406 FENIMORE STREET

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......................... 112 W. COUNSEL’S INCOME TAX OPINION .............................................................................. 119 X. RESERVE FUND ................................................................................................................... 125 Y. WORKING CAPITAL FUND ............................................................................................... 126 Z. MANAGEMENT AGREEMENT .......................................................................................... 127 AA. IDENTITY OF PARTIES ................................................................................................... 129 AB. REPORTS TO UNIT OWNERS ......................................................................................... 132 AC. DOCUMENTS ON FILE..................................................................................................... 133 AD. GENERAL ................................................................................

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gagee , provided the Condominium meets the Preferred Mortgagee presale requirements (i.e. percentage of Units in -contract who are owner-occupants, reserve fund, and notice of default provisions) . Purchaser will have additional time to obtain a mortgage commitment from Sponsor’s Preferred Mortgagee. All terms of the Financing Contingency are applicable regardless of whether the Purchaser applies to the Purchaser’s Preferred Lender or the Sponsor’s Preferred Mortgagee. Provided that the Sponsor consents to permit a Financing Contingency in accordance with the above terms and the purchaser complies with all of such terms, if the financing commitment lapses or expires prior to closing and Purchaser has made a good faith effort to extend the commitment, the Sponsor will grant Purchaser a right of rescission and ten (10) days after expiration to exercise such right. If Sponsor does grant Purchaser a Financing Contingency, and a mortgage commitment is not fulfilled through n

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6 Charges for his Unit to be used as working capital. See Section “Working Capital Fund” for details. (h) At closing, the Sponsor w ill 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 will be retained by the Board to pay 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.” 10. THE SPONSOR HAS ACCESS TO SUFFICIENT FUNDS TO COMPLETE THE BUILDING AND/OR CONSTRUCTION, HOWEVER, NO BOND OR OTHER SECURITY HAS BEEN POSTED TO SECURE SPONSOR’S OBLIGATION

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7 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 and above the initial capital fund, it may be necessary for the Condominium Board to increase the charges. See Section “Working Capital Fund” for details. 17. All conflicts that may be resolved by arbitration pursuant to NYS law, between Unit owners and the Condominium Board, between Condominium Board Members, or between sponsor and the board, with respect to the Condominium, or to break any deadlock in voting in any matter, must be submitted to arbitration for resolution by a single arbitrator in a proceeding in Kings County or other mutually agreed to location in accordance with the existing rules of the AAA or any successor organization within 90 days of the dispute. The arbitrator shall be a third party mutually agreed upon by affected parti es and shall be neutral and i

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h applicable housing and labor laws. The superintendent will not live on premises. See “Notes to Schedule B.” 40. Purchasers should note that the Reserve Fund may not be s ufficient for needed capital improvements for the first five year of Condominium Operations and in 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. 41. The Purchaser will represent to Sponsor that he or she has not dealt with any broker other than the Selling Agent in connection with the acquisition of his or her Unit and will indemnify the Sponsor against the claims of any other broker, if su ch broker is not disclosed to the Sponsor at the time of the contract. If the purchaser has dealt with a broker other than the Selling Agent, a co-broker agreement will be executed, between the brokers. See Section “Procedure to Purchase” for further details. 42. Smoking, which includes carryi

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losing, each Purchaser shall deposit an Initial Capita l 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: The real estate taxes in the Schedule A are based on the assessed value for the Property after it is fully reassessed foll owing the completion of construction. Purchasers should note that the real estate taxes in subsequent years may increase substantially from the proposed taxes in the Schedule A. See Section "Real Estate Taxes." *Note: Purchasers are advised that the below-grade cella r space, which shall include equipment spaces, and accessory space for Unit 1, 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 us

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sted. 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) $ 3,500.00 to defray Sponsor’s costs of creating the condominium. See section entitled “Closing Costs and Adjustments” below.

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2,800.00 Legal Fees (8): $2,000.00 Building Phone Line (9): $900.00 Fire Alarming Monitoring (10): $1,800.00 Contingency (11): $2,000.00 Reserve Fund (12): $3,985.00 Total: $39,770.00 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 include 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 down payments 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

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39 This item is to be used as a yearly reserve fund to be set aside and used for periodic major capital repairs or replacements, or necessary repairs of common elements. The basis of the figure projected for this item is approximately ten percent (10%) of the entire budget. 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. The annual Reserve Fund is projected to be sufficient to pay for any major capital repairs or replacement items likely to be needed within the first five (5) years of Condominium operation. IN THE OPINION OF COMPLETE CONDO SERVICE INC., 610 BROADWAY, BROOKLYN, NEW YORK 11206, A LICENSED REAL ESTATE BROKER, THE PROJECTED RECEIPTS ARE ADEQUATE TO MEET THE ESTIMATED EXPENSES FOR THE CONDOMINIUM BOARD’ FIRST YEAR OF OPERATION, ASSUMING SUCH FIRST YEAR TO BE THE FISCAL YEAR COMMENCING JANUARY 1, 2023, THE FOREGOING SCHEDULE, HOWEVER, IS NOT INTENDED AND SHO

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ns. (viii) Purchaser will be required to deposit with the Condominium Board two (2) months’ estimated monthly common charges for his Unit for the Working Capital fund. (ix) Purchaser shall be obligated to pay a fee of (i) $ 3,000.00 to the law firm of Sponsor’s attorney f or services rendered in connection with recording the Declaration of Condominium and the preparation of documents (ii) $ 450.00 if the closing is held at any location other than Sponsor’s attorney’s office at the request of the Purchaser (iii) $450.00 payable to Sponsor’s attorney if Purchaser applies for and closes with a mortgage; (iv) $350.00 payable to Sponsor’s attorney for preparing e-forms for New York City Real Property Transfer Tax; and (v) $ 450.00 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 closing apportionmen

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e 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 the SCHEDULE B 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 Elem ents, the Association ’s Properties (including any Unit owned, leased or otherwise held or Operated by the Board, or its nominee or designee); (2) to increase o

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99 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 Condominium, or to break any deadlock in voting, the parties shall submit such dispute or question to arbitration. The arbitrator shall be a third party mutually agreed upon by affected parties and shall be neutral and independent of any parties involved. If the parties canno t agree on the arbitrators or if the arbitration procedure has not commenced for any other reason within ninety (90) days of the original notice, then such dispute or question shall be submitted to the American Arbitration Association, which will give any party the rights he is entitled to under New York law. The decision of the arbitrators so chosen shall be given w

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writing of the making of such mortgage and is to be given a copy thereof. Capital Reserves The Condominium Board has the power to accumu late 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. Examp les of income which is not exempt function income are interest earned on reserve funds, amounts received from persons who are not members of the Association amounts received for work done on privately owned property which is not Association property, and a mounts received from members 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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125 X. RESERVE FUND A reserve fund will be established in the budget. See Section 2.4 of the By-Laws attached as Document No. 7 in Part II of the Offering Plan. The basis of the figure projected for this item is approximately ten percent (10%) of the entire budget. This fund shall 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. Funds will be available to the Condominium Board within seven (7) days after the first closing. 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 Condominium Board will assess a charge to each Unit Owner in accordance with its percentage of common interest. While the Sponsor is in control of the Condominium Board, the reserve fund may not be used to reduce common charges. Neit

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126 Y. WORKING CAPITAL FUND The Sponsor, as agent of the Condominium Board , 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 Condominium Board 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 Condominium Board may determine and may be replenished as the Board sees fit. There are no anticipated net closing adjustments to the Working Capital Fund in favor of Sponsor. While the Sponsor is in control of the Condominium Board, the Working Capital Fund shall not be used to reduce estimated Common Charges. 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 REQU

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(viii) 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. (ix) Purchaser shall be obligated to pay a fee of (i) $ 3,000.00 to the law firm of Sponsor’s attorney for services rendered in connection with recording the Declaration of Condominium and the preparation of documents (ii) $ 450.00 if the closing is held at any location other than Sponsor’s attorney’s office at the request of the Purchaser (iii) $450.00 payable to Sponsor’s attorney if Purchaser applies for and closes with a mortgage; (iv) $350.00 payable to Sponsor’s attorney for preparing e-forms for New York City Real Property Transfer Tax; and (v) $ 450.00 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 closing apportionments).

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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

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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;

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ital improvements for the first five year of Condominium Operations and in 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. 41. The Purchaser will represent to Sponsor that he or she has not dealt with any broker other than the Selling Agent in connection with the acquisition of his or her Unit and will indemnify the Sponsor against the claims of any other broker, if su ch broker is not disclosed to the Sponsor at the time of the contract. If the purchaser has dealt with a broker other than the Selling Agent, a co-broker agreement will be executed, between the brokers. See Section “Procedure to Purchase” for further details. 42. Smoking, which includes carrying, burning, or otherwise handling or controlling any lit or smoldering product containing tobacco or cloves, including but not limited to cigarettes, cigars,

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ritten 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 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

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he claim is made payable to the named insured (the Condominium Board). In the event of any uncovered claim or damage the Board may need to assess a special assessment to the unit owners to be able to pay for the claim and or damage. 8. Legal Fees and Audit Fees A portion ($ 2,800.00) of the budgeted item will be used for auditing fees in connection with the preparation of the first year ’s audited financial statements of the Condominium and its Federal, State and City income tax returns. The estimate for accounting fees is based on a letter from Mozes Guttman, Certified Public Accountant, 2 Skillman Street #217, Brooklyn, NY 11205. An allowance ($2,000.00) is provided for miscellaneous (but not major) legal services, such as but not limited to, hiring an attorney to attend Unit Owner meetings and Board Member elections, in the event the Condominium Board decides to engage an attorney. 9. Building Phone Line This item includes the cost of a dedicated phone line fo

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dewalks and streets and the lien of any unpaid vault tax (which is to be paid by the Condominium Board); (xii) 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 provided in the Section of the Plan entitled “Unit Closing Costs and Adjustments”; (xiii) 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; (xiv) Any Interim Lease with the Purchaser for such Residential Unit; (xv) Any lien, notice of pendency or other encumbrance either (i) for w hich the instrument required to remove said lien, notice of pendency or other encumbrance of record is delivered at or prior to the date of closing of title to the Residential Unit, together with t

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al limitation on Sponsor’s liability for failure to perform its obligations under the offering plan. 5. Sponsor agrees to pay all common charges, special assessments and real estate taxes with respect to unsold Units. Sponsor represent s 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. 6. The Sponsor will cause the Board 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

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tten 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 Elem ents, the Association ’s Properties (including any Unit owned, leased or otherwise held or Operated by the Board, or its nominee or designee); (2) to increase or decrease or eliminate 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 budget or otherwise; or (4) to increase, decrease, eliminate or otherwise change the amount or types of insurance coverage from those set forth in said first year’s budget. (b) to borrow money on behalf of the Condominium Association. Sponsor, however, will give its Discretionar

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sary to discharge the same; (v) to determine the amount and establish the 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, improvement, 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 yea r (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 sum borrowed may be created on any Unit or its Appurtenant Interests without the consent of the owner of such Unit; and (c) the documentation executed in connection with any such borrowing shall

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and maintain bank accounts on behalf of the Condominium 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 limit ation: (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 which can be found in Part II of this plan; (x) to adjust and settle claims under insurance policies obtained pursuant to the terms of Section 5.4 of the By-Laws which can be found in Part II of this plan, and to execute and deliver releases upon such adjustment and settlement on behalf of: (a) all Unit Owners; (b) all holders of mortgages a

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rd and shall be borne by all Unit Owners as part of the Common Charges. In the event of any uncovered claim or damage the Board may need to assess a special assessment to the Unit owners to be able to pay for the claim and or damage. Until the first meeting of the Condominium Board elected by the Unit Owners, the public liability insurance will be in an amount of $1,000,000.00 per occurrence or $ 2,000,000.00 aggregate covering all claims for personal injury or property damage in respect of any one occurrence, and the fire insurance will be at least in the amount set forth in Schedule B, the “Budget for the First Year of Condominium Operation.” The Condominium Board shall review such limits annually.

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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 Appurtenant 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 ther ein 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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107 coverage maintained by the Condominium Board. In the event of any uncovered claim or damage the Board may need to assess a special assessment to the Unit owners to be able to pay for the claim and or damage. See subsection “Repair or Restoration after Fire or Other Casualty”, under the Section entitled: “Rights and Obligations of the Condominium Board.” The Insurance policy listed in the section “Schedule B” includes the following coverage: Items Covered Coverage Limits Building $1,269,638.00 All Risk, 100% Replacement Cost No Co-Insurance Deductible: $2,500.00 Rent Loss: Actual loss up to 12 months General Liability $1,000.000.00 Each Occurrence $2,000,000.00 Aggregate Officers & Directors Liability Included Projected Annual Premium $5,130.00 Coverage for the following items is not included and may be available at extra cost: water damage; excess liability; auto liability; fidelity bond; and garage keeper’s liability. Except as set forth in the nex

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nts. 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 th e 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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109 constitute, an unspent Special Assessment and shall be paid to the Unit Owners so assessed in proportion to their respective Common Interests, free of any claim of any lienor (including, without limitation, any Permitted Mortgagee). In the event that the damage is caused to both a Unit and Common Elements, the Condominium Board shall retain the services of an insurance adjuster to determine the amount of damages caused separ ately by the Unit and Common Element and all the underpayments and overpayments shall be subject to provisions in paragraph (IV). (IV) 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 and shall be subject to an actio n for partition instituted by any Unit Owner or lienor, as if owned in common, in which case the net proceeds of the resulting sale, together with the net pro

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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 provided in the Section of the Plan entitled “Unit Closing Costs and Adjustments”; 13. Leases and service, maintenance, employment, concessionaire and license agreements, if any, of other Units or portions of the Common Elements. Service, labor, concessionair e 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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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

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ary to discharge the same; (v) To determine the amount and establish the 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, improvement, alteration and replacement o f 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 of 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 Appurten

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all and must obtain Sponso r’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 no n-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 Common Expenses or five percent (5%) of the projected annual Common Exp enses (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. (iii) To increase, dec

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BL 9 or consent, when added to all other budgeted Common Expenses, will not increase the 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 Common Charges (as applicable) for the immediately 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 expenses required: (a) to comply with applicable Laws; (b) to remedy a governmental notice or violation 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 no longer owns an y Unsold Unit, each successo

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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 f

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ss Common Charges, the Condominium Board shall have the right, subject, in all respects, to the strictures contained in Section 2.5 hereof, to levy Special Assessments to meet the Common Expenses. All Special Assessments shall be levied aga inst all Unit Owners in proportion to their respective Common Interests and may be payable either in one lump 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, p

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BL 30 Section 6.2. Payment of Common Charges. (A) All Unit Owners shall be obligated to pay Common Charges and Special Assessments assessed by the Condominium Board pursuant to the terms of Section 6.1 hereof at such time or times (but not less than annually) as the Condominium Board shall determine. Unless otherwise determined by the Condominium Board, Common Charges shall be payable in installments on the first day of every month in advance. To the extent permitted by Law, the Condominium Board shall have a lien on each Unit, on behalf of all Unit Owners, for unpaid Common Charges and Special Assessments assessed against such Unit. Such lien, however, shall be subordinate, to the extent required by Law, to any liens for real estate taxes assessed against such Unit. (B) No Unit Owner shall be liable for the payment of any part of the Common Charges and any Special Assessments assesse d against his or her Unit subsequent to a sale, transfer, or other conveyance by h

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all be permitted to convey or lease his or her Unit unless 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, 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 company (or, if no such representat ive 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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e, 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 Appurtenant 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 in clude the interest or interests so omitted, even though the latter shall not be expressly mentioned or described therein. (C) Any mortgage covering a Unit shall be substantially in the form of the New York statutory form of mortgage, except for such chang es

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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 cured 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.