DECLARATION ARTICLE 4

Article 4 - Use of Funds

¶4.01 Application of Assessments
¶4.02 Authority to Borrow Funds
¶4.03 Authority to Maintain Surplus
¶4.04 Authority to Enter into Contracts

¶4.01 Application of Assessments: The Association shall apply all funds received by it pursuant to these Restrictions, and all other funds and property received by it from any source, including, without limitation, the proceeds of loans referred to in ¶4.02 and the surplus funds referred to in ¶4.03, to the following, in the order stated:

(a) The payment of all principal and interest, when due, on all sums borrowed by or loaned to the Association, to the extent required under any agreement with holders or owners of debt obligations referred to in ¶4.02 hereof:

(b) Administrative costs and expenses incurred by the Association in the exercise of its powers, authority, and duties descried in this Deed; and

(c) The promotion of the recreation, health, safety, enjoyment and welfare of the users of the Common Property, and the enhancement of the values and amenities of the Property, by means of the construction, repair, maintenance, operation and administration of the Common Property and Exempt Property, including, but not limited to, the payment of taxes and insurance premiums on the Common Property, the cost of purchase, construction improvement, repair, beautification, alteration, operation, replacement of and equipment, materials, utility services, management and supervision with respect thereto.

¶4.02 Authority to Borrow Funds: In order to secure the repayment of any and all sums borrowed by or loaned to it from time to time, the Association is hereby granted the right and power:

(a) To assign and pledge all revenues received and to be received by it under any provision of these restrictions, including, but not limited to, the proceeds of the Annual Charges payable hereunder; and

(b) To enter into agreements with holders and owners of any debt obligations with respect to the collection and disbursement of funds, including, but not limited to, agreements wherein the Association covenants:

(i) to assess the Annual Charges on a given day in each year and, subject to the limitations on amount of the yearly assessment specified in ¶2.01 (1), to assess the same at a particular rate or rates:

(ii) to establish sinking funds or other security deposits;

(iii) to apply all funds received by the Association first to the payment of all principal and interest, when due, on such debts, or to apply the same to such purpose after providing for costs of collection:

(iv) to establish such collection, payment and lien enforcement may be required by holders or owners of any such debt procedures, not inconsistent with the provisions of this Deed, as obligation: and

(v) to provide for the custody and safeguarding of all funds received by the Association.

The amounts, terms and rates of all borrowing and the provisions of all agreements with holders or owners of any such debt obligation shall be subject solely to the decision of the Board acting in its absolute discretion.

¶4.03 Authority to Maintain Surplus: The Association shall not be obligated to spend in any particular time period all the sums collected or received by it in such time period or in any other time period and may carry forward, as surplus, any balances remaining; nor shall the Association be obligated to apply any such surpluses to the reduction of the amount of the Annual Charge in any year, but may carry forward from year to year and time to time such surplus as the Board in its absolute discretion may determine to be desirable for the greater financial security of the Association and the effectuation of its purposes as set forth in this Deed and its articles of incorporation.

¶4.04 Authority to Enter into Contracts: The Association shall have the power and authority to contract with any person, corporation, firm or other entity, including, but not limited to, Muirfield, for the exercise of any one or more of the various powers and authority granted to and duties to be performed by the Association hereunder, and to delegate such powers and authority to any agent or employee of the Association, and the exercise of those powers and authority by such person, corporation, firm, entity, agent or employee shall be deemed the exercise of those powers and authority by the Association, except that no independent contractor shall be deemed by virtue of these provisions to be the agent of the Association. There shall be no requirement of any bond or surety for the Association, its agents, employees, or others assuring the exercise of the powers and authority granted hereunder, except as the Board shall in its sole discretion deem necessary or desirable for the safeguarding of any funds received by the Association.