Article 3 - Recreational Facilities
Section 1. Purpose. The Declarant proposes to develop the Recreational Facilities, including a swimming pool, tennis courts, and a clubhouse, for the use and enjoyment of all Lot Owners. If the Declarant or the Association is the owner of the Recreational facilities, only Lot Owners who are current in the payment of all assessments applicable to them, including the Recreational Facilities Assessment, shall have a right to use the Recreational Facilities. However, the owner of the Recreational Facilities, whether the Declarant, the Association, or any other party; may extend the right to use the Recreational facilities to other groups or persons, on a month to month or year to year basis, by charging a membership fee for such use in an amount deemed appropriate by the owner of the Recreational Facilities, provided that such fee is not less than the fee charged or Recreational Facilities assessment imposed upon Lot Owners, or to charitable and civic groups and such individuals on such basis (including without charge for such use) as deemed appropriate by the owner of the Recreational Facilities, in its sole discretion. If the Recreational Facilities are owned by any party other than the Declarant or the Association, Lot Owners must be given an opportunity to obtain a membership or other right to use the Recreational Facilities on no less preferential a basis that given to members of the public who are not Lot Owners, for comparable rights.
Section 2. Conveyance of Recreational Facilities. During the Declarant Control Period, ownership and control of the Recreational Facilities shall remain in the Declarant or the Association, should the· Declarant choose to convey or lease to the Association. At the expiration of the Declarant Control Period, the Declarant shall convey ownership and control of the Recreational facilities to the Association, if such conveyance has not been previously accomplished. Thereafter, in the discretion of the Association, exercised as prescribed herein, the ownership or operational duties of and as to the Recreational facilities may change at any time and from time to time by virtue of, but without limitation to, (a) the sale or assumption of operations of the Recreational facilities to or by an independent person or entity; or (b) the conversion of the Recreational Facilities membership structure to an "equity" club or similar arrangement whereby the members of the Recreational facilities or an entity owned or controlled thereby become the owner or operator of the Recreational facilities. No Lot Owner shall have any ownership interest in the Recreational Facilities solely by virtue of his membership in the Association.
Section 3. Lot Owner's Enjoyment. For so long as the Recreational facilities are owned by the Declarant or owned or leased by the Association, every Lot Owner, by virtue of ownership of a Lot and payment of all Recreational facility assessments imposed by the Association or similar assessments or charges imposed by the Declarant if the Recreational Facilities are owned by the Declarant, shall have a right to use the Recreational Facilities subject to the following provisions:
(a) The right to charge reasonable admission and other fees for the use of any portion of the Recreational facilities;
(b) The right to suspend a Lot Owner's right to use the Recreational Facilities for any period in which the Lot Owner is in default in the payment of any assessment against his Lot, or other assessment or charge for the right to use the Recreational Facilities. Additionally, if the Recreational Facilities are owned by the Association, such rights may be suspended by notice from the Board of Directors for, period not to exceed sixty (60) days for any single and non recurring infraction of the Association's published rules and regulations or breach of or default under any of the covenants or provisions of this Declaration. If any such infraction, breach, or default is continuous or recurring, then such rights may be suspended for a period commencing on the date the owner is given notice of the cause for such suspension and ending not more than sixty (60) days after the date such infraction, breach, or default ceases or is remedied;
(c) The Declarant's Utility Rights; and,
(d) Upon ownership by the Association, the right of the Association, subject to the Declarant's Utility Rights, to transfer and convey all or any part of the Recreational Facilities to a private party, for a price and upon such terms and conditions as may he agreed to by the Association, including termination of the rights granted in this Article. No such transfer or conveyance made by the Association shall be effective unless approved by more than two-thirds (2/3) of the votes entitled to be cast by all Lot Owners.
Section 4. Delegation of Use. Any Lot Owner may delegate, in accordance with the By-Laws, his right to use the Recreational Facilities to the members of the Lot Owner's family, contract purchasers who reside on the Lot, guests and tenants.