Lanterns Walk Covenants

19015

Deed . Doc: COVE

Read 0206/20 14-58AN Upon recording, please return to: BEVERLY LOGAN

Amy H. Bray, Esq. Clerk Superior Court, ATHENS-CLARKE COUNTY Andersen, Tate, Mahaffey & McGarity, P.C. BE 02595 P 0435-0515 P.O. Box 2000

Lawrenceville, Georgia 30046 REC'D APR * 7 2004

(2845,16001)

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR

LANTERN WALK

TABLE OF CONTENTS

PART ONE: INTRODUCTION TO THE COMMUNITY.

Article 1 Creation of the Community

1.1. Purpose and Intent.

1.2. Binding Effect..

1.3. Governing Documents. .2

Article II Concepts and Definitions .. 3

PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS......6

Article III Use and Conduct..

3.1. Framework for Regulation.

3.2. Rule Making Authority

3.3. Owners' Acknowledgment and Notice to Purchasers. . 7

3.4. Protection of Owners and Others

Article TV Architecture and Landscaping.

4.I. General .9

4.2. Architectural Review

4.3. Guidelines and Procedures. 10

4.4. No Waiver of Future Approvals.

4.5. Variances.

4.6. Limitation of Liability..

4.7. Certificate of Compliance 3

> Maintenance and Repair .13

Maintenance of Units. . 13

Responsibility for Repair and Replacement. . 14

PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION. .. 14

Article VI The Association and its Members … 14

6.1. Function of Association. 14

6.2. Membership. .14

6.3. Voting.. 15

BE 02595 P: 0436 Article VII Association Powers and Responsibilities . 15

7.1. Acceptance and Control of Association Property

7.2. Maintenance of Arca of Common Responsibility 16

7.3. Insurance …. 17

7,4. Compliance and Enforcement... .20

7.5. Implied Rights; Board Authority .22

7.6. Indemnification of Officers, Directors and Others. ..23

7.7. Safety and Security... .23 7.8. Provision of Services... ... 24 7.9. Relationships with Other Properties. ..24

7.10. Facilities and Services Open to the Public. ...24 Article VIII Association Finances..... ...24

8.1. Budgeting and Allocating Common Expenses. ..24

8.2. Budgeting for Reserves ...25

8.3. Special Assessments. ...26

8.4. Specific Assessments. ... 26 8.5. Authority to Assess Owners; Time of Payment .,26

8,6. Obligation for Assessments. ..27

8.7. Lien for Assessments ..28

8.8. Exempt Property. ..28

8.9. Capitalization of Association.... .28

PART FOUR: COMMUNITY DEVELOPMENT. - 29

Article IX Expansion of the Community..

9.1. Expansion by Declarant.. ..29

9.2. Expansion by the Association... ...29

9.3. Additional Covenants and Easements. ..29

9.4. Effect of Filing Supplemental Declaration ..30

Article X Additional Rights Reserved to Declarant

10.1. Withdrawal of Property. ..30

10.2. Marketing and Sales Activities.

10.3. Right to Develop.

10.4. Right to Approve Additional Covenants.

10:5. Right to Approve Changes in Lantern Walk Standards..

10.6. Right to Transfer or Assign Declarant Rights. ..31

10.7. Exclusive Rights To Use Name of Development. .31

10.8. Right to Notice of Design or Construction Claims ..31

10.10. Termination of Rights.. ..31

PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY. ... 32

Article XI Lasements..

Easements in Common Area. ... ..32 BE02595 PE 0437 11.2. Easements of Encroachment... ...33

11.3. Easements for Utilities. ...33

11.4. Eascments to Serve Additional Property. ...34

11.5. Easements for Maintenance, Emergency, and Enforcement. ..34

11.6. Easements for Lake and Pond Maintenance and Flood Water ... 34

11.7. Easement to Inspect and Right to Correct. ….35

11.8 Side-Yard Use Eascments.. ..35

Article XII Limited Common Areas. --37

12.1. Purpose. .. 37

12.2. Designation, ..37

Article XIII Party Walls and Other Shared Structures.

13.1. General Rules of Law to Apply. .. 38

13.2. Maintenance; Damage and Destruction .. 38

PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY.. -38

Article XIV Dispute Resolution and Limitation on Litigation. ..38

14.1. Agreement to Encourage Resolution of Disputes Without Litigation ..38

14.2. Dispute Resolution Procedures. ...39

14.3. Initiation of Litigation by Association .40

Article XV Mortgagee Provisions.. 41

15.1. Notices of Action.. 41

15.2. Special FHLMC Provision.

15.3. Other Provisions for First Lien Holders.

15.4. Amendments to Documents......

15.5. No Priority .. 44

15.6. Notice to Association.. .44

15.7. Failure of Mortgagee to Respond .44

15.8. Construction of Article XV... .44

PART SEVEN: CHANGES IN THE COMMUNITY..

Article XVI Changes in Ownership of Units ,44

Article XVII Changes in Common Area .45

17.1. Condemnation ..45

17.2. Partition...

17.3. Transfer or Dedication of Common Area

Article XVIII Amendment of Declaration.

18.1. By Declarant.

18.2. By Members.. 7087

18.3. Validity and Effective Date... BL 02595 18.4. Exhibits..

PE 0438

- TABLE OF EXHIBITS -

Page First

Subject Matter Mentioned

Land Initially Submitted

Land Subject to Annexation

"C" Initial Restrictions and Rules

"D" By-Laws of Lantern Walk Homeowners

Association, Inc.

BE 02595 Pg 0439

iv

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR

LANTERN WALK

THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS is made this - _ day of → 2004, by Lantern Walk Builders, LLC, a Georgia limited liability company ("Declarant).

PART ONE: INTRODUCTION TO THE COMMUNITY

Article 1 Creation of the Community

Purpose and Intent.

Declarant, as the owner of the real property described in Exhibit"A," intends by Recording this Declaration to establish a general plan of development for the planned community known as Lanter Walk. This Declaration provides a flexible and reasonable procedure for Lantern Walk's future expansion and provides for its overall development, administration, maintenance and preservation. An integral part of the development plan is the creation of Lantern Walk Homeowners Association, Inc., an association comprised of all owners of real property in Lanter Walk, to own, operate and/or maintain various common areas and community improvements and to administer and enforce this Declaration and the other Governing Documents referenced in this Declaration,

This document does not and is not intended to create a condominium within the meaning of the Georgia Condominium Act, O.C.G.A. Section 44-3-70, and the Association is not subject to the Georgia Property Owners' Association Act, O.C.G.A. Section 44-3-220.

1.2. Binding Effect.

All property described in Exhibit "A," and any additional property which is made a part of BL 02595 Lantern Walk in the future by Recording one or more Supplemental Declarations, shall bo owned, conveyed and used subject to all of the provisions of this Declaration, which shall run with the title to such property. This Declaration shall be binding upon all Persons having any right, title, or interest in any portion of Lanter Walk, their heirs, successors, successors-in-title, and assigns.

This Declaration, as it may be amended, is intended to remain in effect in perpetuity. However, so long as Georgia law limits the period during which covenants may run with the land, this Declaration shall remain in effect and shall be enforccable by Declarant, the

Association, any Owner, and their respective legal representatives, heirs, successors, and assigns, for a term of 20 years from the date this Declaration is Recorded. After such time, this Declaration shall be extended automatically for successive periods of 20 years each, unless terminated in accordance with O.C.G.A. Section 44-5-60, as it may be amended, within the year preceding any extension.

Notwithstanding this, if any provision of this Declaration would be unlawful, void, or voidable by reason of any Georgia law restricting the period of time that covenants on land may be enforced, such provision shall expire 21 years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England. Nothing in this Section shall be construed to permit termination of any easement created in this Declaration without the consent of the holder of such easement.

1.3. Governing Documents,

Lanter Walk's Governing Documents consist of:

• this Declaration and any Supplemental Declarations applicable to portions of Lantern Walk;

• the Association's Articles of Incorporation and By-Laws;

• the Restrictions and Rules described in Article III;

• the Architectural Guidelines described in Article IV; and

• such resolutions as the Association's Board of Directors' may adopt;

all as they may be amended.

Nothing in this Section shall preclude any Supplemental Declaration or other Recorded covenants applicable to any portion of Lantern Walk from containing additional restrictions or provisions which are more restrictive than the provisions of this Declaration and, in such case, the more restrictive shall control.

The Governing Documents apply to all Owners and occupants of property within Lantern BL 02595 Walk, as well as to their respective tenants, guests and invites. If a Unit is leased, the lease shall provide that the tenant and all occupants of the leased Unit are bound by and obligated to comply with the Govering Documents.

If any court should determine that any provision of this Declaration is invalid, or invalid P H441 as applied in a particular instance, such determination shall not affect the validity of other provisions or applications of such provision.

Article II Concepts and Definitions

The terms used in the Governing Documents shall generally be given their natural, commonly accepted definitions unless otherwise specified. Capitalized terms shall be defined as set forth below.

"Architectural Guidelines": The guidelines and standards for architecture, design, construction, landscaping, and exterior items on Units adopted pursuant to Article IV, as they may be amended.

"Area of Common Responsibility": The Common Area, together with such other areas, if any, for which the Association has or assumes responsibility pursuant to the terms of this Declaration, any Supplemental Declaration, or other applicable covenants, contracts, or agreements.

"Articles": Lanter Walk Homeowners Association, Inc.'s Articles of Incorporation, filed with the Secretary of State of Georgia, as they may be amended.

"Association": Lantern Walk Homeowners Association, Inc., a Georgia nonprofit corporation, its successors or assigns.

'Base.Asscssment": Assessments levied on all Units subject to assessment under Article VIlI to fund Common Expenses for the general benefit of all Units, as determined in accordance with Section 8.1.

"Board of Directors" or "Board": The body responsible for administration of the Association, selected as provided in the By-Laws and generally serving the same role as the board of directors under Georgia corporate law.

"Builder": Any Person who purchases one or more Units for the purpose of constructing improvements for later sale to consumers, or who purchases one or more parcels of land within Lantern Walk for further subdivision, development, and/or resale in the ordinary course of its business.

"By-Laws": The By-Laws of Lantern Walk Homeowners Association, Inc., as they may be amended. A copy of the initial By-Laws is attached to this Declaration as Exhibit "D." B· 02595

"Class "B% ontrol Period": The period of time during which the Class "B! ember is entitled to appoint a majority of the members of the Board as provided in the By-Laws. The Class "B" Control Period shall terminate on the first to occur of the following: PE H442

(a) when 100% of the total number of Units permitted by the Master Plen for the property described in Exhibits "A" and "B" have certificates of occupancy issued thercon and have been conveyed to Class "A" Members other than Builders;

(b) December 31, 2020; or

when, in its discretion, the Class "B" Member so determines.

"Common Area": All real and personal property, including easements, which the Association owns, leases, or otherwise holds possessory or use rights in for the common use and enjoyment of the Owners. The term shall include the Limited Common Area, as defined below.

"Common Expenses": The actual and estimated expenses incurred, or anticipated to be incurred, by the Association for the general benefit of all Owners, including any reasonable reserve, as the Board may find necessary and appropriate pursuant to the Governing Documents. Common Expenses shall not include any expenses incurred during the Class "B" Control Period for initial development or other original construction costs unless a majority of the total Class "A" vote of the Association approve.

"Community-Wide Standard": The standard of conduct, maintenance, or other activity generally prevailing at Lantern Walk, or the minimum standards established pursuant to the Architectural Guidelines, Restrictions and Rules, and Board resolutions, whichever is a highest standard. Declarant shall establish initially such standard and it may contain both objective and subjective elements. The Community-Wide Standard may evolve as development progresses and as the needs and desires within Lantern Walk change.

"Declarant": Lanter Walk Builders, LLC, a Georgia limited liability company, or any successor or assign who takes title to any portion of the property described in Exhibit "A" or "B" for the purpose of development and/or sale and who is designated as Declarant in a Recorded instrument that the immediately preceding Declarant executes.

"Governing Documents": A collective term referring to this Declaration and any applicable Supplemental Declaration, the By-Laws, the Articles, the Architectural Guidelines, the Restrictions and Rules, and Board resolutions, all as they may be amended.

"Lanter Walk": The real property described in Exhibit"A," together with such additional property as is subjected to this Declaration in accordance with Article IX.

"Limited Common Area": A portion of the Common Area primarily benefiting one or more, but less than all, Units, as more particularly described in Article XII. E₺ 02595

"Master Plan": The land use plan for the development of Lantern Walk prepared by and approved by Athens-Clarke County, as it may be amended, which includes all of the property described in Exhibit "A" and all or a portion of the property described P£ 0443 in Exhibit "B." Inclusion of property on the Master Plan shall not, under any circumstances, obligate Declarant to subject such property to this Declaration, nor shall the omission of property described in Exhibit "B" from the Master Plan bar its later submission to this Declaration as provided in Article IX.

"Member": A Person subject to membership in the Association pursuant to Section 6.2. "Mortgage": A mortgage, a deed of trust, a deed to secure debt, or any other form of security instrument affecting title to any Unit. The term "Mortgagee" shall refer to a bencficiary or holder of a Mortgage.

"Owner": One or more Persons who hold the record title to any Unit, but excluding in all cases any party holding an interest merely as security for the performance of an obligation. If a Unit is sold under a Recorded contract of sale, and the contract specifically so provides, the purchaser (rather than the fee owner) will be considered the Owner.

"Person": A natural person, a corporation, a partnership, a trustee, or any other legal entity.

"Record,". "Recording.¿‚ or "Recorded": The filing of a legal instrument in the official records of Athens-Clarke County, Georgia, or such other place as may be designated as the official location for recording deeds, plats, and similar documents affecting title to real estate.

"Restrictions and Rules': The initial restrictions and rules set forth in Exhibit"C,' as they may be supplemented, modified, and repealed pursuant to Article III.

"Special Assessment": Assessments levied in accordance with Section 8.3.

"Specific Assessment": Assessments levied in accordance with Section 8.4.

"Supplemental Declaration": An instrument Recorded pursuant to Article IX which subjects additional property to this Declaration, designates Limited Common Areas, and/or creates or imposes additional easements, restrictions and obligations on the land described in such instrument.

"Unit": A portion of Lantern Walk, whether improved or unimproved, which may be independently owned and is intended for development, use, and occupancy as an attached or detached residence for a single family. The term shall refer to the land, if any, which is part of the Unit as well as any improvements thereon. In the case of a structure containing multiple dwellings, each dwelling shall be deemed to be a separate Unit.

R₺ 02595 In the case of a parcel of vacant land or land on which improvements are under construction, the parcel shall be deemed to contain the number of Units designated for residential use for such parcel on the Master Plan or Declarant's site plan, whichever is more recent. Thereafter, the portion cncompassed on such plat shall contain the number of Units deternined I444 as set forth in the preceding paragraph. Any portion not encompassed on such plat shall continue to be treated in accordance with this paragraph.

Units may be combined or further subdivided, and boundary lines of Units may be changed, only by Recording of a plat or other legal instrument further subdividing or

resubdividing the parcel of property (which subdivision shall be subject to such other restrictions as may be set forth in this Declaration or rules of the Association). In the absence of Recording such a legal instrument, ownership of adjacent Units by the same Owner shall not permit such Units to be treated as a single Unit for purposes of voting and assessment, notwithstanding that such Units may be improved with a single dwelling.

PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS

Article I|I Use and Conduct

3.1. Framework for Regulation.

The Governing Documents establish, as part of the general plan of development for Lantern Walk, a framework of affirmative and negative covenants, easements, and restrictions which gover Lantern Walk. Within that framework, the Board and the Members must have the ability to respond to unforeseen problems and changes in circumstances, conditions, needs, desires, trends, and technology. Therefore, this Article establishes procedures for modifying and expanding the initial Restrictions and Rules set forth in Exhibit "C." This Article is not intended to apply to rules and regulations relating to use and operation of the Common Area which the Board may adopt by resolution pursuant to Section 7.1(c), nor to administrative policies which the Board may adopt to interpret, define or implement the Restrictions and Rules.

3.2. Rule Making Authority.

(a) Subject to the terms of this Article and the Board's duty to exercise business judgment and reasonableness on behalf of the Association and its Members, the Board may modity, cancel, limit, create exceptions to, or expand the Restrictions and Rulcs. The Board shall send notice to all Owners concerning any proposed action at least five business days prior to the Board meeting at which such action is to be considered. Members shall have a reasonable opportunity to be heard at a Board mecting prior to such action being taken.

Such action shall become effective, after compliance with subsection (c) below, unless more than 50% of the total Class "A" votes in the Association and the Class "B" Member, if any, HE 12595 disapprove such action at a mecting. The Board shall have no obligation to call a meeting of the Members to consider disapproval excopt upon receipt of a petition of the Members as required for special meetings in the By-Laws. Upon such petition of the Members prior to the effective date of any Board action under this Subsection, the proposed action shall not become effective # 0445 until after such meeting is held, and then subject to the outcome of such meeting.

(b) Alternatively, Members representing more than 50% of the total Class "A" votes in the Association at an Association mecting duly called for such purpose, may vote to adopt

rules which modify, caacel, limit, create exceptions to, or expand the Restrictions and Rules then in effect. Such action shall require approval of the Class 'B" Member, if any.

Prior to any action taken under this Section becoming effective, the Board shall send a copy of the new rule or explanation of any changes to the Restrictions and Rules to each Owner. The effective date shall be not less than 30 days following distribution to Owners. The Association shall provide, without cost, a copy of the Restrictions and Rules then in effect to any requesting Member or Mortgagee.

No action taken under this Article shall have the effect of modifying, repealing or expanding the Architectural Guidelines or any provision of this Declaration other than the initial Restrictions and Rules set forth in Exhibit "C." In the event of a conflict between the Architectural Guidelines and the Restrictions and Rules, the Architectural Guidelines shall control.

The procedures required under this Section shall not apply to the enactment and enforcement of administrative rules and regulations govering use of the Common Area unless the Board chooses in its discretion to submit to such procedures. Examples of such administrative rules and regulations shall include, but not be limited to, speed limits on private alleys and right of ways, and limitations on use of passive parks or recreation areas.

3.3. Owners' Acknowledgment and Notice to Purchasers.

All Owners are given notice that use of their Units and the Common Area is limited by the Restrictions and Rules as amended, expanded and otherwise modified from time to time. Each Owner, by acceptance of a deed, acknowledges and agrees that the use and enjoyment and marketability of his or her Unit can be affected by this provision and that the Restrictions and Rules may change from time to time. All purchasers of Units are on notice that the Association may have adopted changes. Copies of the current Restrictions and Rules may be obtained from the Association.

3.4. Protection of Owners and Others.

Except as may be set forth in this Declaration (either initially or by amendment) or in the initial Restrictions and Rules set forth in Exhibit "C," all Restrictions and Rules shall comply with the following provisions:

(a) Similar Treatment. Similarly situated Owners shall be treated similarly, BL: 02595

Displays. The rights of Owners to display religious and holiday signs, symbols, and decorations inside structures on their Units of the kinds normally displayed in dwellings located in single-family residential neighborhoods shall not be abridged, except that the Association may adopt time, place, and manner restrictions with respect to displays visible from outside the dwelling.

No rules shall regulate the content of political signs; however, rules may regulate the time, place, and manner of posting such signs (including design criteria).

(c) Household Composition. No rule shall interfere with the freedom of Owners to determine the composition of their households, except that the Association shall have the power to require that all occupants be members of a single housekeeping unit and to limit the total number of occupants permitted in each Unit on the basis of the size and facilities of the Unit and its fair use of the Common Area.

Activities Within Dwellings. No rule shall interfere with the activities carried on within the confines of dwellings, except that the Association may prohibit activities not normally associated with property restricted to residential use, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive noise or traffic, that create unsightly conditions visible outside the dwelling, or that create an unreasonable source of annoyance.

(e) Allocation of Burdens and Benefits. No rule shall alter the allocation of financial burdens among the various Units or rights to use the Common Area to the detriment of any Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision shall prevent the Association from changing the Common Area available, from adopting generally applicable rules for use of Common Area, or from denying use privileges to those who are delinquent in paying assessments, abusc the Common Area, or violate the Governing Documents. This provision does not affect the right to increase the amount of assessments as provided in Article VIII.

Alienation. No rule shall prohibit leasing or transfer of any Unit, or require consent of the Association or Board for leasing or transfer of any Unit; provided, the Association or the Board may require a minimum lease term of up to 12 months. The Association may require that Owners use lease forms approved by the Association, but shall not impose any fee on the lease or transfer of any Unit greater than an amount reasonably based on the costs to the Association of administering that lease or transfer.

Abridging Existing Rights. No rule shall require an Owner to dispose of personal property that was in or on a Unit prior to the adoption of such rule if such personal property was in compliance with all rules previously in force. This exemption shall apply only during the period of such Owner's ownership of the Unit, and shall not apply to subsequent Owners who take title to the Unit after adoption of the rule.

(h) Reasonable Rights to Develop. No rule or action by the Association or Board shall unreasonably impede Declarant's right to develop Lantern Walk.

The limitations in subsections (a) through (g) of this Section shall only limit rulemaking authority exercised under Section 3.2; they shall not apply to amendments to this Declaration adopted in accordance with Article XVIII.

Article IV Architecture and Landscaping

4.1. General.

No structure or thing shall be placed, erected, or installed upon any Unit and no improvements or other work (including staking, clearing, excavation, grading, and other site work, exterior alterations of existing improvements, or planting or removal of landscaping) shall take place within Lantern Walk, except in compliance with this Article and the Architectural Guidelincs.

No approval shall be required to repaint the exterior of a structure in accordance with the originally approved color scheme or to rebuild in accordance with originally approved plans and specifications. Any Owner may remodel, paint or redecorate the interior of his or her Unit without approval. However, modifications to the interior of screened porches, patios, and similar portions of a Unit visible from outside the structure shall be subject to approval.

All dwellings constructed on any portion of Lantern Walk shall be designed by and built in accordance with the plans and specifications of a licensed architect unless Declarant or its designee otherwise approves in its sole discretion.

This Article shall not apply to Declarant's activities, nor to the Association's activities during the Class "B" Control Period.

4.2. Architectural Review.

By Declarant. Each Owner, by accepting a deed or other instrument conveying any interest in any portion of Lantern Walk, acknowledges that, as the developer of Lantern Walk and as an owner of portions of Lantern Walk as well as other real estate within the vicinity of Lantern Walk, Declarant has a substantial interest in ensuring that the improvements within Lantern Walk enhance Declarant's reputation as a community developer and do not impair Declarant's ability to market, sell, or lease its property. Therefore, each Owner agrees that no activity within the scope of this Article shall be commenced on such Owner's Unit unless and until Declarant or its designee has given its prior written approval for such activity, which approval may be granted or withheld in the Declarant's or its designee's sole discretion.

In reviewing and acting upon any request for approval, Declarant or its designce shall be HE 02595 acting solely in Declarant's interest and shall owe no duty to any other Person. Declarant's rights reserved under this Article shall continue so long as Declarant owns any portion of Lantern Walk or any real property adjacent to Lantern Walk, unless earlier terminated in a written instrument which Declarant has executed and Recorded.

F 1448 Declarant may, in its sole discretion, designate one or morc Persons from time to time to act on its bchalf in reviewing applications hereunder.

Declarant may from time to time, but shall not be obligated to, delegate all or a portion of its reserved rights under this Article to (i) an architectural review committee appointed by the

Board of Directors (the "ARC"), or (ii) a committee comprised of architects, engineers or other persons who may or may not be Association Members. Any such delegation shall be in writing specifying the scope of responsibilities delegated and shall be subject to (i) Declarant's right to revoke such delegation at any time and reassume jurisdiction over the matters previously delegated and (ii) Declarant's right to veto any decision which Declarant determines, in its sole discretion, to be inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article, the jurisdiction of the foregoing entities shall be limited to such matters as Declarant specifically delegates to them.

Architectural Review Committee. Upon delegation by Declarant or upon expiration or termination of Declarant's rights under this Article, the Association, acting through the ARC, shall assume jurisdiction over architectural matters. The ARC, when appointed, shall consist of at least three, but not more than seven, persons who shall serve and may be removed and replaced in the Board's discretion. The ARC members need not be Association Members or representatives of Members, and may, but need not, include architects, engineers or similar professionals, who may be compensated in such manner and amount if any, as the Board may establish.

Unless and until such time as Declarant delegates all or a portion of its reserved rights to the ARC or Declarant's rights under this Article terminate, the Association shall have no jurisdiction over architectural matters.

(c) Fees: Assistance. For purposes of this Article, the entity having jurisdiction in a particular case shall be referred to as the "Reviewer." The Reviewer may establish and charge reasonable fees for review of applications and may require such fees to be paid in full prior to revicw of any application. Such fees may include the reasonable costs incurred in having any application reviewed by architects, engincers, or other professionals. Declarant and the Association may employ architects, engincers, or other persons as deemed necessary to perform the rcview. The Board may include the compensation of such persons in the Association's annual opcrating budget.

4.3. Guidelines and Procedures.

(a) Architectural, Guidelines. Declarant may prepare the initial Architectural Guidelines, which may contain gencral provisions applicable to all of Lantern Walk. The Architectural Guidelines are intended to provide guidance to Owners and Builders regarding BE 02595 matters of particular concern to the Reviewer in considering applications. The Architectural Guidelines are not the exclusive basis for decisions of the Reviewer and compliance with the Architectural Guidelines does not guarantec approval of any application.

Declarant shall have sole and full authority to amend the Architectural Guidelines as long PE DAAS as it owns any portion of or has a right to expand Lantern Walk pursuant to Section 9.l, notwithstanding a delegation of reviewing authority to the ARC, unless Declarant also delegates the power to amend to the ARC. Upon termination or delegation of Declarant's right to amend, the ARC shall have the authority to amend the Architcctural Guidelines with the Board's consent.

• Any amendments to the Architectural Guidelines shall be prospective only and shall not apply to require modifications to or removal of structures previously approved once the approved construction or modification has commenced. There shall be no limitation on the scope of amendments to the Architectural Guidelines, and such amendments may remove requirements previously imposed or otherwise make the Architectural Guidelines less restrictive.

The Reviewer shall make the Architectural Guidelines available to Owners and Builders who seek to engage in development or construction within Lantern Walk. In Declarant's discretion, such Architectural Guidelines may bc Recorded, in which event the Recorded version, as it may unilaterally be amended from time to time, shall control in the event of any dispute as to which version of the Architectural Guidelines was in effect at any particular time.

Procedures. Except as otherwise specifically provided in the Architectural Guidelines, no activities shall commence on any portion of Lanter Walk until an application for approval has been submitted to and approved by the Reviewer. Such application shall include plans and specifications showing site layout, structural design, exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of proposed construction, as applicable. The Architectural Guidelines and the Reviewer may require the submission of such additional information as may be reasonably necessary to consider any application.

In reviewing each submission, the Reviewer may consider any factors it deems relevant, including, without limitation, harmony of external design with surrounding structures and environment. Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that determinations as to such matters are purely subjective and opinions may vary as to the desirability and/or attractiveness of particular improvements. The Reviewer shall have the solc discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment and such determinations shall not be subject to review so long as made in good faith and in accordance with the procedures set forth herein.

The Reviewer shall make a determination on cach application within 30 days after receipt of a completed application and all required information. The Reviewer may (i) approve the application, with or without conditions; (ii) approve a portion of the application and disapprove other portions; or (iii) disapprove the application.

Until the expiration of Declarant's rights under this Article, the ARC shall notify BL 02595 Declarant in writing within three business days after the ARC has approved any application within the scope of matters delegated to the ARC by Declarant. The noticc shall be accompanied by a copy of the application and any additional information which Declarant may requirc. Declarant shall have 10 days after receipt of such notice to veto any such action, in its sole discretion, by written notice to the ARC. P; 0450

The Reviewer shall notify the applicant in writing of the final determination on any application within live days thereafter or, with respect to any determination by the ARC subject to Declarant's veto right, within five days after the earlier of: (i) receipt of notice of Declarant's

veto or waiver thereof; or (ii expiration of the 10-day period for exercise of Declarant's veto. In the case of disapproval, the Reviewer may, but shall not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any objections.

In the event that the Reviewer fails to respond in a timely manner, approval shall be deemed to have been given, subject to Declarant's right to veto pursuant to this Section. However, no approval, whether expressly granted or deemed granted, shall be inconsistent with the Architectural Guidelines unless a written variance has been granted pursuant to Section 4.5. Notice shall be deemed to have been given at the time the envelope containing the response is deposited with the U.S. Postal Service. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to have been given at the time of delivery to the applicant.

If construction does not commence on a project for which plans have been approved within one ycar after the date of approval, such approval shall be deemed withdrawn and it shall be necessary for the Owner to reapply for approval before commencing any activities. Once construction is commenced, it shall be diligently pursued to completion. All work shall be completed within one year of commencement unless otherwise specified in the notice of approval or unless the Reviewer grants an extension in writing, which it shall not be obligated to do, If approved work is not completed within the required time, it shall be considered nonconforming and shall be subject to enforcement action by the Association, Declarant or any aggrieved Owner.

The Reviewer may, by resolution, exempt certain activities from the application and approval requirements of this Article, provided such activities are undertaken in strict compliance with the requirements of such resolution.

4.4. No Waiver of Future Approvals.

Each Owner acknowledges that the persons reviewing applications under this Article will change from time to time and that opinions on aesthetic matters, as well as interpretation and application of the Architectural Guidelines, may vary accordingly. In addition, each Owner acknowledges that it may not always be possible to identify objectionable features until work is completed, in which case it may be unreasonable to require changes to the improvements involved, but the Reviewer may refusc to approve similar proposals in the future. Approval of applications or plans, or in connection with any other matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any similar applications, plans, or other matters subsequently or additionally submitted for approval. BE 02.595

4.5. Variances.

The Revicwer may authorize variances from compliance with any of its guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or acsthetic # 0451 or environmental considerations require, but only in accordance with duly adopted rules and regulations. No variance shall (a) be effective unless in writing; (b) be contrary to this Declaration; or (c) preclude the Reviewer from denying a variance in other circumstances. For purposes of this Scetion, the inability to obtain approval of any govermental agency, the

issuance of any permit, or the terns of any financing shall not be considered a hardship warranting a variance.

4.6. Limitation of Liability,

The standards and procedures established by this Article are intended as a mechanism for maintaining and enhancing the overall aesthetics of Lantern Walk; they do not creatc any duty to any Person. Review and approval of any application pursuant to this Article may be made on the basis of aesthetic considerations only, and the Reviewer shall not bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements, nor for ensuring that all dwellings are of comparable quality, value or size, of similar design, or aesthetically pleasing or otherwise acceptable to neighboring property owners.

Declarant, the Association, the Board, any committee, or member of any of the foregoing shall not be held liable for soil conditions, drainage or other general site work; any defects in plans revised or approved hereunder; any loss or damage arising out of the action, inaction, integrity, financial condition or quality of work of any contractor or its subcontractors, employces or agents, whether or not Declarant has approved or featured such contractor as a builder in Lantern Walk; or any injury, damages, or loss arising out of the manner or quality or other circumstances of approved construction on or modifications to any Unit. In all matters, the Board, the ARC, and the members of each shall be defended and indemnified by the Association as provided in Section 7.6.

4.7. Certificate of Compliance.

Any Owner may request that the Reviewer issue a certificate of architectural compliance certifying that there are no known violations of this Article or the Architectural Guidelines. The Association shall either grant or deny such request within 30 days after receipt of a written request and may charge a reasonable administrative fee for issuing such certificates. Issuance of such a certificate shall preclude the Association from taking enforcement action with respect to any condition as to which the Association had notice as of the date of such certificate.

Article V Maintenance and Repair

= 5.1. Maintenance of Units. B₺ 02595 Each Owner shall maintain his or her Unit and all landscaping and improvements comprising the Unit in a manner consistent with the Governing Documents, the CommunityWide Standard and all applicable covenants, unless such maintenance responsibility is otherwise assumed by or assigned to the Association pursuant to any Supplemental Declaration or other P 0452 declaration of covenants applicable to such Unit.

5.2. Responsibility for Repair and Replacement.

Unless otherwise specifically provided in the Governing Documents or in other instruments creating and assigning maintenance responsibility, responsibility for maintenance shall include responsibility for repair and replacement, as necessary to maintain the property to a level consistent with the Community-Wide Standard

By virtue of taking title to a Unit, each Owner covenants and agrees with all other Owners and with the Association to carry property insurance for the full replacement cost of all insurable improvements on his or her Unit, less a reasonable deductible, unless the Association carries such insurance (which they may, but are not obligated to do hereunder). If the Association assumes responsibility for obtaining any insurance coverage on behalf of Owners, the premiums for such insurance shall be levied as a Specific Assessment against the benefited Unit and the Owner,

Each Owner further covenants and agrees that in the event of damage to or destruction of structures on or comprising his or her Unit, the Owner shall proceed promptly to repair or to reconstruct in a manner consistent with the original construction or such other plans and specifications as are approved in accordance with Article IV. Alternatively, the Owner shall clear the Unit and maintain it in a neat and attractive, landscaped condition consistent with the Community-Wide Standard. The Owner shall pay any costs not covered by insurance proceeds.

PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION

Article VI The Association and its Members

6.1. Function of Association.

The Association is the entity responsible for management, maintenance, operation and control of the Area of Common Responsibility. The Association also is the primary entity responsible for enforcement of the Governing Documents. The Association shall perform its functions in accordance with the Govering Documents and Georgia law.

6.2. Membership. B₺ 02595 Every Owner shall be a Member of the Association. There shall be only one membership per Unit. If a Unit is owned by more than one Person, all co-Owners shall share the privileges of such membership, subject to reasonable Board regulation and the restrictions on voting set forth in the By-Laws, and all such co-Owners shall be jointly and sevcrally obligated to perform the ₽¿ U453 responsibilities of Owners. The membership rights of an Owner which is not a natural person may be excrcised by any officer, director, partner or trustee, or by the individual designated from time to time by the Owner in a written instrument provided to the Association's Secretary.

6.3. Voting.

The Association shall have two classes of membership, Class "A" and Class "B".

Class "A". Class "A" Members shall be all Owners except the Class "B" Member, if any. Class "A" Members shall have one equal vote for each Unit in which they hold the interest required for membership under Section 6.2, except that there shall be only one vote per Unit. No vote shall be exercised for any property which is exempt from assessment under Section 8.8. In any situation where there is more than one Owner of a Unit, the vote for such Unit shall be exercised as the co-Owners determine among themselves and advise the Secretary of the Association in writing prior to the vote being taken. Absent such advice, the Units' vote shall be suspended if more than one Person seeks to excrcise it.

(b)

Member may appoint a majority of the Board members during the Class "B" Control Period, as specified in the By-Laws. Additional rights of the Class "B" Member are specified in the relevant sections of the Governing Documents. After termination of the Class "B" Control Period, the Class "B" Member shall have a right to disapprove actions of the Board and committees as provided in the By-Laws.

The Class "B" membership shall terminate upon the earlier of:

() two years after expiration of the Class "B" Control Period as provided in Article I; or

when, in its discretion, Declarant so determines and declares in a Recorded instrument.

Upon termination of the Class "B" membership, Declarant shall be a Class "A" Member entitled to Class "A" votes for each Unit which it owns.

In recognition of the different character and intended use of the property subject to such Supplemental Declaration, Declarant may, by Supplemental Declaration, create additional classes of membership for the owners of Units within any property made subject to this Declaration pursuant to Article IX. These classes shall have such rights, privileges, and obligations as specified in such Supplemental Declaration.

Article VII Association Powers and Responsibilities RE 02595

7.1. Acceptance and Control of Association Property.

The Association, through action of its Board, may acquire, hold, lease (as lessor or ₽¿ 0454 lessee), operate and dispose of tangible and intangible personal property and real property. The Association may enter into leases, licenses, or operating agreements for portions of the Common Arca, for such consideration or no consideration as the Board deems appropriate, to pernit usc of such portions of the Common Area by community organizations and by others, whether nonprofit

or for profit, for the provision of goods or services for the general benefit or convenience of owners, occupants and residents of Lanter Walk.

(b) Declarant and its designees may convey to the Association, and the Association shall accept, personal property and fee title, leasehold, or other property interests in any real property, improved or unimproved, described in Exhibit "A" or "B." Upon Declarant's written request, the Association shall reconvey to Declarant any unimproved portions of the Common Area which Declarant originally conveyed to the Association for no consideration, to the extent conveyed by Declarant in error or needed by Declarant to make minor adjustments in property lines.

The Association shall be responsible for management, operation, and control of the Common Area, subject to any covenants and restrictions set forth in the deed or other instrument transferring such property to the Association. The Board may adopt such reasonable rules regulating use of the Common Area as it deems appropriate.

7.2. Maintenance of Area of Common Responsibility.

The Association shall maintain, in accordance with the Community-Wide Standard, the Area of Common Responsibility, which shall include, but need not be limited to:

(a) all portions of and structures situated on the Common Area;

landscaping within public rights-of-way within or abutting Lantern Walk;

such portions of any additional property included within the Area of Common Responsibility as may be dictated by this Declaration, any Supplemental Declaration, or any contract or agreement for maintenance thereof entered into by the Association;

all ponds, streams, and/or wetlands located within Lantern Walk which serve as part of the stormwater drainage system for Lantern Walk, including improvements and equipment installed therein or used in connection therewith;

all perimeter fencing located on or adjacent to the boundary of Lantern Walk, as initially installed by Declarant; and

B₺ 02595 any property and facilities which Declarant owns and makes available, on a temporary or permanent basis, for the primary use and enjoyment of the Association and its Members. Such property and facilities shall be identified by written notice from Declarant to the Association and will remain part of the Area of Common Responsibility maintained by the P; 0455 Association until such time as Declarant revokes such privilege of use and enjoyment by written notice to the Association.

The Association may maintain other property which it docs not own, including, without limitation, property dedicated to the public, if the Board determines that such maintenance is necessary or desirable to maintain the Community-Wide Standard

The Association shall not be liable for any damage or injury occurring on or arising out of the condition of property which it does not own except to the extent that it has been negligent in the performance of its maintenance responsibilities.

The Association shall maintain the facilities and equipment within the Area of Common Responsibility in continuous operation, except for any periods necessary, as determined in the Board's sole discretion, to perform required maintenance or repairs, unless 75% of the Class "A" votes in the Association and the Class "B" Member, if any, agree in writing to discontinue such operation.

Except as provided above, the Area of Common Responsibility shall not be reduced except with Declarant's prior written approval as long as Declarant owns any property described in Exhibit "A' or "B" of this Declaration.

The costs associated with maintenance, repair and replacement of the Area of Common Responsibility shall be a Common Expense; provided, the Association may seek reimbursement from the owner(s) of, or other Persons responsible for, certain portions of the Area of Common Responsibility pursuant to this Declaration, other Recorded covenants, or agreements with the owner(s) thercof.

7.3. Insurance.

Required Coverages. The Association, acting through its Board or its duly authorized agent, shall obtain and continue in effect the following types of insurance, if reasonably available, or if not reasonably available, the most nearly equivalent coverages as are reasonably available:

Blanket property insurance covering "risks of direct physical loss" on a "special form' basis (or comparable coverage by whatever name denominated) for all insurable improvements on the Common Area and within the Area of Common Responsibility to the extent that Association has assumed responsibility in the event of a casualty, regardless of ownership. If such coverage is not generally available at reasonable cost, then "broad form" coverage may be substituted. All property insurance policies obtained by the Association shall have policy limits sufficient to cover the full replacement cost of the insured improvements under current building ordinances and codes;

Commercial general fiabilay insurance on the Area at Common t Responsibility, insuring the Association and its Members for damage or injury caused by the negligence of the Association or any of its Members, employees, agents, or contractors while, acting on its behalf. If gencrally available at reasonable cost, such coverage (including primary and any umbrella coverage) shall have a limit of at least $1,000,000.00 per occurrence withE respect to bodily injury, personal injury, and property damage; provided, should additional covcrage and higher limits be available at reasonable cost which a reasonably prudent person would obtain, the Association shall obtain such additional coverages or limits;

(¡i) Workers compensation insurance and employers liability insurance, if and to the extent required by law;

(iv) Directors and officers liability coverage;

(V) Commercial crime insurance, including fidelity insurance covering all Persons responsible for handling Association funds in an amount determined in the Board's business judgment but not less than an amount equal to one-quarter of the annual Base Assessments on all Units plus reserves on hand. Fidelity insurance policies shall contain a waiver of all defenses based upon the exclusion of Persons serving without compensation; and

(vi) Such additional insurance as the Board, in the exercise of its business judgment, determines advisable.

Any such policies shall provide for a certificate of insurance to be furnished upon request to the Owner of each Unit insured.

Premiums for all insurance on the Area of Common Responsibility shall be Common Expenses, unless the Board reasonably determines that other treatment of the premiums is more appropriate.

Policy Requirements. The Association shall arrange for an annual review of the sufficiency of its insurance coverage by one or more qualified Persons, at least one of whom must be familiar with insurable replacement costs in the metropolitan Atlanta area. All Association policies shall provide for a certificate of insurance to be furnished to the Association and, upon request, to each Member insured.

The policies may contain a reasonable deductible and the amount thereof shall not be subtracted from the facc amount of the policy in determining whether the policy limits satisfy the requirements of Section 7.3(a). In the event of an insured loss, the deductible shall be treated as a Common Expense in the same manner as the premiums for the applicable insurance coverage. However, if the Board reasonably determines, after notice and an opportunity to be heard in accordance with the By-Laws, that the loss is the result of the negligence or willful misconduct of one or more Owners, their guests, invitees, or lessees, then the Board may assess the full amount of such deductible against such Owner(s) and their Units as a Specific Assessment.

B₺ 02595 All insurance coverage obtained by the Board shall:

be written with a company authorized to do busincss in Georgia which satisfies the requirements of the Federal National Mortgage Association, or such other secondary PE 1457 mortgage market agencics or federal agencies as the Board deems appropriate;

be written in the name of the Association as trustee for the benefitted parties. Policies on the Common Areas shall be for the benetit of the Association and its Members;

(111) not be brought into contribution with insurance purchased by Owners, occupants, or their Mortgagees individually;

(iV) contain an inflation guard endorsement;

(v) include an agreed amount endorsement, if the policy contains a coinsurance clause;

(vi) provide that each Owner is an insured person under the policy with respect to liability arising out of such Owner's interest in the Common Area as a Member in the Association (provided, this provision shall not be construed as giving an Owner any interest in the Common Area other than that of a Member);

(vii) provide a waiver of subrogation under the policy against any Owner or household member of an Owner;

(viii) include an endorsement precluding cancellation, invalidation, suspension, or non-renewal by the insurer on account of any one or more individual Owners, or on account of any curable defect or violation without prior written demand to the Association to cure the defect or violation and allowance of a reasonable time to cure; and

(ix) include an endorsement precluding cancellation, invalidation, or condition to recovery under the policy on account of any act or omission of any one or more individual Owners, unless such Owner is acting within the scope of its authority on behalf of the Association.

In addition, the Board shall use reasonable efforts to secure insurance policies which list the Owners as additional insureds and provide:

a waiver of subrogation as to any claims against the Association's Board, officers, employees, and its manager, the Owners and their tenants, servants, agents, and guests;

a waiver of the insurer's rights to repair and reconstruct instead of paying cash;

E₺ 02595 (iii) an endorsement excluding Owners' individual policies from consideration under any "other insurance" clause;

(IV) an endorsement requiring at least 30 days' prior written notice to the Association of any cancellation, substantial modification, or non-renewal; ₽g 045·

(V) a cross liability provision; and

(vi) a provision vesting in the Board exclusive authority to adjust losses; provided, however, no Mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related to the loss.

(c) Restoring Damaged Improvements. In the event of damage to or destruction of Common Area or other property which the Association is obligated to insure, the Board or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of repairing or restoring the property to substantially the condition in which it existed prior to the damage, allowing for changes or improvements necessitated by changes in applicable building codes.

Damaged improvements on the Common Area shall be repaired or reconstructed unless at least 75% of the total Class "A" votes in the Association, and the Class "B' Member, if any, decide within 60 days after the loss not to repair or reconstruct. If either the insurance proceeds or estimates of the loss, or both, are not available to the Association within such 60-day period, then the period shall be extended until such funds or information are available. However, such extension shall not exceed 60 additional days. No Mortgagee shall have the right to participate in the determination of whether the damage or destruction to the Common Arca shall be repaired or reconstructed,

If a decision is made not to restore the damaged improvements, and no alternative improvements are authorized, the affected property shall be cleared of all debris and ruins and thereafter shall be maintained by the Association in a neat and attractive, landscaped condition consistent with the Community-Wide Standard.

Any insurance proceeds remaining after paying the costs of repair or reconstruction, or after such settlement as is necessary and appropriate, shall be retained by the Association for the benefit of its Members and placed in a capital improvements account. This is a covenant for the benefit of Mortgagees and may be enforced by the Mortgagee of any affected Unit.

If insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Board may, without a vote of the Members, levy Special Assessments to cover the shortfall against those Owners responsible for the premiums for the applicable insurance coverage under Section 7.3(a).

7.4. Compliance and Enforcement. BE 02595

Every Owner and occupant of a Unit shall comply with the Governing Documents. The Board may impose sanctions for violation of the Governing Documents after notice and a hearing in accordance with the procedurcs set forth in the By-Laws. Such sanctions ₽¿ Q459 may include, without limitation:

imposing reasonable monetary fines which shall constitute a lien upon the violator's Unit. (In the event that any occupant, guest or invitce of a Unit violates the Governing Documents and a fine is imposed, the fine shall first be assessed against the violator; provided,

however, if the fine is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon notice from the Board);

suspending an Owner's right to vote;

(iii) suspending any Person's right to use any recreational facilities within the Common Area; provided, however, nothing herein shall authorize the Board to limit ingress or egress to or from a Unit;

(iv) suspending any services provided by the Association to an Owner or the Owner's Unit if the Owner is more than 30 days delinquent in paying any assessment or other charge owed to the Association;

(v) exercising self-help or taking action to abate any violation of the Governing Documents in a non-emergency sitation;

(vi) requiring an Owner, at its own expense, to remove any structure or improvement on such Owner's Unit in violation of the Governing Documents and to restore the Unit to its previous condition and, upon failure of the Owner to do so, the Board or its designee shall have the right to enter the property, remove the violation and restore the property to substantially the same condition as previously existed and any such action shall not be deemed a trespẺSs,

(vii) without liability to any Person, precluding any contractor, subcontractor, agent, employee or other invitee of an Owner who fails to comply with the terms and provisions of Article IV and the Architectural Guidelines from continuing or performing any further activities in Lanter Walk; and

(viii) levying Specific Assessments to cover costs incurred by the Association to bring a Unit into compliance with the Governing Documents.

In addition, the Board may takc the following enforcement procedures to ensure compliance with the Goveming Documents without the necessity of compliance with the procedures set forth in the By-Laws:

exercising self-help in any emergency situation (specifically including, but BE 02595 not limited to, the towing of vehicles that are in violation of parking rules and regulations); or

bringing suit at law or in equity to enjoin any violation or to recover monetary damages or both. Đ460

In addition to any other enforcement rights, if an Owner fails properly to perform his or her maintenance responsibility, the Association may Record a notice of violation or perform such maintenance responsibilities and assess all costs incurred by the Association against the Unit and the Owner as a Specific Assessment. Except in an emcrgency situation, the Association shall

provide the Owner reasonable notice and an opportunity to cure the problem prior to taking such enforcement action.

All remedies set forth in the Governing Documents shall be cumulative of any remedies available at law or in equity. In any action to enforce the Governing Documents, if the Association prevails, it shall be entitled to recover all costs, including, without limitation, attorney's fees and court costs, reasonably incurred in such action.

(b) The decision to pursue enforcement action in any particular case shall be left to the Board's discretion, except that the Board shall not be arbitrary or capricious in taking enforcement action. Without limiting the generality of the foregoing sentence, the Board may determine that, under the circumstances of a particular case:

(i) the Association's position is not strong enough to justify taking any or further action; or

the covenant, restriction or rule being enforced is, or is likely to be construed as, inconsistent with applicable law;

(iii) although a technical violation may exist or may have occurred, it is not of such a material nature as to be objectionable to a reasonable person or to justify expending the Association's resources; or

(iv) that it is not in the Association's best interests, based upon hardship, expense, or other reasonable criteria, to pursue enforcement action.

Such a decision shall not be construed a waiver of the right of the Association to enforce such provision at a later time under other circumstances or preclude the Association from enforcing any other covenant, restriction or rule.

The Association, by contract or other agreement, may enforce applicable county ordinances and permit Athens-Clarke County to enforce ordinances within Lantern Walk for the benefit of the Association and its Members.

7.5. Implied Rights; Board Authority.

The Association may exercise any right or privilege given to it expressly by the BL: 02595 Govering Documents, or reasonably implied from or reasonably necessary to effectuate any such right or privilege. All rights and powers of the Association may be excrcised by the Board without a vote of the membership except wherc applicable law or the Governing Documents specifically require a vote of the membership. PE 0461

The Board may institute, defend, settle, or intervene on behalf of the Association in mediation, binding or non-binding arbitration, litigation, or administrative procecdings in matters pertaining to the Area of Common Responsibility, enforcement of the Governing Documents, or any other civil claim or action. However, the Goveming Documents shall not be construed as

creating any independent legal duty to institute litigation on behalf of or in the name of the Association or its Members.

In exercising the rights and powers of the Association, making decisions on behalf of the Association, and conducting the Association's affairs, Board members shall be subject to, and their actions shall be judged in accordance with, the standards set forth in the By-Laws.

7.6. Indemnification of Officers, Directors and Others.

Subject to Georgia law, the Association shall indemnify every officer, director, and committee member against all damages and expenses, including counsel fees, reasonably incurred in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of being or having been an officer, director, or committee member, except that such obligation to indemnify shall be limited to those actions for which liability is limited under this Section and Georgia law.

The officers, directors, and committee members shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made or action taken in good faith on behalf of the Association (except to the extent that such officers or directors may also be Members of the Association).

The Association shall indemnify and forever hold cach such officer, director and committee member harmless from any and all liability to others on account of any such contract, commitment or action. This right to indemnification shall not be exclusive of any other rights to which any present or former officer, director, or committee member may be entitled.

Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably available.

7.7. Safety and Security.

Each Owner and occupant of a Unit, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their property in Lantern Walk. The Association may, but shall not be obligated to, maintain or support certain BL 02505 activities within Lantern Walk designed to enhance the level of safety or security which each person provides for himself or herself and his or her property. Neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within Lantern Walk, nor shall either be held liable for any loss or damage by reason of failure to provide adequate sccurity or incffectiveness of security measures PE. 0462 undertaken.

No representation or warranty is made that any systems or measures cannot be compromised or circumvented, nor that any such systems or security measures undertaken will ia all cases prevent loss or provide the detection or protection for which the system is

designed or intended. Each Owner acknowledges, understands and shall be responsible for informing its tenants and all occupants of its Unit that the Association, its Board and committees, and Declarant are not insurers or guarantors of security or safety and that each Person within Lantern Walk assumes all risks of personal injury and loss or damage to property, including Units and the contents of Units, resulting from acts of third parties.

7.8. Provision of Services.

The Association may provide, or provide for, services and facilities for the Members and their Units, and shall be authorized to enter into and terminate contracts or agreements with other entities, including Declarant, to provide such services and facilitics. The Board may charge use or service fees for any such services and facilities provided at the option of an Owner, or may include the costs thereof in the Association's budget as a Common Expense and assess it as part of the Base Assessment if provided to all Units. By way of example, such services and facilities might include landscape maintenance, garbage disposal, cable television service, security, utilities, and similar services and facilitics.

Nothing in this Section shall be construed as a representation by Declarant or the Association as to what, if any, services shall be provided. In addition, the Board shall be permitted to modify or cancel existing contracts for services in its discretion, unless the provision of such services is otherwise required by the Governing Documents. Non-use of services provided to all Owners or Units as a Common Expense shall not exempt any Owner from the obligation to pay assessments for such services.

7.9. Relationships with Other Properties.

The Association may enter into contractual agreements or covenants to share costs with any neighboring property to contribute funds for, among other things, shared or mutually beneficial property or services and/or a higher level of Common Area maintenance.

7.10. Facilities and Services Open to the Public.

Certain facilities and areas within Lantern Walk may be open for use and enjoyment of the public. Such facilities and areas may include, by way of example: greenbelts, trails and paths, parks, and other neighborhood spots conducive to gathering and interaction, roads, sidewalks, and medians. Declarant may designate such facilities and areas as open to the public B₺ 02595 at the time Declarant makes such facilities and areas a part of the Area of Common Responsibility or the Board may so designate at any time thereafter.

Article VIII Association Finances

8.1. Budgeting and Allocating Common Expenses. Pg Đ40З At least 60 days botore the beginning of cach fiscal year, the Board shall prepare a budget of the estimated Common Expenses for the coming year, including any contributions to be made to a reserve fund pursuant to Section 8.2. The budget shall also reflect the sources and estimated

amounts of funds to cover such expenses, which may include any surplus to be applied from prior years, any income expected from sources other than assessments levied against the Units, and the amount to be generated through the levy of Base Assessments and Special Assessments against the Units, as authorized in Section 8.5.

The Association is authorized to levy Base Assessments equally against all Units subject to assessment under Section 8.5 to fund the Common Expenses. In determining the Base Asscssment rate per Unit, the Board may consider any assessment income expected to be generated from any additional Units reasonably anticipated to become subject to assessment during the fiscal year.

Declarant may, but shall not be obligated to, reduce the Base Assessment for any fiscal year by payment of a subsidy (in addition to any amounts paid by Declarant under Section

such subsidy shall be disclosed as a line item in the income portion of the budget. Payment of such subsidy

future years, unless otherwise provided in a written agreement between the Association and Declarant.

The Board shall send a copy of the final budget, together with notice of the amount of the Base Assessment to be levied pursuant to such budget, to each Owner at least 30 days prior to the effective date of such budget. The budget shall automatically become effective unless ender. The bud, disapproved at a meeting by Members representing at least 75% of the total Class "A" votes in the Association and by the Class "B" Member, if such exists. There shall be no obligation to call a meeting for the purpose of considering the budget except on petition of the Members as provided for special meetings of the By-Laws. Any such petition must be presented to the Board within 10 days after delivery of the budget and notice of any assessment.

If any proposed budget is disapproved or the Board fails for any reason to determine the budget for any year, then the budget most recently in effect shall continuc in effect until a new budget is determined.

The Board may revise the budget and adjust the Base Assessment from time to time during the year, subject to the noticc requirements and the right of the Members to disapprove the revised budget as set forth above.

BE 02595 8.2. Budgeting for Reserves.

The Board shall prepare and review at least annually a reserve budget for the Area of Common Responsibility. The budgets shall take into account the number and naturc of replaceable assets, the expected life of each assct, and the expected repair or replacement cost. ₽¿ 0464 The Board shall include in the Common Expense budget adopted pursuant to Section 8.1 a capital contribution to fund rescrves in an amount sufficient to meet the projected need with respect to both amount and timing by annual contributions over the budget period.

8.3. Special Assessments.

In addition to other authorized assessments, the Association may levy Special Assessments to cover unbudgeted expenses or expenses in excess of those budgeted. Any such Special Assessment may be levied against the entire membership, if such Special Assessment is for Common Expenses. Except as otherwise specifically provided in this Declaration, any Special Assessment shall require the affirmative vote or written consent of Members representing more than 50% of the total votes allocated to Units which will be subject to such Special Assessment, and the affirmative vote or written consent of the Class "B" Member, if such exists. Special Assessments shall be payable in such manner and at such times as determined by the Board, and may be payable in installments extending beyond the fiscal year in which the Special Assessment is approved.

8.4. Specific Assessments.

The Association shall have the power to levy Specific Assessments against a particular Unit as follows:

to cover the costs, including overhead and administrative costs, of providing services to Units upon request of an Owner pursuant to any menu of special services which may be offered by the Association (which might include the items identified in Section 7.9). Specific Assessments for special services may be levied in advance of the provision of the requested service; aad

to cover costs incurred in bringing the Unit into compliance with the Governing Documents, or costs incurred as a conscquence of the conduct of the Owner or occupants of the Unit, their agents, contractors, employees, licensees, invitees, or guests; provided, the Board shall give the Unit Owner prior written notice and an opportunity for a hearing, in accordance with the By-Laws, before levying any Specific Assessment under this subsection.

8.5. Authority to Assess Owners: Time of Payment.

Declarant hereby establishes and the Association is hereby authorized to levy assessments as provided for in this Article and elsewhere in the Governing Documents. The obligation to pay assessments shall commence as to each Unit on the first day of the month following: (a) the month in which the Unit is made subject to this Declaration, or (b) the month in which the Board first determines a budget and levies assessments pursuant to this Article, whichever is later. The B₺ U2595 first annual Base Assessment levied on cach Unit shall be adjusted according to the number of months remaining in the fiscal year at the time assessments commence on the Unit.

Assessments shall be paid in such manner and on such dates as the Board may establish. ₽g 0465 The Board may require advance payment of assessments at closing of the transfer of title to a Unit and impose special requirements for Owners with a history of delinquent payment, If the Board so elects, assessments may be paid in two or more installments. Unless the Board otherwise provides, the Base Assessment shall be due and payable in advance on the first day of each fiscal year. If any Owner is delinquent in paying any asscssments or other charges levied on

his or her Unit, the Board may require the outstanding balance on all assessments to be paid in full immediately.

8.6. Obligation for Assessments.

(a) Personal Obligation. Each Owner, by accepting a deed or entering into a Recorded contract of sale for any portion of Lantem Walk, is deemed to covenant and agree to pay all assessments authorized in the Governing Documents. All assessments, together with interest (computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish, subject to the limitations of Georgia law), late charges as determined by Board resolution, costs, and reasonable attorney's fees, shall be the personal obligation of each Owner and a lien upon each Unit until paid in full. Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance.

Failure of the Board to fix assessment amounts or rates or to deliver or mail to each

Owner an assessment notice shall not be deemed a waiver, modification, or a release of any

Owner from the obligation to pay assessments. In such event, each Owner shall continue to pay

Base Assessments on the same basis as during the last year for which an assessment was made, if any, until a new assessment is levied, at which time the Association may retroactively assess any

shortfalls in collections.

No Owner may exempt himself or herself from liability for assessments by non-use of Common Area, abandonment of his or her Unit, or any other means. The obligation to pay

assessments is a separate and independent covenant on the part of each Owner. No diminution or

abatement of assessments or set-off shall be claimed or allowed for any alleged failure of the

Association or Board to take some action or perform some function required of it, or for

inconvenience or discomfort arising from the making of repairs or improvements, or from any

other action it takes.

Upon written request, the Association shall furnish to any Owner liable for any type of assessment a certificate in writing signed by an Association officer setting forth whether such assessment has been paid. Such certificate shall be conclusive evidence of payment. The

Association may require the advance payment of a reasonable processing fee for the issuance of such certificate.

Declarant's Option to Fund Budget Deficits. During the Class "B" Control Period,

Declarant may satisfy its obligation for assessments on Units which it owns either by paying such

asscssments in the same manner as any other Owner or by paying the diffcrence between the BE 2595 amount of assessments levied on all other Units subject to assessment and the amount of actual

expenditurcs by the Association during the fiscal ycar. Unless Declarant otherwise notifies the

Board in writing at least 60 days before the beginning of cach fiscal year, Declarant shall be

deemed to have elected to continue paying on the same basis as during the immediately

preceding fiscal year.

Regardless of Declarant's election, Declarant's obligations hereunder may be satisfied in

the form of cash or by "in kind' contributions of services or materials, or by a combination of

these. After termination of the Class "B" Control Period, Declarant shall pay assessments on its unsold Units in the same manner as any other Owner.

8.7. Lien for Assessments.

The Association shall have a lien against each Unit to secure payment of delinquent assessments, as well as interest, late charges (subject to the limitations of Georgia law), and costs of collection (including attorney's fees). Such lien shall be superior to all other liens, except (a) the liens of all taxes, bonds, assessments, and other levies which by law would be superior, and (b) the lien or charge of any Recorded first Mortgage (meaning any Recorded Mortgage with first priority over other Mortgages) made in good faith and for value. Such lien, when delinquent, may be enforced by suit, judgment, and judicial or nonjudicial foreclosure.

The Association may bid for the Unit at the foreclosure sale and acquire, hold, lease, mortgage, and convey the Unit. While Unit is owned by the Association following foreclosure: (a) no right to vote shall be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Unit shall be charged, in addition to its usual assessment, its pro rata share of the assessment that would have been charged such Unit had it not been acquired by the Association. The Association may sue for unpaid assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the same.

Sale or transfer of any Unit shall not affect the assessment lien or relieve such Unit from the lien for any subsequent assessments. However, the sale or transfer of any Unit pursuant to foreclosure of the first Mortgage shall extinguish the lien as to any installments of such assessments due prior to the Mortgagee's foreclosure. The subsequent Owner to the foreclosed Unit shall not be personally liable for assessments on such Unit due prior to such acquisition of title. Such unpaid assessments shall be deemed to be Common Expenses collectible from Owners of all Units subject to assessment under Section 8.6, including such acquirer, its successors and assigns.

8.8. Exempt Property.

The following property shall be exempt from payment of Base Assessments, Special Assessments, and Specific Assessments:

(a) All Common Area and such portions of the property owned by Declarant as are included in the Area of Common Responsibility; and

(b) Any property dedicated to and accepted by any governmental authority or public utility.

8.9. Capitalization of Association.

Upon acquisition of record title to a Unit by the first Owner thereof other than Declarant or a Builder, a contribution shall be made by or on behalf of the purchaser to the working capital

of the Association in an amount equal to $250.00. This amount shall be in addition to, not in lieu of, the annual Base Assessment and shall not be considered an advance payment of such assessment. This amount shall be deposited into the purchase and sales escrow and disbursed therefrom to the Association for use in covering operating expenses and other expenses incurred by the Association pursuant to this Declaration and the By-Laws.

PART FOUR: COMMUNITY DEVELOPMENT

Article IX Expansion of the Community

9.1. Expansion by Declarant.

Declarant may from time to time subject to the provisions of this Declaration all or any portion of the property described in Exhibit "B" by Recording a Supplemental Declaration describing the additional property to be subjected. A Supplemental Declaration Recorded pursuant to this Section shall not require the consent of any Person except the owner of such property, if other than Declarant.

Declarant's right to expand Lantern Walk pursuant to this Section shall expire when all property described in Exhibit "B" has been subjected to this Declaration or 20 years after this Declaration is Recorded, whichever is earlier. Until then, Declarant may transfer or assign this right to any Person who is the developer of at least a portion of the real property described in Exhibit "A" or "B." Any such transfer shall be memorialized in a written, Recorded instrument executed by Declarant.

Nothing in this Declaration shall be construed to require Declarant or any successor to subject additional property to this Declaration or to develop any of the property described in ExhibitB" in any manner whatsoever.

9.2. Expansion by the Association

The Association may also subject additional property to the provisions of this Declaration by Recording a Supplemental Declaration describing the additional property. Any such Supplemental Declaration shall require the affirmative vote of more than 50% of the Class "A" votes of the Association represented at a meeting duly called for such purpose and the consent of the owner of the property. In addition, so long as Declarant owns property subject to this Bk 02595 Declaration or which may become subject to this Declaration in accordance with Scction 9.1, Declarant's consent shall be necessary. The Supplemental Declaration shall be signed by the Association's President and Secretary, by the owner of the property, and by Declarant, if Declarant's consent is necessary.

PE 0468 9.3. Additional Covenants and Basements.

Declarant may subject any portion of Lantern Walk to additional covenants and easements, including covenants obligating the Association to maintain and insure such property

and authorizing the Association to recover its costs. Such additional covenants and easements may be set forth either in a Supplemental Declaration subjecting such property to this Declaration or in a separate Supplemental Declaration referencing property previously subjected to this Declaration. If the property is owned by someone other than Declarant, then the consent of the Owners) shall be necessary and shall be evidenced by their execution of the Supplemental Declaration. Any such Supplemental Declaration may supplement, create exceptions to, or otherwise modify the terms of this Declaration as it applies to the subject property in order to reflect the different character and intended use of such property.

9.4. Effect of Filing Supplemental Declaration.

A Supplemental Declaration shall be effective upon Recording unless otherwise specified in such Supplemental Declaration. On the effective date of the Supplemental Declaration, any additional property subjected to this Declaration shall be assigned voting rights in the Association and assessment liability in accordance with the provisions of this Declaration. Article X Additional Rights Reserved to Declarant

10.1. Withdrawal of Property.

Declarant reserves the right to amend this Declaration, so long as it has a right to annex additional property pursuant to Section 9.1, for the purpose of removing any portion of Lantern Walk which has not yet been improved with structures from the coverage of this Declaration, provided such withdrawal does not reduce the total number of Units then subject to the Declaration by more than 10 percent. Such amendment shall not require the consent of any Person other than the Owners) of the property to be withdrawn, if not the Declarant. If the property is Common Area, the Association shall consent to such withdrawal.

10.2. Marketing and Sales Activities

Declarant and Builders authorized by Declarant may construct and maintain upon portions of the Common Area such facilities and activities as, in Declarant's sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of Units, including, but not limited to, business offices, signs, model units, and sales offices. Declarant and authorized Builders shall have easements for access to and usc of such facilities at no charge.

10.3. Right to Develop.

Declarant and its employces, agents, and designees shall have a right of access and use and an casement over and upon all of the Common Area for the purpose of making, constructing and installing such improvements to the Common Area as it deems appropriate in its sole discretion.

10.4. Right to Approve Additional Covenants.

No Person shall Record any declaration of covenants, conditions and restrictions, or declaration of condominium or similar instrument affecting any portion of Lanter Walk without

Declarant's review and written consent. Any attempted Recordation without such consent shall

result in such instrument being void and of no force and effect unless subsequently approved by

written consent signed and Recorded by Declarant.

10.5. Right to Approve Changes in Lantern Walk Standards.

No amendment to or modification of any Restrictions and Rules or Architectural

Guidelines shall be effective without prior notice to and the written approval of Declarant so

long as Declarant owns property subject to this Declaration or which may become subject to

this Declaration in accordance with Section 9.1.

10.6. Right to Transfer or Assign Declarant Rights.

Any or all of Declarant's special rights and obligations set forth in this Declaration or

the By-Laws may be transferred in whole or in part to other Persons; provided, the transfer

shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this

Declaration or the By-Laws. No such transfer or assignment shall be effective unless it is in a

written instrument Declarant signs and Records. The foregoing sentence shall not preclude

Declarant from permitting other Persons to exercise, on a one time or limited basis, any right

reserved to Declarant in this Declaration where Declarant does not intend to transfer such

right in its entirety, and in such case it shall not be neccssary to Record any written

assignment unless necessary to evidence Declarant's consent to such exercise.

10.7. Exclusive Rights To Use Name of Development.

No Person shall use the name "Lantern Walk" or any derivative of such name or in logo

or depiction in any printed or promotional material without Declarant's prior written consent.

However, Owners may use the name "Lantern Walk" in printed or promotional matter where

such term is used solely to specify that particular property is located within Lantern Walk and the

Association shall be entitled to use the words "Lantern Walk" in its name.

10.8. Right to Notice of Design or Construction Claims.

No Person shall retain an expert for the purpose of inspecting the design or construction

of any structures or improvements within Lantem Walk in connection with or in anticipation of

any potential or pending claim, demand or litigation involving such design or construction unless

Declarant and any builder involved in the design or construction have been first notified in

writing and given an opportunity to meet with the owner of the property to discuss the owner's

concerns and conduct their own inspection pursuant to the right rescrved in Section 11.7. BE 02595

10.10. Termination of Rights.

The rights contained in this Article shall not terminate until the earlier of (a) 40 years

from the date this Declaration is Recorded, or (b) Recording by Declarant of a written statement 2 9470 that all sales activity has ceased.

PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY

Article XI Lasements

11.1. Easements in Common Area.

Declarant grants to each Owner a nonexclusive right and easement of use, access, and

enjoyment in and to the Common Area, subject to:

(a) The Governing Documents and any other applicable covenants;

(b) Any restrictions or limitations contained in any deed conveying such property to the Association;

(c) The Board's right to:

adopt rules regulating use and enjoyment of the Common Area, including rules limiting the number of guests who may use the Common Area;

suspend an Owner's right to use recreational facilities within the Common Area (A) for any period during which any charge against such Owner's Unit remains delinquent, and (B) for a period not to exceed 30 days for a single violation or for a longer period in the case of any continuing violation, of the Governing Documents after notice and a hearing pursuant to the By-Laws;

(iii) dedicate or transfer all or any part of the Common Area, subject to such approval requirements as may be set forth in this Declaration;

(iv) impose reasonable membership requirements and charge reasonable admission or other use fees for the use of any recreational facility situated upon the Common Area;

permit usc of any recreational facilities situated on the Common Area by persons other than Owners, their families, lessees, and guests upon payment of use fees established by the Board and designate other areas and facilities within the Area of Common Responsibility as open for the use and enjoyment of the public; and

RE U2-595 (vi) mortgage, pledge, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred; and

(d) The rights of certain Owners to the exclusive use of those portions of the 2 0471 Common Area designated "Limited Common Areas," as described in Article XII.

Any Owner may extend his or her right of use and enjoyment to the members of his or her family, lessees, and social invitees, as applicable, subject to reasonable Board regulation. An Owner who leases his or her Unit shall be deemed to have assigned all such rights to the lessee of • such Unit for the period of the lease.

11.2. Easements of Encroachment.

Declarant grants reciprocal appurtenant easements of encroachment, and for maintenance and use of any permitted encroachment, between each Unit and any adjacent Common Area and between adjacent Units due to the unintentional placement or settling or shifting of the improvements constructed, reconstructed, or altered thereon (in accordance with the terms of these restrictions) to a distance of not more than three feet, as measured from any point on the common boundary along a line perpendicular to such boundary. However, in no event shall an easement for encroachment exist if such encroachment occurred due to willful and knowing conduct on the part of, or with the knowledge and consent of, the Person claiming the benefit of such easement.

11.3. Easements for Utilities.

(a) Installation and Maintenance. Declarant reserves for itself, so long as Declarant owns any property described in Exhibit"A" or "B" of this Declaration, and grants to the Association and all utility providers, perpetual non-exclusive easements throughout Lantern Walk (but not through a structure) to the extent reasonably necessary for the purpose of:

installing utilities and infrastructure to serve Lantern Walk, cable and other systems for sending and receiving data and/or other electronic signals, security and similar systems, walkways, pathways and trails, drainage systems, street lights and signage on property which Declarant owns or within public rights-of-way or easements reserved for such purpose on Recorded plats;

inspecting, maintaining, repairing; and replacing the utilities, infrastructure, and other improvements described in Section 11.3(a)(i); and

(iii) access to read utility meters.

Specific Easements. Declarant also reserves for itself the non-exclusive right and BE 02595 power to grant and Record such specific easements as may be necessary, in Declarant's sole discretion, in connection with the orderly development of aay property described in Exhibits "A" and "B."The Owner of any property to be burdened by any easement granted pursuant to this subsection shall be given written notice in advance of the grant. The location of the easement shall be subject to the written approval of the Owner of the burdened property, P¿ 0472 which approval shall not unreasonably be withheld, delayed, or conditioned.

Minimal Interference. All work associated with the exercise of the easements described in subsections (a) and (b) of this Section shall be performed in such a manner as to minimize interference with the usc and enjoyment of the property burdened by the casement.

Upon completion of the work, the Person exercising the easement shall restore the property, to the extent reasonably possible, to its condition prior to the commencement of the work. The exercise of these easements shall not extend to permitting entry into the structures on any Unit, nor shall it unreasonably interfere with the use of any Unit and, except in an emergency, entry onto any Unit shall be made only after reasonable notice to the Owner or occupant.

11.4. Easements to Serve Additional Property.

Declarant hereby reserves for itself and its duly authorized agents, successors, assigns, and mortgagees, an easement over the Common Area for the purposes of enjoyment, use, access, and development of the property described in Exhibit "B," whether or not such property is made subject to this Declaration. This easement includes, but is not limited to, a right of ingress and egress over the Common Area for construction of roads and for connecting and installing utilities on such property.

Declarant agrees that it and its successors or assigns shall be responsible for any damage caused to the Common Area as a result of their respective actions in connection with development of such property. Declarant further agrees that if the easement is exercised for permanent access to such property and such property or any portion thereof benefiting from such easement is not made subject to this Declaration, Declarant, its successors or assigns shall enter into a reasonable agreement with the Association to share the cost of any maintenance which the Association provides to or along any roadway providing access to such property.

11.5. Easements for Maintenance, Emergency, and Enforcement.

Declarant grants to the Association easements over Lantern Walk as necessary to enable the Association to fulfill its maintenance responsibilities under Section 7.2. The Association shall also have the right, but not the obligation, to enter upon any Unit for emergency, security, and safety reasons, to perform maintenance and to inspect for the purpose of ensuring compliance with and enforce the Governing Documents. Such right may be exercised by any member of the Board and its duly authorized agents and assignees, and all emergency personnel in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner,

11.6. Easements for Lake and Pond Maintenance and Flood Water. BE 02595 Declarant reserves for itself, the Association, and their successors, assigns, and designees, the noncxclusive right and casement, but not the obligation, to enter upon bodies of water and wetlands located within the Area of Common Responsibility to (a) install, operate, maintain, and replace pumps to supply irrigation water to the Arca of Common Responsibility; (b) construct, maintain, and repair structures and equipment used for retaining water; and (c) maintain such Đ473 areas in a manner consistent with the Community-Wide Standard. Declarant, the Association, and their successors, assigns and designees shall have an access easement over and across any of Lantern Walk abutting or containing bodies of water or wetlands to the extent reasonably necessary to exercise their rights under this Section.

Declarant further reserves for itself, the Association, and their successors, assigns and designees, a perpetual, nonexclusive right and easement of access and encroachment over the Common Area and Units (but not the dwellings thereon) adjacent to or within 100 feet of bodies of water and wetlands within Lantern Walk, in order to (a) temporarily flood and back water upon and maintain water over such portions of Lanter Walk; (b) alter in any manner and generally maintain the bodies of water and wetlands within the Area of Common Responsibility; and (c) maintain and landscape the slopes and banks pertaining to such areas. All persons entitled to exercise these easements shall use reasonable care in and repair any damage resulting from the intentional exercise of such casements. Nothing herein shall be construed to make Declarant or any other Person liable for damage resulting from flooding due to heavy rainfall or other natural occurrences.

11.7. Easement to Inspect and Right to Correct.

Declarant reserves for itself and others it may designate the right to inspect, monitor, test, redesign, and correct any structure, improvement, or condition which may exist on any portion of the property within Lantern Walk, including Units, and a perpetual, nonexclusive easement of access throughout Lantern Walk to the extent reasonably necessary to exercise such right. Except in an emergency, entry onto a Unit shall be only after reasonable notice to the Owner and no entry into a dwelling shall be permitted without the Owner's consent. The person exercising this eascment shall promptly repair, at such person's own expense, any damage rosulting from such exercise.

11.8 Side-Yard Use Easements.

(a) Definitions. For the purposes of this Section, capitalized terms not previously defined in Article I shall have the meanings set forth below:

"Zero Side Lot Line": The side lot line of each Unit closest to which the dwelling on such Unit has been or is to be constructed. The "Zero Side" of the dwelling on cach Unit is the side closest to the Zero Side Lot Line.

(ii) "Common Boundary": The side lot line, as shown on the Master Plan, forming the common boundary line between any two adjoining Units.

"Dominant Estate": As between two adjoining Units, the Unit for which BE 02595 the Common Boundary is the Zero Side Lot Line.

(iv) "Servicht Estate": As between two adjoining Units, the Unit for which the Common Boundary is not the Zero Side Lot Line. PE 0474

(v) "Easement Area": That area on the Servient Estate which lies between the Common Boundary and a line formed by extending the plan of the Zero Side of the dwelling on the Servient Estate to its interscction with the front and rear lot lines of the Servient Estate.

Dominant Servient

Estate Estate

dwelling Easement Area dwelling

Common Boundary

Diagram 11.8

(b) Use of Easement Area. A perpetual, non-exclusive easement on, over, and across the Easement Area of the adjoining Servient Estate is hereby granted to each Dominant Estate and its Owner, for the benefit of the Dominant Estate and its Owner, for the benefit of the Dominant Estate for construction, encroachment, maintenance, and use of a dwelling on the Dominant Estate.

Nothing shall be done or permitted within any Easement Area which would constitute a threat or hazard to the health and safety of the individuals occupying the Scrvient Estate dwelling, nor shall anything be done or permitted within the Easement Area which defaces the dwelling on the Servient Estate or which adversely affects the integrity, structure, or strength of the dwelling on the Scrvient Estate.

The uses permitted within each Easement Area by virtue of this Section shall be nonexclusive because the samc are subject to utility, access, and drainage easoments, as woll as any minor encroachments, overhangs, and the like attributable to the dwelling on the Dominant Estate and pertaining to all or any portion of the Easement Area. In addition, the permitted uscs of the Easement Area are subject to any easements granted elsewhere in the Declaration, as it BE UZ595 may be amended from time to time.

(c) Rights of Entry. The following rights of entry onto the Easement Area shall exist:

(i) The Owner of each Dominant Estate (and the authorized agents, A 0475 representatives, and contractors of such Owner) shall have a reasonable and temporary right of entry, access, ingress, egress, and regress upon the Easement Area and that portion of the

Servient Estate reasonably necessary to perform and complete, in a prompt, efficient, and good and workmanlike manner, any construction or other work (whether original, remodeling, or repair) to structures located on the Dominant Estate which has been theretofore approved by the ARC (as defined in Section 4.2); and

The Owner of each Dominant Estate (and the authorized agents, representatives, and contractors of such Owner) shall have a reasonable and temporary right of entry, access, ingress, egress, and regress upon the Easement Area as reasonably necessary to perform maintenance and make bona fide repairs to the dwelling and other structures located on the Dominant Estate, provided that unless otherwise warranted by then-cxisting circumstances or otherwise agreed by the Owner of the Servient Estate, such entry shall occur during daylight hours only and shall be limited to a reasonable number of days in each calendar year.

The ARC is specifically authorized to promulgate ad hoc rules and guidelines pertaining to any particular construction or repair work likely to require the exercise of the right of entry described above so that the respective best interests of the adjoining Owners are, to the extent reasonably possible, harmonized and preserved

Article XII Limited Common Areas

12.1. Purpose.

Certain portions of the Common Area may be designated as Limited Common Area and reserved for the exclusive use or primary benefit of Owners and occupants of a Unit or Units. By way of illustration and not limitation, Limited Common Areas may include porches, patios, or parking spaces. All costs associated with maintenance, repair, replacement, and insurance of a Limited Common Area shall be allocated among the Owners of Units to which the Limited Common Areas are assigned.

12.2. Designation.

Initially, any Limited Common Area shall be designated as such in the deed conveying such area to the Association or on the subdivision plat relating to such Common Arca; provided, however, any such assignment shall not preclude Declarant from later assigning use of the same Limited Common Area to additional Units, so long as Declarant has a right to subject additional property to this Declaration pursuant to Section 9.1.

Thereafter, a portion of the Common Area may be assigned as Limited Common Area ·₺ 02595 and Limited Common Area may be reassigned upon approval of the Board and the vote of a majority of the total Class "A" votes in the Association. As long as Declarant owns any property subject to this Declaration or which may become subject to this Declaration in accordance with Section 9.1, any such assignment or reassignment shall also require Declarant's written consent. rE 0476

Article XIII Party Walls and Other Shared Structures

13.1. General Rules of Law to Apply.

Each wall, fence, driveway, or similar structure built as a part of the original construction on the Units which serves and/or separates any two adjoining Units shall constitute a party structure. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. Any dispute arising concerning a party structurc shall be handled in accordance with the provisions of Article XIV.

13.2. Maintenance; Damage and Destruction.

The cost of reasonable repair and maintenance of a party structure shall be shared equally by the Owners who make use of the party structure.

If a party structure is destroyed or damaged by fire or other casualty, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, any Owner who has used the structure may restore it. If other Owners thereafter use the structure, they shall contribute to the restoration cost in equal proportions. However, such contribution will not prejudice the right to call for a larger contribution from the other users under any rule of law regarding liability for negligent or willful acts or omissions.

The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's successors-in-title.

PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY

Article XIV Dispute Resolution and Limitation on Litigation

14.1. Agreement to. Encourage Resolution of Disputes Without Litigation.

(a) Declarant, the Association and its officers, directors, and committee members, all Persons subject to this Declaration, and any Person not otherwise subject to this Declaration who EL 02595 agrecs to submit to this Article (collectively, "Bound Parties"), agree that it is in the best interest of all concemed to encourage the amicable resolution of disputes involving the Community without the emotional and financial costs of litigation. Accordingly, each Bound Party agrees not to file suit in any court with respect to a Claim described in subsection (b), unless and until it has first submitted such Claim to the alternative dispute resolution procedures set forth in Section ₽ 0477 14.2 in a good faith effort to resolve such Claim.

(b) As used in this Article, the term "Claim" shall refer to any claim, grievance, or dispute arising out of or relating to

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(iv) the Claimant's desire to meet with the Respondent to discuss in good faith ways to resolve the Claim.

(b) Negotiation. The Claimant and Respondent shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the parties in negotiating a resolution of the Claim.

Mediation. If the parties have not resolved the Claim through negotiation within 30 days of the date of the notice described in Section 14.2(a) (or within such other period as the parties may agree upon), the Claimant shall have 30 additional days to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing dispute resolution services in the metropolitan Atlanta area.

If the Claimant does not submit the Claim to mediation within such time, or docs not appear for the mediation when scheduled, the Claimant shall be deemed to have waived the Claim, and the Respondent shall be relieved of any and all liability to the Claimant (but not third parties) on account of such Claim.

If the Parties do not settle the Claim within 30 days after submission of the matter to mediation, or within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated. The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings on the Claim, as appropriate.

Each Party shall bear its own costs of the mediation, including attorney's fees, and each Party shall share equally all fees charged by the mediator.

Settlement. Any settlement of the Claim through negotiation or mediation shall be documented in writing and signed by the partics. If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section. In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non-complying party (or if more than one noncomplying party, from all such parties in equal proportions) all costs incurred in enforcing suche agreement or award, including, without limitation, attomey's fees and court costs.

14.3. Initiation of Litigation by Association.

In addition to compliance with the foregoing alternative dispute resolution procedures, if applicable, the Association shall not initiate any judicial or administrative procecding unless first approved by Members entitled to cast 75% of the total Class "A" votes in the Association, excep that no such approval shall be required for actions or proceedings:

(a) initiated during the Class "B" Control Period;

(b) initiated to enforce the provisions of this Declaration, including collection of assessments and foreclosure of liens;

(c) initiated to challenge ad valorem taxation or condemnation proceedings;

(d) initiated against any contractor, vendor, or supplier of goods or services arising out of a contract for services or supplies; or

(e) to defend claims filed against the Association or to assert counterclaims in proceedings instituted against it.

This Section shall not be amended unless such amendment is approved by the same percentage of votes necessary to institute proceedings.

Article XV Mortgagee Provisions

The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Units in Lantern Walk.

15.1. Notices of Action.

An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Unit to which its Mortgage relates, thercby becoming an "Eligible Holder"), will be entitled to timely written notice of:

Any condemnation loss or any casualty loss which affects a material portion of Lantern Walk or which affects any Unit on which there is a first Mortgage held, insured, or guaranteed by such Eligible Holder;

(b) Any delinquency in the payment of assessments or charges owed by a Unit subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of 60 days, or any other violation of the Governing Documents relating to such Unit or the Owner P₺ 02595 or occupant which is not cured within 60 days;

(c) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association; or

(d) Any proposed action which would require the consent of a specified percentage of Eligible Holders.

15.2. Special FHLMC Provision.

So long as required by the Federal Home Loan Mortgage Corporation, the following provisions apply in addition to and not in lieu of the foregoing. Unless at least 67% of the first Mortgagees or Members representing at least 67% of the total Association vote consent, the Association shall not:

(a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or transfer all or any portion of the real property comprising the Common Area which the Association owns, directly or indirectly (the granting of easements for utilities or other similar purposes consistent with the intended use of the Common Area shall not be deemed a transfer within the meaning of this subsection);

Change the method of determining the obligations, assessments, dues, or other charges which may be levied against an Owner of a Unit (a decision, including contracts, by the Board or provisions of any declaration subsequently Recorded on any portion of Lantern Walk shall not be subject to this provision where such decision or subsequent declaration is otherwise authorized by this Declaration);

By act or omission change, waive, or abandon any scheme of regulations or enforcement pertaining to architectural design, exterior appearance or maintenance of Units and the Common Area (the issuance and amendment of architectural standards, procedures, rules and regulations, or use restrictions shall not constitute a change, waiver, or abandonment within the meaning of this provision);

(d) Fail to maintain insurance, as required by this Declaration; or

(e) Usc hazard insurance proceeds for any Common Area losses for other than the repair, replacement, or reconstruction of such property.

First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have becomc a charge against the Common Area and may pay overduc premiums on casualty insurance policies or secure new casualty insurance coverage upon the RL 02595 lapse of an Association policy, and first Mortgagecs making such payments shall be entitled to immediate reimbursement from the Association.

15.3. Other Provisions for First Lien Holders.

To the extent not inconsistent with Georgia law:

(a) Any restoration or repair of Lantern Walk after a partial condemnation or damage due to an insurable hazard shall be performed substantially in accordance with this Declaration and the original plans and specifications unless the approval is obtained of the Eligible Holders

of first Mortgages on Units to which more than 50% of the votes of Units subject to Mortgages held by such Eligible Holders are allocated.

Any election to terminate the Association after substantial destruction or a substantial taking in condemnation shall require the approval of the Eligible Holders of first Mortgages on Units to which more than 50% of the votes of Units subject to Mortgages held by such Eligible Holders are allocated.

15.4. Amendments to Documents.

The following provisions do not apply to amendments to the constituent documents or termination of the Association as a result of destruction, damage, or condemnation pursuant to Section 15.3(a) and (b), or to the addition of land in accordance with Article IX.

(a) The consent of Members representing at least 67% of the Class "A" votes and of Declarant, so long as it owns any land subject to this Declaration, and the approval of the Eligible Holders of first Mortgages on Units to which at least 67% of the votes of Units subject to a Mortgage appertain, shall be required to terminate the Association.

(b) The consent of Members representing at least 67% of the Class "A" votes and of Declarant, so long as it owns any land subject to this Declaration, and the approval of Eligible Holders of first Mortgages on Units to which more than 50% of the votes of Units subject to a Mortgage appertain, shall be required materially to amend any provisions of the Declaration, ByLaws, or Articles of Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate any of the following:

voting;

assessments, assessment liens, or subordination of such liens;

(iii) reserves for maintenance, repair, and replacement of the Common Area;

(iv) insurance or fidelity bonds;

(v) rights to use the Common Area;

B₺ 02595 (vi) responsibility for maintenance and repair of Lantern Walk;

(vii) expansion or contraction of Lantern Walk or the addition, annexation, or withdrawal of Properties to or from the Association;

(viii) boundaries of any Unit;

(ix) leasing of Units;

(x) imposition of any right of first refusal or similar restriction of the right of any Owner to sell, transfer, or otherwise convey his or her Unit;

establishment of self-management by the Association where professional management has been required by an Eligible Holder; or

(xii) any provisions included in the Governing Documents which are for the express benefit of holders, guarantors, or insurers of first Mortgages on Units.

15.5. No Priority.

No provision of this Declaration or the By-Laws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Unit in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Area.

15.6. Notice to Association.

Upon request, each Owner shall be obligated to furnish to the Association the name and address of the holder of any Mortgage encumbering such Owner's Unit.

15.7. Failure of Mortgagee to Respond.

Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be deemed to have approved such action if the Association does not receive a written response from the Mortgagee within 30 days of the date of the Association's request, provided such request is delivered to the Mortgagee by certilied or registered mail, return receipt requested.

15.8. Construction of Article XV.

Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under this Declaration, the By-Laws, or Georgia law for any of the acts set out in this Article.

PART SEVEN: CHANGES IN THE COMMUNITY

BL 02595 Article XVI Changes in Ownership of Units

Any Owner desiring to sell or otherwise transfer title to his or her Unit shell give the Board at least seven days' prior written notice of the name and address of the purchaser or PE 0483 transteree, the datc of such transfer of title, and such other information as the Board may reasonably require. The transferor shall continue to be jointly and severally responsible with the transferee for all obligations of the Unit Owner, including assessment obligations, until the date upon which such notice is received by the Board, notwithstanding the transfer of title.

Article XVII Changes in Common Area

17.1. Condemaation.

If any part of the Common Area shall be taken (or conveyed in lieu of and under threat of condemnation by the Board acting on the written direction of Members representing at least 67% of the total Class "A" votes in the Association and of Declarant, as long as Declarant owns any property subject to the Declaration or which may be made subject to the Declaration in accordance with Section 9.1) by any authority having the power of condemnation or eminent domain, each Owner shall be entitled to written notice of such taking or conveyance prior to disbursement of any condemnation award or proceeds from such conveyance. Such award or proceeds shall be payable to the Association to be disbursed as follows:

If the taking or conveyance involves a portion of the Common Area on which improvements have been constructed, the Association shall restore or replace such improvements on the remaining land included in the Common Area to the extent available, unless within 60 days after such taking Declarant, so long as Declarant owns any property subject to the Declaration or which may be made subject to the Declaration in accordance with Section 9.1, and Members representing at least 75% of the total Class "A" vote of the Association shall otherwise agree. Any such construction shall be in accordance with plans approved by the Board. The provisions of Section 7.3(c) regarding funds for restoring improvements shall apply.

If the taking or conveyance does not involve any improvements on the Common Area, or if a decision is made not to repair or restorc, or if net funds remain after any such restoration or replacement is complete, then such award or net funds shall be disbursed to the Association and used for such purposes as the Board shall determine.

17.2. Partition.

Except as permitted in this Declaration, the Common Area shall remain undivided, and no Person shall bring any action partition of any portion of the Common Area without the written consent of all Owners and Mortgagees. This Section shall not prohibit the Board from acquiring and disposing of tangible personal property nor from acquiring and disposing of real property which may or may not be subject to this Declaration.

17.3. Transfer or Dedication of Common Area. B₺ 02595 The Association may dedicate portions of the Common Area to Athens-Clarke

County, Georgia, or to any other local, state, or federal govermental or quasi-governmental

entity.

₽ 0484 Article XVIII Amendment of Declaration

18.1. By Declarant.

In addition to specific amendment rights granted elsewhere in this Declaration, until termination of the Class "B" Control Period Declarant may unilaterally amend this Declaration for any purpose. Thereafter, Declarant may unilaterally amend this Declaration if such amendment is necessary (a) to bring any provision into compliance with any applicable govermental statute, rule, regulation, or judicial determination; (b) to enable any reputable title insurance company to issue title insurance coverage on the Units; (c) to enable any institutional or governmental lender, purchaser, insurer, or guarantor of mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to make, purchase, insure, or guarantee mortgage loans on the Units; or (iv) to satisfy the requirements of any local, state, or federal governmental agency. However, any such amendment shall not adversely affect the title to any Unit unless the Owner shall consent in writing.

In addition, so long as Declarant owns property described in Exhibit "A' or "B" for development as part of Lantern Walk, it may unilaterally amend this Declaration for any other purpose, provided the amendment has no material adverse effect upon the rights of more than 2% of the Owners.

18.2. By Members.

Except as otherwise specifically provided above and elsewhere in this Declaration, this Declaration may be amended only by the affirmative vote or written consent, or any combination thereof, of Members representing 75% of the total Class "A" votes in the Association, including 75% of the Class "A" votes held by Members other than Declarant, and Declarant's consent, so long Declarant owns any property subject to this Declaration or which may become subject to this Declaration in accordance with Section 9.1. In addition, the approval requirements set forth in Article XV shall be met, if applicable.

Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause.

18.3. Validity and Effective Date.

No amendment may remove, revoke, or modify any right or privilege of Declarant or the Class "B" Member without the written consent of Declarant or the Class "B" Member, B₺ 12595 respectively (or the assignee of such right or privilege).

If an Owner consents to any amendment to this Declaration or the By-Laws, it will be conclusively presumed that such Owncr has the authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such P 0485 amendment,

Any amendment shall become effective upon Recording, unless a later effective date is specified in the amendment. Any procedural challenge to an amendment must be made within six months of its Recordation or such amendment shall be presumed to have been validly

adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of this Declaration.

18.4. Exhibits.

Exhibits "A," and "B" attached to this Declaration are incorporated by this reference and amendment of such exhibits shall be governed by this Article. All other exhibits are attached for informational purposes and may be amended as provided therein or in the provisions of this Declaration which refer to such exhibits.

BL 002595

P 0486

• IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the date and year first written above.

DECLARANT: LANTERN WALK BUILDERS, LLC, a Georgia limited liability company

By:

Its:

Signed, sealed, and delivered

this 27 day of anuary, 2004:

uros

Witness

Janet 10 Youn J

Votary Publi ....

NOTAR EARSAL

FEB.

GHADTClients\Bowen and Bowen\anter Walk HOAICCR-Lanter Walk, doc

BL: 02595

P 0487

Exhibit "A"

Land Initially Submitted

LEGAL 'DESCRIPTION

All that land lying and being in GMD 1347, Athens-Clark

county, Georgia. and being more particularly described as follows.

set in the enterine if the intersection of efferson aver Road To arrive at commence at a nail.

and Vincent Drive.

THENCE North 53 degrees 02 minutes 48 seconds west for a

distance of 57.91 feet to a point. Said point being the True point

of Beginning.

fetaur de degen is intes i seconds west for a distance of being subtended by a chord

6.60 feet to a point

THENCE South 82 deqrees 40 minutes 03 seconds East ror a

distance of 20.00 feet to a point

HENCE along a curve to the right having a radius of 585.8!

eet and an arc length of 51.56 feet, being subtended Dy a chor

of south 10 degrees 24 minutes 20 seconds west for a distance of

51.54 feet to a point

THENCE South 83 degrees 15 minutes 50 seconds West for a

distance of 51.18 feet to a point

feet are i sees 15 minutes is seconds we be a Bree ord

of North 88 degrees

129.80 feet to a point

THENCE North 79 degrees 46 minutes 20 seconds West for a

distance of 352.30 feet to a point

fee re i degen is minutes 3 second est fer a distance off

39.89 feet to a point

THENCE South 53 degrees 09 minutes 45 seconds West tor a

distance of 10.11 feet to a point

THENCE South 09 degrees 22 minutes 06 seconds west for a

distance of 15.59 feet to a point

THENCE along a curve to the left having a radius of 575,00

eet and an arc length of 173.12 feet, being subtended by a chorc

of South 00 degrees 44 minutes 35 seconds west for a distance of

172.47 feet to Ẻ point

THENCE North 76 degrees 22 minutes 45 seconds East for a

distance of 158.98 feet to an ips

THENCE South 05 degrees 22 minutes 32 seconds East for a

distance of 830.35 feet to an ips

feet THE all noth of 1061 feet, being subtended by a chorc left having a radius of 483.67

of South 04 degrees 58 minutes 41 seconds west for a distance of

105.96 feet to a point BE 02595

THENCE along a curve to the left having a radius of 1924.34

feet and an arc length of 56.27 feet, being subtended by a chor‹

of South 02 degrees 08 minutes 53 seconds East for a distance of

56 ~ +

THENCE South 86 degrees 10 minutes 33 seconds west for a

distance of 98.45 feet to a point Pg 0488

THENCE along a curve to the left having a radius of 575.00

eet and an arc length of 142.54 feet, being subtended by a chorc

of South 79 degrees 04 minutes 26 seconds west for a distance of

142.18 feet to a

THENCE South 71 degrees 58 minutes 19 seconds West for a

distance of 324,25 feet to a point

THENCE North 11 degrees 41 minutes 49 seconds west for a

Page 1

distance of 50.31 feet to a point

THENCE North 18 degrees 01 minutes 41 seconds west for a

distance of 56.65 feet to a point

fearth 12 degrees 13 minute of second last fer a distance of

35.55 feet to a point

THENCE North 06 dearees 28 minutes 33 seconds west for a

distance of 813.55 feet to a point

THENCE along a curve to the left having a radius of 225.0C

feet and an arc length of 113.15 teet, being subtended by a chord

of North 20 degrees 52 minutes 56 seconds west for a distance of

111.96 feet to a point

THENCE North 35 degrees 17 minutes 19 seconds west for a

distance of 120.50 feet to a point

Feet and an arc length of 561.62 feet, being subtended by a chor beind subtended by a chord

550.97 feet to a point minutes 22 seconds fast for a distance of of North 73 degrees

THENCE North 86 degrees 26 minutes 19 seconds East for a

distance of 65.61 feet to a point

THENCE along a curve to the right having a radius of 840.0C

feet and an arc length of 41.10 feet, being subtended by a chord

of south 81 degrees 10 minutes 26 seconds East for a distance of

41.10 feet to a point

THENCE South 79 degrees 46 minutes 20 seconds East for a

distance of 352.30 feet to a point

feet uh is degree is tues 1s second es Pend a ra ord

106.20 feet to a point

THENCE North 83 degrees 15 minutes 50 seconds East for a

distance of 53.08 feet to a point. said point being the True Point

of Beginning.

Together with and subject to covenants, easements, and

restrictions of record.

said property contains 18.139 acres more or less.

BE 12595

£ 0489

Page 2

EXHIBIT ạB"

Land Subject to Annexation

All adjacent property within a one (1) mile radius of Land Initially Submitted.

P 0490

EXHIBIT IC"

Initial Restrictions and Rules

The following restrictions shall apply to all of Lanter Walk until such time as they are amended, modified, repealed, or limited pursuant to Article III of the Declaration.

General. Lantern Walk shall be used only for residential, recreational, and related urp

any rea

Exhibit "A" or "B," offices for any property manager retained by the Association, or business offices for Declarant or the Association) consistent with this Declaration and any Supplemental Declaration.

2. Restricted Activities. The following activities are prohibited within Lanter Walk unless expressly authorized by, and then subject to such conditions as may be imposed by, the Board of Directors:

(a) Parking any vehicles on public or private streets or thoroughfares, or parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and other watercratt, trailers, stored vehicles, or inoperable vehicles in places other than enclosed garages; provided, construction, service and delivery vehicles shall be exempt from this provision during daylight hours for such period of time as is reasonably necessary to provide scrvice or to make a delivery to a Unit or the Common Area;

(b) Raising, breeding, or keeping animals, livestock, or poultry of any kind, except that a reasonable number of dogs, cats, or other usual and common household pets may be permitted Board, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Pets shall be registered, licensed and inoculated as required by law;

(c) Any activity which emits foul or obnoxious odors outside the Unit or creates noisc or other conditions which tend to disturb the peace or threaten the safety of the occupants of BL: 02595 other Units;

(d) Any activity which violates local, statc, or federal laws or regulations; however, the Board shall have no obligation to take enforcement action in the event of a violation; £ 0491

(e) Pursuit of hobbies or other activities which tend to cause an unclean, unhealthy, or untidy condition to exist outside of enclosed structures on the Unit;

(1) Any noxious or offensive activity which in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Common Area or to the occupants of other Units;

(g) Outside burning of trash, leaves, debris, or other materials, except during the normal course of constructing a dwelling on a Unit;

(h) Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to occupants of other Units, except alarm devices used exclusively for security purposes;

Use and discharge of firecrackers and other fireworks;

Dumping grass clippings, leaves or other debris, petroleum products, fertilizers, or other potentially hazardous or toxic substances in any drainage ditch, stream, pond, or lake, or elsewhere within Lantern Walk, except that fertilizers may be applied to landscaping on Units provided care is taken to minimize runoff, and Declarant and Builders may dump and bury rocks and trees removed from a building site on such building site;

(k) Accumulation of rubbish, trash, or garbage except between regular garbage pick ups, and then only in approved containers;

Obstruction or rechanneling drainage flows after location and installation of drainage swales, storm sewers, or storm drains, except that Declarant and the Association shall have such right; provided, the exercise of such right shall not materially diminish the value of or unreasonably interfere with the use of any Unit without the Owner's consent;

(m) Subdivision of a Unit into two or more Units, or changing the boundary lines of any Unit after a subdivision plat including such Unit has been approved and Recorded, except that Declarant shall be permitted to subdivide or replat Units which it owns;

(n) Swimming, boating, usc of personal flotation devices, fishing, or other active use of lakes, ponds, streams, or other bodies of water within Lantern Walk, and Declarant, its successors and assigns, shall be permitted and shall have the exclusive right and easement to draw water from lakes, ponds, and streams within Lantern Walk for purposes of irrigation and such other purposes as Declarant shall deem desirable. The Association shall not be responsible BE 02595 for any loss, damage, or injury to any person or property arising out of the authorized or unauthorized use of rivers, lakcs, ponds, streams or other bodies of water within or adjacent to Lantem Walk;

(o) Usc of any Unit for operation of a timesharing, fraction-sharing, or similar program Pr 0492 whereby the right to exclusive use of the Unit rotates among participants in the program on a fixed or floating timc schedule over a period of years, except that Declarant and its assigns may operate such a program with respect to Units which it owns;

(p) Discharge of firearms; provided, the Board shall have no obligation to take action to prevent or stop such discharge;

(q) On-site storage of gasoline, heating, or other fuels, except that a reasonable amount of fuel may be stored on each Unit for emergency purposes and operation of lawn mowers and

similar tools or equipment, and the Association shall be permitted to store fuel for operation of maintenance vehicles, generators, and similar equipment, This provision shall not apply to any underground fuel tank authorized pursuant to Article IV;

(r) Any business, trade, garage sale, moving sale, rummage sale, or similar activity, except that an Owner or occupant residing in a Unit may conduct business activities within the

Unit so long as: (i) the cxistence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the Unit; (ii) the business activity conforms to all zoning requirements for Lantern Walk; (iii) the business activity does not involve door-to-

door solicitation of residents of Lanter Walk; (iv) the business activity does not, in the Board's

reasonable judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles

being parked in Lanter Walk which is noticeably greater than that which is typical of Units in

which no business activity is being conducted; and (v) the business activity is consistent with the

residential character of Lantern Walk and does not constitute a nuisance, or a hazardous or

offensive use, or threaten the security or safety of other residents of Lantern Walk, as may be

determined in the Board's sole discretion.

The terms "business" and "trade," as used in this provision, shall be construed to have

their ordinary, generally accepted meanings and shall include, without limitation, any occupation,

work, or activity undertaken on an ongoing basis which involves the provision of goods or

services to persons other than the provider's family and for which the provider receives a fee,

compensation, or other form of consideration, regardless of whether: (1) such activity is engaged

in full or part-timc, (ii) such activity is intended to or does generate a profit, or (iii) a license is

required.

Leasing of a Unit shall not be considered a business or trade within the meaning of this

subsection. This subsection shall not apply to any activity conducted by Declarant or a Builder

approved by Declarant with respect to its development and sale of Lanter Walk or its use of any

Units which it owns within Lantern Walk, including the operation of a timeshare or similar

program;

(s) Capturing, trapping, or killing of wildlife within Lanter Walk, except in

circumstances posing an imminent threat to the safety of persons using Lantern Walk; B₺ 02595

(t) Any activities which materially disturb or destroy the vegetation, wildlife, wetlands,

or air quality within Lantern Walk or which use excessive amounts of water or which result in

unreasonable levels of sound or light pollution; ₽ 0493

(U) Conversion of any carport or garage to finished space for use as an apartmont or

other integral part of the living area on any Unit without prior approval pursuant to Article TV;

(v) Operation of motorized vehicles on pathways or trails maintained by the Association, except that golf carts may be operated on cart paths intended for such purposes; and

(w) Any construction, erection, placement, or modification of any thing, permanently or temporarily, on the outside portions of the Unit, whether such portion is improved or unimproved, except in strict compliance with the provisions of Article IV of the Declaration. This shall include, without limitation, signs, basketball hoops, swing sets and similar sports and

satellite dishes and antennas, except that:

(1) an antenna designed to receive direct broadcast satellite services, including direct-to-home satellite services, that is one meter or less in diameter;

an antenna designed to receive video programming services via multipoint distribution services, including multichannel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or

(iii) an antenna that is designed to receive television broadcast signals;

(collectively, "Permitted Antennas") shall be permitted on Units, subject to such reasonable requirements as to location and screening as may be set forth in the Architectural Guidelines, consistent with applicable law, in order to minimize obtrusiveness as viewed from streets and adjacent property. Declarant and/or the Association shall have the right, without obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or a portion of Lantern Walk, should any master system or systems be utilized by the Association and require such exterior apparatus.

3. Prohibited Conditions. The following shall be prohibited at Lantern Walk:

(a) Plants, animals, devices, or other things of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of Lantern Walk;

B₺ 02595 (b) Structures, equipment, or other items on the exterior portions of a Unit which have become rusty, dilapidated, or otherwise fallen into disrepair; and

(c) Sprinkler or irrigation systems or wells of any type which draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface waters within Lantern Walk, except that Declarant and the Association shall have the right to draw water from such sources.

4. Leasing of Units. "Leasing," for purposes of this Paragraph, is defined as regular, exclusive occupancy of a Unit by any person, other than the Owner for which the Owner receives any consideration or benefit, including, but not limited to, a fee, service, gratuity, or emolument. All leases shall be in writing. The Board may require a minimum lease term. Notice of any lease, together with such additional information as may be required by the Board, shall be given to the Board by the Unit Owner within 10 days of execution of the lease. The Owner must make available to the lessee copies of the Declaration, By-Laws, and the Restrictions and Rules.

BL 02595 PE 0495

Deed • Doc: COVE

Recorded 90 20 1 55AMł Upon recording, please return to: BEVERLY LOGAN

Amy H. Bray, Esq. Clerk Superior Court, ATHENS-CLARKE COUNTY Andersen, Tate, Mahaffey & McGarity, P.C. BE 02595 Pg 0435-0515 P.O. Box 2000

Lawrenceville, Georgia 30046

(2845.16001)

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR

LANTERN WALK

TABLE OF CONTENTS

PAGE

PART ONE: INTRODUCTION TO THE COMMUNITY.

• Article 1 Creation of the Community

1.1. Purpose and Intent.

1.2. Binding Effect.

1.3. Governing Documents. ..2

Article II Concepts and Definitions .3

PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS.

Article III Use and Conduct.

3.1. Framework for Regulation .. 6

3.2. Rule Making Authority ..6

3.3. Owners' Acknowledgment and Notice to Purchasers ..: 7

3.4. Protection of Owners and Others ...7

Article IV Architecture and Landscaping. ... 9

4.1. General ...9

4.2. Architectural Review ... 9

4.3. Guidelines and Procedures. .. 10

4.4. No Waiver of Future Approvals. . 12

4.5. Variances.. • 12

4.6. Limitation of Liability. .. 13

4.7. Certificate of Compliance 13

Article V Maintenance and Repair. .. 13

5.1: Maintenance of Units . 13

5.2. Responsibility for Repair and Replacement. . 14

PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION ... 14

Article VI The Association and its Members ..14

6.1 Function of Association .. 14

6.2. Membership .. 14 BE 02595 6.3. Voting .. 15

Article VII Association Powers and Responsibilities. .. 15

7.1. Acceptance and Control of Association Property. . 15

Pg 0436 7.2. Maintenance of Area of Common Responsibility. … 16

7.3. Insurance .17

7.4. Compliance and Enforcement.. ..20

7.5. Implied Rights; Board Authority ..22

7.6. Indemnification of Officers, Directors and Others ..23 7.7. Safety and Security. ..23 7.8. Provision of Services. ... 24 7.9. Relationships with Other Properties. ...24 7.10. Facilities and Services Open to the Public. ..24 Article VIII Association Finances.. ...24 8.1. Budgeting and Allocating Common Expenses .24 8.2. Budgeting for Reserves ...25 8.3. Special Assessments.. .26 8.4. Specific Assessments ..26 8.5. Authority to Assess Owners; Time of Payment. .26 8.6. Obligation for Assessments. ..27 8.7. Lien for Assessments ..28 8.8. Exempt Property. ..28 8.9. Capitalization of Association. .28 PART FOUR: COMMUNITY DEVELOPMENT .29 Article IX Expansion of the Community .29 9.1. Expansion by Declarant. ...29 9.2. Expansion by the Association .29 9.3. Additional Covenants and Easements.. .29 9.4. Effect of Filing Supplemental Declaration. ..30 Article X Additional Rights Reserved to Declarant.. ..30

Withdrawal of Property. ...30 Marketing and Sales Activities. .30 Right to Develop.. .30 Right to Approve Additional Covenants.. 30 Right to Approve Changes in Lantern Walk Standards. 31 Right to Transfer or Assign Declarant Rights. .31 Exclusive Rights To Use Name of Development.

Right to Notice of Design or Construction Claims.. ..31 10.10. Termination of Rights. .31 PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY ..32 Article XI Lasements.. ..32 BE 02595 11.1. Easements in Common Area.. ..32 11.2. Easements of Encroachment. ..33 11.3. Easements for Utilities. ..33 11.4. Easements to Serve Additional Property ..34 PE 0437 11.5. Easements for Maintenance, Emergency, and Enforcement.. ..34 11.6. Easements for Lake and Pond Maintenance and Flood Water ..34

11.7. Easement to Inspect and Right to Correct. .35

11.8 Side-Yard Use Easements. ..35

Article XII Limited Common Areas .37

12.1. Purpose. .37

12.2. • Designation. .37

Article XIII Party Walls and Other Shared Structures ..38

13.1. General Rules of Law to Apply. ..38

13.2. Maintenance; Damage and Destruction ..38

PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY. ...38

Article XIV Dispute Resolution and Limitation on Litigation.

Agreement to Encourage Resolution of Disputes Without Litigation. .38

Dispute Resolution Procedures .39

Initiation of Litigation by Association .40

XV Mortgagee Provisions. .41

N .41

42

Told ers .42

.43

No Priority 44

44

44

.44

PART SEVEN: CHANGES IN THE COMMUNITY.. .44

Article XVI Changes in Ownership of Units .44

Article XVII Changes in Common Area ,45

17.1. Condemnation .45

17.2. Partition. .45

17.3. Transfer or Dedication of Common Area ,45

Article XVIII Amendment of Declaration.

18.1. By Declarant.

18.2. By Members..

18.3. Validity and Effective Date. BE 02.595 18.4. Exhibits

A 0438

iii

- TABLE OF EXHIBITS -

Exhibit Page First

Subject Matter Mentioned

"A" Land Initially Submitted

Land Subject to Annexation

"C" Initial Restrictions and Rules

"D' By-Laws of Lantern Walk Homeowners

Association, Inc.

BY STE BE 12595

Pg 0439

1V

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR

LANTERN WALK

made this THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS iS

_ day of , 2004, by Lantern Walk Builders, LLC, a Georgia limited liability company ('Declarant)

PART ONE: INTRODUCTION TO THE COMMUNITY

Article I Creation of the Community

1.1. Purpose and Intent.

Declarant, as the owner of the real property described in Exhibit "A," intends by Recording this Declaration to establish a general plan of development for the planned community known as Lantern Walk. This Declaration provides a flexible and reasonable procedure for Lantern Walk's future expansion and provides for its overall development, administration, maintenance and preservation. An integral part of the development plan is the creation of Lantern Walk Homeowners Association, Inc., an association comprised of all owners of real property in Lantern Walk, to own, operate and/or maintain various common areas and community improvements and to administer and enforce this Declaration and the other Governing Documents referenced in this Declaration.

This document does not and is not intended to create a condominium within the meaning of the Georgia Condominium Act, O.C.G.A. Section 44-3-70, and the Association is not subject to the Georgia Property Owners' Association Act, O.C.G.A. Section 44-3-220.

1.2. Binding Effect

All property described in Exhibit "A," and any additional property which is made a part of BL 02595 Lantern Walk in the future by Recording one or more Supplemental Declarations, shall be owned, conveyed and used subject to all of the provisions of this Declaration, which shall run so this Delirate with the title to such property. This Declaration shall be binding upon all Persons having any right, title, or interest in any portion of Lantern Walk, their heirs, successors, successors-in-title, ' 0440 and assigns.

This Declaration, as it may be amended, is intended to remain in effect in perpetuity. However, so long as Georgia law limits the period during which covenants may run with the land, this Declaration shall remain in effect and shall be enforceable by Declarant, the

Association, any Owner, and their respective legal representatives, heirs, successors, and assigns, for a term of 20 years from the date this Declaration is Recorded. After such time, this Declaration shall be extended automatically for successive periods of 20 years each, unless terminated in accordance with O.C.G.A. Section 44-5-60, as it may. be amended, within the year preceding any extension.

Notwithstanding this, if any provision of this Declaration would be unlawful, void, or voidable by reason of any Georgia law restricting the period of time that covenants on land may be enforced, such provision shall expire 21 years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England. Nothing in this Section shall be construed holder of such easement. to permit termination of any easement created in this Declaration without the consent of the

1.3. Governing Documents.

Lantern Walk's Governing Documents consist of:

this Declaration and any Supplemental Declarations applicable to portions of Lantern Walk;

• the Association's Articles of Incorporation and By-Laws;

• the Restrictions and Rules described in Article III;.

• the Architectural Guidelines described in Article IV; and

• such resolutions as the Association's Board of Directors' may adopt;

all as they may be amended.

Nothing in this Section shall preclude any Supplemental Declaration or other Recorded covenants applicable to any portion of Lantern Walk from containing additional restrictions or provisions which are more restrictive than the provisions of this Declaration and, in such case, the more restrictive shall control.

The Governing Documents apply to all Owners and occupants of property within Lantern BL 02595 Walk, as well as to their respective tenants, guests and invitees. If a Unit is leased, the lease shall provide that the tenant and all occupants of the leased Unit are bound by and obligated to comply with the Governing Documents.

If any court should determine that any provision of this Declaration is invalid, or invalid Pg 0441 as applied in a particular instance, such détermination shall not affect the validity of other provisions or applications of such provision.

Article II Concepts and Definitions

The terms used in the Governing Documents shall generally be given their natural, commonly accepted definitions unless otherwise specified. Capitalized terms shall be defined as set forth below.

"Architectural Guidelines": The guidelines and standards for architecture, design, construction, landscaping, and exterior items on Units adopted pursuant to Article IV, as they may be amended.

"Area of Common Responsibility": The Common Area, together with such other areas, if any, for which the Association has or assumes responsibility pursuant to the terms of this Declaration, any Supplemental Declaration, or other applicable covenants, contracts, or agreements.

"Articles": Lantern Walk Homeowners Association, Inc.'s Articles of Incorporation, filed with the Secretary of State of Georgia, as they may be amended.

"Association": Lantern Walk Homeowners Association, Inc., a Georgia nonprofit corporation, its successors or assigns.

"Base Assessment": Assessments levied on all Units subject to assessment under Article VIII to fund Common Expenses for the general benefit of all Units, as determined in accordance with Section 8.1.

"Board of Directors" or "Board": The body responsible for administration of the Association, selected as provided in the By-Laws and generally serving the same role as the board of directors under Georgia corporate law.

"Builder": Any Person who purchases one or more Units for the purpose of constructing improvements for later sale to consumers, or who purchases one or more parcels of land within Lantern Walk for further subdivision, development, and/or resale in the ordinary course of its business.

"By-Laws": The By-Laws of Lantern Walk Homeowners Association, Inc., as they may be amended. A copy of the initial By-Laws is attached to this Declaration as Exhibit "D." BE 02595

"Class "B'ontrol Period": The period of time during which the Class "B% 'ember is entitled to appoint a majority of the members of the Board as provided in the By-Laws. The Class "B" Control Period shall terminate on the first to occur of the following:

PE. 0442 (a) when 100% of the total number of Units permitted by the Master Plan for the property described in Exhibits "A" and "B" have certificates of occupancy issued thereon and have been conveyed to Class "A" Members other than Builders;

(b) December 31, 2020; or

(c) when, in its discretion, the Clașs "B" Member so determines.

"Common Area" All real and personal property, including easements, which the Association owns, leases, or otherwise holds possessory or use rights in for the common use and enjoyment of the Owners. The term shall include the Limited Common Area, as defined below.

"Common Expenses": The actual and estimated expenses incurred, or anticipated to be incurred, by the Association for the general benefit of all Owners, including any reasonable reserve, as the Board may find necessary and appropriate pursuant to the Governing Documents. Common Expenses shall not include any expenses incurred during the Class "B" Control Period for initial development or other original construction costs unless a majority of the total Class "A" vote of the Association approve.

"Community-Wide Standard": The standard of conduct, maintenance, or other activity generally prevailing at Lantern Walk, or the minimum standards established pursuant to the Architectural Guidelines, Restrictions ard Rules, and Board resolutions, whichever is a highest standard. Declarant shall establish initially such standard and it may contain both objective and subjective elements. The Community-Wide Standard may evolve as development progresses and as the needs and desires within Lantern Walk change.

Declarant: Lantern Walk Builders, LIC, a Georgia limited liability company, or any successor or assign who takes title to any portion of the property described in Exhibit "A" or "B" for the purpose of development and/or sale and who is designated as Declarant in a Recorded instrument that the immediately preceding Declarant executes.

"Governing Documents": A collective term referring to this Declaration and any applicable Supplemental Declaration, the By-Laws, the Articles, the Architectural Guidelines, the Restrictions and Rules, and Board resolutions, all as they may be amended.

"Lantern Walk": The real property described in Exhibit"A," together with such additional property as is subjected to this Declaration in accordance with Article IX

"Limited Common Area": A portion of the Common Area primarily benefiting one or more, but less than all, Units, as more particularly described in Article XII. BE 02595

"Master Plan": The land use plan for the development of Lantern Walk prepared by and approved by Athens-Clarke County, as it may be amended, which includes all of the property described in Exhibit "A" and all or a portion of the property described in Exhibit "B." Inclusion of property on the Master Plan shall not, under any circumstances, ªg 1443 obligate Declarant to subject such property to this Declaration, nor shall the omission of property described in Exhibit "B" from the Master Plan bar its later submission to this Declaration as provided in Article IX.

"Member": A Person subject to membership in the Association pursuant to Section 6.2. "Mortgage": A mortgage, a deed of trust, a deed to secure debt, or any other form of security instrument affecting title to any Unit. The term "Mortgagee" shall refer to a beneficiary or holder of a Mortgage.

"Owner": One or more Persons who hold the record title to any Unit, but excluding in all cases any party holding an interest merely as security for the performance of an obligation. If a Unit is sold under a Recorded contract of sale, and the contract specifically so provides, the purchaser (rather than the fee owner) will be considered the Owner.

entity. "Person": A natural person, a corporation, a partnership, a trustee, or any other legal

"Record," "Recording." or "Record% ' The filing of a legal instrument in the official records of Athens-Clarke County, Georgia, or such other place as may be designated as the official location for recording deeds, plats, and similar documents affecting title to real estate.

"Restrictions and Rules": The initial restrictions and rules set forth in Exhibit "C," as they may be supplemented, modified, and repealed pursuant to Article III.

"Special Assessment": Assessments levied in accordance with Section 8.3.

"Specific Assessment": Assessments levied in accordance with Section 8.4.

"Supplemental Declaration": An instrument Recorded pursuant to Article IX which subjects additional property to this Declaration, designates Limited Common Areas, and/or such instrument. creates or imposes additional easements, restrictions and obligations on the land described in

"Unit": A portion of Lantern Walk, whether improved or unimproved, which may be independently owned and is intended for development, use, and occupancy as an attached or detached residence for a single family. The term shall refer to the land, if any, which is part of the Unit as well as any improvements thereon. In the case of a structure containing multiple dwellings, each dwelling shall be deemed to be a separate Unit.

In the case of a parcel of vacant land or land on which improvements are under B₺ 02595 construction, the parcel shall be deemed to contain the number of Units designated for residential use for such parcel on the Master Plan or Declarant's site plan, whichever is more recent: Thereafter, the portion encompassed on such plat shall contain the number of Units determined Pr 4444 as set forth in the preceding paragraph. Any portion not encompassed on such plat shall continue to be treated in accordance with this paragraph.

Units may be combined or further subdivided, and boundary lines of Units may be changed, only by Recording of a plat or other legal instrument further subdividing or

resubdividing the parcel of property (which subdivision shall be subject to such other restrictions as may be set forth in this Declaration or rules of the Association). In the absence of Recording such a legal instrument, ownership of adjacent Units by the same Owner shall not permit such Units to be treated as a single Unit for purposes of voting and assessment, notwithstanding that. such Units may be improved with a single dwelling.

PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS

Article III Use and Conduct

3.1. Framework for Regulation.

The Governing Documents establish, as part of the general plan of development for Lantern Walk, a framework of affirmative and negative covenants, easements, and restrictions which govern Lantern Walk. Within that framework, the Board and the Members must have the ability to respond to unforeseen problems and changes in circumstances, conditions, needs, desires, trends, and technology. Therefore, this Article establishes procedures for modifying and expanding the initial Restrictions and Rules set forth in Exhibit "C.". This Article is not intended to apply to rules and regulations relating to use and operation of the Common Area which the Board may adopt by resolution pursuant to Section 7.1(c), nor to administrative policies which the Board may adopt to interpret, define or implement the Restrictions and Rules.

3.2. Rule Making Authority.

(a) Subject to the terms of this Article and the Board's duty to exercise business judgment and reasonableness on behalf of the Association and its Members, the Board may modify, cancel, limit, create exceptions to, or expand the Restrictions and Rules. The Board shall send notice to all Owners concerning any proposed action at least five business days prior to the Board meeting at which such action is to be considered. Members shall have a reasonable opportunity to be heard at a Board meeting prior to such action being taken.

Such action shall become effective, after compliance with subsection (c) below, unless more than 50% of the total Class "A" votes in the Association and the Class "B" Member, if any, BE 02595 disapprove such action at a meeting. The Board shall have no obligation to call a meeting of the Members to consider disapproval except upon receipt of a petition of the Members as required for special meetings in the By-Laws. Upon such petition of the Members prior to the effective date of any Board action under this Subsection, the proposed action shall not become effective until after such meeting is held, and then subject to the outcome of such meeting. g 1445

(b) Alternatively, Members representing more than 50% of the total Class "A" votes in the Association at an Association meeting duly called for such purpose, may vote to adopt

rules which modify, cancel, limit, create exceptions to, or expand the Restrictions and Rules then in effect. Such action shall require approval of the Class "B" Member, if any.

(c) Prior to any action taken under this Section becoming effective, the Board shall send a copy of the new rule or explanation of any changes to the Restrictions and Rules to each Owner. The effective date shall be not less than 30 days following distribution to Owners. The Association shall provide, without cost, a copy of the Restrictions and Rules then in effect to any requesting Member or Mortgagee.

(d) No action taken under this Article shall have the effect of modifying, repealing or expanding the Architectural Guidelines or any provision of this Declaration other than the initial Restrictions and Rules set forth in Exhibit "C." In the event of a conflict between the Architectural Guidelines and the Restrictions and Rules, the Architectural Guidelines shall control.

(e) The procedures required under this Section shall not apply to the enactment and enforcement of administrative rules and regulations governing use of the Common Area unless the Board chooses in its discretion to submit to such procedures. Examples of such administrative rules and regulations shall include, but not be limited to, speed limits on private alleys and right of ways, and limitations on use of passive parks or recreation areas.

3.3. Owners' Acknowledgment and Notice to Purchasers.

All Owners are given notice that use of their Units and the Common Area is limited by the Restrictions and Rules as amended, expanded and otherwise modified from time to time. Each Owner, by acceptance of a deed, acknowledges and agrees that the use and enjoyment and marketability of his or her Unit can be affected by this provision and that the Restrictions and Rules may change from time to time. All purchasers of Units are on notice that the Association may have adopted changes. Copies of the current Restrictions and Rules may be obtained from the Association.

3.4. Protection of Owners and Others.

Except as may be set forth in this Declaration (either initially or by amendment) or in the initial Restrictions and Rules set forth in Exhibit "C," all Restrictions and Rules shall comply with the following provisions:

(a) Similar Treatment. Similarly situated Owners shall be treated similarly. BL: 02595

Displays. The rights of Owners to display religious and holiday signs, symbols, and decorations inside structures on their Units of the kinds normally displayed in dwellings located in single-family residential neighborhoods shall not be abridged, except that the PgÜ446 Association may adopt time, place, and manner restrictions with respect to displays visible from outside the dwelling.

No rules shall regulate the content of political signs; however, rules may regulate the time, place, and manner of posting such signs (including design criteria).

(c) Household Composition. No rule shall interfere with the freedom of Owners to determine the composition of their households, except that the Association shall have the power to require that all occupants be members of a single housekeeping unit and to limit the total number of occupants permitted in each Unit on the 'basis of the size and facilities of the Unit and its fair use of the Common Area.

(d) Activities Within Dwellings. No rule shall interfere with the activities carried on within the confines of dwellings, except that the Association may prohibit activities not normally associated with property restricted to residential use, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive noise or traffic, that create unsightly conditions visible outside the dwelling, or that create an unreasonable source of annoyance.

(e) Allocation of Burdens and Benefits. No rule shall alter the allocation of financial burdens among the various Units or rights to use the Common Area to the detriment of any Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision shall prevent the Association from changing the Common Area available, from adopting generally applicable rules for use of Common Area, or from denying use privileges to those who are delinquent in paying assessments, abuse the Common Area, or violate the Governing Documents. This provision does not affect the right to increase the amount of assessments as provided in Article VIII.

(f) Alienation. No rule shall prohibit leasing or transfer of any Unit, or require consent of the Association or Board for leasing or transfer of any Unit; provided, the Association or the Board may require a minimum lease term of up to 12 months. The Association may require that Owners use lease forms approved by the Association, but shall not impose any fee on the lease or transfer of any Unit greater than an amount reasonably based on the costs to the Association of administering that lease or transfer.

Abridging Existing Rights. No rule shall require an Owner to dispose of personal property that was in or on a Unit prior to the adoption of such rule if such personal property was in compliance with all rules previously in force. This exemption shall apply only during the period of such Owner's ownership of the Unit, and shall not apply to subsequent Owners who take title to the Unit after adoption of the rule.

(h) Reasonable Rights to Develop. No rule or action by the Association or Board shall unreasonably impede Declarant's right to develop Lantern Walk.

The limitations in subsections (a) through (g) of this Section shall only limit rulemaking authority exercised under Section 3.2; they shall not apply to amendments to this Declaration adopted in accordance with Article XVIII.

Article IV Architecture and Landscaping

4.1. General.

No structure or thing shall be placed, erected, or installed upon any Unit and no improvements or other work (including staking, clearing, excavation, grading, and other site work, exterior alterations of existing improvements, or planting or removal of landscaping) shall take place within Lantern Walk, except in compliance with this Article and the Architectural Guidelines.

No approval shall be required to repaint the exterior of a structure in accordance with the originally approved color scheme or to rebuild in accordance with originally approved plans and specifications. Any Owner may remodel, paint or redecorate the interior of his or her Unit without approval. However, modifications to the interior of screened porches, patios, and similar portions of a Unit visible from outside the structure shall be subject to approval.

All dwellings constructed on any portion of Lantern Walk shall be designed by and built in accordance with the plans and specifications of a licensed architect unless Declarant or its designee otherwise approves in its sole discretion.

This Article shall not apply to Declarant's activities, nor to the Association's activities during the Class "B" Control Period.

4.2. Architectural Review.

(a) By Declarant. Each Owner, by accepting a deed or other instrument conveying any interest in any portion of Lantern Walk, acknowledges that, as the developer of Lantern Walk and as an owner of portions of Lantern Walk as well as other real estate within the vicinity of Lantern Walk, Declarant has a substantial interest in ensuring that the improvements within Lantern Walk enhance Declarant's reputation as a community developer and do not impair Declarant's ability to market, sell, or lease its property. Therefore, each Owner agrees that no activity within the scope of this Article shall be commenced on such Owner's Unit unless and until Declarant or its designee has given its prior written approval for such activity, which approval may be granted or withheld in the Declarant's or its designee's sole discretion.

In reviewing and acting upon any request for approval, Declarant or its designee shall be BE 02.595 acting solely in Declarant's interest and shall owe no duty to any other Person. Declarant's rights reserved under this Article shall continue so long as Declarant owns any portion of Lantern Walk or any real property adjacent to Lantern Walk, unless earlier terminated in a written instrument which Declarant has executed and Recorded.

P: 0448 Declarant may, in its sole discretion, designate one or more Persons from time to time to act on its behalf in reviewing applications hereunder.

Declarant may from time to time, but shall not be obligated to, delegate all or a portion of its reserved rights under this Article to (i) an architectural review committee appointed by the

Board of Directors (the "ARC"), or (ii) a committee comprised of architects, engineers or other persons who may or may not be Association Members. Any such delegation shall be in writing specifying the scope of responsibilities delegated and shall be subject to (i) Declarant's right to revoke such delegation at any time and reassume jurisdiction over the matters previously delegated and (ii) Declarant's right to veto any decision which Declarant determines, in its sole discretion, to be inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article, the jurisdiction of the foregoing entities shall be limited to such matters as Declarant specifically delegates to them.

(b) Architectural Review Committee. Upon delegation by Declarant or upon expiration or termination of Declarant's rights under this Article, the Association, acting through the ARC, shall assume jurisdiction over architectural matters. The ARC, when appointed, shall consist of at least three, but not more than seven, persons who shall serve and may be removed and replaced in the Board's discretion. The ARC members need not be Association Members or representatives of Members, and may, but need not, include architects, engineers or similar professionals, who may be compensated in such manner and amount if any, as the Board may establish.

Unless and until such time as Declarant delegates all or a portion of its reserved rights to the ARC or Declarant's rights under this Article terminate, the Association shall have no jurisdiction over architectural matters.

(c) Fees; Assistance. For purposes of this Article, the entity having jurisdiction in a particular case shall be referred to as the "Reviewer." The Reviewer may establish and charge reasonable fees for review of applications and may require such fees to be paid in full prior to review of any application. Such fees may include the reasonable costs incurred in having any application reviewed by architects, engineers, or other professionals. Declarant and the Association may employ architects, engineers, or other persons as deemed necessary to perform the review. The Board may include the compensation of such persons in the Association's annual operating budget.

4.3. Guidelines and Procedures.

(a) Architectural Guidelines. Declarant may prepare the initial Architectural Guidelines, which may contain general provisions applicable to all of Lantern Walk. The Architectural Guidelines are intended to provide guidance to Owners and Builders regarding BE 02595 matters of particular concern to the Reviewer in considering applications. The Architectural Guidelines are not the exclusive basis for decisions of the Reviewer and compliance with the Architectural Guidelines does not guarantee approval of any application.

Declarant shall have sole and full authority to amend the Architectural Guidelines as long Pg 0449 as it owns any portion of or has a right to expand Lantern Walk pursuant to Section 9.1, notwithstanding a delegation of reviewing authority to the ARC, unless Declarant also delegates the power to amend to the ARC. Upon termination or delegation of Declarant's right to amend, the ARC shall have the authority to amend the Architectural Guidelines with the Board's consent.

- Any amendments to the Architectural Guidelines shall be prospective only and shall not apply to require modifications to or removal of structures previously approved once the approved construction or modification has commenced. There shall be no limitation on the scope of amendments to the Architectural Guidelines, and such amendments may remove requirements previously imposed or otherwise make the Architectural Guidelines less restrictive.

The Reviewer shall make the Architectural Guidelines available to Owners and Builders who seek to engage in development or construction within Lantern Walk. In Declarant's discretion, such Architectural Guidelines may be Recorded, in which event the Recorded version, as it may unilaterally be amended from time to time, shall control in the event of any dispute as to which version of the Architectural Guidelines was in effect at any particular time.

(b) Procedures. Except as otherwise specifically provided in the Architectural Guidelines, no activities shall commence on any portion of Lantern Walk until an application for approval has been submitted to and approved by the Reviewer. Such application shall include plans and specifications showing site layout, structural design, exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of proposed construction, as applicable. The Architectural Guidelines and the Reviewer may require the submission of such additional information as may be reasonably necessary to consider any application.

In reviewing cach submission, the Reviewer may consider any factors it deems relevant, including, without limitation, harmony of external design with surrounding structures and environment. Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that determinations as to such matters are purely subjective and opinions may vary as to the desirability and/or attractiveness of particular improvements. The Reviewer shall have the sole discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment and such determinations shall not be subject to review so long as made in good faith and in accordance with the procedures set forth herein.

The Reviewer shall make a determination on each application within 30 days after receipt of a completed application and all required information. The Reviewer may (i) approve the application, with or without conditions; (ii) approve a portion of the application and disapprove other portions; or (ini) disapprove the application.

Until the expiration of Declarant's rights under this Article, the ARC shall notify BL 02595 Declarant in writing within three business days after the ARC has approved any application within the scope of matters delegated to the ARC by Declarant. The notice shall be accompanied by a copy of the application and any additional information which. Declarant may require. Declarant shall have 10 days after receipt of such notice to veto any such action, in its sole discretion, by written notice to the ARC. Pg 0450

The Reviewer shall notify the applicant in writing of the final determination on any application within five days thereafter or, with respect to any determination by the ARC subject to Declarant's veto right, within five days after the earlier of: (i) receipt of notice of Declarant's

veto or waiver thereof; or (ii) expiration of the 10-day period for exercise of Declarant's veto. In the case of disapproval, the Reviewer may, but shall not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any objections.

In the event that the Reviewer fails to respond in a timely manner, approval shall be deemed to have been given, subject to Declarant's right to veto pursuant to this Section. However, no approval, whether expressly granted or deemed granted, shall be inconsistent with the Architectural Guidelines unless a written variance has been granted pursuant to Section 4.5. Notice shall be deemed to have been given at the time the envelope containing the response is deposited with the U.S. Postal Service. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to have been given at the time of delivery to the applicant.

If construction does not commence on a project for which plans have been approved within one year after the date of approval, such approval shall be deemed withdrawn and it shall be necessary for the Owner to reapply for approval before commencing any activities. Once construction is commenced, it shall be diligently pursued to completion. All work shall be completed within one year of commencement unless otherwise specified in the notice of approval or unless the Reviewer grants an extension in writing, which it shall not be obligated to do. If approved work is not completed within the required time, it shall be considered nonconforming and shall be subject to enforcement action by the Association, Declarant or any aggrieved Owner.

The Reviewer may, by resolution, exempt certain activities from the application and approval requirements of this Article, provided such activities are undertaken in strict compliance with the requirements of such resolution.

4.4. No Waiver of Future Approvals.

Each Owner acknowledges that the persons reviewing applications under this Article will change from time to time and that opinions on aesthetic matters, as well as interpretation and application of the Architectural Guidelines, may vary accordingly. In addition, each Owner acknowledges that it may not always be possible to identify objectionable features until work is completed, in which case it may be unreasonable to require changes to the improvements involved, but the Reviewer may refuse to approve similar proposals in the future. Approval of applications or plans, or in connection with any other matter requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any similar applications, plans, or other matters subsequently or additionally submitted for approval. BL: 02595

4.5. Variances.

The Reviewer may authorize variances from compliance with any of its guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or aesthetic suite, but only PE 0451 regulations. or environmental considerations require, but only in accordance with duly adopted rules and

No variance shall (a) be effective unless in writing; (b) be contrary to this Declaration; or (c) preclude the Reviewer from denying a variance in other circumstances. For purposes of this Section, the inability to obtain approval of any governmental agency, the

issuance of any permit, or the terms of any financing shall not be considered a hardship warranting a variance.

4.6. Limitation of Liability

The standards and procedures established by this Article are intended as a mechanism for maintaining and enhancing the overall aesthetics of Lantern Walk; they do not create any duty to any Person. Review and approval of any application pursuant to this Article may be made on the basis of aesthetic considerations only, and the Reviewer shall not bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements, nor for ensuring that all dwellings are of comparable quality, value or size, of similar design, or aesthetically pleasing or otherwise acceptable to neighboring property owners.

Declarant, the Association, the Board, any committee, or member of any of the foregoing shall not be held liable for soil conditions, drainage or other general site work; any defects in plans revised or approved hereunder; any loss or damage arising out of the action, inaction, integrity, financial condition or quality of work of any contractor or its subcontractors, employces or agents, whether or not Declarant has approved or featured such contractor as a builder in Lantern Walk; or any injury, damages, or loss arising out of the manner or quality or other circumstances of approved construction on or modifications to any Unit. In all matters, the Board, the ARC, and the members of each shall be defended and indemnified by the Association as provided in Section 7.6.

4.7. Certificate of Compliance.

Any Owner may request that the Reviewer issue a certificate of architectural compliance certifying that there are no known violations of this Article or the Architectural Guidelines. The Association shall either grant or deny such request within 30 days after receipt of a written request and may charge a reasonable administrative fee for issuing such certificates. Issuance of such a certificate shall preclude the Association from taking enforcement action with respect to any condition as to which the Association had notice as of the date of such certificate.

Article V Maintenance and Repair

5.1. Maintenance of Units

BL 02595 Each Owner shall maintain his or her Unit and all landscaping and improvements comprising the Unit in a manner consistent with the Governing Documents, the CommunityWide Standard and all applicable covenants, unless such maintenance responsibility is otherwise assumed by or assigned to the Association pursuant to any Supplemental Declaration or other Pg 045% declaration of covenants applicable to such Unit.

5.2. Responsibility for Repair and Replacement.

Unless otherwise specifically provided in the Governing Documents or in other instruments creating and assigning maintenance responsibility, responsibility for maintenance shall include responsibility for repair and replacement, as necessary to maintain the property to a level consistent with the Community-Wide Standard

By virtue of taking title to a Unit, each Owner covenants and agrees with all other Owners and with the Association to carry property insurance for the full replacement cost of all insurable improvements on his or her Unit, less a reasonable deductible, unless the Association carries such insurance (which they may, but are not obligated to do hereunder). If the Association assumes responsibility for obtaining any insurance coverage on behalf of Owners, the premiums for such insurance shall be levied as a Specific Assessment against the benefited Unit and the Owner.

Each Owner further covenants and agrees that in the event of damage to or destruction of structures on or comprising his or her Unit, the Owner shall proceed promptly to repair or to reconstruct in a manner consistent with the original construction or such other plans and specifications as are approved in accordance with Article IV. Alternatively, the Owner shall clear the Unit and maintain it in a neat and attractive, landscaped condition consistent with the Community-Wide Standard. The Owner shall pay any costs not covered by insurance proceeds.

PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION

Article VI The Association and its Members

6.1. Function of Association.

The Association is the entity responsible for management, maintenance, operation and control of the Area of Common Responsibility. The Association also is the primary entity responsible for enforcement of the Governing Documents. The Association shall perform its functions in accordance with the Governing Documents and Georgia law.

6.2. Membership.

BL 02595 Every Owner shall be a Member of the Association. There shall be only one membership per Unit. If a Unit is owned by more than one Person, all co-Owners shall share the privileges of such membership, subject to reasonable Board regulation and the restrictions on voting set forth in the By-Laws, and all such co-Owners shall be jointly and severally obligated to perform the ₽g Û453 responsibilities of Owners. The membership rights of an Owner which is not a natural person may be exercised by any officer, director, partner or trustee, or by the individual designated from time to time by the Owner in a written instrument provided to the Association's Secretary.

6.3. Voting.

The Association shall have two classes of membership, Class "A" and Class "B".

Class."A% Class "A" Members shall be all Owners except the Class "B! ember, if any. Class "A" Members shall have one equal vote for each Unit in which they hold the interest required for membership under Section 6.2, except that there shall be only one vote per Unit. No vote shall be exercised for any property which is exempt from assessment under Section 8.8. In any situation where there is more than one Owner of a Unit, the vote for such Unit shall be exercised as the co-Owners determine among themselves and advise the Secretary of the Association in writing prior to the vote being taken. Absent such advice, the Units' vote shall be suspended if more than one Person seeks to exercise it.

(b) Class "B% The sole Class "B% 'ember shall be the Declarant. The Class "B" Member may appoint a majority of the Board members during the Class "B" Control Period, as specified in the By-Laws. Additional rights of the Class "B" Member are specified in the relevant sections of the Governing Documents. After termination of the Class "B" Control Period, the Class "B" Member shall have a right to disapprove actions of the Board and committees as provided in the By-Laws.

The Class "B" membership shall terminate upon the earlier of:

(1) two years after expiration of the Class "B" Control Period as provided in Article II; or

(ii) when, in its discretion, Declarant so determines and declares in a Recorded instrument.

Upon termination of the Class "B" membership, Declarant shall be a Class "A" Member entitled to Class "A" votes for each Unit which it owns.

In recognition of the different character and intended use of the property subject to such Supplemental Declaration, Declarant may, by Supplemental Declaration, create additional classes of membership for the owners of Units within any property made subject to this Declaration pursuant to Article IX. These classes shall have such rights, privileges, and obligations as specified in such Supplemental Declaration.

Article VII Association Powers and Responsibilities BL 02595

7.1. Acceptance and Control of Association Property.

The Association, through action of its Board, may acquire, hold, lease (as lessor or PE. 0454 lessee), operate and dispose of tangible and intangible personal property and real property. The Association may enter into leases, licenses, or operating agreements for portions of the Common Area, for such consideration or no consideration as the Board deems appropriate, to permit use of such portions of the Common Area by community organizations and by others, whether nonprofit

or for profit, for the provision of goods or services for the general benefit or convenience of owners, occupants and residents of Lantern Walk.

(b) Declarant and its designees may convey to the Association, and the Association shall accept, personal property and fee title, leasehold, or other property interests in any real property, improved or unimproved, described in Exhibit "A ' or "B." Upon Declarant's written request, the Association shall reconvey to Declarant any unimproved portions of the Common Area which Declarant originally conveyed to the Association for no consideration, to the extent conveyed by Declarant in error or needed by Declarant to make minor adjustments in property lines.

The Association shall be responsible for management, operation, and control of the Common Area, subject to any covenants and restrictions set forth in the deed or other instrument transferring such property to the Association. The Board may adopt such reasonable rules regulating use of the Common Area as it deems appropriate.

7.2. Maintenance of Area of Common Responsibility.

The Association shall maintain, in accordance with the Community-Wide Standard, the Area of Common Responsibility, which shall include, but need not be limited to:

(a) all portions of and structures situated on the Common Area;

(D) landscaping within public rights-of-way within or abutting Lantern Walk;

(c) such portions of any additional property included within the Area of Common Responsibility as may be dictated by this Declaration, any Supplemental Declaration, or any contract or agreement for maintenance thereof entered into by the Association;

(a) all ponds, streams, and/or wetlands located within Lantern Walk which serve as part of the stormwater drainage system for Lantern Walk, including improvements and equipment installed therein or used in connection therewith;

(e) all perimeter fencing located on or adjacent to the boundary of Lantern Walk, as initially installed by Declarant; and

(f) BL: 02595 any property and facilities which Declarant owns and makes available, on a temporary or permanent basis, for the primary use and enjoyment of the Association and its Members. Such property and facilities shall be identified by written notice from Declarant to the Association and will remain part of the Area of Common Responsibility maintained by the Association until such time as Declarant revokes such privilege of use and enjoyment by written ₽g_Û455 notice to the Association.

The Association may maintain other property which it does not own, including, without limitation, property dedicated to the public, if the Board determines that such maintenance is necessary or desirable to maintain the Community-Wide Standard.

The Association shall not be liable for any damage or injury occurring on or arising out of the condition of property which it does not own except to the extent that it has been negligent in the performance of its maintenance responsibilities.

The Association shall maintain the facilities and equipment within the Area of Common Responsibility in continuous operation, except for any periods necessary, as determined in the Board's sole discretion, to perform required maintenance or repairs, unless 75% of the Class "A" votes in the Association and the Class "B" Member, if any, agree in writing to discontinue such operation.

Except as provided above, the Area of Common Responsibility shall not be reduced except with Declarant's prior written approval as long as Declarant owns any property described in Exhibit "A" or "B" of this Declaration.

The costs associated with maintenance, repair and replacement of the Area of Common Responsibility shall be a Common Expense; provided, the Association may seek reimbursement from the owner(s) of, or other Persons responsible for, certain portions of the Area of Common Responsibility pursuant to this Declaration, other Recorded covenants, or agreements with the owner(s) thereof.

7.3. Insurance.

(a) Required Coverages. The Association, acting through its Board or its duly authorized agent, shall obtain and continue in effect the following types of insurance, if reasonably available, or if not reasonably available, the most nearly equivalent coverages as are reasonably available:

(i) Blanket property insurance covering "risks of direct physical loss" on a "special form" basis (or comparable coverage by whatever name denominated) for all insurable improvements on the Common Area and within the Area of Common Responsibility to the extent that Association has assumed responsibility in the event of a casualty, regardless of ownership. If such coverage is not generally available at reasonable cost, then "broad form" coverage may be substituted. All property insurance policies obtained by the Association shall have policy limits sufficient to cover the full replacement cost of the insured improvements under current building ordinances and codes;

(ii) Comractial general liability insurance on the Area of Cominon Responsibility, insuring the Association and its Members for damage or injury caused by the negligence of the Association or any of its Members, employees, agents, or contractors while acting on its behalf. If generally available at reasonable cost, such coverage (including primaryt and any umbrella coverage) shall have a limit of at least $1,000,000.00 per occurrence with respect to bodily injury, personal injury, and property damage; provided, should additional coverage and higher limits be available at reasonable cost which a reasonably prudent person would obtain, the Association shall obtain such additional coverages or limits;

(111) Workers compensation insurance and employers liability insurance, if and to the extent required by law;

(iv) Directors and officers liability coverage;

(V) Commercial crime insurance, including fidelity insurance covering all Persons responsible for handling Association funds in an amount determined in the Board's business judgment but not less than an amount equal to one-quarter of the annual Base Assessments on all Units plus reserves on hand. Fidelity insurance policies shall contain a waiver of all defenses based upon the exclusion of Persons serving without compensation; and

(Vi) Such additional insurance as the Board, in the exercise of its business judgment, determines advisable.

Any such policies shall provide for a certificate of insurance to be furnished upon request to the Owner of each Unit insured.

Premiums for all insurance on the Area of Common Responsibility shall be Common Expenses, unless the Board reasonably determines that other treatment of the premiums is more appropriate.

(b) Policy Requirements. The Association shall arrange for an annual review of the sufficiency of its insurance coverage by one or more qualified Persons, at least one of whom must be familiar with insurable replacement costs in the metropolitan Atlanta area. Association policies shall provide for a certificate of insurance to be furnished to the Association and, upon request, to each Member insured.

The policies may contain a reasonable deductible and the amount thereof shall not be subtracted from the face amount of the policy in determining whether the policy limits satisfy the requirements of Section 7.3(a). In the event of an insured loss, the deductible shall be treated as a Common Expense in the same manner as the premiums for the applicable insurance coverage. However, if the Board reasonably determines, after notice and an opportunity to be heard in accordance with the By-Laws, that the loss is the result of the negligence or willful misconduct of one or more Owners, their guests, invitees, or lessees, then the Board may assess the full amount of such deductible against such Owner(s) and their Units as a Specific Assessment.

All insurance coverage obtained by the Board shall:

be written with a company authorized to do business in Georgia which satisfies the requirements of the Federal National Mortgage Association, or such other secondary mortgage market agencies or federal agencies as the Board deems appropriate;

be written in the name of the Association as trustee for the benefitted parties. Policies on the Common Areas shall be for the benefit of the Association and its Members;

(iii) not be brought into contribution with insurance purchased by Owners, occupants, or their Mortgagees individually;

(IV) contain an inflation guard endorsement;

(V) include an agreed amount endorsement, if the policy contains a coinsurance clause;

(vi). provide that each Owner is an insured person under the policy with respect to liability arising out of such Owner's interest in the Common Area as a Member in the Association (provided, this provision shall not be construed as giving an Owner any interest in the Common Area other than that of a Member);

(vii) provide a waiver of subrogation under the policy against any Owner or household member of an Owner;

(vini) include an endorsement precluding cancellation, invalidation, suspension, or non-renewal by the insurer on account of any one or more individual Owners, or on account of any curable defect or violation without prior written demand to the Association to cure the defect or violation and allowance of a reasonable time to cure; and

(ix) include an endorsement precluding cancellation, invalidation, or condition to recovery under the policy on account of any act or omission of any one or more individual Owners, unless such Owner is acting within the scope of its authority on behalf of the Association.

In addition, the Board shall use reasonable efforts to secure insurance policies which list the Owners as additional insureds and provide:

(1) a waiver of subrogation as to any claims against the Association's Board, officers, employees, and its manager, the Owners and their tenants, servants, agents, and guests;

(11) a waiver of the insurer's rights to repair and reconstruct instead of paying cash;

BL: 02595 (111) an endorsement excluding Owners' individual policies from consideration under any "other insurance" clause;

(iV) an endorsement requiring at least 30 days' prior written notice to the Association of any cancellation, substantial modification, or non-renewal; PE 0458 a cross liability provision; and

(Vi) a provision vesting in the Board exclusive authority to adjust losses; provided, however, no Mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related to the loss.

(c) Restoring Damaged Improvements. In the event of damage to or destruction of Common Area or other property which the Association is obligated to insure, the Board or its duly authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of the cost of repairing or restoring the property to substantially the condition in which it existed prior to the damage, allowing for changes or improvements necessitated by changes in applicable building codes.

Damaged improvements on the Common Area shall be repaired or reconstructed unless at decide within 60 days after the loss not to repair or reconstruct. If either the insurance proceeds or estimates of the loss, or both, are not available to the Association within such 60-day period, then the period shall be extended until such funds or information are available. However, such extension shall not exceed 60 additional days. No Mortgagee shall have the right to participate in the determination of whether the damage or destruction to the Common Area shall be repaired or reconstructed.

If a decision is made not to restore the damaged improvements, and no alternative improvements are authorized, the affected property shall be cleared of all debris and ruins and thereafter shall be maintained by the Association in a neat and attractive, landscaped condition consistent with the Community-Wide Standard.

Any insurance proceeds remaining after paying the costs of repair or reconstruction, or after such settlement as is necessary and appropriate, shall be retained by the Association for the benefit of its Members and placed in a capital improvements account. This is a covenant for the benefit of Mortgagees and may be enforced by the Mortgagee of any affected Unit.

If insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Board may, without a vote of the Members, levy Special Assessments to cover the shortfall against those Owners responsible for the premiums for the applicable insurance coverage under Section 7.3(a).

7.4. Compliance and Enforcement. BL 02595 (a) Every Owner and occupant of a Unit shall comply with the Governing Documents. The Board may impose sanctions for violation of the Governing Documents after notice and a hearing in accordance with the procedures set forth in the By-Laws. Such sanctions may include, without limitation:

imposing reasonable monetary fines which shall constitute a lien upon the Violator's Unit. (In the event that any occupant, guest or invitee of a Unit violates the Governing Documents and a fine is imposed, the fine shall first be assessed against the violator; provided,

however, if the fine is not paid by the violator within the time period set by the Board, the Owner • shall pay the fine upon notice from the Board);

suspending an Owner's right to vote;

(111) suspending any Person's right to use any recreational facilities within the Common Area; provided, however, nothing herein shall authorize the Board to limit ingress or egress to or from a Unit;

(iv) suspending any services provided by the Association to an Owner or the Owner's Unit if the Owner is more than 30 days delinquent in paying any assessment or other charge owed to the Association;

(v) exercising self-help or taking action to abate any violation of the Governing Documents in a non-emergency situation;

(vi) requiring an Owner, at its own expense, to remove any structure or improvement on such Owner's Unit in violation of the Governing Documents and to restore the Unit to its previous condition and, upon failure of the Owner to do so, the Board or its designee shall have the right to enter the property, remove the violation and restore the property to substantially the same condition as previously existed and any such action shall not be deemed a trespass;

(Vii) without liability to any Person, precluding any contractor, subcontractor, agent, employee or other invitee of an Owner who fails to comply with the terms and provisions of Article IV and the Architectural Guidelines from continuing or performing any further activities in Lantern Walk; and

(viii) levying Specific Assessments to cover costs incurred by the Association to bring a Unit into compliance with the Governing Documents.

In addition, the Board may take the following enforcement procedures to ensure compliance with the Governing Documents without the necessity of compliance with the procedures set forth in the By-Laws:

(1) exercising self-help in any emergency situation (specifically including, but BE U2595 not limited to, the towing of vehicles that are in violation of parking rules and regulations); or

(11) bringing suit at law or in equity to enjoin any violation or to recover monetary damages or both.

P 0460 In addition to any other enforcement rights, if an Owner fails properly to perform his or her maintenance responsibility, the Association may Record a notice of violation or perform such maintenance responsibilities and assess all costs incurred by the Association against the Unit and the Owner as a Specific Assessment. Except in an emergency situation, the Association shall

provide the Owner reasonable notice and an opportunity to cure the problem prior to taking such

enforcement action.

All remedies set forth in the Governing Documents shall be cumulative of any remedies

available at law or in equity. In any action to enforce the Governing Documents, if the

Association prevails, it shall be entitled to recover all costs, including, without limitation,

attorney's fees and court costs, reasonably incurred in such action.

(b) The decision to pursue enforcement action in any particular case shall be left to

the Board's discretion, except that the Board shall not be arbitrary or capricious in taking

enforcement action. Without limiting the generality of the foregoing sentence, the Board may

determine that, under the circumstances of a particular case:

(i) the Association's position is not strong enough to justify taking any or

further action; or

(ii) the covenant, restriction or rule being enforced is, or is likely to be

construed as, inconsistent with applicable law;

(iii) although a technical violation may exist or may have occurred, it is not of

such a material nature as to be objectionable to a reasonable person or to justity expending the

Association's resources; or

(iv) that it is not in the Association's best interests, based upon hardship,

expense, or other reasonable criteria, to pursue enforcement action.

Such a decision shall not be construed a waiver of the right of the Association to enforce such

provision at a later time under other circumstances or preclude the Association from enforcing

any other covenant, restriction or rule.

The Association, by contract or other agreement, may enforce applicable county E are at for the

ordinances and permit Athens-Clarke County to enforce ordinances within Lantern Walk for the

benefit of the Association and its Members.

7.5. Implied Rights; Board Authority.

The Association may exercise any right or privilege given to it expressly by the

Governing Documents, or reasonably implied from or reasonably necessary to effectuate any

such right or privilege. All rights and powers of the Association may be exercised by the Board BE 02395 g 0401 without a vote of the membership except where applicable law or the Governing Documents

specifically require a vote of the membership.

The Board may institute, defend, settle, or intervene on behalf of the Association in

mediation, binding or non-binding arbitration, litigation, or administrative proceedings in matters

pertaining to the Area of Common Responsibility, enforcement of the Governing Documents, or

any other civil claim or action. However, the Governing Documents shall not be construed as

creating any independent legal duty to institute litigation on behalf of or in the name of the Association or its Members:

In exercising the rights and powers of the Association, making decisions on behalf of the Association, and conducting the Association's affairs, Board members shall be subject to, and their actions shall be judged in accordance with, the standards set forth in the By-Laws.

7.6. Indemnification of Officers, Directors and Others.

Subject to Georgia law, the Association shall indemnify every officer, director, and committee member against all damages and expenses, including counsel fees, reasonably incurred in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of being or having been an officer, director, or committee member, except that such obligation to indemnify shall be limited to those actions for which liability is limited under this Section and Georgia law.

The officers, directors, and committee members shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made or action taken in good faith on behalf of the Association (except to the extent that such officers or directors may also be Members of the Association).

The Association shall indemnify and forever hold each such officer, director and committee member harmless from any and all liability to others on account of any such contract, commitment or action. This right to indemnification shall not be exclusive of any other rights to which any present or former officer, director, or committee member may be entitled. The Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably available.

7.7. Safety and Security.

Each Owner and occupant of a Unit, and their respective guests and invitees, shall

BL 02595 Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within Lantern Walk, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures Pe 0462 undertaken.

No representation or warranty is made that any systems or measures cannot be compromised or circumvented, nor that any such systems or security measures undertaken will in all cases prevent loss or provide the detection or protection for which the system is

designed or intended. Each Owner acknowledges, understands and shall be responsible for informing its tenants and all occupants of its Unit that the Association, its Board and committees, and Declarant are not insurers or guarantors of security or safety and that each Person within Lantern Walk assumes all risks of personal injury and loss or damage to property, including Units and the contents of Units, resulting from acts of third parties.

7.8. Provision of Services.

The Association may provide, or provide for, services and facilities for the Members and their Units, and shall be authorized to enter into and terminate contracts or agreements with other entities, including Declarant, to provide such services and facilities. The Board may charge use or service fees for any such services and facilities provided at the option of an Owner, or may include the costs thereof in the Association's budget as a Common Expense and assess it as part of the Base Assessment if provided to all Units. By way of example, such services and facilities might include landscape maintenance, garbage disposal, cable television service, security, utilities, and similar services and facilities.

Nothing in this Section shall be construed as a representation by Declarant or the Association as to what, if any, services shall be provided. In addition, the Board shall be permitted to modify or cancel existing contracts for services in its discretion, unless the provision of such services is otherwise required by the Governing Documents. Non-use of services provided to all Owners or Units as a Common Expense shall not exempt any Owner from the obligation to pay assessments for such services.

7.9. Relationships with Other Properties

The Association may enter into contractual agreements or covenants to share costs with any neighboring property to contribute funds for, among other things, shared or mutually beneficial property or services and/or a higher level of Common Area maintenance.

7.10. Facilities and Services Open to the Public.

Certain facilities and areas within Lantern Walk may be open for use and enjoyment of the public. Such facilities and areas may include, by way of example: greenbelts, trails and paths, parks, and other neighborhood spots conducive to gathering and interaction, roads, sidewalks, and medians. Declarant may designate such facilities and areas as open to the public at the time Declarant makes such facilities and areas a part of the Area of Common 8L 02595 Responsibility or the Board may so designate at any time thereafter.

Article VIII Association Finances

8.1. Budgeting and Allocating Common Expenses. ₽½_0463 At least 60 days before the beginning of each fiscal year, the Board shall prepare a budget of the estimated Common Expenses for the coming year, including any contributions to be made to a reserve fund pursuant to Section 8.2. The budget shall also reflect the sources and estimated

amounts of funds to cover such expenses, which may include any surplus to be applied from prior years, any income expected from sources other than assessments levied against the Units, and the amount to be generated through the levy of Base Assessments and Special Assessments against the Units, as authorized in Section 8.5.

The Association is authorized to levy Base Assessments equally against all Units subject to assessment under Section 8.5 to fund the Common Expenses. In determining the Base Assessment rate per Unit, the Board may consider any assessment income expected to be generated from any additional Units reasonably anticipated to become subject to assessment during the fiscal year.

Declarant may, but shall not be obligated to, reduce the Base Assessment for any fiscal year by payment of a subsidy (in addition to any amounts paid by Declarant under Section 8.6(b)), which may be either a contribution, or a loan, in Declarant's discretion. Any such subsidy shall be disclosed as a line item in the income portion of the budget. Payment of such subsidy in any year shall not obligate Declarant to continue payment of such subsidy in future years, unless otherwise provided in a written agreement between the Association and Declarant.

The Board shall send a copy of the final budget, together with notice of the amount of the Base Assessment to be levied pursuant to such budget, to each Owner at least 30 days prior to the effective date of such budget. The budget shall automatically become effective unless disapproved at a meeting by Members representing at least 75% of the total Class "A" votes in the Association and by the Class "B" Member, if such exists. There shall be no obligation to call a meeting for the purpose of considering the budget except on petition of the Members as provided for special meetings of the By-Laws. Any such petition must be presented to the Board within 10 days after delivery of the budget and notice of any assessment.

If any proposed budget is disapproved or the Board fails for any reason to determine the budget for any year, then the budget most recently in effect shall continue in effect until a new budget is determined.

The Board may revise the budget and adjust the Base Assessment from time to time during the year, subject to the notice requirements and the right of the Members to disapprove the revised budget as set forth above.

BL 02595 8.2. Budgeting for Reserves

The Board shall prepare and review at least annually a reserve budget for the Area of Common Responsibility. The budgets shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost. The Board shall include in the Common Expense budget adopted pursuant to Section 8.1 a capital contribution to fund reserves in an amount sufficient to meet the projected need with respect to both amount and timing by annual contributions over the budget period.

8.3. Special Assessments.

In addition to other authorized assessments, the Association may levy Special Assessments to cover unbudgeted expenses or expenses in excess of those budgeted. Any such Special Assessment may be levied against the entire membership, if such Special Assessment is for Common Expenses. Except as otherwise specifically provided in this Declaration, any Special Assessment shall require the affirmative vote or written consent of Members representing more than 50% of the total votes allocated to Units which will be subject to such Special Assessment, and the affirmative vote or written consent of the Class "B" Member, if such exists. Special Assessments shall be payable in such manner and at such times as determined by the Board, and may be payable in installments extending beyond the fiscal year in which the Special Assessment is approved.

8.4. Specific Assessments.

The Association shall have the power to levy Specific Assessments against a particular Unit as follows:

(a) to cover the costs, including overhead and administrative costs, of providing services to Units upon request of an Owner pursuant to any menu of special services which may be offered by the Association (which might include the items identified in Section 7.9). Specific Assessments for special services may be levied in advance of the provision of the requested service; and

(b) to cover costs incurred in bringing the Unit into compliance with the Governing Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of the Unit, their agents, contractors, employees, licensees, invitees, or guests; provided, the Board shall give the Unit Owner prior written notice and an opportunity for a hearing, in accordance with the By-Laws, before levying any Specific Assessment under this subsection.

8.5. Authority to Assess Owners; Time of Payment.

Declarant hereby establishes and the Association is hereby authorized to levy assessments as provided for in this Article and elsewhere in the Governing Documents. The obligation to pay assessments shall commence as to each Unit on the first day of the month following: (a) the month in which the Unit is made subject to this Declaration, or (b) the month in which the Board first determines a budget and levies assessments pursuant to this Article, whichever is later. The BL 02595 first annual Base Assessment levied on each Unit shall be adjusted according to the number of months remaining in the fiscal year at the time assessments commence on the Unit.

Assessments shall be paid in such manner and on such dates as the Board may establish. The Board may require advance payment of assessments at closing of the transfer of title to a ₽‡ 0465 Unit and impose special requirements for Owners with a history of delinquent payment. If the Board so elects, assessments may be paid in two or more installments. Unless the Board otherwise provides, the Base Assessment shall be due and payable in advance on the first day of each fiscal year. If any Owner is delinquent in paying any assessments or other charges levied on

his or her Unit, the Board may require the outstanding balance on all assessments to be paid in full immediately.

8.6. Obligation for Assessments.

Each Owner, by accepting a deed or entering into a Recorded contract of sale for any portion of Lantern Walk, is deemed to covenant and agree to pay all assessments authorized in the Governing Documents. All assessments, together with interest (computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish, subject to the limitations of Georgia law), late charges as determined by Board resolution, costs, and reasonable attorney's fees, shall be the personal obligation of each Owner and a lien upon each Unit until paid in full. Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance.

Failure of the Board to fix assessment amounts or rates or to deliver or mail to each Owner an assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the obligation to pay assessments. In such event, each Owner shall continue to pay Base Assessments on the same basis as during the last year for which an assessment was made, if any, until a new assessment is levied, at which time the Association may retroactively assess any shortfalls in collections.

No Owner may exempt himself or herself from liability for assessments by non-use of Common Area, abandonment of his or her Unit, or any other means. The obligation to pay assessments is a separate and independent covenant on the part of each Owner. No diminution or abatement of assessments or set-off shall be claimed or allowed for any alleged failure of the Association or Board to take some action or perform some function required of it, or for inconvenience or discomfort arising from the making of repairs or improvements, or from any other action it takes.

Upon written request, the Association shall furnish to any Owner liable for any type of assessment a certificate in writing signed by an Association officer setting forth whether such assessment has been paid. Such certificate shall be conclusive evidence of payment. The Association may require the advance payment of a reasonable processing fee for the issuance of such certificate.

(b) Declarant's Option to Fund Budget Deficits. During the Class "B" Control Period, Declarant may satisfy its obligation for assessments on Units which it owns either by paying such assessments in the same manner as any other Owner or by paying the difference between the amount of assessments levied on all other Units subject to assessment and the amount of actual expenditures by the Association during the fiscal year. Unless Declarant otherwise notifies the Board in writing at least 60 days before the beginning of each fiscal year, Declarant shall be deemed to have elected to continue paying on the same basis as during the immediately PE 0466 preceding fiscal year.

Regardless of Declarant's election, Declarant's obligations hereunder may be satisfied in the form of cash or by "in kind" contributions of services or materials, or by a combination of

these. After termination of the Class "B" Control Period, Declarant shall pay assessments on its unsold Units in the same manner as any other Owner.

8.7. Lien for Assessments.

The Association shall have a lien against each Unit to secure payment of delinquent assessments, as well as interest, late charges (subject to the limitations of Georgia law), and costs of collection (including attorney's fees). Such lien shall be superior to all other liens, except (a) the liens of all taxes, bonds, assessments, and other levies which by law would be superior, and (b) the lien or charge of any Recorded first Mortgage (meaning any Recorded Mortgage with first priority over other Mortgages) made in good faith and for value. Such lien, when delinquent, may be enforced by suit, judgment, and judicial or nonjudicial foreclosure.

The Association may bid for the Unit at the foreclosure sale and acquire, hold, lease, mortgage, and convey the Unit. While a Unit is owned by the Association following foreclosure: (a) no right to vote shall be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Unit shall be charged, in addition to its usual assessment, its pro rata share of the assessment that would have been charged such Unit had it not been acquired by the Association. The Association may sue for unpaid assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the same.

Sale or transfer of any Unit shall not affect the assessment lien or relieve such Unit from the lien for any subsequent assessments. However, the sale or transfer of any Unit pursuant to foreclosure of the first Mortgage shall extinguish the lien as to any installments of such assessments due prior to the Mortgagee's foreclosure. The subsequent Owner to the foreclosed Unit shall not be personally liable for assessments on such Unit due prior to such acquisition of title. Such unpaid assessments shall be deemed to be Common Expenses collectible from Owners of all Units subject to assessment under Section 8.6, including such acquirer, its successors and assigns.

8.8. Exempt Property.

The following property shall be exempt from payment of Base Assessments, Special Assessments, and Specific Assessments:

(a) All Common Area and such portions of the property owned by Declarant as are included in the Area of Common Responsibility; and

(b) Any property dedicated to and accepted by any governmental authority or public utility.

8.9. Capitalization of Association. ₽¿ 0407 Upon acquisition of record title to a Unit by the first Owner thereof other than Declarant or a Builder, a contribution shall be made by or on behalf of the purchaser to the working capital

of the Association in an amount equal to $250.00. This amount shall be in addition to, not in lieu of, the annual Base Assessment and shall not be considered an advance payment of such assessment. This amount shall be deposited into the purchase and sales escrow and disbursed therefrom to the Association for use in covering operating expenses and other expenses incurred by the Association pursuant to this Declaration and the By-Laws.

PART FOUR: COMMUNITY DEVELOPMENT

Article IX Expansion of the Community

9.1. Expansion by Declarant.

Declarant may from time to time subject to the provisions of this Declaration all or any portion of the property described in Exhibit "B" by Recording a Supplemental Declaration describing the additional property to be subjected. A Supplemental Declaration Recorded pursuant to this Section shall not require the consent of any Person except the owner of such property, if other than Declarant.

Declarant's right to expand Lantern Walk pursuant to this Section shall expire when all property described in Exhibit "B" has been subjected to this Declaration or 20 years after this Declaration is Recorded, whichever is earlier. Until then, Declarant may transfer or assign this right to any Person who is the developer of at least a portion of the real property described in Exhibit "A" or "B.' Any such transfer shall be memorialized in a written, Recorded instrument executed by Declarant.

Nothing in this Declaration shall be construed to require Declarant or any successor to subject additional property to this Declaration or to develop any of the property described in Exhibit "B" in any manner whatsoever.

9.2. Expansion by the Association.

The Association may also subject additional property to the provisions of this Declaration by Recording a Supplemental Declaration describing the additional property. Any such Supplemental Declaration shall require the affirmative vote of more than 50% of the Class "A" votes of the Association represented at a meeting duly called for such purpose and the consent of the owner of the property. In addition, so long as Declarant owns property subject to this BE 02595 Declaration or which may become subject to this Declaration in accordance with Section 9.1, Declarant's consent shall be necessary. The Supplemental Declaration shall be signed by the Association's President and Secretary, by the owner of the property, and by Declarant, if Declarant's consent is necessary.

Pg 0468 9.3.. Additional Covenants and Easements.

Declarant may subject any portion of Lantern Walk to additional covenants and easements, including covenants obligating the Association to maintain and insure such property

and authorizing the Association to recover its costs. Such additional covenants and easements may be set forth either in a Supplemental Declaration subjecting such property to this Declaration or in a separate Supplemental Declaration referencing property previously subjected to this Declaration. If the property is owned by someone other than Declarant, then the consent of the Owners) shall be necessary and shall be evidenced by their execution of the Supplemental Declaration. Any such Supplemental Declaration may supplement, create exceptions to, or otherwise modify the terms of this Declaration as it applies to the subject property in order to reflect the different character and intended use of such property.

9.4. Effect of Filing Supplemental Declaration.

A Supplemental Declaration shall be effective upon Recording unless otherwise specified in such Supplemental Declaration. On the effective date of the Supplemental Declaration, any additional property subjected to this Declaration shall be assigned voting rights in the Association and assessment liability in accordance with the provisions of this Declaration. Article X Additional Rights Reserved to Declarant

10.1. Withdrawal of Property.

Declarant reserves the right to amend this Declaration, so long as it has a right to annex additional property pursuant to Section 9.1, for the purpose of removing any portion of Lantern Walk which has not yet been improved with structures from the coverage of this Declaration, provided such withdrawal does not reduce the total number of Units then subject to the Declaration by more than 10 percent. Such amendment shall not require the consent of any Person other than the Owners) of the property to be withdrawn, if not the Declarant. If the property is Common Area, the Association shall consent to such withdrawal.

10.2. Marketing and Sales Activities.

Declarant and Builders authorized by Declarant may construct and maintain upon portions of the Common Area such facilities and activities as, in Declarant's sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of Units, including, but not limited to, business offices, signs, model units, and sales offices. Declarant and authorized Builders shall have easements for access to and use of such facilities at no charge.

10.3. Right to Develop.

Declarant and its employees, agents, and designees shall have a right of access and use and an easement over and upon all of the Common Area for the purpose of making, constructing and installing such improvements to the Common Area as it deems appropriate in its sole discretion.

10.4. Right to Approve Additional Covenants.

No Person shall Record any declaration of covenants, conditions and restrictions, or declaration of condominium or similar instrument affecting any portion of Lantern Walk without

Declarant's review and written consent. Any attempted Recordation without such consent shall

result in such instrument being void and of no force and effect unless subsequently approved by

written consent signed and Recorded by Declarant.

10.5. Right to Approve Changes in Lantern Walk Standards.

No amendment to or modification of any Restrictions and Rules or Architectural

Guidelines shall be effective without prior notice to and the written approval of Declarant so

long as Declarant owns property subject to this Declaration or which may become subject to

this Declaration in accordance with Section 9.1.

10.6. Right to Transfer or Assign Declarant Rights.

Any or all of Declarant's special rights and obligations set forth in this Declaration or

the By-Laws may be transferred in whole or in part to other Persons; provided, the transfer

shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this

Declaration or the By-Laws. No such transfer or assignment shall be effective unless it is in a

written instrument Declarant signs and Records. The foregoing sentence shall not preclude

Declarant from permitting other Persons to exercise, on a one time or limited basis, any right

reserved to Declarant in this Declaration where Declarant does not intend to transfer such

right in its entirety, and in such case it shall not be necessary to Record any written

assignment unless necessary to evidence Declarant's consent to such exercise.

10.7. Exclusive Rights To Use Name of Development.

No Person shall use the name "Lantern Walk" or any derivative of such name or in logo

or depiction in any printed or promotional material without Declarant's prior written consent.

However, Owners may use the name "Lantern Walk" in printed or promotional matter where

such term is used solely to specify that particular property is located within Lantern Walk and the

Association shall be entitled to use the words "Lantern Walk" in its name.

10.8. Right to Notice of Design or Construction Claims.

No Person shall retain an expert for the purpose of inspecting the design or construction

of any structures or improvements within Lantern Walk in connection with or in anticipation of

any potential or pending claim, demand or litigation involving such design or construction unless

Declarant and any builder involved in the design or construction have been first notified in

writing and given an opportunity to meet with the owner of the property to discuss the owner's

concerns and conduct their own inspection pursuant to the right reserved in Section 11.7. DE 02595

10.10. Termination of Rights.

The rights contained in this Article shall not terminate until the earlier of (a) 40 years

from the date this Declaration is Recorded, or (b) Recording by Declarant of a written statement Pg 0470 that all sales activity has ceased.

PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY

Article XI Easements

11.1. Easements in Common Area.

Declarant grants to each Owner a nonexclusive right and easement of use, access, and

enjoyment in and to the Common Area, subject to:

(a) The Governing Documents and any other applicable covenants;

(b) Any restrictions or limitations contained in any deed conveying such property to the Association;

(c) The Board's right to:

(i) adopt rules regulating use and enjoyment of the Common Area, including

rules limiting the number of guests who may use the Common Area;

(ii) suspend an Owner's right to use recreational facilities within the Common

Area (A) for any period during which any charge against such Owner's Unit remains delinquent,

and (B) for a period not to exceed 30 days for a single violation or for a longer period in the case

of any continuing violation, of the Governing Documents after notice and a hearing pursuant to

the By-Laws;

(111) dedicate or transfer all or any part of the Common Area, subject to such

approval requirements as may be set forth in this Declaration;

(iv) impose reasonable membership requirements and charge reasonable

admission or other use fees for the use of any recreational facility situated upon the Common

Area;

(v) permit use of any recreational facilities situated on the Common Area by

persons other than Owners, their families, lessees, and guests upon payment of use fees

established by the Board and designate other areas and facilities within the Area of Common

Responsibility as open for the use and enjoyment of the public; and

BL 02595 (vi) mortgage, pledge, or hypothecate any or all of its real or personal property

as security for money borrowed or debts incurred; and

(a) The rights of certain Owners to the exclusive use of those portions of the

Common Area designated "Limited Common Areas," as described in Article XII. PE 0471

Any Owner may extend his or her right of use and enjoyment to the members of his or her family, lessees, and social invitees, as applicable, subject to reasonable Board regulation. An Owner who leases his or her Unit shall be deemed to have assigned all such rights to the lessee of .. such Unit for the period of the lease.

11.2. Easements of Encroachment.

Declarant grants reciprocal appurtenant easements of encroachment, and for maintenance and use of any permitted encroachment, between each Unit and any adjacent Common Area and between adjacent Units due to the unintentional placement or settling or shifting of the improvements constructed, reconstructed, or altered thereon (in accordance with the terms of these restrictions) to a distance of not more than three feet, as measured from any point on the common boundary along a line perpendicular to such boundary. However, in no event shall an easement for encroachment exist if such encroachment occurred due to willful and knowing conduct on the part of, or with the knowledge and consent of, the Person claiming the benefit of such easement.

11.3. Easements for Utilities.

Installation and Mainteriance. Declarant reserves for itself, so long as Declarant owns any property described in Exhibit"A" or "B" of this Declaration, and grants to the Association and all utility providers, perpetual non-exclusive easements throughout Lantern Walk (but not through a structure) to the extent reasonably necessary for the purpose of:

installing utilities and infrastructure to serve Lantern Walk, cable and other systems for sending and receiving data and/or other electronic signals, security and similar systems, walkways, pathways and trails, drainage systems, street lights and signage on property which Declarant owns or within public rights-of-way or easements reserved for such purpose on Recorded plats;

(ii) inspecting, maintaining, repairing; and replacing the utilities, infrastructure, and other improvements described in Section 11.3(a)(i); and

(ii1) access to read utility meters.

(b) Specific Easements. Declarant also reserves for itself the non-exclusive right and power to grant and Record such specific easements as may be necessary, in Declarant's sole B₺ 02595 discretion, in connection with the orderly development of any property described in Exhibits "A" and "B."The Owner of any property to be burdened by any easement granted pursuant to this subsection shall be given written notice in advance of the grant. The location of the easement shall be subject to the written approval of the Owner of the burdened property, Pg 11472 which approval shall not unreasonably be withheld, delayed, or conditioned.

Minimal Interference. All work associated with the exercise of the easements described in subsections (a) and (b) of this Section shall be performed in such a manner as to minimize interference with the use and enjoyment of the property burdened by the easement.

Upon completion of the work, the Person exercising the easement shall restore the property, to the extent reasonably possible, to its condition prior to the commencement of the work. The exercise of these easements shall not extend to permitting entry into the structures on any Unit, nor shall it unreasonably interfere with the use of any Unit and, except in an emergency, entry onto any Unit shall be made only after reasonable notice to the Owner or occupant.

11.4. Easements to Serve Additional Property.

Declarant hereby reserves for itself and its duly authorized agents, successors, assigns, and mortgagees, an easement over the Common Area for the purposes of enjoyment, use, access, and development of the property described in Exhibit "B," whether or not such property is made subject to this Declaration. This easement includes, but is not limited to, a right of ingress and egress over the Common Area for construction of roads and for connecting and installing utilities on such property.

Declarant agrees that it and its successors or assigns shall be responsible for any damage caused to the Common Area as a result of their respective actions in connection with development of such property. Declarant further agrees that if the easement is exercised for permanent access to such property and such property or any portion thereof benefiting from such easement is not made subject to this Declaration, Declarant, its successors or assigns shall enter into a reasonable agreement with the Association to share the cost of any maintenance which the Association provides to or along any roadway providing access to such property.

11.5. Easements for Maintenance, Emergency, and Enforcement.

Declarant grants to the Association easements over Lantern Walk as necessary to enable the Association to fulfill its maintenance responsibilities under Section 7.2. The Association shall also have the right, but not the obligation, to enter upon any Unit for emergency, security, and safety reasons, to perform maintenance and to inspect for the purpose of ensuring compliance with and enforce the Governing Documents. Such right may be exercised by any member of the Board and its duly authorized agents and assignees, and all emergency personnel i only be comin in the performance of their duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner.

11.6. Easements for Lake and Pond Maintenance and Flood Water.

BE: 02595 Declarant reserves for itself, the Association, and their successors, assigns, and designees, the nonexclusive right and easement, but not the obligation, to enter upon bodies of water and wetlands located within the Area of Common Responsibility to (a) install, operate, maintain, and replace pumps to supply irrigation water to the Area of Common Responsibility; (b) construct, maintain, and repair structures and equipment used for retaining water; and (c) maintain such ₽¿ U473 areas in a manner consistent with the Community-Wide Standard. Declarant, the Association, and their successors, assigns and designees shall have an access easement over and across any of Lantern Walk abutting or containing bodies of water or wetlands to the extent reasonably necessary to exercise their rights under this Section.

Declarant further reserves for itself, the Association, and their successors, assigns and designees, a perpetual, nonexclusive right and easement of access and encroachment over the Common Area and Units (but not the dwellings thereon) adjacent to or within 100 feet of bodies of water and wetlands within Lantern Walk, in order to (a) temporarily flood and back water upon and maintain water over such portions of Lantern Walk; (b) alter in any manner and generally maintain the bodies of water and wetlands within the Area of Common Responsibility; vie tope and (c) maintain and landscape the slopes and banks pertaining to such areas. All persons entitled to exercise these easements shall use reasonable care in and repair any damage resulting from the intentional exercise of such easements. Nothing herein shall be construed to make Declarant or any other Person liable for damage resulting from flooding due to heavy rainfall or other natural occurrences.

11.7. Easement to Inspect and Right to Correct.

Declarant reserves for itself and others it may designate the right to inspect, monitor, test, redesign, and correct any structure, improvement, or condition which may exist on any portion of the property within Lantern Walk, including Units, and a perpetual, nonexclusive easement of access throughout Lantern Walk to the extent reasonably necessary to exercise such right. Except in an emergency, entry onto a Unit shall be only after reasonable notice to the Owner and no entry into a dwelling shall be permitted without the Owner's consent. The person exercising this easement shall promptly repair, at such person's own expense, any damage resulting from such exercise.

11.8 Side-Yard Use Easements.

(a) Definitions. For the purposes of this Section, capitalized terms not previously defined in Article I shall have the meanings set forth below:

"Zero Side Lot Line": The side lot line of each Unit closest to which the dwelling on such Unit has been or is to be constructed. The "Zero Side" of the dwelling on each Unit is the side closest to the Zero Side Lot Line.

(11) "Common Boundary": The side lot line, as shown on the Master Plan, forming the common boundary line between any two adjoining Units.

(iii) "Dominant Estate": As between two adjoining Units, the Unit for which ek 02595 the Common Boundary is the Zero Side Lot Line.

(iv) "Servient Estate": As between two adjoining Units, the Unit for which the Common Boundary is not the Zero Side Lot Line. # 0474

"Easement Area": That area on the Servient Estate which lies between the Common Boundary and a line formed by extending the plan of the Zero Side of the dwelling on the Servient Estate to its intersection with the front and rear lot lines of the Servient Estate.

Dominant Servient

Estate Estate

dwelling Easement Area dwelling

Common Boundary

Diagram 11.8

(b) Use of Easement Area. A perpetual, non-exclusive easement on, over, and across the Easement Area of the adjoining Servient Estate is hereby granted to each Dominant Estate and its Owner, for the benefit of the Dominant Estate and its Owner, for the benefit of the Dominant Estate for construction, encroachment, maintenance, and use of a dwelling on the Dominant Estate.

Nothing shall be done or permitted within any Easement Area which would constitute a threat or hazard to the health and safety of the individuals occupying the Servient Estate dwelling, nor shall anything be done or permitted within the Easement Area which defaces the dwelling on the Servient Estate or which adversely affects the integrity, structure, or strength of the dwelling on the Servient Estate.

The uses permitted within each Easement Area by virtue of this Section shall be nonexclusive because the same are subject to utility, access, and drainage easements, as well as any minor encroachments, overhangs, and the like attributable to the dwelling on the Dominant Estate and pertaining to all or any portion of the Easement Area. In addition, the permitted uses of the Easement Area are subject to any easements granted elsewhere in the Declaration, as it BL 02595 may be amended from time to time.

(c) Rights of Entry. The following rights of entry onto the Easement Area shall exist:

The Owner of each Dominant Estate (and the authorized agents, A 0475 representatives, and contractors of such Owner) shall have a reasonable and temporary right of entry, access, ingress, egress, and regress upon the Easement Area and that portion of the

Servient Estate reasonably necessary to perform and complete, in a prompt, efficient, and good and workmanlike manner, any construction or other work (whether original, remodeling, or repair) to structures located on the Dominant Estate which has been theretofore approved by the ARC (as defined in Section 4.2); and

(11) The Owner of each Dominant Estate (and the authorized agents, representatives, and contractors of such Owner) shall have a reasonable and temporary right of entry, access, ingress, egress, and regress upon the Easement Area as reasonably necessary to perform maintenance and make bona fide repairs to the dwelling and other structures located on the Dominant Estate, provided that unless otherwise warranted by then-existing circumstances or provided that unles otherwise agreed by the Owner of the Servient Estate, such entry shall occur during daylight hours only and shall be limited to a reasonable number of days in each calendar year.

The ARC is specifically authorized to promulgate ad hoc rules and guidelines pertaining to any particular construction or repair work likely to require the exercise of the right of entry described above so that the respective best interests of the adjoining Owners are, to the extent reasonably possible, harmonized and preserved.

Article AlI Limited Common Areas

12.1. Purpose.

Certain portions of the Common Area may be designated as Limited Common Area and reserved for the exclusive use or primary benefit of Owners and occupants of a Unit or Units. By way of illustration and not limitation, Limited Common Areas may include porches, patios, or parking spaces. All costs associated with maintenance, repair, replacement, and insurance of a Limited Common Area shall be allocated among the Owners of Units to which the Limited rea shall be allocated Common Areas are assigned

12.2. Designation.

Initially, any Limited Common Area shall be designated as such in the deed conveying such area to the Association or on the subdivision plat relating to such Common Area; provided, however, any such assignment shall not preclude Declarant from later assigning use of the same Limited Common Area to additional Units, so long as Declarant has a right to subject additional property to this Declaration pursuant to Section 9.1.

Thereafter, a portion of the Common Area may be assigned as Limited Common Area EL 02595 and Limited Common Area may be reassigned upon approval of the Board and the vote of a majority of the total Class "A" votes in the Association. As long as Declarant owns any property subject to this Declaration or which may become subject to this Declaration in accordance with Section 9.1, any such assignment or reassignment shall also require Declarant's written consent.

₽¿ 0476

Article XIII Party Walls and Other Shared Structures

13.1. General Rules of Law to Apply.

Each wall, fence, driveway, or similar structure built as a part of the original construction on the Units which serves and/or separates any two adjoining Units shall constitute a party structure. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. Any dispute arising concerning a party structure shall be handled in accordance with the provisions of Article XIV.

13.2. Maintenance: Damage and Destruction.

The cost of reasonable repair and maintenance of a party structure shall be shared equally by the Owners who make use of the party structure.

If a party structure is destroyed or damaged by fire or other casualty, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, any Owner who has used the structure may restore it. If other Owners thereafter use the structure, they shall contribute to the restoration cost in equal proportions. However, such contribution will not prejudice the right to call for a larger contribution from the other users under any rule of law regarding liability for negligent or willful acts or omissions.

The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's successors-in-title.

PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY

Article XIV Dispute Resolution and Limitation on Litigation

14.1. Agreement to Encourage Resolution of Disputes Without Litigation.

(a) Declarant, the Association and its officers, directors, and committee members, all Persons subject to this Declaration, and any Person not otherwise subject to this Declaration who B₺ 02595 agrees to submit to this Article (collectively, "Bound Parties"), agree that it is in the best interest of all concerned to encourage the amicable resolution of disputes involving the Community without the emotional and financial costs of litigation. Accordingly, each Bound Party agrees not to file suit in any court with respect to a Claim described in subsection (b), unless and until it has first submitted such Claim to the alternative dispute resolution procedures set forth in Section ¿ 0477 14.2 in a good faith effort to resolve such Claim.

(b) As used in this Article, the term "Claim" shall refer to any claim, grievance, or dispute arising out of or relating to

(i) the interpretation, application, or enforcement of the Governing Documents;

(11) the rights, obligations, and duties of any Bound Party under the Governing Documents; or

(iii) the design or construction of improvements within the Community, other than matters of aesthetic judgment under Article IV, which shall not be subject to review;

except that the following shall not be considered "Claims" unless all parties. to the matter otherwise agree to submit the matter to the procedures set forth in Section 14.2:

(i) any suit by the Association to collect assessments or other amounts due from any Owner;

(ii) any suit by the Association to obtain a temporary restraining order (or emergency equitable relief) and such ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of Part Two of this Declaration (relating to creation and maintenance of community standards);

(iii) any suit between Owners, which does not include Declarant or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents;

(IV) any suit in which any indispensable party is not a Bound Party; and

(V) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice required by Section 14.2(a), unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article.

14.2. Dispute Resolution Procedures.

(a) Notice. The Bound Party asserting a Claim (Claimant) against another Bound Party ("Respondent") shall give written notice to each Respondent and to the Board stating plainly and concisely: BL: 02595

(i) the nature of the Claim, including the Persons involved and the Respondent's role in the Claim;

(ii) the legal basis of the Claim (i.e., the specific authority out of which the 2 0478 Claim arises);

(iii) the Claimant's proposed resolution or remedy; and

(iv) the Claimant's desire to meet with the Respondent to discuss in good faith ways to resolve the Claim.

Negotiation. The Claimant and Respondent shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the parties in negotiating a resolution of the Claim.

(c) Mediation. If the parties have not resolved the Claim through negotiation within 30 days of the date of the notice described in Section 14.2(a) (or within such other period as the parties may agree upon), the Claimant shall have 30 additional days to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing dispute resolution services in the metropolitan Atlanta area.

If the Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation when scheduled, the Claimant shall be deemed to have waived the Claim, and the Respondent shall be relieved of any and all liability to the Claimant (but not third parties) on account of such Claim.

If the Parties do not settle the Claim within 30 days after submission of the matter to mediation, or within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated. The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings on the Claim, as appropriate.

Each Party shall bear its own costs of the mediation, including attorney's fees, and each Party shall share equally all fees charged by the mediator.

(d) Settlement. Any settlement of the Claim through negotiation or mediation shall be documented in writing and signed by the parties. If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section. In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non-complying party (or if more than one noncomplying party, from all such parties in equal proportions) all costs incurred in enforcing suchg agreement or award, including, without limitation, attorney's fees and court costs.

14.3. Initiation of Litigation by Association.

In addition to compliance with the foregoing alternative dispute resolution procedures, if applicable, the Association shall not initiate any judicial or administrative proceeding unless firs that no such approval shall be required for actions or proceedings: approved by Members entitled to cast 75% of the total Class "A" votes in the Association, excels

(a) initiated during the Class "B" Control Period;

(b) initiated to enforce the provisions of this Declaration, including collection of assessments and foreclosure of liens;

(c) initiated to challenge ad valorem taxation or condemnation proceedings;

(d) initiated against any contractor, vendor, or supplier of goods or services arising out of a contract for services or supplies; or

(e) to defend claims filed against the Association or to assert counterclaims in proceedings instituted against it.

This Section shall not be amended unless such amendment is approved by the same percentage of votes necessary to institute proceedings.

Article XV Mortgagee Provisions

The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Units in Lantern Walk.

15.1. Notices of Action.

An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Unit to which its Mortgage relates, thereby becoming an "Eligible Holder"), will be entitled to timely written notice of:

(a) Any condemnation loss or any casualty loss which affects a material portion of Lantern Walk or which affects any Unit on which there is a first Mortgage held, insured, or guaranteed by such Eligible Holder;

(b) Any delinquency in the payment of assessments or charges owed by a Unit subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of 60 days, or any other violation of the Governing Documents relating to such Unit or the Owner B₺ 02595 or occupant which is not cured within 60 days;

Any lapse, cancellation, or material modification of any insurance policy maintained by the Association; or

Pg 0480

(d) Any proposed action which would require the consent of a specified percentage of Eligible Holders.

15.2. Special PHLMC Provision.

So long as required by the Federal Home Loan Mortgage Corporation, the following provisions apply in addition to and not in lieu of the foregoing. Unless at least 67% of the first Mortgagees or Members representing at least 67% of the total Association vote consent, the Association shall not:

(a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or transfer all or any portion of the real property comprising the Common Area which the Association owns, directly or indirectly (the granting of easements for utilities or other similar purposes consistent with the intended use of the Common Area shall not be deemed a transfer within the meaning of this subsection);

Change the method of determining the obligations, assessments, dues, or other charges which may be levied against an Owner of a Unit (a decision, including contracts, by the Board or provisions of any declaration subsequently Recorded on any portion of Lantern Walk shall not be subject to this provision where such decision or subsequent declaration is otherwise authorized by this Declaration);

(c) By act or omission change, waive, or abandon any scheme of regulations or enforcement pertaining to architectural design, exterior appearance or maintenance of Units and the Common Area (the issuance and amendment of architectural standards, procedures, rules and regulations, or use restrictions shall not constitute a change, waiver, or abandonment within the meaning of this provision);

(d) Fail to maintain insurance, as required by this Declaration; or

Use hazard insurance proceeds for any Common Area losses for other than the repair, replacement, or reconstruction of such property.

First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area and may pay overdue premiums on casualty insurance policies or secure new casualty insurance coverage upon the BE 02595 lapse of an Association policy, and first Mortgagees making such payments shall be entitled to

15.3. Other Provisions for First Lien Holders.

To the extent not inconsistent with Georgia law: ₽g 048]

Any restoration or repair of Lantern Walk after a partial condemnation or damage due to an insurable hazard shall be performed substantially in accordance with this Declaration and the original plans and specifications unless the approval is obtained of the Eligible Holders

of first Mortgages on Units to which more than 50% of the votes of Units subject to Mortgages held by such Eligible Holders are allocated.

(0) Any election to terminate the Association after substantial destruction or a substantial taking in condemnation shall require the approval of the Eligible Holders of first Mortgages on Units to which more than 50% of the votes of Units subject to Mortgages held by such Eligible Holders are allocated.

15.4. Amendments to Documents.

The following provisions do not apply to amendments to the constituent documents or termination of the Association as a result of destruction, damage, or condemnation pursuant to Section 15.3(a) and (b), or to the addition of land in accordance with Article IX.

(a) The consent of Members representing at least 67% of the Class "A" votes and of Declarant, so long as it owns any land subject to this Declaration, and the approval of the Eligible Holders of first Mortgages on Units to which at least 67% of the votes of Units subject to a Mortgage appertain, shall be required to terminate the Association.

(b) The consent of Members representing at least 67% of the Class "A" votes and of Declarant, so long as it owns any land subject to this Declaration, and the approval of Eligible Holders of first Mortgages on Units to which more than 50% of the votes of Units subject to a Mortgage appertain, shall be required materially to amend any provisions of the Declaration, ByLaws, or Articles of Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate any of the following:

(i) voting;

(i1) assessments, assessment liens, or subordination of such liens;

(iii) reserves for maintenance, repair, and replacement of the Common Area;

(iv) insurance or fidelity bonds;

(v) rights to use the Common Area;

(Vi) BL 02595 responsibility for maintenance and repair of Lantern Walk;

(vii) expansion or contraction of Lantern Walk or the addition, annexation, or withdrawal of Properties to or from the Association;

PZ U48Z (viii) boundaries of any Unit;

(ıx) leasing of Units;

(x) imposition of any right of first refusal or similar restriction of the right of any Owner to sell, transfer, or otherwise convey his or her Unit;

(xi) establishment of self-management by the Association where professional management has been required by an Eligible Holder; or

(xii) any provisions included in the Governing Documents which are for the express benefit of holders, guarantors, or insurers of first Mortgages on Units.

15.5. No Priority.

No provision of this Declaration or the By-Laws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Unit in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Area.

15.6. Notice to Association.

Upon request, each Owner shall be obligated to furnish to the Association the name and address of the holder of any Mortgage encumbering such Owner's Unit.

15.7. Failure of Mortgagee to Respond.

Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be deemed to have approved such action if the Association does not receive a written response from the Mortgagee within 30 days of the date of the Association's request, provided such request is delivered to the Mortgagee by certified or registered mail, return receipt requested.

15.8. Construction of Article XV.

Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under this Declaration, the By-Laws, or Georgia law for any of the acts set out in this Article.

PART SEVEN: CHANGES IN THE COMMUNITY

BE 02595 Article XVI Changes in Ownership of Units

Any Owner desiring to sell or otherwise transfer title to his or her Unit shall give the Board at least seven days' prior written notice of the name and address of the purchaser or Pg 0483 transferee, the date of such transfer of title, and such other information as the Board may reasonably require. The transferor shall continue to be jointly and severally responsible with the transferee for all obligations of the Unit Owner, including assessment obligations, until the date upon which such notice is received by the Board, notwithstanding the transfer of title.

Article XVII Changes in Common Area

17.1. Condemnation.

If any part of the Common Area shall be taken (or conveyed in lieu of and under threat of condemnation by the Board acting on the written direction of Members representing at least 67% of the total Class "A" votes in the Association and of Declarant; as long as Declarant owns any property subject to the Declaration or which may be made subject to the Declaration in accordance with Section 9.1) by any authority having the power of condemnation or eminent domain, each Owner shall be entitled to written notice of such taking or conveyance prior to disbursement of any condemnation award or proceeds from such conveyance. Such award or proceeds shall be payable to the Association to be disbursed as follows:

If the taking or conveyance involves a portion of the Common Area on which improvements have been constructed, the Association shall restore or replace such improvements on the remaining land included in the Common Area to the extent available, unless within 60 days after such taking Declarant, so long as Declarant owns any property subject to the Declaration or which may be made subject to the Declaration in accordance with Section 9.1, and Members representing at least 75% of the total Class "A" vote of the Association shall otherwise agree. Any such construction shall be in accordance with plans approved by the Board. The provisions of Section 7.3(c) regarding funds for restoring improvements shall apply.

If the taking or conveyance does not involve any improvements on the Common Area, or if a decision is made not to repair or restore, or if net funds remain after any such restoration or replacement is complete, then such award or net funds shall be disbursed to the Association and used for such purposes as the Board shall determine.

17.2. Partition.

Except as permitted in this Declaration, the Common Area shall remain undivided, and no Person shall bring any action partition of any portion of the Common Area without the written consent of all Owners and Mortgagees. This Section shall not prohibit the Board from acquiring and disposing of tangible personal property nor from acquiring and disposing of real property which may or may not be subject to this Declaration.

17.3. Transfer or Dedication of Common Area. RL 02595 The Association may dedicate portions of the Common Area to Athens-Clarke

County, Georgia, or to any other local, state, or federal governmental or quasi-governmental

entity.

Article XVII Amendment of Declaration Pg 04·4

18.1. By Declarant.

In addition to specific amendment rights granted elsewhere in this Declaration, until termination of the Class "B" Control Period Declarant may unilaterally amend this Declaration for any purpose. Thereafter, Declarant may unilaterally amend this Declaration if such amendment is necessary (a) to bring any provision into compliance with any applicable governmental statute, rule, regulation, or judicial determination; (b) to enable any reputable title insurance company to issue title insurance coverage on the Units; (c) to enable any institutional or governmental lender, purchaser, insurer, or guarantor of mortgage loans, including, for Narnat ingage example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to make, purchase, insure, or guarantee mortgage loans on the Units; or (iv) to satisfy the requirements of any local, state, or federal governmental agency. However, any such amendment shall not adversely affect the title to any Unit unless the Owner shall consent in writing.

In addition, so long as Declarant owns property described in Exhibit "A" or "B" for development as part of Lantern Walk, it may unilaterally amend this Declaration for any other purpose, provided the amendment has no material adverse effect upon the rights of more than 2% of the Owners.

18.2. By Members.

Except as otherwise specifically provided above and elsewhere in this Declaration, this Declaration may be amended only by the affirmative vote or written consent, or any combination thereof, of Members representing 75% of the total Class "A" votes in the Association, including 75% of the Class "A" votes held by Members other than Declarant, and Declarant's consent, so long Declarant owns any property subject to this Declaration or which may become subject to this Declaration in accordance with Section 9.1. In addition, the approval requirements set forth in Article XV shall be met, if applicable.

Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause.

18.3. Validity and Effective Date.

No amendment may remove, revoke, or modify any right or privilege of Declarant or the Class "B" Member without the written consent of Declarant or the Class "B" Member, respectively (or the assignee of such right or privilege).

If an Owner consents to any amendment to this Declaration or the By-Laws, it will be BL 02595 Pg 0485 conclusively presumed that such Owner has the authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such amendment.

Any amendment shall become effective upon Recording, unless a later effective date is specified in the amendment. Any procedural challenge to an amendment must be made within six months of its Recordation or such amendment shall be presumed to have been validly

adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of this Declaration.

18.4. Exhibits.

Exhibits "A," and "B" attached to this Declaration are incorporated by this reference and amendment of such exhibits shall be governed by this Article. All other exhibits are attached for informational purposes and may be amended as provided therein or in the provisions of this Declaration which refer to such exhibits.

B¢ 02595

Pg 0486 8211

IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the date and year first written above.

DECLARANT: LANTERN WALK BUILDERS, LLC, a Georgia limited liability company

Signed, sealed, and delivered

this 27 day of anuary, 2004:

eles

Witness

NOTAR AND SALM

FEB.

12

2006

COMFY FURLO

G:ADTClients\Bowen and Bowen\Lantern Walk HOA\CR-Lantern Walk.doc

BE 02595

PE 0487

Exhibit "A"

Land Initially Submitted

LEGAL 'DESCRIPTION

All that land lying and being in GMD 1347, Athens-Clark

County, Georgia. and being more particularly described as follows.

To arrive at the True Point of Beginning, commence at a nail.

set in the centerline of the intersection of Jefferson River Road

and Vincent Drive.

THENCE North 53 degrees 02 minutes 48 seconds West for a

distance of 57.91 feet to a point. Said point being the True Point

of Beginning.

THENCE at length of ofit hang subtraded by a chord

feet and an arc

of South 06 degrees 33 minutes 27 seconds west for a distance of

26.60 feet to a point

THENCE South 82 degrees 40 minutes 03 seconds East for a

distance of 20.00 feet to a point

THENCE along a curve to the right having a radius of 585.8!

reet and an arc length of 51.56 feet, being subtended by a chorc

of South 10 degrees 24 minutes 20 seconds west for a distance of

' 51.54 feet to a point

THENCE South 83 degrees 15 minutes 50 seconds West for a

distance of 51.18 feet to a point

THENCE along a curve to the right having a radius of 440.00

feet and an arc length of 130.27 feet, being subtended by a chorc

of North 88 degrees 15 minutes 15 seconds west for a distance of

129.80 feet to a point

THENCE North 79 degrees 46 minutes 20 seconds west for a

distance of 352.30 feet to a point

THENCE along a curve to the left having a radius of 760.00

reet and an arc length of 39.89 feet, being subtended by a chorc

of North 81 degrees 16 minutes 33 seconds west for a distance of

39.89 feet to a point

THENCE South 53 degrees 09 minutes 45 seconds West for a

distance of 10.11 feet to a point

THENCE South 09 degrees 22 minutes 06 seconds west for a

distance of 15.59 feet to a point

THENCE along a curve to the left having a radius of 575.00

feet and an arc length of 173.12 feet, being subtended by a chord

of South 00 degrees 44 minutes 35 seconds west for a distance of

172.47 feet to a point

THENCE North 76 degrees 22 minutes 45 seconds East for a

distance of 158.98 feet to an ips

THENCE South 05 degrees 22 minutes 32 seconds East for a

distance of 830.35 feet to an ips

feet and an allen chof tooth feet having spended fy a cho subtended by a chord

of South 04 degrees. 58 minutes 41 seconds west for a distance of

105.96 feet to a point BE 12595 feet and are of 0.27 feet, being subtended by a choro being subtended by a chord

South 02 degrees 08 minutes 53 seconds East for a distance of

56.26 reet to a point

THENCE South 86 degrees 10 minutes 33 seconds west tor a

distance of 98.45 feet to a point

feet and an arc length of 142.54 feet, the left having a radius of 575.00 PE 1488 of being subtended by a chord

South 79 degrees 04 minutes 26 seconds west for a distance of

142.18 feet to a

THENCE South 71 degrees 58 minutes 19 seconds west for a

distance of 324.25 feet to a point

THENCE North 11 degrees 41 minutes 49 seconds west for a

Page 1

distance of 50.31 feet to a point

THENCE North 18 degrees 01 minutes 41 seconds West for a

distance of 56.65 feet to a point

feet ren 12 degreg 15 in ves of secons West for a dorance of being subtended by a chord

35.55 teet to a point

THENCE North 06 degrees 28 minutes 33 seconds West Tor a

distance of 813.55 feet to a point

feet an 20 degren 52 minutes 36 seconds Nere Per Stance oFfe

111.96 feet to a point

THENCE North 35 degrees 17 minutes 19 seconds west for a

distance of 120.50 feet to a point

THENCE along a curve to the right having a radius of 830.00

feet and an arc length of 561.62 feet, being subtended by a chorc

of North 73 degrees 35 minutes 22 seconds East for a distance of

550.97 feet to a point

THENCE North 86 degrees 26 minutes 19 seconds East for a

distance of 65.61 feet to a point

THENCE along a curve to the right having a radius of 840.00

feet and an arc length of 41.10 feet, being subtended by a chorc

of South 81 degrees 10 minutes 26 seconds East for a distance of

1.10 feet to a point

THENCE South 79 degrees 46 minutes 20 seconds East for a

distance of 352.30 feet to a point

Feet and an are length of 106.59 feet, being subtended by a cho beina subtended by a chord

of South 88 degrees 15 minutes 15 seconds East for a distance of

106.20 feet to a point

THENCE North 83 degrees 15 minutes 50 seconds East for a

distance of 53.08 feet to a point. Said point being the True Point

of Beginning.

restrictions of record. Together with and subject to covenants, easements, and

said property contains 18.139 acres more or less.

BE 02595

0489

EXHIBIT B"

Land Subject to Annexation

All adjacent property within a one (1) mile radius of Land Initially Submitted.

3 P 0490

•EXHIBIT "C"

Initial Restrictions and Rules

The following restrictions shall apply to all of Lantern Walk until such time as they are amended, modified, repealed, or limited pursuant to Article III of the Declaration.

General. Lantern Walk shall be used only for residential, recreational, and related purposes (which may include, without limitation, an information center and/or a sales office for any real estate broker retained by Declarant to assist in the sale of property described in Exhibit"A" or "B," offices for any property manager retained by the Association, or business offices for Declarant or the Association) consistent with this Declaration and any Supplemental Declaration.

2. Restricted Activities. The following activities are prohibited within Lantern Walk unless expressly authorized by, and then subject to such conditions as may be imposed by, the Board of Directors:

(a) Parking any vehicles on public or private streets or thoroughfares, or parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and other watercraft, trailers, stored vehicles, or inoperable vehicles in places other than enclosed hide an in de garages; provided, construction, service and delivery vehicles shall be exempt from this provision during daylight hours for such period of time as is reasonably necessary to provide service or to make a delivery to a Unit or the Common Arca;

(b) Raising, breeding, or keeping animals, livestock, or poultry of any kind, except that a reasonable number of dogs, cats, or other usual and common household pets may be permitted in a Unit; however, those pets which are permitted to roam free, or, in the sole discretion of the Board, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Pets shall be registered, licensed and inoculated as required by law;

(c) Any activity which emits foul or obnoxious odors outside the Unit or creates noise or other conditions which tend to disturb the peace or threaten the safety of the occupants of BE 02595 other Units;

(d) Any activity which violates local, state, or federal laws or regulations; however, the Board shall have no obligation to take enforcement action in the event of a violation;

PE 0491 (e) Pursuit of hobbies or other activities which tend to cause an unclean, unhealthy, or untidy condition to exist outside of enclosed structures on the Unit;

(f) Any noxious or offensive activity which in the reasonable determination of the

Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the

Common Area or to the occupants of other Units;

(g) Outside burning of trash, leaves, debris, or other materials, except during the normal

course of constructing a dwelling on a Unit;

(h) Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound

device so as to be audible to occupants of other Units, except alarm devices used exclusively for

security purposes;

(i) Use and discharge of firecrackers and other fireworks;

(i) Dumping grass clippings, leaves or other debris, petroleum products, fertilizers, or

other potentially hazardous or toxic substances in any drainage ditch, stream, pond, or lake, or

elsewhere within Lantern Walk, except that fertilizers may be applied to landscaping on Units

provided care is taken to minimize runoff, and Declarant and Builders may dump and bury rocks

and trees removed from a building site on such building site;

(k) Accumulation of rubbish, trash, or garbage except between regular garbage pick

ups, and then only in approved containers;

(1) Obstruction or rechanneling drainage flows after location and installation of

drainage swales, storm sewers, or storm drains, except that Declarant and the Association shall

have such right; provided, the exercise of such right shall not materially diminish the value of or

unreasonably interfere with the use of any Unit without the Owner's consent;

(m) Subdivision of a Unit into two or more Units, or changing the boundary lines of any

Unit after a subdivision plat including such Unit has been approved and Recorded, except that

Declarant shall be permitted to subdivide or replat Units which it owns;

(n) Swimming, boating, use of personal flotation devices, fishing, or other active use of

lakes, ponds, streams, or other bodies of water within Lantern Walk, and Declarant, its

successors and assigns, shall be permitted and shall have the exclusive right and easement to

draw water from lakes, ponds, and streams within Lantern Walk for purposes of irrigation and 81 112 9 100 such other purposes as Declarant shall deem desirable. The Association shall not be responsible BL 02595 for any loss, damage, or injury to any person or property arising out of the authorized or

unauthorized use of rivers, lakes, ponds, streams or other bodies of water within or adjacent to

Lantern Walk;

(o) Use of any Unit for operation of a timesharing, fraction-sharing, or similar program

whereby the right to exclusive use of the Unit rotates among participants in the program on a

fixed or floating time schedule over a period of years, except that Declarant and its assigns may

operate such a program with respect to Units which it owns;

(p) Discharge of firearms; provided, the Board shall have no obligation to take action to prevent or stop such discharge;

(q) On-site storage of gasoline, heating, or other fuels, except that a reasonable amount of fuel may be stored on each Unit for emergency purposes and operation of lawn mowers and similar tools or equipment, and the Association shall be permitted to store fuel for operation of maintenance vehicles, generators, and similar equipment. This provision shall not apply to any underground fuel tank authorized pursuant to Article IV;

Any business, trade, garage sale, moving sale, rummage sale, or similar activity, except that an Owner or occupant residing in a Unit may conduct business activities within the Unit so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the Unit; (ii) the business activity conforms to all zoning requirements for Lantern Walk; (iii) the business activity does not involve door-todoor solicitation of residents of Lantern Walk; (iv) the business activity does not, in the Board's reasonable judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles being parked in Lantern Walk which is noticeably greater than that which is typical of Units in which no business activity is being conducted; and (v) the business activity is consistent with the residential character of Lantern Walk and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of Lantern Walk, as may be determined in the Board's sole discretion.

The terms "business" and "trade,' as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (i) such activity is engaged in full or part-time, (ii) such activity is intended to or does generate a profit, or (iii) a license is required.

Leasing of a Unit shall not be considered a business or trade within the meaning of this subsection. This subsection shall not apply to any activity conducted by Declarant or a Builder approved by Declarant with respect to its development and sale of Lantern Walk or its use of any Units which it owns within Lantern Walk, including the operation of a timeshare or similar program;

(s) Capturing, trapping, or killing of wildlife within Lantern Walk, except in circumstances posing an imminent threat to the safety of persons using Lantern Walk; B₺ 12.595

(t) Any activities which materially disturb or destroy the vegetation, wildlife, wetlands, or air quality within Lantern Walk or which use excessive amounts of water or which result in unreasonable levels of sound or light pollution;

£ 0493 (u) Conversion of any carport or garage to finished space for use as an apartment or other integral part of the living area on any Unit without prior approval pursuant to Article IV;

(v) Operation of motorized vehicles on pathways or trails maintained by the Association, except that golf carts may be operated on cart paths intended for such purposes; and

(w) Any construction, erection, placement, or modification of any thing, permanently or temporarily, on the outside portions of the Unit, whether such portion is improved or unimproved, except in strict compliance with the provisions of Article IV of the Declaration. This shall include, without limitation, signs, basketball hoops, swing sets and similar sports and play equipment; clotheslines; garbage cans; woodpiles; above-ground swimming pools; docks, piers and similar structures; and hedges, walls, dog runs, animal pens, or fences of any kind; satellite dishes and antennas, except that:

(i) an antenna designed to receive direct broadcast satellite services, including direct-to-home satellite services, that is one meter or less in diameter;

an antenna designed to receive video programming services via multipoint distribution services, including multichannel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or

(iii) an antenna that is designed to receive television broadcast signals;

(collectively, "Permitted Antennas") shall be permitted on Units, subject to such reasonable requirements as to location and screening as may be set forth in the Architectural Guidelines, consistent with applicable law, in order to minimize obtrusiveness as viewed from streets and adjacent property. Declarant and/or the Association shall have the right, without obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or a portion of Lantern Walk, should any master system or systems be utilized by the Association and require such exterior apparatus.

3. Prohibited Conditions. The following shall be prohibited at Lantern Walk:

(a) Plants, animals, devices, or other things of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of Lantern Walk;

B₺ U2595 (b) Structures, equipment, or other items on the exterior portions of a Unit which have become rusty, dilapidated, or otherwise fallen into disrepair; and

(c) Sprinkler or irrigation systems or wells of any type which draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface waters within ₽¿ U494 Lantern Walk, except that Declarant and the Association shall have the right to draw water from such sources.

4. Leasing of Units. "Leasing," for purposes of this Paragraph, is defined as regular, exclusive occupancy of a Unit by any person, other than the Owner for which the Owner receives any consideration or benefit, including, but not limited to, a fee, service, gratuity, or emolument. All leases shall be in writing. The Board may require a minimum lease term. Notice of any lease, together with such additional information as may be required by the Board, shall be given to the Board by the Unit Owner within 10 days of execution of the lease. The Owner must make available to the lessee copies of the Declaration, By-Laws, and the Restrictions and Rules.

BL 02595 PE 0495

EXHIBIT D"

BY-LAWS

OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

BL: 02595

- TABLE OF CONTENTS -

Article I Name, Principal Office, and Definitions.

1.1. Name..

1.2.

1.3. Definitions.

Pro xies

2.1. Membership..

2.2.

2.3.

2.4. .2

2.5.

2.6. .2

2.7. ..2

2.8. Voting..

2.9. Proxies

2.10.

2.11. Quorum

2.12.

2.13.

igs, ers

.4

3.1.

3.2. Number of Directors.

3.3. Directors During Class "B" Control Period

3.4 Nomination and Election Procedures

3.5. Election and Term of Office...

3.6. Removal of Directors and Vacancies.

B. Meetings

3.7 Organizational Meetings.

3.8. Regular Meetings.

3.9. Special Meetings.

3.10. Notice; Waiver of Notice

3.11. Telephonic Participation in Meetings.

3.12. Quorum of Board of Directors..

3.13. Compensation.

3.14. Conduct of Meetings.

3.15. Open Meetings.

3.16. Action Without a Formal Meeting...

C. Powers and Duties.

3.17. Powers

3.18. Duties.

3.19. Right of Class "B" Member to Disapprove Actions. Pg 0497 3.20. Management.

3.21. Accounts and Reports.

3.22. Borrowing

3.23. Right to Contract.

3.24. Enforcement.

Article IV Officers

4.1. Officers.

4.2. Election and Term of Office...

4.3. Removal and Vacancies

4.4. Powers and Duties.

4.5. Resignation.

4.6. Agreements, Contracts, Deeds, Leases, Checks 4.7. Compensation.

Article V Committees.

5.1 General.

5.2. Covenants Committee..

Article VI Miscellaneous

6.1. Fiscal Year.

6.2. Parliamentary Rules..

6.3. Conflicts..

6.4. Books and Records..

6.5. Notices...

6.6. Amendment. ..

BY-LAWS

OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

Article I

Name, Principal Office, and Definitions

1.1. Name.

The name of the corporation is Lantern Walk Homeowners Association, Inc. ('Association").

1.2. Principal Office.

The Association's principal office shall be located in Clarke County, Georgia. The Association may have such other offices, either within or outside the State of Georgia, as the Board of Directors may determine or as the affairs of the Association may require.

1.3. Definitions.

The words used in these By-Laws shall be given their normal, commonly understood definitions. Capitalized terms shall have the same meaning as set forth in the Recorded Declaration of Covenants, Conditions, and Restrictions for Lantern Walk, as it may be amended ("Declaration'), unless the context indicates otherwise.

Article II

Membership: Meetings, Quorum, Voting, Proxies

2.1. Membership.

The Association shall have two classes of membership, Class "A" and Class "B," as more fully set forth in the Declaration, the terms of which pertaining to membership are incorporated by this reference.

2.2. Place of Meetings. BL 02595 Meetings of the Association shall be held at the Association's principal office or at such other suitable place convenient to the Members as may be designated by the Board, either within the Community or as convenient as is possible and practical.

฿ 0499 2.3. Annual Meetings.

The first meeting of the Association, whether a regular or special meeting, shall be held within one year from the date of the Association's incorporation. the Board shall set subsequent

regular annual meetings so as to occur during the third quarter of the Association's fiscal year on a date and at a time the Board sets.

2.4. Special Meetings.

The President may call special meetings. In addition, it shall be the President's duty to call a special meeting if so directed by resolution of the Board or upon a petition signed by Members representing at least 25% of the total Class "A" votes in the Association.

2.5. Notice of Meetings.

Written or printed notice stating the place, day, and hour of any meeting of the Members shall be delivered, either personally or by mail, to each Member entitled to vote at such meeting, not less than 10 nor more than 50 days before the date of such meeting, by or at the direction of the President or the Secretary or the officers or persons calling the meeting.

In the case of a special meeting or when otherwise required by statute or these By-Laws, the purpose or purposes for which the meeting is called shall be stated in the notice. No business shall be transacted at a special meeting except as stated in the notice.

If mailed, the notice of a meeting shall be deemed to be delivered when deposited in the United States mail addressed to the Member at its address as it appears on the Association's records, with postage prepaid.

2.6. Waiver of Notice.

Waiver of notice of a meeting of the Members shall be deemed the equivalent of proper notice. Any Member may, in writing, waive notice of any meeting of the Members, either before or after such meeting. Attendance at a meeting by a Member or the Member's proxy shall be deemed a waiver by such Member of notice of the time, date, and place thereot, unless such Member or proxy specifically objects to lack of proper notice at the time the meeting is called to order. Attendance at a special meeting also shall be deemed a waiver of notice of all business transacted at such meeting unless an objection on the basis of lack of proper notice is raised before the business is put to a vote.

2.7. Adjournment of Meetings.

If any Association meeting cannot be held because a quorum is not present, Members or BE 02595 their proxies holding a majority of the votes represented at such meeting may adjourn the meeting to a time not less than five nor more than 30 days from the time the original meeting was called. At the reconvened meeting, if a quorum is present, any business may be transacted which might have been transacted at the meeting originally called. If a time and place tor reconvening the meeting is not fixed by those in attendance at the original meeting or if for any ₽ 0500 reason a new date is fixed for reconvening the meeting after adjournment, notice of the time and place for reconvening the meeting shall be given to Members in the manner prescribed for regular meetings.

The Members represented at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum, provided that any action taken is approved by at least a majority of the votes required to constitute a quorum.

2.8. Voting.

Members' voting rights shall be as set forth in the Declaration and in these By-Laws, and such voting rights provisions are specifically incorporated by this reference.

2.9. Proxies.

At all meetings of Members, each Member may vote in person (if a corporation, partnership, or trust, through any officer, director, partner, or trustee duly authorized to act on behalf of the Member) or by proxy, subject to the limitations of Georgia law. All proxies shall be in writing specifying the Unit(s) for which it is given, signed by the Member or its duly authorized attorney-in-fact, dated, and filed with the Association's Secretary prior to any meeting for which it is to be effective.

Unless otherwise specifically provided in the proxy, a proxy shall be presumed to cover all votes which the Member giving such proxy is entitled to cast, and in the event of any conflict between two or more proxies purporting to cover the same voting rights, the later dated proxy shall prevail, or if dated as of the same date, both shall be deemed invalid. Every proxy shall be revocable and shall automatically cease upon conveyance of any Unit for which it was given, or upon receipt of notice by the Secretary of the death or judicially declared incompetence of a Member who is a natural person, or of written revocation, or 11 months from the date of the proxy, unless a shorter period is specified in the proxy.

2.10. Majority.

As used in these By-Laws, the term "majority" shall mean those votes, Owners, Members, or other group, as the context may indicate, totaling more than 50% of the total eligible number.

2.11. Quorum.

Except as otherwise provided in these By-Laws or in the Declaration, the presence, in person or by proxy, of Members representing 25% of the total Class "A" votes in the Association BE 02595 shall constitute a quorum at all Association meetings.

2.12. Conduct of Meetings.

The President shall preside over all Association meetings, and the Secretary shall keep P 0501 the minutes of the meetings and record in a minute book all resolutions adopted and all other transactions occurring at such meetings.

2.13. Action Without a Meeting.

Any action required or permitted by law to be taken at a meeting of the Members may be taken without a meeting, without prior notice, and without a vote, if written consent specifically authorizing the proposed action is signed by all Members entitled to vote thereon. Such consent shall be filed with the Association's minutes, and shall have the same force and effect as a vote of the Members at a meeting. Within 10 days after receiving authorization for any action by written consent, the Secretary shall give written notice to all Members entitled to vote who did not give their written consent, fairly summarizing the material features of the authorized action.

Article III

Board of Directors: Selection, Meetings, Powers

A. Composition and Selection.

3.1. Governing Body; Composition.

The Association's affairs shall be governed by a Board of Directors. Each director shall have one equal vote. Except with respect to directors appointed by the Class "B" Member, the directors shall be Members or Residents; provided, no Owner and Resident representing the • same Unit may serve on the Board at the same time. A "Resident" shall be any natural person 18 years of age or older whose principal place of residence is a Unit within the Community. In the case of a Member which is not a natural person, any officer, director, partner, employee, or trust officer of such Member shall be eligible to serve as a director unless otherwise specified by written notice to the Association signed by such Member; provided, no Member may have more than one such representative on the Board at a time, except in the case of directors appointed by the Class "B" Member.

3.2. Number of Directors.

The Board elected by the Class "A" Members shall consist of three to five directors, as provided in Sections 3.3 and 3.5 below. The initial Board shall consist of one director as identified in the Articles of Incorporation.

3.3. Directors During Class "B" Control Period.

During the Class "B" membership, the director shall be selected by the Class "B" BL: 02595 Member acting in its sole discretion and shall serve at the pleasure of the Class "B" Member. Upon the termination of the Class "B" membership, or at such earlier time if the Class "B" Member, in its discretion, so determines, directors shall be elected at a meeting of the Association by the Class "A" Members and shall serve terms as set forth in Section 3.5.

PE 0502 3.4. Nomination and Election Procedures.

Nominations and Declarations of Candidacy. Prior to each election of directors by the Class "A" Members, the Board shall prescribe the opening date and the closing date of a

reasonable filing period in which each and every eligible person who has a bona-fide interest in serving as a director may file as a candidate for any position to be filled by votes of Class "A" Members. The Board shall also establish such other rules and regulations as it deems appropriate to conduct the nomination of directors in a fair, efficient, and cost-effective manner.

Except with respect to directors selected by the Class "B" Member, nominations for election to the Board may also be made by a Nominating Committee. The Nominating Committee, if any, shall consist of a Chairman, who shall be a member of the Board, and three or more Members or representatives of Members. The Board shall appoint the members of the Nominating Committee, if any, prior to the election and their appointments shall be made known to the membership in the notice of the election.

The Nominating Committee may make as many nominations for election to the Board as it shall in its discretion determine. In making its nominations, the Nominating Committee shall use reasonable efforts to nominate candidates representing the diversity which exists within the pool of potential candidates. Each candidate shall be given a reasonable, uniform opportunity to communicate his or her qualifications to the Members and to solicit votes.

(b) Election Procedures. Each Owner may cast the entire vote assigned to his or her Unit for each position to be filled on the Board. There shall be no cumulative voting. That number of candidates equal to the number of positions to be filled receiving the greatest number of votes shall be elected. Directors may be elected to serve any number of consecutive terms.

3.5. Election and Term of Office.

Within 30 days of the termination of the Class "B" membership, or such earlier time if the Class "B" Member, in its discretion, so determines, the Board shall increase to five members. The President shall call for an election by which the Class "A" Members shall be entitled to elect all of the directors to the Board. The three of the five directors receiving the largest number of votes being elected for a term of two years, and the remaining two directors being elected for a term of one year. All subsequent elections shall elect directors for a term of two years. The directors elected by the Class "A" Members shall hold office until their respective successors have been elected.

3.6. Removal of Directors and Vacancies.

Any director elected by the Class "A" Members may be removed, with or without cause, BE 02595 by Class "A" Members holding a majority of the votes entitled to be cast for his or her election. Any director whose removal is sought shall be given notice prior to any meeting called for that purpose. Upon removal of a director, a successor shall be elected by the Class "A" Members to fill the vacancy for the remainder of the term of such director.

Any director elected by the Class "A" Members who has three or more consecutive I USUS unexcused absences from Board meetings, or who is more than 30 days delinquent (or is the representative of a Member who is so delinquent) in the payment of any assessment or other charge due the Association, may be removed by a majority of the directors present at a regular or

special meeting at which a quorum is present, and the Board may appoint a successor to fill the vacancy for the remainder of the term.

In the event of the death, disability, or resignation of a director elected by the Class "A" Members, the Board may declare a vacancy and appoint a successor to fill the vacancy until the next annual meeting, at which time the Class "A" Members shall elect a successor for the remainder of the term.

This Section shall not apply to directors appointed by the Class "B" Member nor to any director serving as a representative of Declarant. The Class "B" Member shall be entitled to appoint a successor to fill any vacancy on the Board resulting from the death, disability, or resignation of a director appointed by or elected as a representative of the Class "B" Member.

B. Meetings.

3.7. Organizational Meetings.

The first meeting of the Board following each annual meeting of the membership shall be held within 10 days thereafter at such time and place as the Board shall fix.

3.8. Regular Meetings.

Regular Board meetings may be held at such time and place as a majority of the directors shall determine, but at least four such meetings shall be held during each fiscal year with at least one per quarter.

3.9. Special Meetings.

Special meetings of the Board of Directors shall be held when called by written notice signed by the President or Vice President or by any two directors. The notice shall specify the time and place of the meeting and the nature of any special business to be considered.

3.10. Notice; Waiver of Notice.

(a) Notice of the time and place of a regular meeting shall be communicated to directors not less than four calendar days prior to the meeting. Notice of the time and place of a special meeting shall be communicated to directors not less than 72 hours prior to the meeting. BE: 12,595 No notice need be given to any director who has signed a waiver of notice or a written consent to holding of the meeting. The notice shall be given to each director by: (i) personal delivery; (ii) first class mail, postage prepaid; (iii) telephone communication, either directly to the director or to a person at the director's office or home who would reasonably be expected to communicate such notice promptly to the director; or (iv) facsimile, computer, fiberoptics or such other communication device. All such notices shall be given at the director's telephone number, tax 0504 number, electronic mail address, or sent to the director's address as shown on the records of the Association. Notices of special Board meetings shall be posted in a prominent place within the Community. Notices sent by first class mail shall be deposited into a United States mailbox at least seven business days before the time set for the meeting. Notices given by personal

delivery, telephone, or other device shall be delivered or transmitted at least 72 hours before the time set for the meeting.

(b) The transactions of any Board meeting, however called and noticed or wherever held, shall be as valid as though taken at a meeting duly held after regular call and notice if (i) a quorum is present, and (ii) either before or after the meeting each of the directors not present signs a written waiver of notice, a consent to holding the meeting, or an approval of the' minutes. The waiver of notice or consent need not specify the purpose of the meeting. Notice of a meeting also shall be deemed given to any director who attends the meeting without protesting before or at its commencement about the lack of adequate notice.

3.11. Telephonic Participation in Meetings.

Members of the Board or any committee designated by the Board may participate in a meeting of the Board or committee by means of conference telephone or similar communications equipment, by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this subsection shall constitute presence in person at such meeting.

3.12. Quorum of Board of Directors.

At all meetings of the Board, a majority of the directors shall constitute a quorum for the transaction of business, and the votes of a majority of the directors present at a meeting at which a quorum is present shall constitute the decision of the Board, unless otherwise specifically provided in these By-Laws or the Declaration. A meeting at which a quorum is initially present may continue to transact business, notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting. If any Board meeting cannot be held because a quorum is not present, a majority of the directors present at such meeting may adjourn the meeting to a time not less than five nor more than 30 days from the date of the original meeting. At the reconvened meeting, if a quorum is present, any business which might have been transacted at the meeting originally called may be transacted without further notice.

3.13. Compensation.

Directors shall not receive any compensation from the Association for acting as such unless approved by Members representing a majority of the total Class "A" votes in the B₺ 02595 Association at a regular or special meeting of the Association. Any director may be reimbursed for expenses incurred on behalf of the Association upon approval of a majority of the other directors. Nothing herein shall prohibit the Association from compensating a director, or any entity with which a director is affiliated, for services or supplies furnished to the Association in a capacity other than as a director pursuant to a contract or agreement with the Association, provided that such director's interest was made known to the Board prior to entering into such contract and such contract was approved by a majority of the Board of Directors, excluding the interested director.

3.14. Conduct of Meetings.

The President shall preside over all meetings of the Board, and the Secretary shall keep a minute book of Board meetings recording all Board resolutions and all transactions and proceedings occurring at such meetings.

• 3.15. Open Meetings.

Subject to the provisions of Section 3.16, all Board meetings shall be open to all Members, but Members other than directors may not participate in any discussion or deliberation unless permission to speak is requested on his or her behalf by a director. In such case, the President may limit the time any Member may speak. Notwithstanding the above, the President may adjourn any Board meeting and reconvene in executive session, and may exclude Members, to discuss matters of a sensitive nature, such as pending or threatened litigation or personnel matters.

3.16. Action Without a Formal Meeting.

Any action to be taken at a meeting of the directors or any action that may be taken at a meeting of the directors may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors, and such consent shall have the same force and effect as a unanimous vote.

C. Powers and Duties.

3.17. Powers.

The Board of Directors shall have all of the powers and duties necessary for the administration of the Association's affairs and for performing all responsibilities and exercising all rights of the Association as set forth in the Governing Documents and as provided by law. The Board may do or cause to be done all acts and things as are not directed by the Governing Documents or Georgia law to be done and exercised exclusively by the membership generally.

3.18. Duties.

The Board's duties shall include, without limitation:

(a) preparing and adopting, in accordance with the Declaration, an annual budget establishing each Owner's share of the Common Expenses; BE 02595

(b) levying and collecting such assessments from the Owners;

(c) providing for the operation, care, upkeep, and maintenance of the Area of Common Responsibility; P 0500

(d) designating, hiring, and dismissing the personnel necessary to carry out the Association's rights and responsibilities and where appropriate, providing for the compensation

of such personnel and for the purchase of equipment, supplies, and materials to be used by such personnel in the performance of their duties;

(e) depositing all funds received on the Association's behalf in a bank depository which it shall approve, and using such funds to operate the Association; provided, any reserve fund may be deposited, in the directors' best business judgment, in depositories other than banks;

(f) making and amending use restrictions and rules in accordance with the Declaration;

(g) opening bank accounts on the Association's behalf and designating the signatories required;

(h) making or contracting for the making of repairs, additions, and improvements to or alterations of the Common Area in accordance with the Declaration and these By-Laws;

enforcing by legal means the provisions of the Governing Documents and bringing any proceedings which may be instituted on behalf of or against the Owners concerning the Association; provided, the Association shall not be obligated to take action to enforce any covenant, restriction or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent with applicable law, or in any case in which the Board reasonably determines that the Association's position is not strong enough to justify taking enforcement action;

obtaining and carrying property and liability insurance and fidelity bonds, as provided in the Declaration, paying the cost thereof, and filing and adjusting claims, as appropriate;

(k) paying the cost of all services rendered to the Association;

keeping books with detailed accounts of the Association's receipts and expenditures;

(m) making available to any prospective purchaser of a Unit, any Owner, and the holders, insurers, and guarantors of any Mortgage on any Unit, current copies of the Governing Documents and all other books, records, and financial statements of the Association, as provided in Section 6.4; BL: 02595

(n) permitting utility suppliers to use portions of the Common Area reasonably necessary to the ongoing development or operation of the Community; and

(0) indemnifying a director, officer, or committee member, or former director, Pg. 0507 officer, or committee member of the Association to the extent such indemnity is required under Georgia law, the Articles of Incorporation, or the Declaration.

3.19. Right of Class "B" Member to Disapprove Actions.

So long as the Class "B" membership exists, if the Class "B" Member has voluntarily terminated the Class "B" Control Period and the Class "A" Members are entitled to elect a majority of the directors to the Board, the Class "B" Member shall have a right to disapprove any action, policy, or program of the Association, the Board, and any committee which, in the sole judgment of the Class "B" Member, would tend to impair rights of Declarant or Declarantapproved builders under the Declaration or these By-Laws, or interfere with development of or construction on any portion of the Community, or diminish the level of services being provided by the Association.

(a) The Class "B" Member shall be given written notice of all meetings and proposed actions approved at meetings (or by written consent in lieu of a meeting) of the Association, the Board, or any committee. Such notice shall be given by certified mail, return receipt requested, or by personal delivery at the address it has registered with the Association's Secretary, which notice complies as to the Board meetings with Sections 3.8, 3.9, 3.10, and 3.11 and which notice shall, except in the case of the regular meetings held pursuant to the By-Laws, set forth in reasonable particularity the agenda to be followed at said meeting; and

The Class "B" Member shall be given the opportunity at any such meeting to join in or to have its representatives or agents join in discussion from the floor of any prospective action, policy, or program which would be subject to the right of disapproval set forth herein.

No action, policy, or program subject to the right of disapproval set forth herein shall become effective or be implemented until and unless the requirements of subsections (a) and (b) above have been met.

The Class "B" Member, its representatives or agents shall make its concerns, thoughts, and suggestions known to the Board and/or the members of the subject committee. with any tic The Class "B" Member, acting through any officer or director, agent or authorized representative, may exercise its right to disapprove at any time within 10 days following the meeting at which such action was proposed or, in the case of any action taken by written consent in lieu of a meeting, at any time within 10 days following receipt of written notice of the proposed action. This right to disapprove may be used to block proposed actions but shall not include a right to require any action or counteraction on behalf of any committee, the Board, or the Association. The Class "B" Member shall not use its right to disapprove to reduce the level of services which the Association is obligated to provide or to prevent capital repairs or any expenditure required to comply with applicable laws and regulations. BL 02595

3.20. Management.

The Board of Directors may employ for the Association a professional management agent or agents at such compensation as the Board may establish, to perform such duties and services as the Board shall authorize. The Board of Directors may delegate such powers as are necessary to perform the manager's assigned duties, but shall not delegate policymaking authority or those duties set forth in Sections 3.18(a), 3.18(b), 3.18(f), 3.18(g) and 3.18(i). Declarant, or an affiliate of Declarant, may be employed as managing agent or manager.

The Board of Directors may delegate to one of its members the authority to act on the Board's behalf on all matters relating to the duties of the managing agent, or manager, if any, which might arise between Board meetings.

3.21. Accounts and Reports.

The following management standards of performance shall be followed unless the Board by resolution specifically determines otherwise:

(a) accrual accounting, as defined by generally accepted accounting principles, shall be employed;

(b) accounting and controls should conform to generally accepted accounting

(c) cash accounts of the Association shall not be commingled with any other

(d) no remuneration shall be accepted by the managing agent from vendors, independent contractors, or others providing goods or services to the Association, whether in the form of commissions, finder's fees, service fees, prizes, gifts, or otherwise; any thing of value received shall benefit the Association;

(e) any financial or other interest which the managing agent may have in any firm providing goods or services to the Association shall be disclosed promptly to the Board;

(f) an annual report consisting of at least the following shall be made available to all Members within 120 days after the close of the fiscal year: (1) a balance sheet; (2) an operating (income) statement; and (3) a statement of changes in financial position for the fiscal year. Such annual report may be prepared on an audited, reviewed, or compiled basis, as the Board determines by an independent public accountant; provided, upon written request of any holder, guarantor, or insurer of any first Mortgage on a Unit, the Association shall provide an audited financial statement.

3.22. Borrowing.

The Association shall have the power to borrow money for any legal purpose; provided, BE U2595 the Board shall obtain Member approval in the same manner provided for Special Assessments in the Declaration if the proposed borrowing is for the purpose of making discretionary capital improvements and the total amount of such borrowing, together with all other debt incurred within the previous 12-month period, exceeds or would exceed 20% of the budgeted gross PE 0509 expenses of the Association for that fiscal year.

3.23. Right to Contract.

The Association shall have the right to contract with any Person for the performance of various duties and functions. This right shall include, without limitation, the right to enter into common management, operational, or other agreements with trusts, condominiums, cooperatives, or other owners or residents associations, within and outside the Community; provided, any common management agreement shall require the consent of a majority of the total number of directors of the Association.

3.24. Enforcement.

In addition to such other rights as are specifically granted under the Declaration, the Board shall have the power to impose reasonable monetary fines, which shall constitute a lien upon the Unit of the violator, and to suspend an Owner's right to vote for violation of any duty imposed under the Governing Documents. In addition, the Board may suspend any services provided by the Association to an Owner or the Owner's Unit if the Owner is more than 30 days delinquent in paying any assessment or other charges owed to the Association. In the event that any occupant, tenant, employee, guest, or invitee of a Unit violates the Governing Documents and a fine is imposed, the fine shall first be assessed against the occupant; provided, if the fine is not paid by the occupant within the time period set by the Board, the fine shall be assessed against the Unit and the Owner thereof upon notice from the Association. The Board's failure to enforce any provision of the Governing Documents shall not be deemed a waiver of the Board's to do so thereafter.

(a) Notice. Prior to imposition of any sanction hereunder or under the Declaration, the Board or its delegate shall serve the alleged violator with written notice describing (i) the nature of the alleged violation, (ii) the proposed sanction to be imposed, (iii) a period of not less than 10 days within which the alleged violator may present a written request for a hearing to the Board or the Covenants Committee, if one has been appointed pursuant to Article V; and (iv) a statement that the proposed sanction shall be imposed as contained in the notice unless a challenge is begun within 10 days of the notice. If a timely challenge is not made, the sanction stated in the notice shall be imposed; provided, the Board or Covenants Committee may, but shall not be obligated to, suspend any proposed sanction if the violation is cured within the 10day period. Such suspension shall not constitute a waiver of the right to sanction future violations of the same or other provisions and rules by any Person.

(b) Hearing. If a hearing is requested within the allotted 10 day period, the hearing shall be held before the Covenants Committee, if one, or if none, then before the Board in BL 02595 executive session. The alleged violator shall be afforded a reasonable opportunity to be heard. Prior to the effectiveness of any sanction hereunder, proof of proper notice shall be placed in the minutes of the meeting. Such proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent Pg 0510 who delivered such notice. The notice requirement shall be deemed satisfied if the alleged violator or its representative appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed.

(C) Appeal. Following a hearing before the Covenants Committee, the violator shall have the right to appeal the decision to the Board of Directors. To exercise this right, a written notice of appeal must be received by the Association's manager, President, or Secretary within 10 days after the hearing date.

Additional Enforcement Rights. Notwithstanding anything to the contrary in this Article, the Board may elect to enforce any provision of the Governing Documents by self-help (specifically including, but not limited to, the towing of vehicles that are in violation of parking rules) or, following compliance with the dispute resolution procedures set forth in the Declaration, it applicable, by suit at law or in equity to enjoin any violation or to recover monetary damages or both, without the necessity of compliance with the procedure set forth above. In any such action, to the maximum extent permissible, the Owner or occupant responsible for the violation of which abatement is sought shall pay all costs, including reasonable attorney's fees actually incurred. Any entry onto a Unit for purposes of exercising this power of self-help shall not be deemed as trespass.

Article IV

Officers

4.1. Officers.

The Association's officers of the Association shall be a President, Vice President, Secretary, and Treasurer. The President and Secretary shall be elected from among the members of the Board; other officers may, but need not be Board members of the Board. The Board may appoint such other officers, including one or more Assistant Secretaries and one or more Assistant Treasurers, as it shall deem desirable, such officers to have such authority and perform such duties as the Board prescribes. Any two or more offices may be held by the same person, except the offices of President and Secretary.

4.2. Election and Term of Office.

The Board shall elect the officers of the Association at the first Board meeting following each annual meeting of the Members, to serve until their successors are elected.

4.3. Removal and Vacancies.

The Board may remove any officer whenever in its judgment the Association's best BL: 02595 interests will be served, and may fill any vacancy in any office arising because of death, resignation, removal, or otherwise, for the unexpired portion of the term.

4.4. Powers and Duties.

The Association's officers shall each have such powers and duties as generally pertain to their respective offices, as well as such powers and duties as may specifically be conferred or imposed by the Board of Directors. The President shall be the Association's chief executive officer. The Treasurer shall have primary responsibility for the preparation of the budget as

provided for in the Declaration and may delegate all or part of the preparation and notification duties to a finance committee, management agent, or both.

4.5. Resignation.

Any officer may resign at any time by giving written notice to the Board of Directors, the President, or the Secretary. Such resignation'shall take effect on the date of the receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

4.6. Agreements, Contracts, Deeds, Leases, Checks.

All agreements, contracts, deeds, leases, checks, and other instruments of the Association shall be executed by at least two officers or by such other person or persons as may be designated by Board resolution.

4.7. Compensation.

Compensation of officers shall be subject to the same limitations as compensation of directors under Section 3.13.

Article V

Committees

5.1. General.

The Board may appoint such committees as it deems appropriate to perform such tasks and to serve for such periods as the Board may designate by resolution. Each committee shall operate in accordance with the terms of such resolution.

5.2. Covenants Committee.

In addition to any other committees which the Board may establish pursuant to the Declaration and these By-Laws, specifically, Section 5.1, the Board may appoint a Covenants

Covenants Committee, if established, shall be the Association's hearing tribunal and shall conduct all hearings held pursuant to Section 3.24.

BL 02595 Article VI

Miscellaneous

6.1. Fiscal Year. PE U512 The Association's fiscal year shall be the calendar year unless the Board establishes a different fiscal year by resolution.

6.2. Parliamentary Rules.

Except as may be modified by Board resolution, Robert's Rules of Order (current edition) shall govern the conduct of Association proceedings when not in conflict with Georgia law or the Governing Documents.

6.3. Conflicts.

If there are conflicts among the provisions of Georgia law, the Articles of Incorporation, the Declaration, and these By-Laws, the provisions of Georgia law, the Declaration, the Articles of Incorporation, and the By-Laws (in that order) shall prevail.

6.4. Books and Records.

(a) Inspection by Members and Mortgagees. The Board shall make available for inspection and copying by any holder, insurer, or guarantor of a first Mortgage on a Unit, any Member, or the duly appointed representative of any of the foregoing at any reasonable time and for a purpose reasonably related to his or her interest in a Unit: the Declaration, By-Laws, and Articles of Incorporation, any amendments to the foregoing, the Use Restrictions and Rules, the membership register, books of account, and the minutes of meetings of the Members, the Board, and committees. The Board shall provide for such inspection to take place at the Association office or at such other place within the Community as the Board shall designate.

(b) Rules for Inspection. The Board shall establish reasonable rules with respect to:

(i) notice to be given to the custodian of the records;

(ii) hours and days of the week when such an inspection may be made; and (iii) payment of the cost of reproducing copies of documents requested.

(c) Inspection by Directors. Every director shall have the absolute right at any reasonable time to inspect all Association books, records, and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a director includes the right to make a copy of relevant documents at the Association's expense.

6.5. Notices. BL 02595 Except as otherwise provided in the Declaration or these By-Laws, all notices, demands, bills, statements, and other communications under the Declaration or these By-Laws shall be in writing and shall be deemed to have been duly given if delivered personally or when sent by United States mail, first class postage prepaid:

Pg 0513 (a) if to a Member, at the address which the Member has designated in writing and filed with the Secretary or, if no such address has been designated, at the address of the Unit of such Member; or

(b) if to the Association, the Board of Directors, or the managing agent, at the principal office of the Association or the managing agent, or at such other address as shall be designated by notice in writing to the Members pursuant to this Section.

6.6. Amendment.

(a) By Class "B" Member. During the Class "B" membership, the Class "B" Member may unilaterally amend these By-Laws for any purpose. Thereafter, the Class "B" Member may amend these By-Laws if such amendment is specifically required to enable any governmental or institutional lender, purchaser, guarantor, or insurer of mortgage loans to make, purchase, insure or guarantee mortgage loans on the Units; provided, any such amendment shall not adversely affect the title to any Unit unless the Owner shall consent thereto in writing.

(b) By Members. Except as provided above, these By-Laws may be amended only by the affirmative vote or written consent, or any combination thereof, of Members representing at least 51% of the total Class "A" votes in the Association, and the consent of the Class "B' Member, if such exists. Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause.

(c) By the Board. The Board may also amend these By-Laws by unanimous vote or written consent of the directors to submit the Association to the Georgia Property Owners' Association Act and to confirm these By-Laws to any mandatory provisions thereof. Any such amendment shall require Declarant's consent, so long as Declarant owns any property described on Exhibits "A' or "B' to the Declaration.

(d) Validity and Effective Date of Amendments. Amendments to these By-Laws shall become effective upon Recordation, unless a later effective date is specified therein. Any procedural challenge to an amendment must be made within six months of its recordation or such amendment shall be presumed to have been validly adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of these By-Laws.

No amendment may remove, revoke, or modify any right or privilege of Declarant or the Class "B" Member without the written consent of Declarant, the Class "B" Member, or the assignee of such right or privilege.

If a Member consents to any amendment to the Declaration or these By-Laws, it will be BE 02595 conclusively presumed that such Member has the authority so to consent and no contrary provision in any Mortgage or contract between the Member and a third party will affect the validity of such amendment.

₽g 0514

CERTIFICATION

I, the undersigned, do hereby certify:

That I am the duly elected and acting Secretary of Lantern Walk Homeowners Association, Inc., a Georgia corporation;

That the foregoing By-Laws constitute the original By-Laws of said Association, as duly adopted at a meeting of the Board of Directors thereof held on the _ _ day of, 2004.

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said Association this_ _ day of _ .., 2004.

_[SEAL] Secretary

NadtI data\ADTClients\Bowen and Bowen\Lantern Walk HOA\Bylaws-Lantern Walk.doc

BE 02595

Pg 0515

UNANIMOUS WRITTEN CONSENT

OF THE BOARD OF DIRECTORS OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

The undersigned, being all of the directors of the Lantern Walk Homeowners Association, Inc. ('Association") hereby unanimously consent to and adopt the following resolutions as the action of the Board of Directors of the Association (the "Board") in lieu of the organizational meeting of directors and hereby direct that this written consent to such action be filed with the minutes of the proceedings of the Board.

WITNESSETH

WHEREAS, pursuant to Section 3.2 of the Declaration of Covenants, Conditions, and Restrictions for Lantern Walk recorded on February 6, 2004 in Deed Book 2595, Page 435, et seq. of the official records of the Clerk of the Superior Court of Athens-Clarke County, Georgia (the "Declaration") the Board may modify, cancel, limit, create exceptions to, or expand the Restrictions and Rules (as defined in the Declaration). The Board shall send notice to all Owners (as defined in the Declaration) concerning any proposed action at least five business days prior to the Board meeting at which such action Is considered;

WHEREAS, the Board desires to modify certain use restrictions to address the comfort of Owners;

WHEREAS, the Board sent the required notice; and

WHEREAS, the members of the Association have not called a meeting and disapproved the proposed modification of the Restrictions and Rules in compliance with Section 3.2 of the Declaration.

NOW THEREFORE, pursuant to the rights contained in Section 3.2 of the Declaration, the Board hereby adopts the following modifications to Exhibit "C" as follows:

Exhibit "C," Section 2(a) to the Declaration is deleted and replaced as follows:

Parking any vehicles on private streets or thoroughfares, or parking of commercial vehicles or equipment, mobile homes, recreational vehicles, golf carts, boats and other watercraft, trailers, stored vehicles, or inoperable vehicles in places other than enclosed garages; provided, construction, service and delivery vehicles shall be exempt from this

provision during daylight hours for such period of time as is reasonably

necessary to provide service or to make a delivery to a Unit or the

Common Area

Exhibit "C," Section 2(b) to the Declaration is deleted and replaced as follows:

(b) Raising, breeding, or keeping animals, livestock, or poultry

of any kind, except that a reasonable number of dogs, cats, or other usual

and common household pets may be permitted in a Unit and the weight of

each such pet shall not exceed 30 pounds; however, those pets which are

permitted to roam free, or, in the sole discretion of the Board, make

objectionable noise, endanger the health or safety of, or constitute a

nuisance or inconvenience to the occupants of other Units shall be

removed upon the Board's request. In addition, dogs which are

rottweilers, pit bulls, doberman pinschers, and breeds that are generally

acknowledged by dog breeders and veterinarians to have aggressive and/or

vicious tendencies (including mixed breed dogs, if the breed mix can be

reasonably proven) are prohibited within the Community and shall be

subject to immediate removal if required by the Board. If the pet owner

fails to honor such request, the Board may remove the pet. Dogs shall be

kept on a leash or otherwise confined in a manner acceptable to the Board

whenever outside the dwelling. Pets shall be registered, licensed, and

inoculated as required by law;

The undersigned, by affixing their signatures hereto, do hereby consent to, authorize, and approve of the foregoing Resolution in their capacity as all of the directors of the Association this 9 +h _ day of november, 2004.

Atta matire ạiathy McClure, Director

G:ADTClients\RMB Management, Inc. fka Bowen and Bowen\Lanter Walk HOA\Action-use restr-072604.doc

STATE OF GEORGIA

COUNTY OF ATHENS-CLARKE

OWNER CONSENT TO

AMENDMENT TO

DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR LANTERN WALK

The undersigned Owner, as a record owner of a portion of real property described on Exhibit "A" to that certain Declaration of Covenants, Conditions, and Restrictions for Lantern Walk executed by Lantern Walk Builders, LLC on January 27, 2004 ("Declaration"), does hereby consent to and approve of the foregoing amendment to the Declaration by Lantern Walk Builders, LLC to be recorded in the real property records of Gwinnett County, Georgia (the "Amendment") and agrees that the property described on Exhibit "A" attached thereto shall hereafter be held, sold, used and conveyed subject to the terms of such Amendment and all of the easements, restrictions, covenants, and conditions, contained therein, which shall run with the title to such real property and shall be binding upon all parties having any right, title, or interest in such property, including the undersigned Owner and its heirs, successors, successors-in-title, and assigns.

IN WITNESS WHEREOF, the undersigned Owner has set its hand and seal this day of → 2005.

OWNER:

(SEAL) Print Name:

(SEAL) Signed, sealed, and delivered Print Name:

this _ day of → 2005

in the presence of Unit Owned:

Inofficial Witness

Notary Public

[NOTARY SEAL]

Prepared by and return to:

Amy H. Bray, Esq.

Andersen, Tate, Mahaffey & McGarity, P.C.

P.O. Box 2000

Lawrenceville, Georgia 30046

(2845.16010)

Recorder's Cross-Reference: Declaration: Book: 2595

Page: 435

COUNTY OF GWINNETT

STATE OF GEORGIA

AMENDMENT TO THE DECLARATION

OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR LANTERN WALK

THIS AMENDMENT is made this - day of 2005 by Lantern Walk Builders, LLC, a Georgia limited liability company ('Declarant).

WITNESSETH

WHEREAS, Declarant signed and recorded that certain Declaration of Covenants, Conditions, and Restrictions for Lantern Walk, recorded on February 6, 2004 in Book 2595, Page 435 of the records of the Clerk of the Superior Court of Athens-Clarke County, Georgia (the "Declaration"); and

WHEREAS, pursuant to Section 18.1 of the Declaration, until termination of the Class "B" Control Period Declarant may unilaterally amend the Declaration for any purpose; and

WHEREAS, pursuant to Section 15.4(b) of the Declaration, the consent of Members representing at least 67% of the Class "A" votes and of Declarant, so long as Declarant owns any land subject to the Declaration, and the approval of the Eligible Holders (as defined in Article XV) of first Mortgages (as defined in the Declaration) on Units (as defined in the Declaration) to which more than 50% of the votes of Units subject to a Mortgage (as defined in the Declaration) appertain, shall be required materially to amend any provisions of the Declaration, By-Laws, or Articles of Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate leasing of Units; and

WHEREAS, Declarant desires to amend the Declaration to create a limitation on the leasing of Units within Lantern Walk; and

WHEREAS, obtaining the consent of Eligible Holders is unnecessary as there are no Eligible Holders; and

WHEREAS, Declarant has consented to this Amendment, as required under Section 15.4(b), because Declarant owns land subject to the Declaration; and

WHEREAS, such amendment was approved by the consent of Members representing at least 67% of the Class "A" votes; and

NOW, THEREFORE, pursuant to the terms of the Declaration, the Declarant hereby amends the Declaration as follows:

Section 3.4(b) of the Declaration shall be deleted in its entirety and replaced as follows:

No sign of any kind shall be erected by an Owner or an occupant of the Community without the prior written consent of the ARC. Notwithstanding the foregoing, the Board and the Declarant shall have the right to erect reasonable and appropriate signs. "For Sale" signs and security signs consistent with the Community-Wide Standard and any signs required by legal proceedings may be erected upon any Unit. No rule shall prohibit Owners or occupants from displaying religious and holiday signs, symbols, and decorations in windows or doors of their Units of the kinds normally displayed in residential neighborhoods; however, the Association may regulate the time, place, manner, and extent of such displays for the purpose of minimizing disturbance to other Owners and occupants. No rules shall regulate the content of political signs; however, rules may regulate the time, place, and manner of posting such signs and establish design criteria for such signs.

2.

A new Section 3.5 shall be added to the Declaration as follows:

3.5. Restrictions on Leasing of Units

Purposes. In order to carry out the purpose for which the Community was formed by preserving the character of the Community as a homogenous residential community of predominantly owner-occupied homes and by preventing the Community from assuming the character of a renter-occupied apartment complex, and to comply with the eligibility requirements for financing in the secondary mortgage market insofar as such criteria provide that the project be substantially owner-occupied, leasing of Units shall be governed by the restrictions imposed by this Section 3.5. The Board of Directors shall have authority to make and enforce reasonable rules and regulations in order to enforce this Article, including the right to impose fines constituting a lien upon the Unit sold or leased as provided herein.

(b) Leasing means regular, exclusive occupancy of a Unit by any person(s) other that the Owner for which the Owner received any consideration or benefit, including, but not limited to, a fee, rent, gratuity, or emolument. For purposes hereof the following shall not constitute leasing: (i) occupancy by a roommate with an Owner; (il) occupancy by a member of the Owner's family; (il) occupancy by one or more wards if the Unit is owned by their legal guardian; or (iv) occupancy by one or more beneficiaries of a trust if the Unit is owned in trust by the trustee.

(c) Restriction on Leasing. At no time may more than twenty-five percent (25%) of Units within the Community be leased at any one time and, except as provided herein, the leasing of Units shall otherwise be prohibited. No Owner of a Unit may lease such Unit except as provided below for cases of undue hardship

To ensure that this limitation is not exceeded, an Owner who intends to lease his or her Unit shall first seek the consent of the Board to rent (including contracts for a "lease-purchase"), whereupon the Board will notify the Owner if this limitation has been met. Any request for consent to lease a Unit must be presented to the Board in writing and contain the current name and contact information for the Owner, and the contact information for the Owner (if different) once the Unit is leased.

If the limit has been met, the Owner shall not seek to lease the Unit. If this limit has not been met, permission shall be granted for a one-year period so long as such Owner does not have unpaid assessments or fines owed to the Association. If such Owner desires to enter into a different or new lease (regardless of whether the parties are the same or different) then he or she must reapply to the Board for approval.

(c) Undue Hardship. Notwithstanding the provisions above, the Board shall be empowered to allow reasonable leasing of a Unit upon application in accordance with this Section to avoid undue hardship, including, but not limited to the following situation: (1) an Owner must relocate his residence outside the greater Atlanta area and cannot, within six months from the date that the Unit was placed on the market, sell the Unit except at a price below the current appraised market value, after having made reasonable efforts to do so; (2) the Owner is deceased and the Unit is being administered by a personal representative; or (3) the Owner takes a leave of absence from employment or temporarily relocates for employment purposes and intends to return to reside in the Unit, in which case the Owner must reapply every year for renewal of the hardship exception. Those Owners who have complied with this Section, have demonstrated that the inability to lease their Unit would result in undue hardship, and have obtained the requisite written Board approval may lease their Units for such duration as the Board reasonably determines is necessary to prevent undue hardship. Any Owner may apply for a hardship exemption to lease a Unit by submitting a written application

to the Board setting forth the circumstances necessitating the leasing, a copy of the proposed lease, and such other information as the Board may reasonably require. Leasing in the case of undue hardship shall be permitted only upon the Board's written approval of the Owner's application.

Leasing Provisions. Units may be leased only in their entirety; no fraction or portion of a Unit may be leased. With the exception of a lender in possession of a Unit following a default in a first Mortgage, a foreclosure proceeding, or any deed or other arrangement in lieu of foreclosure, no Owner shall be permitted to lease his Unit for transient or hotel purposes. All leases and tenants are subject to the provisions of the Declaration, the By-Laws, and any Restrictions and Rules adopted pursuant thereto. Any lease agreement shall be required to provide that the terms of the lease shall be subject in all respects to the provisions of the Declaration and By-Laws and that any failure by the tenant to comply with the terms of such documents shall be a default under the lease. All leases shall be in writing. Other than Units owned by the Declarant, and with the exception of a lender in possession of a Unit following a default in a first Mortgage, leases must be for a term of no less than 12 months. The Owner must make available to the tenant copies of the Declaration, By-Laws, and Restrictions and Rules.

Notice. At least seven days prior to entering into any lease for a Unit the Owner shall give notice in writing to the Board of Directors of such intention and including a copy of the proposed lease agreement. If a hardship exemption has been granted, the Board shall approve or disapprove the form of said lease within seven days after receipt of the notice. In the event that the Board disapproves the form of a lease, the Board shall notify the Owner of the action required to be taken in order to bring the lease agreement into compliance with this Declaration and any rules and regulations of the Association.

Mortgagee, Exemption. The provisions of this Article shall not apply to any Mortgagee in possession of a Unit through foreclosure or otherwise as a result of the exercise of any rights arising out of a first priority Mortgage on a

Section 4 of Exhibit "C" is hereby deleted in its entirety.

[SIGNATURES ON THE FOLLOWING PAGE]

IN WITNESS WHEREOF, the undersigned Association has executed this Amendment on the date and year first written above.

DECLARANT: LANTERN WALK BUILDERS, LLC,

a Georgia limited liability company

Kathy McClure Manager

Signed, sealed, and deliverec

On this 2 day of pI; 2005

Unofficial Witness

Cheria f

Notary Public SEANN SOI

CHER ISSION EXA

[NOTARIAL SEAL] MAY

My commission expires: 10

2008

G:ADT Clients RMB Management, Inc, fka Bowen and Bowen tay xdt-CCR-leasing-090905.doc

UNANIMOUS WRITTEN CONSENT

OF THE BOARD OF DIRECTORS OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

The undersigned, being all of the directors of the Lantern Walk Homeowners Association, Inc. (Association") hereby unanimously consent to and adopt the following resolutions as the action of the Board of Directors of the Association (the "Board") in lieu of the organizational meeting of directors and hereby direct that this written consent to such action be filed with the minutes of the proceedings of the Board.

WITNESSETH

WHEREAS, pursuant to Section 3.2 of the Declaration of Covenants, Conditions, and Restrictions for Lantern Walk recorded on February 6, 2004 in Deed Book 2595, Page 435, et seq. of the official records of the Clerk of the Superior Court of Athens-Clarke County, Georgia (the "Declaration") the Board may modify, cancel, limit, create exceptions to, or expand the Restrictions and Rules (as defined in the Declaration). The Board shall send notice to all Owners (as defined in the Declaration) concerning any proposed action at least five business days prior to the Board meeting at which such action is considered;

WHEREAS, the Board desires to modify certain use restrictions to address the comfort of Owners;

WHEREAS, the Board sent the required notice; and

WHEREAS, the members of the Association have not called a meeting and disapproved the proposed modification of the Restrictions and Rules in compliance with Section 3.2 of the Declaration.

NOW THEREFORE, pursuant to the rights contained in Section 3.2 of the Declaration, the Board hereby deletes and replaces Section 2(b) of Exhibit "C" as follows:

Raising, breeding, or keeping animals, livestock, or poultry of any kind, except that a reasonable number of dogs, cats, or other usual and common household pets may be permitted in a Unit except for dogs which are a dangerous breed (such dogs being expressly prohibited) or a mix which includes a dangerous breed; however, those pets which are permitted to roam free, or, in the sole discretion of the Board, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. In addition, dogs which are rottweilers, pit bulls, doberman pinschers, and breeds that are generally acknowledged by dog breeders and veterinarians to have aggressive and/or

vicious tendencies (including mixed breed dogs, if the breed mix can be reasonably proven) are prohibited within the Community and shall be subject to immediate removal if required by the Board. If the pet owner fails to honor such request, the Board may remove the pet. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Pets shall be registered, licensed, and inoculated as required by law;

The undersigned, by affixing their signatures hereto, do hereby consent to, authorize, And into this. he day oing setee. i their capacity as lof the directors of the

G:ADTClients\RMB Management, Inc. fka Bowen and Bowen Lantern Walk HOAlAction-use restr-091205.doc

Deed Doc: COVE

Recorded 08/10/2007 03:29PM " Prepared by and return to:

Amy H. Bray, Esq. Beverly Logan

Andersen, Tate, & Carr, P.C.

P.O. Box 2000 Clerk Superior Court, Athens-Clarke County, Ga Lawrenceville, Georgia 30046 BL 03374 Pg 0184-0185 (2845.16010)

Recorder's Cross-Reference: Declaration: Book: 2595

Page: 435 COUNTY OF GWINNETT

STATE OF GEORGIA

AMENDMENT TO THE DECLARATION

OF COVENANTS, CONDITIONS, AND RESTRICTIONS

FOR LANTERN WALK

THIS AMENDMENT is made this _ day off, 2007 by Lantern Walk Builders, CLC, a Georgia limited liability company (Declarant).

WITNESSETH

WHEREAS, Declarant signed and recorded that certain Declaration of Covenants, Conditions, and Restrictions for Lantern Walk, recorded on February 6, 2004 in Book 2595, Page 435 of the records of the Clerk of the Superior Court of Athens-Clarke County, Georgia (the "Declaration"); and

WHEREAS, pursuant to Section 18.1 of the Declaration, until termination of the Class "B" Control Period Declarant may unilaterally amend the Declaration for any purpose; and

WHEREAS, Declarant desires to amend the Declaration to modify the rules regarding pets that may be kept within the Lantern Walk community; and

NOW, THEREFORE, pursuant to the terms of the Declaration, the Declarant hereby amends the Declaration as follows:

Exhibit "C," Section 2(b) of the Declaration shall be deleted in its entirety and replaced as follows:

Raising, breeding, or keeping animals, livestock, or poultry of any kind, except

that a reasonable number of dogs, cats, or other usual and common household pets

may be permitted in a Unit and the weight of each such pet shall not exceed 30

pounds; however, those pets which are permitted to roam free, or, in the sole

discretion of the Board, make objectionable noise, endanger the health or safety

BL 03374 A 0185

of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Pets shall be registered, licensed, and inoculated as required by law;

IN WITNESS WHEREOF, the Declarant has executed this Amendment on the date and year first written above.

DECLARANT: LANTERN WALK BUILDERS, LLC,

a Georgia limited liability company

Kathy NcChure/Manager

Signed, sealed, and delivered

On this 2 day of August, 2007

In the presence of: RESION EXPiR

Nara Curtes APRIL

Jnofficial Witness 2011

Hatera Jance

Notary Public

[NOTARIAL SEAL]

My commission expires: Apil 1, 20|

716721_1

Secretary of State CONTROL NUMBER: 0359016

EFFECTIVE DATE: 10/27/2003

Corporations Division JURISDICTION : GEORGIA

315 West Tower REFERENCE : 0092

PRINT DATE : 10/29/2003

#2 Martin Luther King, Jr. Dr. FORM NUMBER : 311

Atlanta, Georgia 30334-1530

MORRIS & SCHNEIDER, PC

5072 BRISTOL INDUSTRIAL WAY

BUFORD, GA 30518

CERTIFICATE OF INCORPORATION

I, Cathy Cox, the Secretary of State and the Corporations Commissioner of the State of Georgia, do hereby certify under the seal of my office that

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

A DOMESTIC NONPROFIT CORPORATION

been duly incorporated under the laws of the State of Georgia on the effective date stated above by the filing of articles of incorporation in the Office of the Secretary of State and by the paying of fees as provided by

WITNESS my hand and official seal in the City of Atlanta and the State of Georgia on the date set forth above.

atly Coął

Cathy Cox

Secretary of State

ARTICLES OF INCORPORATION

OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

ARTICLE ONE

NAME :

The name of the Corporation shall be:

LANTERN

KANKERN WALK HOMEOWNERS ASSOCIATION, INC.

ARTICLE TWO

Perpetual Duration

The Corporation shall have perpetual duration.

ARTICLE THREE

Nonprofit Corporation and Purposes

The Corporation shall be a nonprofit corporation under the provisions of the Georgia Nonprofit Corporation Code for the sole purpose of acting as a civic organization which shall not be operated for profit, but shall be operated for the sole purpose of performing certain functions for the common good and welfare of the people of the community known as LANTERN WALK SUBDIVISION.

The terms "Declaration" as used herein, refers to that certain Declaration of Covenants restrictions and easements which shall be executed by JEFFERSON RIVER ROAD PARTNERS, LLC. (the "Declarant"), and shall be filed for' record with the Clerk of the Superior Court of CLARKE COUNTY, Georgia

The Association shall have and may exercise all powers necessary or convenient to effect this purpose as set forth above, including, to the extent and only to the extent, necessary to carry out such purpose, the following powers and duties:

(a) exercise all of the powers and privileges and to perform all of the duties and obligations of the Association as set forth in that certain Declaration of Covenants, Conditions and restrictions, hereinafter called the "Declaration", applicable to the property and recorded or to be recorded in the Office of the Clerk of the Superior Court and as the same may be amended from time to time as therein provided, said Declaration being incorporated herein as if set forth at length:

(b) fix, levy, collect and enforce payment by any lawful means; all charges or assessments pursuant to the terms of the Declaration; to pay all expenses in connection herewith and all office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or governmental charges levied or imposed against the property of the Association.

(c) acquire (by gift,: purchase or otherwise), own,hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicated for public use or otherwise dispose of real or personal property in connection with the affairs of the Association;

(d) borrow money, and with the assent of two-thirds (2/3) of the members present in person or by proxy and voting at a duly held meeting, mortgage, pledge, deed in trust or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred;

(e) dedicate, sell or transfer all or any part of the Common Property to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the

members; provided that such dedication or transfer have the consent of two-thirds (2/3) of the votes of each class of members;

participate in mergers and consolidations with other nonprofit associations organized for the same purposes or annex additional residential property and Common Property, provided that any such merger, consolidation or annexation shall have the assent of two-thirds (2/3) of the:votes of each class of members;

(g) have and exercise any and all owner, rights and privileges which an association organized under the Non-Profit law of the State of Georgia by law may now or hereafter have or

exercise.

ARTICLE 4

Board of Directors

The affairs of the Association shall be managed by a Board consisting of at least one (1) Director (who need not be members of the Association) while the Class B Membership controls the Association; however, once the control of the Association is transferred to the Class A Membership, the affairs of the Association shall be managed by a Board of not less than three (3) nor more than nine (9) Directors, who need not be members of the

Association. The numbers of Directors may be changed by amendment of the By-laws of the Association. The names and addresses of those persons who are to act in the capacity of Directors until the selection of their successors are set forth in Article 7 hereto.

nem

ARTICLE 5

LIMITATION ON CORPORATE POWERS

The Association shall not have or exercise any corporate powers except those necessary to carry out the purpose of the Association as set forth in Article 3 above.

ARTICLE 6

Initial Registered Office and Registered Agent

The initial registered office of the Association shall be at 5072 Bristol Industrial Way, Suite A, Buford, Ga. 30518. The initial registered agent of the Association at such address shall be Kathy C. McClure.

ARTICLE 1.

Board of Directors

The initial Board of Directors shall consist of at least one member who shall be selected by the Declarant and the name and address of such person who is to serve as a member thereof is as follows: Kathy C. McClure, 5072 Buford Industrial Way, Suite A, Buford, Ga, 30518.

ARTICLE 8

Incorporator

The name and address of the Incorporator is Kathy C. McClure, 5072 Bristol Industrial Way, Suite A, Buford, Ga. 30518.

nam

ARTICLE 9

Initial Principal Office

The initial principal office of the Association shall be at 5072 Bristol Industrial Way, Suite A, Buford, Ga. 30518

ARTICLE 10

Membership and Voting Rights

Every person or entity who is a record owner of a fee or undivided fee interest in any Lot which is subject by covenants of record to assessment by the Association, including contract sellers, shall be a Member of the Association. The foregoing is not intended to included persons or entities who hold an interest merely as security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of any lot which is subject to assessment by the Association. The Association shall have two classes of voting membership:

CLass A. Class A Members shall be all Owners of Residences with the exception of the Declarant and shall be entitled to one (1) vote for each Residence owned. When more than one person holds an interest in any Lot, all such persons shall be Members. The vote for such Residence shall be exercised as they determine, but in no event shall more than one vote be cast with respect to any Residence.

Class B. Class B Member(s) shall be Declarant (as defined in the Declaration) ,'and shall be entitled to three (3) votes for each Lot owned, provided however, in no even shall the Class B nem

Member have less than the total number of Class A votes plus one (1). The Class B Membership shall cease and be converted to Class A Membership at such time as Declarant no longer retains the right to appoint and remove members of the Board and officers of the Association pursuant to Article III Section 3. of the Declaration as follows: Declarant shall retain the right to appoint and remove any members of the Board and any officer or officers until such time as the first of the following events shall occur: (i) the expiration of twenty (20) years after the date of the recording of the Declaration; (ii). the date upon which seventy five (75%) percent of all of the residences submitted or proposed to be submitted by Declarant to be a part of the Development have been conveyed by Declarant to Owners other than a person or persons constituting Declarant; or (iii) the surrender by Declarant of the authority to appoint and remove directors and officers by an express amendment to this Declaration executed and recorded by Declarant, provided, however, that the Owners may be entitled to elect certain members of the Board of the Association in accordance with the terms of the By-Laws of the Association which shall not be removable by the Declarant acting alone.

ARTICLE 11

Amendment or Dissolution of Articles of Incorporation Amendment of these Articles shall require the assent of twothirds (2/3) of the entire Membership.

nem

ARTICLE 12

Dissolution and Disposition of Assets Upon Dissolution The Association may be dissolved only if such dissolution is approved by the written consent of two-thirds (2/3) of the Members.

Upon dissolution of the Association, other than incident to merger or consolidation, the assets of the Association shall be dedicated and conveyed to one or more appropriate public agencies on the express condition that such assets shall be devoted to purposes as neatly as practicable the same as those to which they were required to be devoted by the Association. In the event that such dedication is refused acceptance, such assets shall be conveyed to a nonprofit corporation, nonprofit association, nonprofit trust or other nonprofit organization on the express condition that such assets shall be devoted to purposes as nearly as practicable the same as those to which they were required to be devoted by the Association.

Article 13

Limitation of liability

A director of the Association shall not be personally liable to the Association or its members for monetary damages for breach of duty of care or other duty as a director; provided, however, the above provision shall not apply to the personal liability of a director of the Association:

(i) For any appropriation, in violation of his duties, of any business opportunity of the association;

rem

(ii) For any acts or omissions not in good faith or which involved intentional misconduct or knowing violations of the law;

(iii) For any transaction form which the director received an improper personal benefit.

Any repeal or modification of this Article 13 by the members of the Association shall not adversely affect any right or protection of a director or the Association existing at the time of such repeal or modification.

ARTICLE 14

PRIOR APPROVAL

As long as there is a Class B membership; the following actions shall require the prior approval of the Veterans Administration ("VA") as long as the VA is guaranteeing any mortgage in the property, and the prior approval of HUD as long as HUD is insuring any mortgage in the property: annexation of additional land to the property, except annexation by declarant in accordance with Article IX of the Declaration, pursuant to a plan of annexation previously approved by the VA or HUD; mergers and consolidations; dedication of common property to any public entity; Amendment to the Declaration, Byvars, or/articles of Inorporation; mortgaging of any common area; diss

Kathy C. McClure, Incorporator

80:21 12 130 1002

CONSENT TO APPOINTMENT AS REGISTERED AGENT

Secretary of State, ex-Officio Corporation Commissioner State of Georgia

I do hereby consent to serve as registered agent for the Corporation:

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

This 21ST day of October, 2003.

T KATHY C. MCCLURE

Address of Registered Agent:

5072 Bristol Industrial Way, Buford, Ga. 30518

Lantern Walk Homeowners Association, Inc.

DATE: October 5, 2021 Property manager TO: Lantern Walk Owners/Residents - Ashley Grannum FROM: Ashley Grannum, Association Manager email a grannumbema. SUBJECT: Parking & Property Rules Communi

404835 809210. com home, please ensure the attached Rules & Regulations are included with your lease. Please make sure all occupants within your home read this notice! If you are leasing your This memo is to remind everyone of the Lantern Walk Homeowners Association, Inc., Rules and Regulations as a final warning prior to fines being assessed for violations of the covenants and rules. Any property in violation of the covenants and rules will be assessed a $50 per day fine for each day the violation is allowed to exist. Fines are assessed against the Property Owner; it is the responsibility of the Owner to address issues with their tenants and ensure they are abiding by the rules of the Association.

IMPORTANT REMINDERS:

Please read as fines and disposal of items will be enforced beginning immediately!

• PARKING: No parking is allowed on the streets/curbs EXCEPT where inset parallel spaces are designated. Parking on the street in non-designated areas WILL RESULT IN TOWING when there is illegal street parking. ABSOLUTELY NO PARKING ON UNPAVED SURFACES, OF THE VEHCILES. Emergency vehicles, school buses and delivery trucks cannot get thru DESIGNATED CONCRETE DRIVEWAYS. such as lawns. ABSOLUTELY NO PARKING ALONG ALLEYWAYS OUTSIDE OF THE

• NOISE: Noise levels (inside and outside) need to be kept at a level as not to disrupt neighbors.

• Pets - If you have a dog, you must keep it leashed and pick up its waste at all times. If you are reported violating either of these rules, you will be fined. Allowing pet waste to accumulate on the property is a health hazard to the landscaping crew, as well as a nuisance to other residents on the property. Thank you for your cooperation.

• Fireworks: Per the Rules and Regulations, fireworks are prohibited in the entire community. Due to the proximity of the homes, this is a serious fire hazard and will be enforced.

• Exterior Maintenance & Modifications: Owners are responsible for the upkeep and maintenance of the property. Please evaluate the exterior of your home and make the necessary repairs. If you wish to change the existing color of your home, you must submit a property modification and use the preapproved paint colors. Any other exterior to fencing, landscaping, additions to the structure, etc. modificationsmust also go through the Board for approval; this includes but is not limited • Items on Lawn/Outside of the Home: Only grills and garbage pails are allowed outside the home. This prohibits all and any other items including, basketball hoops, trampolines, playsets etc. Outdoor furniture is allowed on porches and patios (only).

• Landscape Lighting: Landscape lighting should only be placed in the flowerbed areas. This will ensure it does not intrude in the landscape maintenance services by our landscape vendor.

If you have any questions, you may contact me directly at 404-835-9210 or via email at agrannum@cmacommunities.com. Thank you for your attention to these important rules.

LANTERN WALK HOMEOWNERS' ASSOCIATION, INC

Park & Pavilion Rules

Pavilion Area:

• No loud music • Pavilion Hours: Sunrise to Sundown or Dawn to Dusk

• No glass

• No Alcohol, or illegal drug use

• All Trash and Debris must be properly disposed. No Littering.

• Cannot erect or construct anything in this area: (i.e., bounce house, trampolines, etc.) • All Reservations must be scheduled through our Management company. Please have Proof of Reservation on the day of the event. • Proper attire must be always worn. Must wear shoes & shirt. • No Fireworks

• No disorderly conduct

• Pets must be always leashed.

Playground Area:

• Use is prohibited after dark

• Children under the age of 12 must be supervised/accompanied by an adult • Removal of all garbage. No littering

• No bikes allowed in the playground borders

• No soccer, football, or other sports activities inside playground borders • Improper use of equipment prohibited

• No alcohol, smoking, or illegal drug use

• No pets

Please note that we have a vendor that comes weekly to empty the trash receptacles, dog waste stations, and grills.

EXHIBIT D"

BY-LAWS

OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

8₺02595 _ Pg 0496

- TABLE OF CONTENTS -

Article I Name, Principal Office, and Definitions..

1.1. Name.

1.2. Principal Office

1.3. Definitions.

Article Il Membership: Meetings, Quorum, Voting, Proxies.

2.1. Membership.

2.2. Place of Meetings.

2.3. Annual Meetings..

2.4. Special Meetings.

2.5. Notice of Meetings.

2.6. Waiver of Notice.

2.7. Adjournment of Meetings..

2.8. Voting. •

2.9. Proxies.

2.10. Majority

2.11. Quorum

2.12. Conduct of Meetings.

2.13. Action Without a Meeting..

Article III Board of Directors: Selection, Meetings, Powers

A. Composition and Selection

3.1 Governing Body; Composition..

3.2 Number of Directors.

3.3. Directors During Class "B" Control Period

3.4. Nomination and Election Procedures.

3.5. Election and Term of Office

3.6. Removal of Directors and Vacancies.

B. Meetings

3.7. Organizational Meetings...

3.8. Regular Meetings.

3.9. Specil Meetings

3.10. Notice; Waiver of Notice.

3.11. Telephonic Participation in Mectings.

3.12. Quorum of Board of Directors.

3.13. Compensation.

3.14. Conduct of Meetings.

3.15. Open Meetings BL 02595 3.16. Action Without a Formal Meeting

C. Powers and Duties

3.17. Powers.

3.18. Duties

3.19. Right of Class BI Member to Disapprove Actions £ 0497 3.20. Management.

3.21. Accounts and Reports

3.22. Borrowing.

3.23. Right to Contract.

3.24. Enforcement.

Article IV Officers

4.1. Officers

4,2. Election and Term of Office.

4.3. Removal and Vacancies.

4.4. Powers and Duties.

4.5. Resignation..

4.6. Agreements, Contracts, Deeds, Leases, Checks

4.7. Compensation

Article V Committees

5.1. General.

5.2. Covenants Committee

Article VI Miscellaneous..

6.1. Fiscal Year..

6.2. Parliamentary Rules...

6.3. Contlicts..

6.4. Books and Records..

6.5. Notices.

6.6. Amendment. .16

BY-LAWS

OF

LANTERN WALK HOMEOWNERS ASSOCIATION, INC.

Article I

Name, Principal Office, and Definitions

Name.

The name of the corporation is Lanter Walk Homeowners Association, Inc. ("Association').

1.2. Principal Office.

The Association's principal office shall be located in Clarke County, Georgia. The Association may have such other offices, either within or outside the State of Georgia, as the Board of Directors may determine or as the affairs of the Association may require.

1.3. Definitions.

The words used in these By-Laws shall be given their normal, commonly understood definitions. Capitalized terms shall have the same meaning as set forth in the Recorded Declaration of Covenants, Conditions, and Restrictions for Lantern Walk, as it may be amended ('Declaration"), unless the context indicates otherwise.

Article II

Membership: Meetings, Quorum, Voting, Proxics

2.1. Membership.

The Association shall have two classes of membership, Class "A" and Class "B,' as more fully set forth in the Declaration, the terms of which pertaining to membership are incorporated by this reference.

BE 02595 2.2. Placc of Meetings.

Meetings of the Association shall be held at the Association's principal office or at such other suitable place convenient to the Members as may be designated by the Board, either within the Community or as convenient as is possible and practical. P 0499

2.3. Annual Meetings.

The first meeting of the Association, whether a regular or special meeting, shall be held within one year from the datc of the Association's incorporation, the Board shall set subscquent

regular annual meetings so as to occur during the third quarter of the Association's fiscal year on a date and at a time the Board sets.

2.4. Special Meetings.

The President may call special meetings. In addition, it shall be the President's duty to call a special meeting if so directed by resolution of the Board or upon a petition signed by Members representing at least 25% of the total Class "A" votes in the Association.

2.5. Notice of Meetings.

Written or printed notice stating the place, day, and hour of any meeting of the Members shall be delivered, either personally or by mail, to each Member entitled to vote at such meeting, not less than 10 nor more than 50 days before the date of such meeting, by or at the direction of the President or the Secretary or the officers or persons calling the meeting.

In the case of a special meeting or when otherwise required by statute or these By-Laws, the purpose or purposes for which the meeting is called shall be stated in the notice. No business shall be transacted at a special meeting except as stated in the notice.

If mailed, the notice of a meeting shall be decmed to be delivered when deposited in the United States mail addressed to the Member at its address as it appears on the Association's records, with postage prepaid.

2.6. Waiver of Notice.

Waiver of notice of a meeting of the Members shall be deemed the equivalent of proper notice. Any Member may, in writing, waive notice of any meeting of the Members, either before or after such meeting. Attendance at a meeting by a Member or the Member's proxy shall be deemed a waiver by such Member of notice of the time, date, and place thereof, unless such Member or proxy specifically objects to lack of proper notice at the time the mecting is called to order. Attendance at a special meeting also shall be deemed a waiver of notice of all business transacted at such meeting unless an objection on the basis of lack of proper notice is raised before the business is put to a vote.

2.7. Adjournment of Meetings.

If any Association meeting cannot be held because a quorum is not present, Members or HE J2595 their proxies holding a majority of the votes represented at such meeting may adjourn the meeting to a time not less than live nor more than 30 days from the time the original mecting was called. At the reconvened meeting, if a quorum is present, any business may be transacted which might have been transacted at the meeting originally called. If a time and place for ¿ U500 reconvening the meeting is not fixed by thosc in attendance at the original meeting or if for any reason a new date is fixed for reconvening the meeting after adjournment, notice of the time and place for reconvening the meeting shall be given to Members in the manncr prescribed for regular mectings.

The Members represented at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum, provided that any action taken is approved by at least a majority of the votes required to constitute a quorum.

2.8. Voting.

Members' voting rights shall be as set forth in the Declaration and in these By-Laws, and such voting rights provisions are specifically incorparated by this reference.

2.9. Proxies.

At all meetings of Members, each Member may vote in person (if a corporation, partnership, or trust, through any officer, director, partner, or trustee duly authorized to act on behalf of the Member) or by proxy, subject to the limitations of Georgia law. All proxies shall be in writing specifying the Unit(s) for which it is given, signed by the Member or its duly authorized attorney-in-fact, dated, and filed with the Association's Secrctary prior to any meeting for which it is to be effective.

Unless otherwise specifically provided in the proxy, a proxy shall be presumed to cover

shall prevail, or if dated as of the same date, both shall be deemed invalid. Every proxy shall be revocable and shall automatically cease upon conveyance of any Unit for which it was given, or upon receipt of notice by the Secretary of the death or judicially declared incompetence of a Member who is a natural person, or of written revocation, or 11 months from the date of the proxy, unless a shorter period is specified in the proxy.

2.10. Majority.

As used in these By-Laws, the term "majority" shall mean those votes, Owners, Members, or other group, as the context may indicate, totaling more than 50% of the total eligible number.

2.11. Quorum.

Except as otherwise provided in these By-Laws or in the Declaration, the presence, in BL 02595 person or by proxy, of Members represcnting 25% of the total Class "A" votes in the Association shall constitute a quorum at all Association metings.

2.12. Conduct of Meetings. A 0501 The President shall preside over all Association meetings, and the Secretary shall keep the minutes of the meetings and record in a minute book all resolutions adopted and all other transactions occurring at such meetings.

2.13. Action Without a Meeting.

Any action required or permitted by law to be taken at a meeting of the Members may be taken without a meeting, without prior notice, and without a vote, if written consent specifically authorizing the proposed action is signed by all Members entitled to vote thereon. Such consent shall be filed with the Association's minutes, and shall have the same force and effect as a vote of the Members at a meeting. Within 10 days after receiving authorization for any action by written consent, the Secretary shall give written notice to all Members entitled to vote who did not give their written consent, fairly summarizing the material features of the authorized action.

Article II1

Board of Directors: Selection, Mectings, Powers

A. Composition and Selection.

3.1. Governing Body; Composition.

The Association's affairs shall be governed by a Board of Directors. Each director shall have one equal vote. Except with respect to directors appointed by the Class "B" Member, the directors shall be Members or Residents; provided, no Owner and Resident representing the same Unit may serve on the Board at the same time. A "Resident" shall be any natural person 18 years of age or older whosc principal place of residence is a Unit within the Community. In the case of a Member which is not a natural person, any officer, director, partner, employee, or trust officer of such Member shall be eligible to serve as a director unless otherwise specified by written notice to the Association signed by such Member; provided, no Member may have more than one such represcntative on the Board at a time, except in the case of directors appointed by the Class "B" Member.

3.2. Number of Directors.

The Board elected by the Class "A" Members shall consist of three to five directors, as provided in Sections 3.3 and 3.5 below. The initial Board shall consist of one director as identified in the Articles of Incorporation.

3.3. Directors During Class "B" Control Period.

During the Class "B' membership, the director shall be selected by the Class "B" BE 02595 Member acting in its sole discretion and shall serve at the pleasurc of the Class "B" Member. Upon the termination of the Class "B" membership, or at such carlier time if the Class "B" Member, in its discretion, so determines, directors shall be elected at a meeting of the Association by the Class "A" Members and shall serve terms as set forth in Section 3.5.

Pg 0502 3.4. Nomination and Election Procedures.

(a) Nominations and Declarations of Candidacy. Prior to each election of directors by the Class "A" Members, the Board shall prescribe the opening date and the closing date of a

reasonable filing period in which each and every eligible person who has a bona-fide interest in serving as a dircctor may file as a candidate for any position to be filled by votes of Class "A" Members. The Board shall also establish such other rules and regulations as it deems appropriate to conduct the nomination of directors in a fair, efficient, and cost-effective manner.

Except with respect to directors selected by the Class "B" Member, nominations for election to the Board may also be made by a Nominating Committee. The Nominating Committee, if any, shall consist of a Chairman, who shall be a member of the Board, and three or more Members or representatives of Members. The Board shall appoint the members of the Nominating Committee, if any, prior to the election and their appointments shall be made known to the membership in the notice of the election.

The Nominating Committce may make as many nominations for election to the Board as it shall in its discretion determine. In making its nominations, the Nominating Committee shall use reasonable offorts to nominate candidates representing the diversity which exists within the pool of potential candidates. Each candidate shall be given a reasonable, uniform opportunity to communicate his or her qualifications to the Members and to solicit votes.

(b) Election Procedures. Each Owner may cast the entire vote assigned to his or her Unit for each position to be filled on the Board. There shall be no cumulative voting. That number of candidates equal to the number of positions to be filled receiving the greatest number of votes shall be elected. Directors may be elected to serve any number of consecutive terms.

3.5. Election and Term of Office.

Within 30 days of the termination of the Class "B" membership, or such earlier time if the Class "B" Member, in its discretion, so determines, the Board shall increasc to five members. The President shall call for an election by which the Class "A" Members shall be entitled to elect all of the directors to the Board. The three of the five directors receiving the largest number of votes being elected for a term of two years, and the remaining two directors being elected for a term of one year. All subsequent elections shall elect directors for a term of two ycars. The directors elected by the Class "A" Members shall hold office until their respective successors have been elected.

3.6. Removal of Directors and Vacancies.

Any director elected by the Class "A" Members may be removed, with or without cause, BE 02595 by Class "A" Members holding a majority of the votes entitled to be cast for his or her election. Any director whose removal is sought shall be given notice prior to any meeting called for that purpose. Upon removal of a director, a successor shall be elected by the Class "A" Members to fill the vacancy for the remainder of the term of such director.

PE 0503 Any director elected by the Class "A" Members who has three or more consecutive uncxcused absences from Board meetings, or who is more than 30 days delinquent (or is the representative of a Member who is so delinquent) in the payment of any assessment or other charge due the Association, may be removed by a majority of the directors present at a regular or

special meeting at which a quorum is present, and the Board may appoint a successor to fill the vacancy for the remainder of the term.

In the event of the death, disability, or resignation of a director elected by the Class "A" Members, the Board may declare a vacancy and appoint a successor to fill the vacancy until the next annual meeting, at which time the Class "A" Members shall elect a successor for the remainder of the term.

This Scction shall not apply to directors appointed by the Class "B" Member nor to any director serving as a representative of Declarant. The Class "B" Member shall be entitled to appoint a successor to fill any vacancy on the Board resulting from the death, disability, or resignation of a director appointed by or elected as a representative of the Class "B" Member.

B. Meetings.

3.7. Organizational Meetings.

The first meeting of the Board following each annual meeting of the membership shall be held within 10 days thereafter at such time and place as the Board shall fix.

3.8. Regular Meetings.

Regular Board mectings may be held at such time and place as a majority of the dircctors shall determine, but at least four such meetings shall be held during each fiscal year with at least one per quarter.

3.9. Special Meetings.

Special meetings of the Board of Directors shall be held when called by written notice signed by the President or Vice President or by any two directors. The notice shall specify the time and place of the meeting and the nature of any special business to be considered.

3.10. Notice; Waiver of Notice.

Notice of the time and place of a regular meeting shall be communicated to directors not less than four calendar days prior to the meeting. Notice of the time and place of a special meeting shall be communicated to directors not less than 72 hours prior to the meeting. BL 02595 No notice need be given to any director who has signed a waiver of notice or a written consent to holding of the mecting. The notice shall be given to each director by: (i) personal delivery; (11) first class mail, postage prepaid; (iii) telephonc communication, either directly to the director or to a person at the director's office or home who would reasonably be expected to communicate such notice promptly to the director; or (iv) facsimile, computer, fiberoptics or such other P; 0504 communication device. All such notices shall be given at the director's telephone number, fax number, electronic mail address, or sent to the director's address as shown on the records of the Association. Notices of spocial Board mectings shall be posted in a prominent place within the Community. Notices sent by first class mail shall be deposited into a United States mailbox at least seven business days before the time set for the mocting. Notices given by personal

delivery, telephone, or other device shall be delivered or transmitted at least 72 hours before the time set for the meeting.

The transactions of any Board meeting, however called and noticed or wherever held, shall be as valid as though taken at a meeting duly held after regular call and notice if (i) a quorum is present, and (ii) either before or after the meeting each of the directors not present signs a written waiver of notice, a consent to holding the meeting, or an approval of the minutes. The waiver of notice or consent need not specify the purpose of the meeting. Notice of a meeting also shall be deemed given to any director who attends the meeting without protesting before or at its commencement about the lack of adequate notice.

3.11. Telephonic Participation in Meetings.

Members of the Board or any committee designated by the Board may participate in a meeting of the Board or committee by means of conference telephone or similar communications equipment, by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this subsection shall constitute presence in person at such meeting.

3.12. Quorum of Board of Directors.

At all meetings of the Board, a majority of the directors shall constitute a quorum for the transaction of business, and the votes of a majority of the directors present at a meeting at which a quorum is present shall constitute the decision of the Board, unless otherwise specifically provided in these By-Laws or the Declaration. A meeting at which a quorum is initially present may continue to transact business, notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting. If any Board meeting cannot be held because a quorum is not present, a majority of the directors present at such meeting may adjourn the meeting to a time not less than five nor more than 30 days from the date of the original meeting. At the reconvened meeting, if a quorum is present, any business which might have been transacted at the meeting originally called may be transacted without further notice.

3.13. Compensation.

Directors shall not receive any compensation from the Association for acting as such unless approved by Members representing a majority of the total Class "A" votes in the B₺ 02595 Association at a regular or special meeting of the Association. Any director may be reimbursed for expenses incurred on behalf of the Association upon approval of a majority of the other directors. Nothing hercin shall prohibit the Association from compensating a director, or any entity with which a director is affiliated, for services or supplies furnished to the Association in a capacity other than as a director pursuant to a contract or agreement with the Association, Pg USUS provided that such diroctor's interest was made known to the Board prior to entering into such contract and such contract was approved by a majority of the Board of Directors, excluding the interested director.

3.14. Conduct of Meetings.

The President shall preside over all meetings of the Board, and the Secretary shall keep a minute book of Board meetings recording all Board resolutions and all transactions and proceedings occurring at such meetings.

3.15. Open Meetings,

Subject to the provisions of Section 3.16, all Board meetings shall be open to all Members, but Members other than directors may not participate in any discussion or deliberation unless permission to speak is requested on his or her behalf by a director. In such case, the President may limit the time any Member may speak. Notwithstanding the above, the President may adjourn any Board meeting and reconvene in executive session, and may exclude Members, to discuss matters of a sensitive naturc, such as pending or threatened litigation or personnel matters.

3.16. Action Without a Formal Meeting.

Any action to be taken at a meeting of the directors or any action that may be taken at a meeting of the directors may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors, and such consent shall have the same force and effect as a unanimous vote.

C. Powers and Duties.

3.17. Powers.

The Board of Directors shall have all of the powers and duties necessary for the administration of the Association's affairs and for performing all responsibilities and exercising all rights of the Association as set forth in the Governing Documents and as provided by law. The Board may do or cause to be done all acts and things as arc not directed by the Governing Documents or Georgia law to be done and exercised exclusively by the membership generally.

3.18. Duties.

The Board's duties shall include, without limitation:

(a) preparing and adopting, in accordance with the Declaration, an annual budget establishing each Owner's share of the Common Expenses; ek 02595

(b) levying and collecting such assessments from the Owners;

(c) providing for the operation, carc, upkeep, and maintenance of the Area of Common Responsibility; F 0500

(d) designating, hiring, and dismissing the personnel necessary to carry out the Association's rights and responsibilities and where appropriate, providing for the compensation

of such personnel and for the purchase of equipment, supplies, and materials to be used by such personnel in the performance of their duties;

depositing all funds received on the Association's behalf in a bank depository which it shall approve, and using such funds to operate the Association; provided, any reserve fund may be deposited, in the directors' best business judgment, in depositories other than banks; making and amending use restrictions and rules in accordance with the Declaration;

(g) opening bank accounts on the Association's behalf and designating the signatories required;

(h) making or contracting for the making of repairs, additions, and improvements to or alterations of the Common Area in accordance with the Declaration and these By-Laws;

(i) enforcing by legal means the provisions of the Govering Documents and bringing any proceedings which may be instituted on behalf of or against the Owners concerning the Association; provided, the Association shall not be obligated to take action to enforce any covenant, restriction or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent with applicable law, or in any case in which the Board reasonably determines that the Association's position is not strong enough to justify taking enforcement action;

G) obtaining and carrying property and liability insurance and fidelity bonds, as provided in the Declaration, paying the cost thereof, and filing and adjusting claims, as appropriate;

(K) paying the cost of all services rendered to the Association;

keeping books with detailed accounts of the Association's reccipts and expenditures;

making available to any prospective purchaser of a Unit, any Owner, and the holders, insurers, and guarantors of any Mortgage on any Unit, current copies of the Governing Documents and all other books, records, and financial statements of the Association, as provided BE 02595 in Section 6.4;

(n) permitting utility suppliers to use portions of the Common Area reasonably necessary to the ongoing development or operation of the Community; and

indemnifying a dircctor, officer, or committee member, or former director, Pg U547 officer, or committee member of the Association to the extent such indemnity is required under Georgia law, the Articles of Incorporation, or the Declaration.

3.19. Right of Class "B" Member to Disapprove Actions.

So long as the Class "B" membership exists, if the Class "B" Member has voluntarily terminated the Class "B' Control Period and the Class "A' Members are entitled to elect a majority of the directors to the Board, the Class "B" Member shall have a right to disapprove any action, policy, or program of the Association, the Board, and any committee which, in the sole judgment of the Class "B" Member, would tend to impair rights of Declarant or Declarantapproved builders under the Declaration or these By-Laws, or interfere with development of or construction on any portion of the Community, or diminish the level of services being provided by the Association.

(a) The Class "B" Member shall be given written notice of all meetings and proposed actions approved at meetings (or by written consent in lieu of a meeting) of the Association, the Board, or any commitice. Such notice shall be given by certified man, retur receipt requested, or by personal delivery at the address it has registered with the Association's Secretary, which notice complies as to the Board meetings with Sections 3.8, 3.9, 3.10, and 3.11 and which notice shall, except in the case of the regular meetings held pursuant to the By-Laws, set forth in reasonable particularity the agenda to be followed at said meeting; and

(b) The Class "B" Member shall be given the opportunity at any such meeting to join in or to have its representatives or agents join in discussion from the floor of any prospective action, policy, or program which would be subject to the right of disapproval set forth herein.

No action, policy, or program subject to the right of disapproval set forth hercin shall become effective or be implemented until and unless the requirements of subsections (a) and (b) above have been met.

The Class "B" Member, its representatives or agents shall make its concerns, thoughts, and suggestions known to the Board and/or the members of the subject committee.

Class "B" Member, acting through any officer or director, agent or authorized representative, may exercise its right to disapprove at any time within 10 days following the meeting at which such action was proposed or, in the case of any action taken by written consent in lieu of a meeting, at any time within 10 days following receipt of written notice of the proposed action. This right to disapprove may be used to block proposed actions but shall not include a right to require any action or counteraction on behalf of any committee, the Board, or the Association. The Class "B" Member shall not use its right to disapprove to reduce the level of services which the Association is obligated to provide or to prevent capital repairs or any expenditure required BE 02595 to comply with applicable laws and regulations.

3.20. Management.

The Board of Directors may employ for the Association a professional management agent or agents at such compensation as the Board may establish, to perform such duties and services as the Board shall authorize. The Board of Dircctors may delegate such powers as are necessary to perform the manager's assigned duties, but shall not delegate policymaking authority or those duties set forth in Sections 3.18(a), 3.18(b), 3.18(1), 3.18(g) and 3.18(i). Declarant, or an affiliate of Declarant, may be employed as managing agent or manager.

The Board of Directors may delegate to one of its members the authority to act on the Board's behalf on all matters relating to the duties of the managing agent or manager, if any, which might arise between Board meetings.

3.21. Accounts and Reports.

The following management standards of performance shall be followed unless the Board by resolution specifically determines otherwise:

(a) accrual accounting, as defined by generally accepted accounting principles, shall be employed;

(b) accounting and controls should conform to generally accepted accounting principles;

(c) cash accounts of the Association shall not be commingled with any other accounts;

no remuneration shall be accepted by the managing agent from vendors, independent contractors, or others providing goods or services to the Association, whether in the form of commissions, finder's fees, service fees, prizes, gifts, or otherwise; any thing of value received shall benefit the Association;

any financial or other interest which the managing agent may have in any firm providing goods or services to the Association shall be disclosed promptly to the Board;

an annual report consisting of at least the following shall be made available to all Members within 120 days after the close of the fiscal year: (1) a balance sheet; (2) an operating (income) statement; and (3) a statement of changes in financial position for the fiscal year. Such annual report may be prepared on an audited, reviewed, or compiled basis, as the Board determines by an independent public accountant; provided, upon written request of any holder, guarantor, or insurer of any first Mortgage on a Unit, the Association shall provide an audited financial statement,

3.22. Borrowing.

BE 02595 The Association shall have the power to borrow money for any legal purpose; provided, the Board shall obtain Member approval in the same manner provided for Special Asscssments in the Declaration if the proposed borrowing is for the purpose of making discretionary capital improvements and the total amount of such borrowing, together with all other debt incurred within the previous 12-month period, exceeds or would exceed 20% of the budgeted gross F. 0509 expenses of the Association for that fiscal year.

3.23. Right to Contract.

The Association shall have the right to contract with any Person for the performance of various duties and functions. This right shall include, without limitation, the right to enter into common management, operational, or other agreements with trusts, condominiums, cooperatives, or other owners or residents associations, within and outside the Community; provided, any common management agreement shall require the consent of a majority of the total number of directors of the Association.

3.24. Enforcement.

In addition to such other rights as are specifically granted under the Declaration, the Board shall have the power to impose reasonable monetary fines, which shall constitute a lien upon the Unit of the violator, and to suspend an Owner's right to vote for violation of any duty imposed under the Governing Documents. In addition, the Board may suspend any services provided by the Association to an Owner or the Owner's Unit if the Owner is more than 30 days delinquent in paying any assessment or other charges owed to the Association. In the event that any occupant, tenant, employee, guest, or invitee of a Unit violates the Governing Documents and a fine is imposed, the fine shall first be assessed against the occupant; provided, if the fine is not paid by the occupant within the time period set by the Board, the fine shall be assessed against the Unit and the Owner thereof upon notice from the Association. The Board's failure to enforce any provision of the Goveming Documents shall not be deemed a waiver of the Board's to do so thereafter.

Notice. Prior to imposition of any sanction hereunder or under the Declaration, the Board or its delegate shall serve the alleged violator with written notice describing (I) the nature of the alleged violation, (ii) the proposed sanction to be imposed, (iii) a period of not less than 10 days within which the alleged violator may present a written request for a hearing to the Board or the Covenants Committee, if one has been appointed pursuant to Article V; and (iv) a statement that the proposed sanction shall be imposed as contained in the notice unless a challenge is begun within 10 days of the notice. If a timely challenge is not made, the sanction stated in the notice shall be imposed; provided, the Board or Covenants Committee may, but shall not be obligated to, suspend any proposed sanction if the violation is cured within the 10day period. Such suspension shall not constitute a waiver of the right to sanction future violations of the same or other provisions and rules by any Person.

Hearing. If a hearing is requested within the allotted 10 day period, the hearing BE 02595 shall be held before the Covenants Committee, if onc, or if none, then before the Board in exccutive session. The alleged violator shall be afforded a reasonable opportunity to be heard. Prior to the effectiveness of any sanction hereunder, proof of proper notice shall be placed in the minutes of the meeting. Such proof shall be demed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent £ 0510 who delivered such notice. The notice roquirement shall be deemed satisfied if the alleged violator or its representative appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed.

Appeal. Following a hearing before the Covenants Committee, the violator shall have the right to appeal the decision to the Board of Directors. To exercise this right, a written notice of appeal must be received by the Association's manager, President, or Secretary within 10 days after the hearing date.

Additional Enforcement Rights. Notwithstanding anything to the contrary in this Article, the Board may elect to enforce any provision of the Governing Documents by self-help (specifically including, but not limited to, the towing of vehicles that are in violation of parking rules) or, following compliance with the dispute resolution procedures set forth in the Declaration, if applicable, by suit at law or in cquity to enjoin any violation or to recover monetary damages or both, without the necessity of compliance with the procedure set forth above. In any such action, to the maximum extent permissible, the Owner or occupant responsible for the violation of which abatement is sought shall pay all costs, including reasonable attorney's fees actually incurred. Any entry onto a Unit for purposes of exercising this power of self-help shall not be deemed as trespass.

Article IV

Officers

4.1. Officers.

The Association's officers of the Association shall be a President, Vice President, Secretary, and Treasurer. The President and Secretary shall be elected from among the members of the Board; other officers may, but need not be Board members of the Board. The Board may appoint such other officers, including one or more Assistant Sccretaries and one or more Assistant Treasurers, as it shall deem desirable, such officers to have such authority and perfor such duties as the Board prescribes. Any two or more offices may be held by the samc person, except the offices of President and Secretary.

4.2. Election and Term of Office.

The Board shall elect the officers of the Association at the first Board meeting following each annual meeting of the Members, to serve until their successors are elected.

4.3. Removal and Vacancies.

The Board may remove any officer whenever in its judgment the Association's best BL 02595 interests will be served, and may fill any vacancy in any office arising because of death, resignation, removal, or otherwise, for the unexpired portion of the ter.

4.4. Powers and Duties. Pg 0511 The Association's officers shall cach have such powers and dutics as generally pertain to their respective offices, as well as such powers and duties as may specifically be conferred or imposed by the Board of Directors. The President shall be the Association's chief exccutive officer. The Treasurer shall have primary responsibility for the preparation of the budget as

provided for in the Declaration and may delegate all or part of the preparation and notification duties to a finance committee, management agent, or both.

4.5. Resignation.

Any officer may resign at any time by giving written notice to the Board of Directors, the President, or the Secretary. Such resignation shall take effect on the date of the receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

4.6. Agreements, Contracts, Deeds, Leases, Checks.

All agreements, contracts, deeds, leases, checks, and other instruments of the Association shall be executed by at least two officers or by such other person or persons as may be designated by Board resolution.

4.7. Compensation,

Compensation of officers shall be subject to the same limitations as compensation of directors under Section 3.13.

Article V

Committees

5.1. General.

The Board may appoint such committees as it deems appropriate to perform such tasks and to serve for such periods as the Board may designate by resolution. Each committee shall operate in accordance with the terms of such resolution.

5.2. Covenants Committee.

In addition to any other committees which the Board may establish pursuant to the Declaration and these By-Laws, specifically, Section 5.1, the Board may appoint a Covenants Committee consisting of at least three and no more than seven Members. Acting in accordance with the provisions of the Declaration, these By-Laws, and resolutions the Board may adopt, the Covenants Committee, if established, shall be the Association's hearing tribunal and shall conduct all bearings held pursuant to Section 3.24. BE 02595

Article VI

Miscellaneous

6.1. Fiscal Year. P 0512 The Association's fiscal year shall be the calendar year unless the Board establishes a different fiscal year by resolution.

6.2. Parliamentary Rules.

Except as may be modified by Board resolution, Robert's Rules of Order (current edition) shall govern the conduct of Association proceedings when not in conflict with Gorgia law or the Governing Documents.

6.3. Conflicts.

If there are conflicts among the provisions of Georgia law, the Articles of Incorporation, the Declaration, and these By-Laws, the provisions of Georgia law, the Declaration, the Articles of Incorporation, and the By-Laws (in that order) shall prevail.

6.4. Books and Records.

Inspection by Members and Mortgagees. The Board shall make available for inspection and copying by any holder, insurer, or guarantor of a first Mortgage on a Unit, any Member, or the duly appointed representative of any of the foregoing at any reasonable time and for a purpose reasonably related to his or her interest in a Unit: the Declaration, By-Laws, and Articles of Incorporation, any amendments to the foregoing, the Use Restrictions and Rules, the membership register, books of account, and the minutes of meetings of the Members, the Board, and committees. The Board shall provide for such inspection to take place at the Association office or at such other place within the Community as the Board shall designate.

(b) Rules for Inspection. The Board shall establish reasonable rules with respect to: notice to be given to the custodian of the records;

hours and days of the week when such an inspection may be made; and (iii) payment of the cost of reproducing copies of documents requested.

Inspection by Directors. Every director shall have the absolute right at any reasonable time to inspect all Association books, records, and documents of the Association and the physical propcrties owned or controlled by the Association. The right of inspection by a director includes the right to make a copy of relevant documents at the Association's expense.

6.5. Notices. B₺ 02595 Except as otherwise provided in the Declaration or these By-Laws, all notices, demands, bills, statements, and other communications under the Declaration or these By-Laws shall be in writing and shall be deemed to have been duly given if delivered personally or when sent by United States mail, first class postage prepaid: P¿ 0513

(a) if to a Member, at the address which the Member has designated in writing and filed with the Sccretary or, if no such address has been designated, at the address of the Unit of such Member; or

if to the Association, the Board of Directors, or the managing agent, at the . principal office of the Association or the managing agent, or at such other address as shall be designated by notice in writing to the Members pursuant to this Section.

6.6. Amendment.

By Class "B" Member. During the Class "B'membership, the Class "B" Member may unilaterally amend these By-Laws for any purpose. Thercafter, the Class "B" Member may amend these By-Laws if such amendment is specifically required to enable any governmental or institutional lender, purchaser, guarantor, or insurer of mortgage loans to make, purchase, insure or guarantee mortgage loans on the Units; provided, any such amendment shall not adversely affect the title to any Unit unless the Owner shall consent thereto in writing.

(b) By Members. Except as provided above, these By-Laws may be amended only by the affirmative vote or written consent, or any combination thereof, of Members representing Member, if such exists. Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause.

By the Board. The Board may also amend these By-Laws by unanimous vote or written consent of the directors to submit the Association to the Georgia Property Owners' Association Act and to confir these By-Laws to any mandatory provisions thereof. Any such amendment shall require Declarant's consent, so long as Declarant owns any property described on Exhibits "A" or "B" to the Declaration.

Validity and Effective Date of Amendments. Amendments to these By-Laws shall become effective upon Recordation, unless a later effective date is specified therein. Any procedural challenge to an amendment must be made within six months of its recordation or such amendment shall be presumed to have been validly adopted. In no event shall a change of conditions or circumstances operate to amend any provisions of these By-Laws.

No amendment may remove, revoke, or modify any right or privilege of Declarant or the Class "B" Member without the written consent of Declarant, the Class "B' Member, or the assignee of such right or privilege.

If a Member consents to any amendment to the Declaration or these By-Laws, it will be B₺ 02595 conclusively presumed that such Member has the authority so to consent and no contrary provision in any Mortgage or contract between the Member and a third party will affect the validity of such amendment.

P· 0514

CERTIFICATION

I, the undersigned, do hereby certify:

That I am the duly elected and acting Secretary of Lantern Walk Homeowners Association, Inc., a Georgia corporation;

That the foregoing By-Laws constitute the original By-Laws of said Association, as duly adopted at a meeting of the Board of Directors thereof held on the - _ day of , 2004.

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said Association this _ day of _, 2004.

_[SEAL]

Secretary

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