By-Laws: Article XIV — FHLMC and FNMA Provisions

Notwithstanding anything to the contrary contained elsewhere in these By-Laws, the following provisions shall govern and be applicable insofar as the same are required in the sole discretion of the Trustee in order to qualify mortgages of Units in the Condominium for sale to the Federal Home Loan Mortgage Corporation (FHLMC) and/ or the Federal National Mortgage Association (FNMA) under laws and regulations applicable thereto, to wit:

Section 1. No Liability for Common Charges. Any first mortgagee who obtains title to a Condominium Unit pursuant to the remedies provided in the mortgage or foreclosure of the mortgage will not be liable for such Unit’s unpaid dues or charges which accrue prior to the acquisition of title to such Unit by the mortgagee. As used herein, “First Mortgagee” shall mean a lender holding a first mortgage whether or not said mortgagee is listed on the records of the Condominium as such.

Section 2. Two-Thirds Majority. Except as provided by statute in case of condemnation or substantial loss to the Units and/ or Common Elements of the Condominium project, unless at least two-thirds (2/3) of the first mortgagees (based upon one vote for each first mortgage owned), or Owners (other than sponsor, developer, or builder) of the individual Condominium Units have given their prior written approval, the Trustees of the Association shall not be entitled to:

(a) by act or omission, seek to abandon or terminate the Condominium project;

(b) change the pro rata interest or obligation of any individual Condominium Unit for the purpose of:

(1) levying assessments or charges or allocating distributions of hazard insurance proceeds or condemnation awards; or

(2) determining pro rata share of ownership of each Condominium Unit in the Common Elements;

(c) partition or subdivide any Condominium Unit;

(d) by act or omission, seek to abandon, partition, subdivide, encumber, sell or transfer the Common Elements. The granting of easements for public purposes consistent with the intended use of the Common Elements by the Condominium project shall not be deemed a transfer within the meaning of this clause;

(e) use hazard insurance proceeds for losses to any Condominium property for other than the repair, replacement or reconstruction of such Condominium property.

Section 3. Priority in Loss or Condemnation. No provision of said Master Deed or these By-Laws shall give a Condominium Unit Owner, or any other party, priority over any rights of the first mortgagee of the Condominium Unit pursuant to its mortgage in the case of a distribution to such Unit Owner of insurance proceeds or condemnation awards for losses to or a taking of Condominium Units and/ or Common Elements.

Section 4. Reserves. Condominium dues or charges shall include an adequate reserve fund for maintenance, repairs and replacement of those Common Elements that must be replaced on a periodic basis, and shall be payable in regular installments rather than by special assessments.

Section 5. Notice of Defaults. A first mortgagee, upon request, will be entitled to written notification from the Board of any default in the performance by the individual Unit Owner of any obligation under the Condominium documents which is not cured within sixty (60) days.

Section 6. Management Contracts. Any agreement for professional management of the Condominium, or any other contract providing for services of the developer, sponsor, or builder, may not exceed three (3) years. Any such agreement must provide for termination by either party without cause and without payment of a termination fee on ninety (90) days or less written notice.

Section 7. Insurance. The Board shall obtain fidelity coverage against dishonest acts on the part of Board of Trustees or managing Agents, Employees or volunteers responsible for handling funds belonging to or administered by the Board of Trustees. Said fidelity bond or insurance must name the Association as the named insured and shall be written in an amount sufficient to provide protection which is in no event less than one and one-half times the Insured’s estimated annual operating expenses and reserve. If said policy would not otherwise cover persons who serve without compensation, appropriate endorsements to cover said volunteers shall be added to the policy.

Section 8. Annual Statements. The firm accountants servicing Liberty Commons Association shall prepare an audited financing statement within a reasonable time after the end of the fiscal year of the Association.

Section 9. Leasing. The Board of Trustees may allow not more than thirty (30%) percent of the Units of the Condominium to be leased to third parties, said percentage to be allocated on a first come first served basis, provided, however, this provision shall not apply to any unit subject to a mortgage held by the Veteran’s Administration.

Section 10. Declarant’s Common Charges. For a period of sixty (60) days after the first Unit is conveyed, the Declarant will be required to pay only fifty (50%) percent of the common charges allocable to any unoccupied Units completed and owned by the Declarant, but thereafter will be required to pay common charges in full on any completed unoccupied Unit owned by it. In any event, Declarant will be required to pay common charges in full on any occupied Unit owned by it.

Section 11. Maximum Unit Ownership. No single entity (the same individual, investor group, partnership or corporation) other than the Declarant during the initial sales period, may own more than 10% of the total units in the Condominium project.

Source: Consolidation of the Liberty Commons Condominium Declaration of Trust and By-Laws as recorded in the Worcester Northern District Registry of Deed in Book 3785, Page 151 and the First Amendment to Liberty Commons Condominium Declaration of Trust and By-Laws as recorded in the Worcester Northern District Registry of Deed in Book 4129, Page 72.
Information Last Refreshed On: 7/13/2012