Section 1. Management by Declarant. "Development Period" shall mean that period of time from the date of recording the Declaration until (i) a date twenty (20) years from the date of recording this Declaration; or (ii) sixty (60) days after 100% of the Lots subject to this Declaration have had single family Residences constructed thereon and have been occupied as Residences; or (iii) the date on which Declarant elects to permanently relinquish all of Declarant's authority under this Article II by written notice to all Owners, whichever date first occurs. Until termination of the Development Period, the Property shall be managed and the Association organized at the sole discretion of the Declarant.
Section 2. Initial Board. Declarant may, in its sole discretion, and at such times as the Declarant deems appropriate, appoint three persons who may be Owners, or are representatives of corporate entities or other entities which are Owners, as an Initial Board. This Initial Board shall have full authority and all rights, responsibilities, privileges and duties to manage the Properties under this Declaration and shall be subject to all provisions of this Declaration, the Articles and the Bylaws, provided that after selecting the Initial Board, the Declarant, in the exercise of its sole discretion, may at any time terminate the Initial Board and reassume its management authority under Article II or select a new Board under this section of Article II.
Section 3. Notice to Owners. Not less than fourteen (14) nor more than sixty (60) days prior to the termination of the Development Period, the Declarant shall send written notice of the termination of the Development Period to the Owner of each Lot. Said notice shall specify the date when the Development Period will terminate and shall further notify the Owners of the date, place and time when a meeting of the Association will be held. The notice shall specify that the purpose of the Association meeting is to elect new Officers and Directors of the Association. Notwithstanding any provision of the Articles or Bylaws of the Association to the contrary, for the purpose of this meeting, the presence, either in person or by proxy, of the Owners of fifteen (15) Lots shall constitute a quorum. The term "proxy" is defined as "the authority or power to act for another, in person, or by document giving such authority". In other words, an Owner may designate another individual to act on their behalf. The Board of Directors and Officers of the Association may be elected by a majority vote of said quorum. If a quorum shall not be present, the Development Period shall nevertheless terminate on that date specified in said notice and it shall thereafter be the responsibility of the Owners to provide for the operation of the Association.
Section 4. Management of Properties During Development Period. Declarant, or a managing agent selected by the Declarant, and/or the Initial Board, shall have the power and authority to exercise all the rights, duties and functions of the Board of Directors and generally exercise all powers necessary to carry out the provisions of this Declaration.
Section 5. Purpose of Development Period. These requirements and covenants are made to ensure that the Properties shall be adequately administered in the initial stages of development and to ensure an orderly transition to Association operations. Each Owner accepts this management authority in Declarant.
Section 6. Expenditures During Development Period. During the Development Period, Declarant, or any agent of Declarant, shall have the sole discretion to use and consume all or so much of the dues paid in as in Declarant's judgment is necessary or expedient in maintaining the Common Maintenance Areas and carrying out the other functions of the Association. This includes, but is not limited to, any legal fees associated with Declarant, or any agent of Declarant carrying out any duties during the Development Period, including all costs associated with turning over the Association after the expiration of said Development Period. Upon termination of the Development Period, Declarant shall deliver any funds remaining to the Association.