Lake Meeler Covenants

Aner Recording, F514 10: Doc: COVE

Meridian Homes Recorded 11/23/2005 03:19PM P.O. Box 40 Loganville, GA 30052 Beverly Logan

Clerk Superior Court, Atheus-Clarke County, Ga. DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS B: 02997 PE 0501-0527

LAKE MEELER FOR

THIS DECLARATION is made on the L.7 th day of NOVEMBER, 2005, hereinner set forth by

2005, by MEELER LAKE BUILDERS, LLC (hercinafer jointly referred to as "Declarant). LAKE MEELER SUBDIVISION (hercinafer referred to as "Declarant") is made as of the th day of

WITNESSETH

Land District of Athens-Clarke County, Georgia, being more particularly described as that parcel known as LAKE WHEREAS, Declarant is the owner of certain real property lying and being in Land Lot 1. of the G-M-D incorporated herein and made a part hereof by reference; and MEELER and being recorded in Plat Book F, Pages 3881 & 389A & B, Athens-Clarke County Records, which Plat is development to be known as LAKE MEELER (hereinafer referred to as the "Development"); and WHEREAS, Declarant intends to develop on lands, including the real property described above, a

organization to perform certain functions for the common good and general welfare of the Owners (as hercinafter WHEREAS, Declarant has caused the Association (as hercinafter defined) to be formed as a non-profit civic defined);

and conveyed subject to this Declaration of Covenants, Conditions and Restrictions, which is for the purpose of NOW, THEREFORE, the Declarant hereby declares that all of the property described above shall be held, sold binding on all parties having any right, title or interest in the described property or any part thercof, and shall subject enhancing and protecting the desirability and attractiveness of, and which shall run with, the real property, and be

successors and assigns and to the benefit of the Association. said parties to all limitations herein provided, and inure to the benefit of each Owner, his heirs, grantees, distributes,

ARTICLE I

DEFINITIONS

following meanings: The following words, when used in this Declaration of Covenants, Conditions and Restrictions, shall have the 1.01 Additional Property. "Additional Property" means any additional property, which may be added to the

Property and made subject to this Declaration pursuant to Article X hereof.

1.02 Association. "Association means LAKE MEELER Homeowners Association, a non-profit corporation

organized under the Georgia Nonprofit Corporation Code, its successors and assigns.

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1.03 Board. "Board means the Board of Directors of the Association. BL 02.997 P¿ 0502

1.04 By-Laws. "By-laws" mean the By-laws of the Association.

1.05 Common Property. "Common Property" means all real and personal property now or hereafter owned by the

Association or in certain instances over which the Association has been granted permanent casements, for the

common use and enjoyment of the Owners.

1.06 Declarant. "Declarant" means (i) Meeler Lake Builders, LLC its successors and assigns, or (ii) any

successor in title to all or some portion of the Property or the Additional Property, provided such successor in

title shall acquire such property for the purposes of development or sale, and provided further, that in a written

instrument, such successor in title is expressly assigned all rights, privileges and options herein reserved to

Declarant by the Declarant as hereunder defined at the time of such conveyance; or (iii) should any of the

property or the additional property become subject to a first mortgage given by Declarant as security for the

repayment of a development loan, then all the rights, privileges and options herein reserved to the Declarant

shall inure to the benefit of the holder of such first mortgage upon its becoming the actual owner of the property

and additional property then subject to such first mortgage through a judicial foreclosure or sale made pursuant

to any power of sale contained in such first mortgage or by a transfer by deed in lieu of foreclosure. All rights,

privileges and options herein reserved to the Declarant may be transferred to the successor in title of any such

acquired property, provided any such successor in title shall acquire for the purpose of development or sale, all

or some portion of such property, and provided further, that in a written instrument, such successor in title is

expressly assigned all rights, privileges and options herein reserved to Declarant by the Declarant as hereunder

defined at the time of such conveyance.

1.07 Lot. "Lot" means any numbered parcel of land together with improvements thereon shown upon the plat of

survey, recorded in Plat Book F, Pages 3881 & 389A & B, Athens-Clarke County, Georgia Records, or as

similarly shown on supplemental surveys of such tract or such acditional tracts as may be added to the property

from time to time, as provided herein; provided however, that no portion of the Common Property shall ever be

a lot except as provided for in Section 2.04.

1.08 Member. "Member" means any member of the Association.

Owner. "Owner" means the record owner (including Declarant) whether one or more persons or entities, of a

fee simple title to any Lot, provided, however, that where fee simple title has been transferred and is being held

merely as security for repayment of a loan, the person or entity who would own the Lot in fee simple if such

Property. "Property" means that certain real property (other than Common Property) hereinabove described

together with such additional real property as the Declarant may acquire and subject to the provisions of this

Declaration of Covenants, Conditions and Restrictions in accordance with the provisions of Article X hereof

Restrictions. "Restrictions" means all covenants, restrictions, casements, charges, liens and other obligations

1.12 Structure. "Structure" means:

(a) any thing or object the placement of which upon any Lot may affect the appearance of such Lot,

including by way of illustration and not limitation, any building or part thereof, garage, porch, shed,

greenhouse or bathhouse, coop or cage, covered or uncovered patio, swimming pool, fence, curbing.

paving, wall, tree, shrub, sign, signboard, temporary or permanent living quarters (including any house

trailer) or any other temporary or permanent improvement to such Lot;

(b) any excavation, grading, fill, ditch, diversion dam or other thing or device which affects or alters the

natural flow or surface waters from, upon or across any Lot, or which affects or alters the flow of any

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waters in any natural or artificial creek, stream, wash or drainage channe frof

Lot; and

BL 02997 P; 0503

any change in the grade at any point on a Lot of more than six (6) inches, whether or not subsection

(b) of this Section 1.12 applies to such change.

ARTICLE I!

COMMON PROPERTY

2.01 Conveyance of Common Property.

(a) The Declarant may from time to time convey to the Association or grant casements to the Association,

at no expense to the Association and in accordance with this Section, real and personal property for the

common use and enjoyment of the Owners (such real and personal property is hereinafer collectively

referred to as "Common Property") and, to the extent set forth in this Declaration of Covenants,

Conditions and Restrictions, the general public. The Association hereby covenants and agrees to

accept from the Declarant all such conveyances of Common Property.

(b) It is contemplated by the Declarant that the Declarant will convey to the Association Common

Property for scenic and natural area preservation and for general recreational use. The Declarant may,

at Declarant's sole discretion, modify, alter, increase, reduce or otherwise change the Common

Property contemplated to be conveyed to the Association in accordance with this subsection (b) of this

Section 2.01 at any time prior to conveyance of such Common Property to the Association.

(c) In addition to the property described in subsection (b) of Section 2.01, the Declarant may convey to

the Association such other real and personal property as the Declarant may determine to be necessary

or proper for the completion of the Development.

(d) Notwithstanding any legal presumption to the contrary, the fee title to, and all rights in, any portion of

the Property owned by the Declarant and designated as Common Property or designated for public use

shall be reserved to the Declarant until such time as the same shall be conveyed to the Association or to

any municipality or other governmental body, agency or authority.

2.02 Right of Enjoyment. Every Owner shall have a right and casement to use and enjoy the Common Property in

accordance with these Restrictions and subject to the rules and regulations which may be adopted by the

Association, which right shall be appurtenant to and shall pass with the title to every Lot upon transfer;

provided, however, that no Owner shall do any act which interferes with the free use and enjoyment of the

Common Property by all other Owners. The Association may permit persons who are not owners to use and

enjoy any part or all of the Common Property subject to such limitations, and upon such terms and conditions,

as it may from time to time establish. The right and casement of enjoyment granted or permitted by this Section

is subject to suspension by the Association as provided in Sections 2.03(c) and 3.06.

Rights of the Association. The rights and privileges conferred in Section 2.02 hereof shall be subject to the

right of the Association acting through the Board to:

(a) promulgate rules and regulations relating to the assignment, usc, operation and maintenance of

the Common Property:

(b) charge reasonable fees in connection with the admission to and use of facilities or services; provided

that in setting any such fee the Board may establish reasonable classifications, which shall be uniform

within each such class but need not be uniform between such classes;

suspend, pursuant to Section 3.06, the voting rights of any Member and the right of enjoyment

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granted or permitted by Section 2.02;

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(d) grant easements or rights of way over Common Property to any municipality or other governmental

body, agency or authority; to any quasi-public agency or to any utility company or cable television

(e) enforce all applicable provisions of valid agreements of the Association relating to the Common

Property or any part thereof,

borrow money for the purpose of carrying out the activities of the Association, including the

acquisition, construction, improvement, equipping and maintenance of Common Property, and in aid

thereof to encumber by deed to secure debt, mortgage or other security interest, any or all of the

Association's property including Common Property and revenues from assessments, user fees and other

sources;

(g) dedicate or transfer all or any part of the Common Property or interests therein to any municipality or

other governmental body, agency or authority for such purposes and subject to such provisions and

conditions as may be agreed upon the Association and such grantee, including a provision that such

property or interest held by any such municipality or authority shall cease to be subject to this

Declaration or all or any part of the Restrictions.

(h) to sell, lease or otherwise dispose of all or any part of its properties and interests therein; provided.

however, that the Association shall not sell, encumber by security interest, convey, dedicate or transfer

any Common Property or interest therein without the approval of two-thirds (2/3) of each class of

members.

2.04 Types of Common Property. At the time of the conveyance of any real property or grant of casement by the

Declarant to the Association to be used as Common Property, the Declaration shall designate in the deed of

conveyance or easement that such real property is to be Common Property, and further may designate in the

deed of conveyance or casement the specific or general purpose or purposes for which such real property or any

portion thereof may be used, and in such event, such real property or portion thereof shall not, without a

two-thirds (2/3) vote of each class of Members of the Association, be used for any different purpose or purposes.

(a) It is contemplated that certain casements for the erection and maintenance of entrance monuments,

subdivision signs, walls, fences and other structures intended to provide an attractive atmosphere or to

provide privacy to Owners within the Development will be reserved by the Declaration and set forth on

plats of survey of the Development recorded in the County Records. Such casements shall be perpetual

in duration and shall include the right to erect, maintain, repair, replace and re-erect any such

structures within the casement areas, as well as the right to plant grass, plants, flowers, shrubs and

trees; to tend and garden same, and to generally landscape the area within said casements to keep them

clean, attractive and uniform in appearance for the benefit of all Owners within the Development. Said

easement areas shall be designated as such and all Owners taking title to any Lot upon which such an

casement lies will take title subject to the casement rights set forth herein, as well as such rights as may

be set forth in the deed conveying such casement to the Association. Such casements shall be common

property.

(b) Encroachment Easements. If any buildings or other improvements initially constructed on any of the

Lots, including without limitation, any caves, roof overhangs, balconies, siding, porches, or other

structures which may be attached to the walls and roof of such buildings, and which may encroach onto

or over or extend into the air space of any portion of the Common Property, or converscly, if any such

improvements initially constructed on the Common Property encroach onto or over portions of any Lot,

a valid easement for the encroachment and for the maintenance, repair and replacement thereof, shall

exist so long as the encroachment exists.

2.05 Delegation of Use. Any Owner may delegate his right to use and enjoy the Common Property to the members

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of his family, his social invitees or his tenants who reside on a lot. Tenants who resickidd have the

same rights of delegation as an Owner. Any delegation of rights musheegon acceplay 51igh the By-laws

and will be subject to reasonable regulation by the Board and in accordance with procedures it may adopt

ARTICLE I!!

THE HOMEOWNERS' ASSOCIATION

Purposes, Powers and Duties of the Association. The Association shall be formed as a non-profit civic

organization for the sole purpose of performing certain functions for the common good and general welfare of

the residents of the Development. To the extent necessary to carry out such purpose, the Association shall have

all of the powers of a corporation organized under the Georgia Nonprofit Corporation Code and shall have the

power and duty to exercise all of the rights, powers and privileges and to perform all of the duties and

obligations of the Association as set forth in this Declaration.

Membership in the Association. Every owner shall automatically be a member of the Association and such

membership shall terminate only as provided in this Declaration of Covenants, Conditions and Restriction

Voting rights. Subject to the following provisions of this Section 3.03, the Association shall have two classes

of voting membership: Class A and Class B.

(a) Class A. Every person who is an Owner, with the exception of the Declarant except as otherwise set

forth herein, shall be a Class A member and shall be entitled to one vote for each Lot owned. When

more than one person is a Class A member by virtue of an ownership interest in the same Lot, the vote

for such Lot shall be exercised as they, among themselves, determine, but in no event shall more than

one vote be cast with respect to any Lot. In the event of disagreement among such persons and an

attempt by two or more of them to cast the vote of such Lot, such persons shall not be recognized and

the vote of such Lot shall not be counted. The membership of Class A members shall automatically

terminate upon the members' sale of his Lot.

No termination of Class A membership shall affect such members' obligation to pay assessments, as

hereinafter provided for, due and payable for any period prior to the date of such termination, and there

will be no refund for assessments paid for periods falling after the date of such termination.

(b) Class B. The Declarant shall be the sole Class B member. Class B membership shall be a full voting

membership and during its existence the Class B members shall be entitled to vote on all matters and

in all events. The Class B members shall be entitled to three (3) votes for each Lot owned. The Class

B memberships shall cease and shall be converted to Class A membership at such time as the first of

the following events occur: (i) the expiration of four (4) years from the date of recording of the final

plat; (ii) the date three-fourths (3/4) of the Lots which may be developed on the Property and on the

Additional Property shall have been conveyed by either Declarant or by a builder who purchased the

Lot from Declarant for the purpose of erecting a dwelling thereon, to an individual Owner or Owners

for residential occupancy; or (ili) the surrender by the Declarant of the authority to appoint and remove

members of the Board of the Association by an express amendment to this Declaration executed and

recorded by the Declarant; provided, however, that so long as any Mortgagee of Declarant holds a

security interest in any portion of the Property as security for a Development Loan to Declarant, the

Class B membership shall not terminate without the prior written consent of such Mortgagee. If at the

time of termination of the Class B membership Declarant still owns any Lots, then as to cach such Lot,

Declarant shall be deemed to be a Class A member.

3.04 Board of Directors and Officers.

(a) Board. The affairs of the Association shall be managed by a Board of Directors. The number of

directors and the method of election of directors shall be as set forth in this Declaration and in the

By-laws of the Association. Except to the extent otherwise expressly required or authorized by the

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Georgia Nonprofit Corporation Code or this Declaration, the Association's Be dor

Incorporation, the powers inherent in or expressly granted t9290 ationpay SO ercised by the

Board, acting through the officers of the Association, without any further consent or action on the part

of the Members.

(b) Officers. The number of officers and the method of election of officers shall be as set forth in this

Declaration and the By-laws of the Association. Notwithstanding any other language or provision to

the contrary in this Declaration, in the Articles of Incorporation, or in the By-laws of the Association,

officers of the Association shall be appointed by the Board until such times as Declarant no longer have

the right to appoint members to the Board.

(c) Casting of Votes. The votes of the members shall be cast under such rules and procedures as may be

prescribed in this Declaration or in the By-laws of the Association, as amended from time to time, or by

law.

3.05 Board of Directors. The affairs of the Association shall be managed by a Board of Directors. The number of

Directors and the method of election of Directors shall be as set forth in this Declaration and the By-laws of the

Association.

3.06 Suspension of Membership. The Board may suspend the voting rights of any Member and the right of

enjoyment of the Common Property of any person who:

(a) shall be subject to the right of abatement, as defined in Section 8.02 by reason of having failed to take

the reasonable steps to remedy a violation or breach of the Restrictions within thirty (30) days afler

having reccived notice of same pursuant to the provisions of Section 5.11 or 8.02 hereof;

(b) shall be delinquent in the payment of any assessment levied by the Association pursuant to the

provisions of Article IV hereof, or

(c) shall be in violation of the rules and regulations of the Association relating to the usc, operation and

maintenance of Common Property.

Any suspension shall be for the balance of the period in which said Member or person shall remain in violation,

breach or default, as aforesaid, except that in the case of a violation described in subsection (c) of this Section

3.06, the suspension may be for a period of time not to exceed 60 days after the cure or termination of such

violation. No suspension shall prevent an Owner's ingress to or egress from his Lot.

3.07 Voting Procedure. The procedure for the election of Directors of the Association and the resolution of such

other issues as may be brought before the membership of the Association shall be governed by this Declaration,

the Georgia Nonprofit Corporation Code, the Articles of Incorporation of the Association, and the By-laws of

the Association, as cach shall from time to time be in force and effect.

3.08 Control by Declarant and Appointment of the Board. Until such time as Declarant no longer has the right to

appoint members to the Board, the Board of the Association shall consist of three (3) members.

Notwithstanding any other language or provision to the contrary in this Declaration, the Articles of

Incorporation, or the By-laws of the Association, the Declarant hereby retains the right to appoint two (2)

members to the Board. The right of Declarant to appoint members of the Board also includes the right to

remove and replace their appointees until such time as the first of the following events shall occur: (1) the

expiration of four (4) years from the date of recording of the final plat; (2) the date upon which three-fourths

(3/4) of the Lots which may be developed on the Property and on the Additional Property shall have been

conveyed by either Declarant or by a builder who purchased the Lot from Declarant for the purpose of erecting a

dwelling thereon, to an individual Owner or Owners for residential occupancy; or (3) the surrender by the

Declarant of the authority to appoint and remove members of the Board of the Association by an express

amendment to this Declaration executed and recorded by the Declarant. Upon the expiration of the Declarant's'

right to appoint and remove directors of the Association pursuant to the provisions of this Section, such right

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shall automatically pass to the Owners, including Declarant if Declarant then owns ond i pon the

final expiration of all rights of Declarant to appoint and replace directs 0209/Assocition) Senecial meeting

of the Association shall be called. At such special meeting, the Owners shall elect a new Board of Directors

which shall undertake the responsibilities of the Board and Declarant shall deliver the books, accounts, and

records, if any, which Declarant has kept on behalf of the Association, and any agreements or contracts

executed by or on behalf of the Association during such period which Declarant had in its possession. Each

Owner by acceptance of a deed to or other conveyance of a Lot vests in Declarant such authority to appoint and

replace directors and officers of the Association as provided in the Section. The Association may exercise any

other right or privilege given to it expressly by this Declaration or by law and any other right or privilege

reasonably to be implied from the existence of any right or privilege given to it herein or reasonably necessary to

effectuate any such right or privilege.

Distribution of Assets Upon Dissolution. In the event of the dissolution of the Association, the assets thereof

shall be distributed to one or more public bodies, corporate or politic, or conveyed to one or more non-profit

organizations having purposes similar to thosc of the Association.

Dissolution of Corporation Prohibited Without Consent of Athens-Clarke County Board of Commissioners.

Dissolution of the Association is prohibited without first obtaining written approval from the Athens-Clarke

ARTICLE IV

ASSESSMENTS AND MAINTENANCE CHARGES

4.01 Covenant for Assessments and Creation of Lien and Personal Obligations. Each Owner hereby covenants and

agrees, jointly and severally, for himself, his heirs, distributes, legal representatives, successors and assigns, by

acceptance of a deed for a Lot, whether or not the covenants contained hereby shall be expressed in any such

deed, as follows:

(a) to pay the Association the annual assessments, which may or shall be levied by the Association

pursuant to this Declaration against all Lots owned by him;

(b) to pay to the Association any special assessments for capital improvements and other charges which

may or shall be levied by the Association pursuant to this Declaration against all Lots owned by him;

(C) That there is hereby created a continuing charge and lien upon all Lots owned by him against which

all such assessments are made to secure payment of such assessments and any penalties and interest

thereon as provided in Section 4.08 hereof and costs of collection including reasonable attorneys' fees;

(a) that such continuing charge and lien on such Lots binds such Lots in the hands of the then Owner,

and the Owner's heirs, devisees, legal representatives, successors and assigns. Such charge and lien is

superior to any and all charges, liens or encumbrances which may hereafter in any manner arise or be

imposed upon such Lots whether arising from or imposed by judgment or decree or by any agreement.

contract, mortgage, deed to secure debt, or the instrument, except (I) such liens for taxes or other public

charges as are by applicable law made superior, and (II) all deeds to secure debt given to secure a loan

the proceeds of which are used (1) to purchase a Lot or Lots (together with any and all Structures

which may from time to time be placed or located thereon) and (2) to finance the construction, repair

(e) that no sale or transfer at foreclosure or in lieu of foreclosure shall relieve any Lot or Lots from

liability for any assessment thereafer assessed;

that all annual and special assessments (together with interest thereon as provided in Section 4.08 of

this Declaration and costs of collection including reasonable attorneys' fees) levied against any Lot or

Lots owned by him during the period that he is an Owner shall be (in addition to being a continuing

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charge and lien against such Lot or Lots as provided in Section 4.01(c) of this personal

obligation which will survive any sale or transfer of the Lot BE 10290ed tyPhin 5 Bided, however.

that such personal obligation for delinquent assessments shall not pass to an Owner's successor in title

unless expressly assumed by such successor.

4.02 Purpose of Assessment. The assessments levied by the Association shall be used exclusively for the purposc of

providing for the common good and general welfare of the people of the new community of the Development,

including, but not limited to, and in addition to other purposes set forth in this Declaration, security, the

acquisition, construction, improvement, maintenance and equipping of Common Property, the enforcement of

the Restrictions contained in this Declaration, the enforcement of the Design Standards of the ACC, the

payment of operating costs and expenses of the Association, the payment of taxes on any Common Property, and

the payment of all principal and interest when due on all debts owed by the Association.

4.03 Accumulation of Funds Permitted. The Association shall not be obligated to spend in any calendar year all the

sums collected in such year by way of annual assessments or otherwise, and may carry forward, as surplus, any

balances remaining; nor shall the Association be obligated to apply such surplus to the reduction of the amount

of the Annual Assessments in any succeeding year, but may carry forward from year to year such surplus as the

Board may deem to be desirable for the greater financial security of the Association and the effectuation of its

purposes.

4.04 Annual Assessment of Maintenance Charge

(a) Subject to the terms of this Article, each Lot in the Property is hereby subjected to an annual

maintenance charge for the purpose of creating a fund to be known as the "maintenance fund. The

amount of the annual assessment shall be set forth in an annual budget to be prepared by the Board of

Directors covering the estimated costs of operating the Association during the coming year. The

budget shall include a capital contribution establishing a reserve fund, in accordance with a capital

budget. The Board shall cause a copy of the budget, and the amount of the assessments to be levied

against each Lot for the following year, to be delivered to each Owner at least fifleen (15) days prior to

the proposed effective date. The budget and the assessments shall become effective unless disapproved

by a vote of at least a majority of the total Association membership. Unless requested by the Members

in accordance with the provisions for calling a special meeting by the Members, as set forth in the

By-Laws, the budget and assessment may take effect without a meeting of the Members.

Notwithstanding the foregoing, however, in the event the membership disapproves the proposed budget

or the Board fails for any reason so to determine the budget for the succeeding year, then and until such

time as a budget shall have been determined, the budget and assessment in effect for the then current

year shall continue; and the Board may propose a new budget at any time during the year by causing to

be delivered to the Members such proposed budget and assessment at least fifeen (15) days prior to the

proposed effective date. Annual assessments or maintenance charges will be paid by the Owner or

Owners of each Lot within the Property (and any area annexed under the jurisdiction of the

Association) in advance in monthly, quarterly or annual installments.

(b) The annual maintenance charge and assessment will commence as to each Lot on the first day of the

month following the earliest to occur of the following events: (i) upon the occupancy of a permanent

dwelling located on the Lot as a resident; or (ii) upon the conveyance by a builder who has purchased

the Lot from Declarant for the purpose of erecting a dwelling thereon to an Owner or tenant for

residential occupancy.

(c) Neither the Declarant nor any builder who has purchased a Lot from Declarant for the purpose of

erecting a dwelling thereon shall be subject to the annual maintenance charge and assessment.

Notwithstanding the preceding, the annual maintenance charge and assessment will commence as to

each Lot owned by Declarant or a builder upon the occupancy of a permanent dwelling located thereon

as a residence. For the calendar vear in which the sale is closed, the maintenance charge shall be

prorated as of the date of closing. If required by law or upon consent by Declarant, or for any other

reason, Declarant is required to pay assessments on unoccupied Lots, any builders, who have purchased

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a Lot from Declarant for the purpose of erecting a dwelling thereon shall lika kal had lo pay

assessments with respect to any such Lots owned by them. spots due far open owned by a

builder shall equal the assessments due for each Lot owned by Declarant, unless that amount would

exceed the assessments due from regular residential Owners. In no event shall Declarant or any

builder be required to pay any portion or portions of assessments, which are due and payable prior to

the date upon which the Declarant is required to pay assessments. In addition and notwithstanding

anything to the contrary herein, the Declarant may contribute assessments due from it in services or

materials or a combination of services and materials, rather than in money (herein collectively called

*in kind contribution). The amount by which monetary assessments shall be decreased as a result of

any in kind contribution shall be the fair market value of the contribution. If the Declarant and the

Association agree as to the value of any contribution, the value shall be as agreed. If the Association

and the Declarant cannot agree as to the value of any contribution, the Declarant shall supply the

Association with a detailed explanation of the service performed and material furnished, and the

Association shall acquire bids for performing like services and furnishing like materials from threc (3)

independent contractors, approved by the Declarant, who are in the business of providing such services

and materials. If the Association and the Declarant are still unable to agree on the value of the

contribution, the value shall be deemed to be the average of the bids received from the independent

contractors.

4.05 Special Assessments for Working Capital Fund, Nonrecurring Maintenance and Capital Improvements. In

addition to the annual assessments authorized by this Article IV, the Association may levy:

(a) in any assessment year, a special assessment applicable to that year only for the purpose of defraying.

in whole or in part, the cost of nonrecurring maintenance, or the acquisition, construction,

reconstruction, repair or replacement of a capital improvement upon Common Property, including

fixtures and personal property related thereto, provided that any such assessment shall have been

approved by a two-thirds (2/3) vote of each class of Members of the Association who are present in

person or by proxy at a meeting duly called for such purpose. The aggregate fund established by such

special assessment shall be maintained in a segregated account, and shall be for the purpose of insuring

that the Association will have cash available to meet unforescen expenditures, or to acquire additional

equipment, the cost of nonrecurring maintenance or services deemed necessary or desirable by the

Board; and

4.06 Written notice of any meeting called for the purpose of taking action authorized under

Sections 4.04 or 4.05 shall be sent to all Members, or delivered to their residence, not less than thirty (30) days

nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of

Members or of proxies entitled to cast sixty percent (60%) of all the votes of cach class of membership shall

constitute a quorum. If the required quorum is not present, another mecting may be called subject to the same

notice requirement, and the required quorum at the subsequent mecting shall be onc-half (½) of the required

quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days

4.07 Effect of Nonpayment of Assessments. If any assessment or installment is not paid within fifteen (15) days

after the Due Date there may be imposed a late or delinquency charge in the amount of Five Dollars ($5.00) or

ten percent (10.0%) of the amount of each assessment or installment whichever is greater, and any late charge

connected therewith, which is not paid within thirty (30) days after the Due Date of the assessment, shall bear

interest (from the Due Date with respect to the assessment or installment, and from the date such charge was

imposed with respect to the late charge), at such rate of interest as may be established by the Board of the

Association, or if no rate has been established by said Board, at the rate of ten percent (10%) per annum;

provided, however, that in no event shall the Board have the power to establish a rate of interest in violation of

the laws of the State of Georgia. If any one or more installments of any assessment is not paid within thirty (30)

days afer the Due Date, the Board may declare any remaining balance of the assessment at once due and

payable, In the event that an Owner shall fail to fully pay any portion of any assessment or installment on or

before the date on which payment is due, such unpaid portion (including any remaining balance declared

immediately due and payable in accordance with the preceding sentence), together with any delinquency

9 of 27 8/12/05 12:49 PM

charges, interest, and costs of collection, including court costs, the expenses of sale, and t r the

protection and preservation of the Lot, and reasonable attorney's fees, Bal 200indinggpefy Upbligation of

such Owner, as well as the lien on such Owner's Lot enforceable in accordance with the provisions of the

Declaration. In addition to the above, if any Owner has not paid any assessment or installment, or any late

charges or expenses related thereof, within sixty (60) days afer the Due Date of the assessment or installment,

the Association shall have the right to notify any or all mortgagees having a security interest in such Owner's

Lot or Lots that such Owner is in default in the performance of his obligations under the Development

Documents, and of those actions taken or proposed to be taken by the Association as a result of the default.

Certificate of Payment. Upon written demand by an Owner, the Association shall within a reasonable period

of time, issue and furnish to such Owner a written certificate stating that all assessments (including penalties,

interest and costs, if any) have been paid with respect to any Lot owned by said Owner as of the date of such

certificate, or that all assessments, interest and costs have not been paid, setting the amount then due and

payable. The Association may make a reasonable charge for the issuance of such certificate. Any such

certificate, when duly issued as herein provided, shall be conclusive and binding with regard to any matter

therein stated as between the Association and any bona fide purchaser of, or lender on, the Lot in question.

ARTICLE V

ARCHITECTURAL CONTROL

Architectural Control Committee - Creation and Composition. An Architectural Control Committee (the

ACCI) shall be established consisting of three (3) individuals to be appointed by the Board of Directors;

provided however, so long as the Declarant, or any builder who has purchased a Lot from Declarant for the

purpose of constructing a dwelling thereon owns at least one Lot on the Property (or on the Additional Property

if at any time submitted to these Restrictions by annexation) being heid primarily for sale to an Owner for

residential occupancy, the ACC shall be comprised solely by Declarant, or by such representatives as may be

designed by Declarant, which shall have the power to exercise all powers herein given to the ACC. Declarant's

power to maintain control of the ACC may be surrendered prior to that time described in the preceding sentence

only by an express amendment to this Declaration executed and recorded by Declarant.

Purpose, Powers and Duties of the ACC. The purpose of the ACC is to review and approve any proposed

installation, construction or alteration of any Structure on any Lot. All plans shall be submitted to the ACC for

approval (i) as to whether the proposed installation, construction or alteration is in conformity and harmony of

external design and general quality with the existing standards of the neighborhood and with the standards of

the Development, and (ii) as to the location of Structures with respect to topography, finished ground clevation

and surrounding Structures. To the extent necessary to carry out such purpose, the ACC shall have all of the

powers and duties to do each and every thing necessary, suitable, convenient or proper for, or in connection

with, or incidental to, the accomplishment of such purpose, including, without being limited to, the power and

duty to approve or disapprove plans and specifications for any installation, construction or alteration of any

Officers, Subcommittees and Compensation, The members of the ACC shall appoint a Chairman from among

their number and may appoint from among their number such other officers and subcommittees of members of

the ACC as they shall from time to time determine necessary. The members of the ACC shall be reimbursed by

the Association for traveling expenses and other out-of-pocket costs incurred in the performance of their duties

5.04 Operation of the ACC.

(a) Meetings. The ACC shall hold regular mectings at least once every three (3) months or more often as

may be established by the ACC. Special meetings may be called by the Chairman and shall be called

by the Chairman upon the written request of a majority of the members of the ACC then in office

Regular and special meetings of the ACC shall be held at such time and at such places as the ACC

shall specify. Notice of each regular or special meeting of the ACC shall be mailed to each member

10 of 27 8/12/05 12:49 PM

thereof at his residence or at his usual place of business at least three (3) days

neeting is to be held. Notice of regular and special meetingserptyspecifyphe go pose or purpose

for which the meeting is called. Notice of a meeting need not be given to any member of the ACC whe

signs a waiver of notice either before or after the meeting. Attendance of a member of the ACC at a

meeting shall constitute a waiver of notice of such meeting and shall constitute a waiver of any and all

objections to the place of the meeting, the time of the meeting, or the manner in which it has been

called or convened, except when the member states, at the beginning of the meeting, any such objection

or objections to the transaction of business. At each meeting of the ACC, the presence of a majority of

the members then in office shall constitute a quorum for the transaction of business. Except as

otherwise provided herein, the act of a majority of the members of the ACC present at any regular or

special meeting thereof at which a quorum is present shall constitute the action of the ACC. In the

absence of a quorum, any member of the ACC present at the time and place of the mecting may

adjourn the meeting from time to time until a quorum shall be present. At any adjourned mecting at

which a quorum is present, any business may be transacted which might have been transacted at the

meeting originally called. The ACC shall maintain both a record of votes and minutes for each of its

meetings. The ACC shall make such records and minutes available at reasonable places and times for

inspection by Members of the Association and by the Secretary. Any action required to be taken at a

meeting of the ACC. or any action which may be taken at a meeting of the ACC, may be taken without

a meeting if written consent, setting forth the action so taken, shall be signed by all the members of the

ACC and be filed within the minutes of the proceedings of the ACC. Such consent shall have the same

force and effect as a unanimous vote, and may be stated as such in any document filed by the ACC.

The provisions contained in this subsection (a) shall only become effective upon the termination of

Declarant's power to control the ACC.

(b) Activities

The ACC may adopt and promulgate the Design Standards described in Section 5.05 hereof

and shall, as required, make findings, determinations, rulings, and orders with respect to the

conformity with said Design Standards of plans and specifications to be submitted for

approval to the ACC pursuant to the provisions of this Declaration. The ACC shall, as

required, issue permits, authorizations, or approvals, which may include specified

requirements or conditions, pursuant to the provisions of this Declaration.

Any two (2) or more members of the ACC may be authorized by the ACC to exercise the full

authority of the ACC with respect to all matters over which the ACC has authority as may be

specified by resolution of the ACC, except with respect to the adoption or promulgation of the

Design Standards. The unanimous action of the two (2) or more members with respect to the

matters specified shall be final and binding upon the ACC and upon any applicant for an

approval, permit or authorization, subject, however, to review and modification by the ACC

on its own motion or appeal by the applicant to the ACC as provided in this paragraph (ii).

Written notice of the decision of such two (2) or more members shall, within thirty (30)

working days thereof, be given to any applicant for an approval, permit or authorization. The

applicant may, within ten (10) days after receipt of notice of any decision, which he deems to

be unsatisfactory, file a written request to have the matter in question reviewed by the ACC.

Upon the filing of any such request, the matter with respect to which such request was filed

shall be submitted to, and reviewed promptly by, the ACC, but in no event later than thirty

(30) days after the filing of such request. The decision of a majority of the members of the

ACC with respect to such matter shall be final and binding.

(Hit) Notwithstanding any other provision to the contrary, until such time as the Declarant's

power to control the ACC has terminated, the Declarant or any such representatives as may be

so designated by Declarant may exercise the full authority of the ACC with respect to all

matters over which the ACC has authority, including, and without limitation, the adoption or

promulgation of the Design Standards.

11 of 27 8/12/05 12:49 PM

5.05 Design Standards.

B& 02997 P: 0512

The ACC may from time to time adopt, promulgate, amend, revoke and enforce guidelines (the

"Design Standards") for the purposes of:

(D goverring the form and content of plans and specifications to be submitted to the ACC for

approval pursuant to the provisions of this Declaration;

(It) governing the procedure for such submission of plans and specifications;

(iii) establishing guidelines with respect to the approval and disapproval of design features,

architectural styles, exterior colors and materials, details of construction, location and size of

Structures and all other matters that require approval by the ACC pursuant to this

Declaration; and

(iv) assuring the conformity and harmony of external design and general quality of the

Development.

(b) The ACC may publish copies of its current Design Standards, in which case it shall be made readily

available to Members and prospective Members of the Association and to all applicants seeking the

ACC's approval.

5.06 Submission of Plans and Specifications. No Structure shall be commenced, erected, placed, moved onto or

permitted to remain on any Lot nor shall any existing Structure upon any Lot be altered, including painted or

stained, in any way which materially changes the exterior appearance of the Structure or Lot, unless plans and

specifications therefore shall have been submitted to and approved in writing by the ACC. Such plans and

specifications shall be in such form and shall contain such information as may be reasonably required by the

ACC in the Design Standards, including where applicable, and without being limited to:

a site plan showing the location of all proposed and existing Structures on the lot including building

setbacks, open space, driveways, walkways and parking spaces including the number thereof and all

siltation and erosion control measures;

(b) a foundation plan;

(c) a floor plan;

(d) exterior elevations of all proposed Structures and alterations to existing Structures, as such Structures

shall appear after all back-filling and landscaping are completed;

(e) specifications of materials, color scheme, lighting scheme and other details affecting the exterior

appearance of all proposed Structures and alterations to existing Structures; and

plans and landscaping and grading.

5.07 Approval of Plans and Specifications. Upon approval by the ACC of any plans and specifications submitted

pursuant to this Declaration, two (2) copies of such plans and specifications, as approved, shall be deposited for

permanent record with the ACC and a copy of such plans and specifications bearing such approval, in writing,

shall be returned to the applicant submitting the same. Approval for use in connection with any Lot or

Structure of any plans and specifications shall not be deemed a waiver of the ACC's right, in its discretion, to

disapprove similar plans and specifications or any of the features or elements included therein if such plan,

specifications, features or elements are subsequently submitted for use in connection with any other Lot or

Structure. Approval of any such plans and specifications relating to any Lot or Structure, however, shall be

final as to that Lot or Structure and such approval may not be revoked or rescinded thereafter, provided that

there has been adherence to, and compliance with, such plans and specifications, as approved, and any

12 of 27 8/12/05 12:49 PM

conditions attached to any such approval. B· 02997 Pg 0513

Disapproval of Plans and Specifications. The ACC shall have the right to disapprove any plans and

specifications submitted pursuant to this Declaration for any of the following reasons:

the failure to include information in such plans and specifications as may have been reasonably

requested;

(b) the failure of such plans or specifications to comply with this Declaration of the Design Standards:

(c) any other matter which, in the judgment of the ACC, would be likely to causc the proposed

installation, construction or alteration of a Structure (i) to fail to be in conformity and harmony of

external design and general quality with the standards of the Development as set forth in Design

Standards, or (ii) as to location to be incompatible with topography, finished ground elevation and

surrounding Structures. In any case in which the ACC shall disapprove any plans and specifications

submitted hereunder, or shall approve the same only as modified or upon specified conditions, such

disapproval or qualified approval shall be accompanied by a statement of the grounds upon which such

action was based. In any such case the ACC shall, if requested, make reasonable efforts to assist and

advise the applicant in order that an acceptable proposal may be prepared and submitted for approval.

5.09 Obligation to Act. The ACC shall take action on any plans and specifications submitted as herein provided

within thirty (30) days after receipt thereof. Approval by the ACC, if granted, together with any conditions

imposed by the ACC, shall be placed in writing on the plans and specifications and shall be returned to the

applicant. Failure by ACC to take action within thirty (30) days of receipt of plans and specifications submitted

for approval shall be deemed approval of such plans and specifications.

5.10 Inspection Rights. Any employce or agent of the Association or the ACC may, affer reasonable notice, at any

reasonable time or times enter upon any Lot and Structure thereon for the purpose of ascertaining whether the

installation, construction, alteration or maintenance of any Structure or the use of any Lot or Structure is in

compliance with the provisions of this Declaration; and neither the Association, nor the ACC, nor any such

agent, shall be deemed to have committed a trespass or other unlawful act solely by reason of such entry or

inspection, provided such inspection is carried out in accordance with the terms of this Section.

5.11 Violations. If any Structure shall be erected, placed, maintained or altered upon any Lot, otherwise than in

accordance with the plans and specifications approved by the ACC pursuant to the provisions of this Article.

such erection, placement, maintenance or alteration shall be deemed to have been undertaken in violation of this

Article and without the approval required herein. If in the opinion of the ACC such violation shall have

occurred, the ACC shall notify the Association. If the Board shall agree with the determination of the ACC

with respect to the violation, then the Board shall provide written notice to the Owner by certified mail, setting

forth in reasonable detail the nature of the violation and the specific action or actions required to remedy the

violation. If the owner shall not have taken reasonable steps toward the required remedial action within thirty

(30) days afer the mailing of the aforesaid notice of violation, then the Association shall have the Right of

Abatement as provided in Section 8.02 hereof.

5.12 Certification of Compliance.

(a) Upon completion of the installation, construction or alteration of any Structure in accordance with

plans and specifications approved by the ACC, the ACC shall, upon written request of the Owner

thereof or upon the ACC's own initiative, issue a Certificate of Compliance, identifying such Structure

and Lot upon which such structure is placed, and stating that the plans and specifications have been

approved and that such Structure complies with such plans and spocifications. A copy of said

Certificate shall be filed for permanent record with the plans and specifications on file with the ACC

(b) Any Certificate of Compliance issued in accordance with the provisions of this Section shall be prima

facie evidence of the facts therein stated; and as to any purchaser or encumbrancer in good faith and for

13 of 27 8/12/05 12:49 PM

value, or as to any title insurer, such certificate shall be conclusive evidence the oh the Lot comply with all the requirements of this Article, provided? 99, That tHE COdotte shall in no way be construed to certify the acceptability, sufficiency or approval by the ACC of the actual

construction of Structures or of the workmanship, or to represent or warrant to anyone the quality,

function or operation of the Structures or of any construction, workmanship, engincering, materials or equipment. The issuance of the Certificate shall in no way be construed to certify to any party that the ACC. Structures have been built in accordance with any applicable rule or regulation other than those of the Fees. The ACC may impose and collect a reasonable and appropriate fee to cover the cost of inspections

performed pursuant to Section 5.10. The fee shall be established from time to time by the ACC and published in the Design Standards

5.14 Nondiscrimination by ACC. The ACC shall not discriminate against any applicant requesting its approval of plans and specifications because of such applicant's race, color, sex, religion, age or national origin. Further,

the ACC in the exercise of its powers granted pursuant to this Declaration shall not lake any action the intent or effect of which is to discriminate against persons of a particular race, color, sex, religion, age or national origin. Time Allowance for Construction. If construction has not commenced within one (1) year from the date the

Plans are approved, then the approval given pursuant to this Article shall be deemed to be automatically revoked by the ACC, unless the ACC extends the time for commencing construction. In any event, all work covered by such approval shall be completed within nine (9) months of the commencement thereof unless the ACC extends the time for completion or such period of time as completion is rendered impossible or would result in great

hardship due to strikes, fires, national emergencies, critical material shortages or other intervening forces

ARTICLE VI

GENERAL COVENANTS AND RESTRICTIONS

Application. The covenants and restrictions contained in this Article VI shall pertain and apply to all Lots and to all Structures erected or placed thereon.

Residential Use. All Lots shal! be used for single-family residential purposes only and for no other purpose

provided that Declarant may operate a sales office and/or model home on a Lot or Lots designated by Declarant. Resubdivision of Property. No Lot may be split, divided, or subdivided for sale, resale, gift, transfer, or

otherwise, without the prior written approval of the ACC of plans and specifications for such split, division or

subdivision. Notwithstanding the foregoing, nothing herein shall prevent Declarant or the Owners of any

contiguous Lot from combining two or more Lots into one Lot for construction of a single residence thereon;

provided however, that such combined Lot may not be subdivided thereafter, and provided further, that the

Owner of the residence on such Lot shall be responsible for annual and special assessments based on the number of Lots combined into one Lot.

Erosion Control. No activity which may create crosion or siltation problems shall be undertaken on any Lot

without the prior written approval by the ACC of plans and specifications for the prevention and control of such

erosion or siltation. The ACC may, as a condition of the approval of such plans and specifications, require the

use of certain means of preventing and controlling such erosion or siltation. Such means may include, by way

of example and not of limitation, physical devices of controlling the run-off and drainage of water, special

precautions in grading and otherwise changing the natural landscaping.

Signs. No sign of any kind shall be erected by an Owner or occupant of a Lot within the Development

Notwithstanding the foregoing, residents shall have the right to erect reasonable and appropriate "For Sale

signs. Declarant may erect entry signs and sales and information signs.

14 of 27 8/12/05 12:49 PM

Vehicles. The term "vehicles" as used herein shall include, without limitation, motorcyc

scooters, go-carts, trucks, vans, and automobiles. All vehicles shall be phin BragS hveways or

other paved parking areas located on a Lot. Parking in yards or on streets within the Development is

prohibited. Lot Owners' visitors may temporarily park on the street. No inoperable, junk or abandoned

vehicles shall be allowed on the property.

Recreational Equipment, Vehicles and Trailers. No school bus, truck or commercial vehicle over one (1) ton

capacity, house trailer, mobile home, motor home, recreational vehicle, or like equipment shall be permitted on any Lot on a permanent basis, but shall be allowed on a temporary basis not to exceed three (3) consecutive days within a six month period. Boats, boat trailers, motor homes, recreational vehicles and campers shall be

permitted, but only if stored inside the garage or in the rear of each unit and is concealed from view by

neighboring residences and streets, and only after obtaining written consent of the ACC. No aboveground

swimming pools will be allowed and trampolines shall not be visible from the street. Any trash, firewood, wood scraps, building materials or other such materials on a lot or contained in any vehicle or trailer shall be covered from view. This provision shall not apply to Declarant or any builder in the process of constructing an

approved structure on any Lot.

6.08 Occupancy of Houses. All houses constructed on Lots in the Development must be finished before it can be

occupied. The entire yard must be planted with grass or other suitable ground cover, and the driveway must be

paved with concrete. The front yard must be sodded with Bermuda, Zoysia or Fescue, covering at a minimum

the area from the front corners of the house to the street or as otherwise noted on the recorded final plat.

Siding Material of Dwelling. The exterior siding on the front of every dwelling shall be vinyl or concrete

siding with brick or stone accents and the remaining sides shall be brick, vinyl, stone, stucco, or concrete siding, unless otherwise noted on the recorded final plat. Declarant reserves the right to approve all exterior finishes.

Square Footage Requirements. All homes must contain at least 1500 "heated" square feet exclusive of any

space in garage, porches and finished basements, unless otherwise noted on the recorded final plat.

Garages. All garages are to be enclosed with doors. All primary garages must be no less than two cars in

size. Unattached garages are permissible as long as such garage is constructed in the same architectural style.

with the same colors as the dwelling on the Lot. An unattached garage that meets the above specifications may

Animals and Pets. No animals, livestock or poultry of any kind may be raised, bred, kept, or permitted on any

Lot, with the exception of dogs, cats, or other usual and common houschold pets in reasonable number.

Potbelly pigs are not considered houschold pets. No pets shall be kept, bred, or maintained for any commercial

purpose. Dogs, which are household pets, shall at all times, when outside, be on a leash or within an allowable

fence.

Fences and Outbuildings. No fence, wall or outbuilding of any kind shall be erected, maintained, or altered on

any Lot without the prior written approval of the ACC of plans and specifications for such fences and walls.

Under no circumstances shall any regular chain link, barbed wire or hog wire fence be permitted in the

Development. Black vinyl coated chain link fences will be allowed. All fencing must tie from and run parallel

with the back of house to property line. Corner lots shall have no fencing installed inside of right of way. All

fencing must have "finished" side facing out. No sectional fencing will be allowed on uneven topography,

All sheds, tool storage areas, workshops or outbuildings shall be constructed in the same architectural style

using similar colors as the main dwelling on the Lot. Each Lot shall be restricted to only one outbuilding. No

metal buildings will be allowed.

6.14 Antennae. No exterior television or radio antenna, satellite dish or receiver shall be placed, allowed, or

maintained upon any portion of the Development, including any Lot, if such antennae are visible from any

public or private street providing access to or located within the Development. Notwithstanding the above, no

15 of 27 8/12/05 12:49 PM

satellite dish larger that 18ạ shall be placed, allowed, or maintained upon any portion i

including any Lot. Each Owner and occupant of a Lot acknowledges Be 099fovisigbok] fall Owners and occupants of Lots and each Owner and occupant of a Lot agrees to comply with this provision despite the fact that the erection of any outdoor antennae or similar device would be the most cost effective way to transmit or

6.15 Tree Removal. No trees shall be removed except for (a) diseased or dead trees; (b) trees needing to be removed to promote the growth of other trees or safety reasons; and (c) trees within ten (10) feet of the residence,

driveway, walkways and septic field, whose removal is necessary for the construction of same.

6.16 Garbage Cans, Woodpiles, Etc. All garbage cans, woodpiles, swimming pool pumps, filters and related

equipment and other items shall be located or screened, so as to be concealed from view of neighboring streets and property.

6.17 Firearms. The discharge of firearms in the Development is prohibited. The term "firearms" includes "B-B" guns, pellet guns and guns of all types.

6.18 Mailboxes. All mailboxes and stands shall be of similar style and approved by the ACC. All mailboxes and

stands shall be maintained in a good state of repair.

6.19 Monuments, Statues, Birdbaths, Etc. No monuments, statues, birdbaths or decorative structures shall be

erected or placed in the front of any dwelling without the prior written approval of the ACC.

6.20

to appear to be in an unclean or untidy condition or that will be obnoxious to the eyc; nor shall any substance,

thing, or material be kept that will emit foul or obnoxious odors or that will cause any noise or other condition

that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property

No noxious or offensive activity shall be carried on within the Development, nor shall anything be done tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property within the

Community. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or other sound device shall be used except those devises used exclusively for security purposes or required by law.

6.21 Property Maintenance Requirements. The grounds of each lot (whether vacant or occupied) shall be

maintained in a neat and attractive condition. Upon the failure of any owner to maintain his lot (whether vacant or occupied) in a neat and attractive condition, the Association or its agents, may after ten (10) days' notice to

such owner/occupant, enter upon such lot and have the grass, woods and other vegetation cut when, and as often as, the same is necessary in its judgment, and may have dead trees, shrubs, and other plants removed. The

Association, or its agents, will assess the owner of the lot the actual cost incurred with a minimum cost of

$50.00 per violation to recoup its expenses in maintaining the lot for the owner. Although notice given as

herein provided shall be sufficient to give the Association or its designated committee, or its successors and

assigns, the right to enter upon any such lot and perform the work required, entry for the purpose of performing the work required shall be only between the hours of 7:00 a.m. and 6:00 p.m., and on any day of the weck

except Sunday.

6.22 Sidewalks. Any specific dimensions or guidelines will be stated on the recorded final plat.

6.23 Holiday Decorations and Lighting. There shall be no permanent seasonal structures (i.e. Christmas Lights)

attached to said property. All Holiday decorations and lighting must be removed within 20 days of said holiday.

Storm Water Management Systems. It shall be the responsibility of the ASSOCIATION for any repair,

replacement, or improvement of any component of the Storm Water Management System not located within the

Right-of-way. This includes, but is not limited to, detention ponds and drainage easements. It shall also be the

responsibility of the ASSOCIATION to purchase liability insurance covering the Storm Water Management

16 of 27 8/12/05 12:49 PM

System. The funds for maintenance and insurance will be a part of the annual assessi

BL 02997 Pg 0517

ARTICLE VII

EASEMENTS, ZONING AND OTHER RESTRICTIONS

7.01 Structural Support. Every portion of a dwelling or any other Structure which contributes to the structural

support of another dwelling or Structure shall be burdened with an casement for structural support, and cach Lot

shall also have the right to lateral support which shall be appurtenant to and pass with the title to such Lots.

7.02 Other Easements.

(a) Declarant hereby expressly reserves to the Declarant, their successors and assigns forever, the right to

create perpetual casements in, on, over and under any part of the Property owned by Declarant for any

purpose, which Declarant deems necessary, including, by way of illustration and not limitation, the

following:

the erection, installation, construction and maintenance of wires, lines, conduits and poles

and the necessary or proper attachments in connection with the transmission of clectricity,

telephone, cable television and other utilities and similar facilities;

the erection, installation, construction and maintenance of storm-water drains, land drains.

public and private sewers, irrigation systems, pipelines for supplying gas, water and heat, and

for any other public or quasi-public facility, service or function;

(¡i) slope control purposes, including the right to grade and plant slopes and to prevent the doing

of any activity which might interfere with slopes or which might create erosion or sliding

problems or which might change, obstruct or retard drainage flow:

(iv) the planting or re-planting of hedges, shrubbery, bushes, trees, flowers and plants of any

nature; and

(v) the erection, installation, construction and maintenance of fences, walls, monuments, signs,

etc. along streets in, around and along entrances to the Development; including the right to

landscape such areas, plant, re-plant and prune hedges, shrubbery, bushes, trees, flowers,

grass and plants of any nature.

(b) No Owner shall have any right to use any casement created by the Declarant in, on or over any

portion of the Property unless such casement has been assigned by the Declarant to the Association.

(c) The Declarant hereby reserves for himself, his successors and assigns, across the initial phase of the

Property and across each portion of the Additional Property subsequently submitted to this Declaration

by Annexation as provided in Article X hereof, perpetual casements appurtenant to said property for

the following uses and purposes:

ingress and egress by vehicular and pedestrian traffic over such drives, roadways, walkways

and paths as are shown on the plat or plats recorded in connection with the initial phase of the

Property and such portions of the Additional Property as are submitted to this Declaration, and

such drives, roadways, walkways and paths as may be constructed in the future;

installing, operating, maintaining and replacing wires, pipes, conduits and other structures

and facilities necessary to the furnishing of gas, water, sewerage, storm drainage, electricity,

street lights, telephone, and other utilities and services, including the right to use in common

17 of 27 8/12/05 12:49 PM

with the Owners in the initial phase of the Property and portions of UR

subsequently submitted to this Declaration, and wires pipes duitsPEnd do&structures

and facilities furnishing such utilities and services to such Owners.

(d) In addition to the above, the Declarant hereby grants a general casement in favor of utility, cable

television and other such service companies across the initial phase of the Property, and across cach

portion of the Additional Property subsequently submitted to this Declaration by Annexation as

provided in Article X hereof, to maintain, repair, replace and service wires, pipes, conduits, street

lights and other structures and facilities provided for the benefit of the Owners.

The easements created in this Article VIl are in addition to any casements or rights created elsewhere

in this Declaration or in other casements of record. The provisions of this Article VII may not be

amended without the written consent of the Declarant, their successors and assigns.

7.03 Easement Area. The words "Easement Area" as used herein shall mean those areas on any Lot with respect to which casements are shown on a recorded deed or on any filed or recorded map or plat relating thereto.

Entry. The Declarant and their employees, agents, successors and assigns, shall have the right at all

reasonable times to enter upon all parts of each Easement Area for any of the purposes for which such Easement Area is reserved without being deemed to have committed a trespass or wrongful act solely by reason of such

entry and the carrying out of such purposes, provided the same are done in accordance the provisions of this

Article. The Declarant and their employees, agents, successors and assigns shall be responsible for leaving each lot in good condition and repair following any work or activity undertaken in an Easement Area pursuant to the

Zoning and Private Restrictions. None of the covenants, restrictions or easements created or imposed by this

Declaration shall be construed as permitting any action prohibited by applicable zoning laws, or by the laws,

rules or regulations or any governmental body. In the event of any conflict between such laws, rules or

regulations and the covenants, restrictions and easements created or imposed by this Declaration, the most

restrictive provision shall govern and control.

ARTICLE VIII

ENFORCEMENT

8.01 Right of Enforcement. This Declaration and the restrictions contained herein shall inure to the benefit of and

shall be enforceable by (i) the Declarant so long as they are an Owner, (ii) the Association and (iii) each Owner,

his legal representatives, heirs, successors and assigns.

8.02 Right of Abatement.

(a) Except where different notice provisions are provided in Section 5.11 and 6.21, in the event of a

violation or breach of any Restriction contained in this Declaration the Association shall give written

notice by certified mail to the Owner setting forth in reasonable detail the nature of such violation or

breach and actions needed to be taken to remedy such violation or breach. If the Owner shall fail to

take reasonable steps to remedy such violation or breach within thirty (30) days afler the mailing of

such written notice, then the Association shall have the Right of Abatement. If any assessment,

interest, cost or charge required by this Declaration is not paid within sixty (60) days after such

assessment is due or such charge is imposed, the Association shall have the right to notify any or all

mortgagees having a security interest in the Owner's Lot or Lots that such Owner is in default in the

performance of their obligations under the Development Documents, and of those actions taken or

proposed to be taken by the Association as a result of the default.

(b) The Right of Abatement, as used in this Section and Sections 5.11 and 6.21 hereof, means the rights

of the Association, through its agents and employees, to enter at all reasonable times upon any Lot or

Structure, as to which a violation, breach or other condition to be remedied exists, and to take the

18 of 27 8/12/05 12:49 PM

actions specified in the notice to the Owner to abate, extinguish, remove, or hap ten.

breach or other condition which may exist thereon contrary Bat 2 ions hero hout being

deemed to have committed a trespass or wrongful act solely by reason of such entry and such actions.

provided such entry and such actions are carried out in accordance with the provisions of this Section,

and with the cost thereof, together with interest thereon at the lower of the highest rate permitted by

law, or 10%, to be a binding personal obligation of such Owner enforccable in law, as well as a lien on

such Owner's Lot enforceable pursuant to the provisions of Section 8.04 hereof. Such lien shall be

superior to any and all charges, liens or encumbrances which may in any manner arisc or be imposed

upon the Lot after such entry whether arising from or imposed by judgment or decree or by any

agreement, contract, mortgage, deed to secure debt, or other instrument, excepting only (i) such liens

for taxes or other public charges as are by applicable law made superior, (ji) the liens created by

Section 4.01 hereof and (ili) all deeds to secure debt given to secure a loan the proceeds of which are

used (1) to purchase a lot or lots (together with any and all structures which may from time to time be

place or located thereon) and (2) to finance any construction, repair or alteration of structures.

Specific Performance. Nothing contained in this Declaration shall be deemed to affect or limit the rights of

the Declarant, the Association or any Owner to enforce the Restrictions by appropriate judicial proceedings or to

recover damages. However, it is hereby declared that it may be impossible to measure accurately in money the

damages which will accrue to a beneficiary hereof, its transferees, successors or assigns, by reason of a violation

of, or failure to perform any of the obligations provided by this Declaration; and therefore, any beneficiary

hereof shall be entitled to relief by way of injunction or specific performance, as well as any other relicf

available at law or in equity.

8.04 Collection of Assessments and Enforcement of Lien.

(a) If any assessment, interest, cost or other charge is not paid as required by this Declaration, the

Association may bring either an action at law against the Owner personally obligated to pay same, or

an action to foreclose any lien created by this Declaration against the Lot or Lots subject to the lien, or

both, for the purpose of colleting such assessment, cost or charge, plus any interest thereon and costs of

(b) As an additional remedy, but in no way as a limitation on the remedies, if any assessment, interest.

cost or other charge is not paid as required by this Declaration, each Owner hereby grants the

Association and its assigns the following irrevocable power of attorney: To sell said Lot or Lots subject

to lien at auction, at the usual place for conducting sales at the courthouse in Athens-Clarke County.

Georgia, to the highest bidder for cash, after advertising the time, terms and place of such sale once a

week for four weeks immediately preceding such sale (but without regard to the number of days) in the

paper in which the Sheriff's advertisements for Athens-Clarke County, Georgia are published, all other

notice being hereby waived by each Owner, and the Association or any person on behalf of the

Association, or assigns, may bid and purchase as such sale and thereupon execute and deliver to the

purchaser or purchasers at such sale a conveyance of said property in fee simple, which conveyance

shall contain recitals as to the happenings of the default upon which the execution of the power of sale

herein granted depends, and each Owner hereby constitutes and appoints the Association and assigns.

the agent and attorney in fact of each owner to make such recitals, and hereby covenants and agrees

that the recitals so made by the Association, or assigns, shall be binding and conclusive upon the

Owner whose property is the subject matter of such sale, and the heirs, executors, administrators and

assigns of such Owner. The conveyance to be made by the Association or assigns shall collect the

proceeds of such sale, and after reserving therefrom the entire amount of assessment, interest, cost or

the charges due, together with all costs and expenses of the sale and fifleen percent of the aggregate

amount due for atterneys' fees, shall pay any excess to such Owner, or to the heirs or assigns of such

Owner as provided by law. The power of attorney and agency hereby granted are coupled with an

interest and are irrevocable by death or otherwise and are granted as cumulative to the remedies for

collection of said indebtedness provided by law.

19 of 27 8/12/05 12:49 PM

WAIVER. EACH OWNER, BY ACCEPTANCE OF A DEED CONVEYING A LOWE WHIS

DECLARATION, WAIVES ANY RIGHT WHICH OWNER MAY MA 02OODER THE OSNOTITUTION OR

THE LAWS OF THE STATE OF GEORGIA OR THE CONSTITUTION OR THE LAWS OF THE UNITED

STATES OF AMERICA TO NOTICE OR TO A JUDICIAL HEARING PRIOR TO THE EXERCISE OF ANY

RIGHT OR REMEDY PROVIDED BY THIS DECLARATION AND OWNER WAIVES OWNER'S RIGHTS,

IF ANY, TO SET ASIDE OR INVALIDATE ANY SALE DULY CONSUMMATED IN ACCORDANCE

WITH THE PROVISIONS OF THIS DECLARATION ON THE GROUND (IF SUCH BE THE CASE) THAT

THE SALE WAS CONSUMMATED WITH A PRIOR JUDICIAL HEARING. ALL WAIVERS BY OWNER

IN THIS PARAGRAPH HAVE BEEN MADE VOLUNTARILY, INTELLIGENTLY AND KNOWINGLY

AFTER OWNER HAS FIRST BEEN ALLOWED THE OPPORTUNITY TO CONSULT LEGAL COUNSEL

WITH RESPECT TO OWNER'S POSSIBLE RIGHTS.

8.05 No Waiver. The failure of the Declarant, the Association, or the Owner of any Lot, his or its respective legal

representatives, heirs, successors and assigns, to enforce any Restrictions hercin contained shall in no event be

considered a waiver of the right to do so thercafter, as to the same violation or breach or as to any violation or

breach occurring prior or subsequent thereto.

ARTICLE IX

DURATION AND AMENDMENTS

9.01 Duration. The provisions of these covenants shall run with and bind the land and shall be and remain in effect

perpetually to the extent permitted by law.

9.02 Amendments.

(a) These covenants may be amended unilaterally at any time by Declarant so long as Declarant has the

right unilaterally to subject additional property to the Declaration; or if such amendment is necessary to

bring any provision hereof into compliance with any applicable governmental statute, rule, regulation

or judicial determination which shall be in conflict therewith; if such amendment is necessary to enable

any reputable title insurance company to issue title insurance coverage on the Lots subject to these

Covenants; if such amendment is required by an institutional or governmental lender or purchaser of

mortgage loan in order for such lender to make or purchase loans on the Lots subject to these

Covenants; or if such amendment is necessary to enable any governmental or private mortgage

insurance company to insure mortgage loans on the Lots subject to these Covenants, provided any such

amendments shall not adversely affect the title to any Owner's Lot, unless any such Owner so affected

thereby shall consent thereto in writing

(b) These Covenants may be amended at any time and from time to time by an agreement signed by at

least seventy-five (75%) percent of the Owners; provided, however, such amendment by the Owners

shall not be effective unless also signed by the Declarant if the Declarant are the owners of any real

property subject to these Covenants.

ARTICLE X

ANNEXATION

Declarant shall have the option and right, from time to time, without the necessity of consent by the

Association, the Board or the Owners, to submit all or portions of any Additional Property to this Declaration

and thereby cause the Additional Property, or such portions thereof, to become part of the Property.

ARTICLE XI

MORTGAGEE PROVISIONS

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he following provisions are for the benefit of hoiders of first morty

The provision of this Article applies to both this Declaration and to the ws, noivil Sanding any othe

provision contained thercin.

11.01 Special Mortgagee Provisions:

(a) As used in this section, the term *Eligible Holder" shall mean a holder, insurer or guarantor of a first

mortgage on a lot, which has requested notice in accordance with the provisions of Section 11.01 (b)

(b) A holder, insurer or guarantor of a first mortgage, upon written request to the Association (such

request to state the name and address of such holder. insurer, or guarantor and the lot number), will be

entitled to timely written notice of:

Any proposed amendment of the Declaration affecting a change in (A) the

boundaries of any lot or the exclusive casement rights appertaining thereto; (B) the interests in

the Common Property or the liability for common expenses appertaining thereto: (C) the

number of votes in the Association appertaining to any lot; or (D) the purposes to which any

lot or Common Property are restricted:

any proposed termination of the administration of the Common Property pursuant to

this Declaration;

(Hi) any condemnation loss or any casualty loss which affect a material portion of the Property

or which affects any Lot on which there is a first mortgage held, insured or guaranteed by

such eligible holder;

(iv) any delinquency in the payment of assessments or charges owed by an Owner of a lot

subject to a first mortgage held by such eligible holder which remains uncured for a period of

sixty (60) days;

(v) any lapse, cancellation, or material modification of any insurance policy or fidelity bond

maintained by the Association:

(vi) any proposed action which would require the consent of a specified percentage of eligible

holders, as specified herein; and

(vii) an annual financial statement, or audit if available, of the Association for the immediately

preceding final year, free of charge.

(c) To the extent permissible under the law of the State of Georgia, the following provisions shall apply:

21 of 27 8/12/05 12:49 PM

B₺ 02997 Pg 0522

Any restoration or repair of the Common Property after a partial condemnation or damage

due to an insurable hazard shall be substantially in accordance with the Declaration and the

original plans and specifications unless the approval of the eligible holders of first mortgages

on lots to which at least fifty-one (51%) percent of the votes of lots subject to mortgages held

by such eligible holders are allocated, is obtained

Any election to terminate the administration of the Common Property pursuant to this

Declaration after substantial destruction or a substantial taking in condemnation of the

Property must require the approval of the eligible holders of first mortgages on lots to which at

least fifty-one (51%) percent of the votes of lots are subject to mortgages held by such cligible

holders are allocated.

(d) The following provisions do not apply to amendments in the constituent documents or termination of

the Association pursuant to section 11.01(c) hereof made as a result of destruction, damage. or

condemnation, or to the addition of land pursuant to any plan of expansion or phased development

previously approved by the Department of Housing and Urban Development ("H.U.D.") or the

Veterans Administration (V.A.) to the extent such approval is required by H.U.D. or the V.A.:

The consent of owners representing at least sixty-seven (67%) percent of the Class "A*

votes and of the Declarant, as long as it holds any land subject to this Declaration, and the

approval of the eligible holders of first mortgages on Lots to which at least sixty-seven (67%)

percent of the votes of Lots subject to a mortgage appertain, shall be required to terminate the

administration of the Property subject to this Declaration.

(it) The consent of Owners representing at least sixty-seven (67%) percent of the Class "At

votes and of the Declarant, as long as it holds any land subject to this Declaration, and the

approval of eligible holders of first mortgages on lots to which at least fifty-one (51%) percent

of the votes of lots subject to a mortgage appertain, shall be required to materially amend any

provision of this Declaration, the By-Laws of the Articles of Incorporation to add any material

provisions thereto, which establish, provide for, govern or regulate any of the following:

(A) Voting:

(B) Assessments, assessment liens or subordination of such liens:

(C) Reserves for maintenance, repair and replacement of the common Property:

(D) Insurance or fidelity bond:

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BL 02997 P: 0523

(E) Rights to use of the Common Property;

Responsibility for maintenance and repair of the several portions of the property:

(G) Expansion or contraction of the property or the addition, annexation or withdrawal of land to or from the

property;

(H) Boundaries of any lot:

Convertibility of lots into Common Property or of Common Property into lots;

(J> Leasing of lots

(K) Imposition of any right of first refusal or similar restriction on the right of a lot owner to sell, transfer, or

otherwise convey his or her lot;

(L) Establishment of self-management by the Association where professional management, if any, has been

employed;

(M) The approval of eligible holders of first mortgages on lots in which at least fifty-one (51%) percent of the votes

of lots subject to a mortgage appertain, shall be required to amend any provisions included in this Declaration, the

By-Laws or the Articles of Incorporation for any of the actions contained in this Section.

The provisions of this Section shall not be construed to reduce the percentage vote that must be

obtained from mortgagees of lot Owners where a larger percentage vote is otherwise required by

applicable law or in any other provision in the Declaration, the By-Laws or the Articles of

Incorporation for any of the actions contained in this Section.

11.02 Special FFLMC Provision: So long as required by the Federal Farm Loan Mortgage Corporation, the following

provisions apply in addition to and act in licu of the foregoing. Unless at least two-thirds (2/3) of the first

Mortgagees or at least two thirds (2/3) of the total Members of the Association entitled to vote thereon consent.

the Association shall not:

(a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or transfer the Common

Property which the Association owns, directly or indirectly (the granting of easement for public utilities or other

23 of 27 8/12/05 12:49 PM

similar purposes consistent with the intended use of the Common Property shall not beded bad fer

within the meaning of this subsection); BE 02997 Pg 0524

(b) Change the method of determining the obligations, assessments, dues, or other charges, which may be levied

against an owner of a residence;

(c) By act or omission change, waive, or abandon any scheme of regulations or enforcement thereof pertaining to

the architectural design of the exterior appearance and maintenance of lots and residence and of the standards.

procedures, rules and regulations, or use restrictions shall not constitute a change, waiver, or abandonment within the

meaning of this subsection;

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

(e) Use hazard insurance proceeds for any common property 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 Property and may pay overdue premiums on casualty insurance policies

or secure new casualty insurance coverage upon the lapse of an Association policy, and first mortgagees making

such payments shall be entitled to immediate reimbursement from the Association.

11.03 No Priority: No provisions of this Declaration or the ByLaws gives or shall be construed as giving any Owner

or other party priority over any rights of the first mortgagee of any residence in the cases of distribution to such

owner of insurance proceeds or condemnation awards for losses to or a taking of the common property.

11.04 Notice to Association: Upon request, cach Owner shall be obligated to furnish to the Association the case and

address of the holder of any mortgage encumbering such Owner's residence.

11.05 Amendment by Board: Should the Department of Housing and Urban Development ("H.U.D.t), the Veterans

Administration ("V.A.), the Federal National Mortgage Association, the Federal Home Loan Mortgage

Corporation subsequently delete any of their respective requirements which necessitate the provisions of this

article or make any such requirements less stringent, the Board, without approval of the Owners may cause an

amendment in this article to be recorded to reflect such changes.

11.06 V.A. and H.U.D. Approval: As long as there is a Class B membership, the following actions shall require the

prior approval of the V.A so long as the V.A. is guaranteeing any mortgage in the property and the prior

approval of H.U.D. so long as H.U.D. is insuring any mortgage in the property: annexation of additional land to

the property, except for annexation by Declarant in accordance with Article X pursuant to a plan of annexation

previously approved by the V.A. or H.U.D.; dedication of common property to any public entity; and material

amendment to the Declaration, Bylaws or Articles of Incorporation.

11.07 Applicability of Article XI: Nothing contained in this Article shall be construed to reduce the percentage vote

that must otherwise be obtained under the Declaration, By-Laws, or Georgia law for any of the acts set out in

this article.

11.08 Failure of Mortgagee to Respond: Any mortgagee who requires 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

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written response from the mortgagee within thirty (30) days of the date of the Associa

Bk 02997 Pg 0525

ARTICLE XII

INSURANCE PROVISIONS

12.01 Insurance:

(a) At all times during the terms of this Declaration, the Association, its successors and assigns, shall be

required to keep any and all recreational facilities and any other improvements located on the Common

Property fully insured by a reputable insurance company authorized to transact business in the State of

Georgia with (i) fire, vandalism, malicious mischief and extended coverage in an amount adequate to

cover the cost of replacement of such improvements in the event of loss of any and/or all of such

improvements, fixtures and contents thereof, and (ii) comprehensive general liability insurance

covering all of the Common Property, including, without limitation, the operation, maintenance of use

thereof and improvements and facilities thereon, for at least One Millions Dollars ($1,000.000.00) for

bodily injury, including death and property damage, arising out of a single occurrence. Each such

policy of insurance shall require that the certificate holders and insured be given thirty (30) days prior

written notice of any cancellation of such policy.

(b) Inumediately after the damage or destruction by fire or other casualty to all or any portion of any

improvement covered by insurance written in the name of the Association, the Board or its duly

authorized agent shall proceed with the filing and adjustment of all claims arising under such

insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the

damaged or destroyed property. Repair or reconstruction, as used in this Section, means repairing or

restoring the property to substantially the same condition and location that existed prior to the fire or

other casualty.

Any damage or destruction shall be repaired or reconstructed unless, within sixty (60) days after the

casualty, at least a seventy-five (75%) percent of the total Association vote entitled to vote thereon, and,

as long as the Declarant has the right to appoint and remove directors, the Declarant, otherwise agree.

If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or

destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not

made available to the Association within such period, then the period shall be extended until such

information shall be made available; provided, however, such extension shall not exceed one hundred

twenty (120) days.

If the damage or destruction for which the insurance proceeds are paid is to be repaired or

reconstructed and such proceeds are not sufficient to defray the cost thercof, the Board shall, without

the necessity of a vote of the association's members. levy a special assessment. Additional assessments

may be made in like manner at any time during or following the completion of any repair or

reconstruction. If the funds available from insurance exceed the costs of repair or reconstruction or if

the improvements are not repaired or reconstructed such excess shall be deposited for the benefit of the

association.

In the event that it should be determined by the association in the manner described above that the

damage or destruction shall not be repaired or reconstructed and no alternative improvements are

authorized, then in that event the property shall be restored to its natural state and maintained as an

undeveloped portion of the development in a neat and attractive condition until the Association

(c) The deductible for any casualty insurance policy carried by the Association shall, in the event of

damage or destruction, be allocated among the persons who are responsible hercunder for maintenance

of the damaged or destroyed property.

25 of 27 8/12/05 12:49 PM

(d) In addition to the coverage described hercinabove, the Association shall obta

amounts and types of insurance as may be required from timo 0299 eithePthe ans

Administration or Federal Housing Administration, their successor and assigns, for similar type

residential subdivision communities.

(e) All insurance coverage required by the Association shall be written in the name of the Association as

trustee for the benefit of the Association, the Owners and each such Owner's mortgagee. The

Association Board shall be required to make every reasonable effort to secure insurance policies that

will provide the following:

a waiver of subrogation by the insurer as to any claims against the Association's Board, its

manager, the Owners and their respective tenants, servants, agents and guests;

(it) a waiver by the insurer of its rights to repair and reconstruct instead of paying cash;

(ji) that no policy may be reduced in amount, canceled, subjected to nonrenewal, invalidated or

suspended on account of the act or omission of any one (1) or more individual owners:

(iv) that no policy may be reduced in amount, canceled, subjected to nonrenewal, invalidated, or

suspended on account of any defect or the conduct of any director, officer, or employee of the

Association or its duly authorized manager without prior demand in writing delivered to the

Board to cure the defect or to cease the conduct and the allowance of a reasonable time

thereafter within which a cure may be affected by the Board, it manager, any Owner or

Mortgagee;

that any "other insurance" clause in any policy excludes individual Owner's policies from

consideration, and

in no event shall the insurance coverage obtained and insured by the Association's Board

hereunder be brought into contribution with insurance purchased by individual Owners,

occupants, or their Mortgagees, and the insurance carried by the Association shall be primary.

In addition to the other insurance required by this Section, the Board shall obtain worker's

compensation insurance if and to the extent necessary to satisfy the requirement of applicable law.

The Association shall obtain and maintain a blanket fidelity bond for all officers, directors, and

employees of the Association and all other persons who handle, or are responsible for, funds of or

administered by the Association. If the Association engages a management agent who has

responsibility for handling or administering funds of the Association, the management agent shall be

required to maintain fidelity bond coverage of its officers, employees and agents handling or

administering the funds of the Association. Such fidelity bonds shall name the Association as an

obligee and shall not be less that the estimated maximum of funds, including reserve funds, in the

custody of the management agent at any time during the period of such bond, however, in no event may

the aggregate amount of such bonds be less that a sum equal to three (3) months' aggregate

assessments on all lots plus reserve funds. The bonds shall contain waivers by the issuer of the bonds

of all defenses based upon the exclusion of persons serving without compensation for the definition of

"employee" or similar terms or expressions. The bonds shall provide that they may not be canceled or

substantially modified (including cancellation for non-payment of premium) without at least ten (10)

days prior notice to the Association.

IN WITNESS WHEREOF, the Declarant has caused these Declarations of Covenants and Restrictions to be

duly executed and sealed this th day of

Signed, sealed and delivered in

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27 of 27

ACUOLICE NOTARY Moral Sardro the presence of: Notary Pubila, Ownnelt Oou Stead son Expires Bep

[CORPORATE SEAL] Limited 30286Cmpal 0527 8/12/05 12:49 PM