permitted Mortgagee of the default promptly after discovering such failure and (ii) if the Condominium Board shall foreclose a lien on such mortgagor’s Unit pursuant to the terms of S ection 6.4 hereof by reason of such default,

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to a mortgagee defaults in performing any act or making any payment which is that party’s responsibility hereunder, including common charges and or special assessments, for a period of sixty (60) days after the obligation to pay, and said default is not cu red within fifteen (15) days of written notice of said default. (3) If any insurance policies insuring the Building and all service machinery contained therein covering the interest of the Condominium, the Condominium Board, all of the Unit Owners and all Permitted Mortgagees, as their interests may appear may not be either cancelled, or be allowed to lapse, or substantially modified except upon at least ten (10) days’ prior written notice to all of the insureds, including all Permitted Mortgagees. (4) If the Declaration and the By -Laws of the Condominium are to be amended and such amendment would materially interfere with any right or interest of any mortgagee. C. Notwithstanding the foregoing provisions in the e