Sterling Mills Covenants

FILED IN OFFICE

After recording retun to: CLERK OF SUPERIOR COURT M. BARTON RICE, JR. ROONEL COUNTY GEORGIA P. O. Box 526 Attomey at Law

(404) 548-4862 Athens, GA. 30603 98 OCT 28 PH 4:50

DECLARATION OF CONDOMINIUM REC. BOOR 45(0 PACE 331-363

OF DATE 10-29-98

SANDRA C. GLASS, CLERA STERLING MILLS, A CONDOMINIUM

OCONCE COUNTY, GEORGIA

THIS DECLARATION is made by LITTLE RICE DEVELOPERS, INC., a Georgia corporation (hereinafter called the "Declarant")to submit the property hereinafter described and the improvement thereon to the condominium form of ownership under the Georgia Condominium Act.

1. SUBMISSION: Little Rice Developers, Inc., as the owner of the property described as Sterling Mills Condominium, on Exhibit "A" hereto attached and made a part hereof by reference, does hereby submit such property and the improvements constructed thereon pursuant to the provisions of the Georgia Condominium Act. From and after the date this Declaration is recorded with the Clerk of the Superior Court of Oconee County, Georgia, such property and all the improvements constructed thereon, shall be owned, held, transferred, sold, conveyed, used, occupied, mortgaged or otherwise encumbered subject to the terms and provisions of this Declaration and of the Act.

2. DEFINITIONS: Unless the context requires otherwise the terms defined in the Act shall have the same meanings for purposes of this Declaration as are described to them by the Act. In addition, as used in this Declaration, the • Articles of Incorporation, the Bylaws and the other condominium instruments, the following terms shall have the meanings indicated hereinbelow, all of such definitions being cumulative of these contained elsewhere in this Declaration.

(a) "Act" shall mean the Georgia Condominium Act (O.C.G.A. Section 44-3-70, et seg.), as the same is or may be hereinafter amended.

(b) "Articles of Incorporation" shall mean the Articles of Incorporation of the Association, as the same may be hereinafter amended.

(c) "Association" shall mean the Sterling Mills Condominium Association, Inc., a Georgia non-profit membership corporation formed for the purpose of exercising the powers of the Association under this Declaration, the Articles of Incorporation, the Bylaws, and the Act.

(a) "Board of Directors" shall mean the Board of Directors of the Association, the members of which shall be appointed and elected and from time to time as provided in this Declaration, the Articles of Incorporation, the Bylaws, and the Act. The Board of Directors shall be the governing body of the Association.

(e) "Bylaws" shall mean the Bylaws of the Association, as the same by may hereafter amended (f) "Declarant" shall mean Little Rice Developers, Inc., its successors and assigns.

(g) "First Lien Mortgage" shall mean a mortgage, deed to secure debt or deed of trust on a unit and its undivided interest in the common elements which gives the holder thereof a first and superior lien and security title on and to such unit and undivided interest.

(h) "The Property" means that tract or parcel of land and all improvements thereon described as Sterling Mills Condominium in Exhibit "A" hereto attached and by referenced incorporated herein together with any of the additional property which may be annexed hereto by the Declarant as herein provided.

3. NAME: The name of the Condominium is Sterling Mills Condominium.

4. COUNTY: The Condominium is located in Oconee County, Georgia.

DEVELOPMENT PLAN: The development plan for the Condominium is as hereinafter described. (a) Development of the Property: Phase One shall initially consist of a total of three (3) units, each including a certain parcel of land and the residential unit located thereon, and a community area known as The Town Hall. The plat recorded at Condominium Plat Book _, Page Oconee County, Georgia Records shows the location and dimensions of the property, the location and dimensions of the vertical boundaries of each completed unit, the location and dimensions of all completed structural improvements located on the property, to the extent feasible, the location and easements to which the property is subject, the identifying numbers of the completed units located on the property and the

location and dimensions of any limited common elements appurtenant to each unit. The units and The Town Hall on the property have been constructed substantially in accordance with the survey and the plans which have been filed simultaneously with the filing of this Declaration in the Office of the Superior Court Clerk of Oconee County, Georgia.

(b) The Declarant hereby specifically reserves an option to expand this condominium subject to the

following terms and conditions.

1. The Option shall terminate no later than seven (7) years from the date of the recording of this Declaration. Except as specifically provided herein, there are no other limitations to this Option.

2. The legal description of the additional property, including any horizontal, upper and lower, boundaries as well as the vertical and lateral boundaries is attached hereto as Exhibit "B".

3. Except as specifically provided otherwise herein there are no limitations concerning additional property with regard to the following.

a. the time of the addition of property

b. the order of the addition of property

c. the boundaries of additional property

4. Except as specifically provided otherwise herein, there are no limitations as to any improvements that may be made on any portions of additional property.

S. The maximum number of units which may be created on the additional property is fortyseven (47). The maximum average number of units per acre which may be created on any portion of the property is two (2).

6. Except as provided otherwise herein, the additional property is limited to residential use.

Except as specifically provided otherwise herein, there are no assurances made concerning any other improvements which will be made on the additional property or any limitation of any improvements made thereon.

8. The Declarant reserves the right to create limited common elements within any portion of the additional property or to designate common elements which may be subsequently assigned as limited common elements subject to no limitation.

9. Upon the expansion of the condominium by additional property there shall be reallocated among the units the undivided interests in the common elements, the votes in the association, and the liability for common expenses pursuant to the same formula which is described in Exhibit "C".

(c) The condominium known as Sterling Condominium development is subject to the Planned Unit Development provisions of the Oconee County, Georgia, zoning ordinance.

6. UNITS: Each unit together with its undivided interest in the common elements shall for all purposes constitute a separate parcel of real property, which may be owned, held, transferred, sold, conveyed, used, occupied, mortgaged, or otherwise encumbered in the same manner as any other separate parcel of real property, subject to the provisions of this Declaration and the Act. Each unit shall be entitled to the exclusive ownership and possession of the unit

or units owned by him, subject to the provisions of this Declaration and the Act. Each unit shall include all of the space and improvements within the boundaries thereof.

Boundaries: The units shall have no lower horizontal boundaries. The upper horizontal boundary of each unit shall be the under surfaces of the joists which are the ceiling joists for the uppermost floor of such unit. The vertical (lateral) boundary of each unit shall be the exterior unfinished surface of the outside walls of such unit. All of the aforesaid boundaries shall be extended to the intersections with each other. Notwithstanding the foregoing, all exterior doors and glass surfaces, such as windows, serving each unit shall be deemed to be included within the boundaries thereof, and all portions of the heating and air conditioning systems (including furnaces, compressors, conduits, wire, pipes, geothermal components, and the like) serving a single unit shall be deemed to be included within the boundaries of that unit, irrespective of whether the same are located within the boundaries above described.

(b) Relocation of Boundaries Between Units: The boundaries between adjoining units may be relocated from time to time, such relocations to be made in accordance with Section 44-3-91 of the Act, but no unit may be subdivided for the purpose of creating two or more units therefrom and no Owner shall have the right of partition of a unit.

LIMITED COMMON ELEMENTS: The limited common elements are those portions of the common elements which are reserved for the exclusive use of those persons who are entitled to the use of the units to which such limited common elements are assigned. The limited common elements shall be assigned as follows:

(a) All portions of the common elements on which there is located any portion of the heating and air conditioning system serving a particular unit or units shall be limited common elements, reserved for exclusive use of those persons who are entitled to use the unit or units which is or are served by such heating and air conditioning systems.

(b) Skylights located in the roof above the upper horizontal boundary of a unit and within vertical extensions of the lateral boundaries of a unit shall be limited common elements of such unit.

(c> All portions of any patio, deck, or steps serving a particular unit shall be limited common elements, reserved for exclusive use of those persons who are entitled to use the unit which is served by such patio, deck, or steps.

(d) A garden area for flowers or vegetables containing not more than 100 square feet and located in the rear of a particular unit in a location which is not visible from the street which provides access to such unit, shall be

reserved for the exclusive use of those persons who are entitled to use the unit. The garden area shall be maintained in a neat and orderly manner by the occupant of such unit.

(e) The Board of Directors, without a membership vote, is hereby authorized to assign and to reassign limited common elements, provided that any such assignment or reassignment shall be made in accordance with the provisions of Section 44-3-82(b) and (c) of the Act. A common element not previously assigned as a limited common element may be so assigned by the Board, without the need for a vote of the Association, upon written application to the Association by the owner(s) for whose exclusive use such common element is requested. Upon such application and approval, the Association shall prepare and execute an amendment to the Declaration assigning the common element as a limited common element, which amendment shall be executed by the owner or owners making such application. Such amendment shall be delivered and become effective as provided in Section 44-3-82 of the Act.

8. ALLOCATION OF UNDIVIDED INTEREST IN THE COMMON ELEMENTS: The percentage of undivided interest in the Common Elements allocated for each unit is set forth in Exhibit "C" attached hereto and by this reference incorporated herein.

9. ALLOCATION OF VOTES IN THE ASSOCIATION: The owner of each unit in the Condominium shall be entitled to that number of votes in the Association equivalent to the percentage of the undivided interest in the common elements allocated to that unit as more particularly shown on Exhibit "C" attached hereto and incorporated herein by reference.

The persons entitled to exercise such votes at meetings of the Association, the method by which such votes may be exercised and the rights and obligations generally of members of the Association with regard to voting shall be in accordance with Section 44-3-79 of the Georgia Condominium Act and this Declaration.

10. ALLOCATION OF LIABILITY FOR COMMON EXPENSES: Each unit shall be allocated the liability for common expenses in proportion to its undivided interest in the Common Elements, except for the insurance premium for each unit under Article 21. (a)(I) which shall be allocated to each unit based on the size of the unit.

11. POWERS OF THE ASSOCIATION AND BOARD OF DIRECTORS: The powers of the Association and Board of Directors shall be set forth, and shall be subject to the limitations and restrictions set forth in the Act, the Georgia Nonprofit Corporation Act, this Declaration, the Articles of Incorporation and the Bylaws of the Association

12. PREPARER OF DECLARATION: The name and address of the attorney who prepared this Declaration is M. Barton Rice, Jr., 300 College Avenue, Suite 211, P. O. Box 526, Athens-Clarke County, Georgia.

13 PROTECTIVE COVENANTS:

(a) General: All owners and occupants of units shall be subject to and shall comply with the protective covenants contained in this Paragraph 13. In addition, the Board of Directors may, from time to time, without. consent of the owners, promulgate, modify or delete rules and regulations applicable to the units, common elements and limited common elements. This authority shall include, but shall not be limited to, the right to limit the type and size and to set the maximum and minimum speeds of vehicles within the Property. The Board shall also have the authority to impose all other necessary traffic and parking regulations and to restrict the maximum noise levels of vehicles within the Property. Such regulations shall be binding upon all owners and occupants of units until and unless overruled, canceled or modified in a regular or special meeting by the vote of owners holding a majority of the total votes in the Association and by the vote of the Declarant, so long as the Declarant has an option unilaterally to subject additional property to this Declaration.

(b) Prohibited Conditions and Activities: No noxious or offensive activity shall be carried on within the Property, nor shall any unclean, unsanitary, unsightly or unkempt conditions of buildings or grounds be allowed to exist. Further, nothing shall be done tending to cause embarrassment, discomfort, annoyance or nuisance to any owner, owner's family, tenant or guest. Without limiting to the generality of any of the foregoing, no exterior speakers, bells, whistles or other sound devices, except security devices used exclusively for security purposes, shall be located, used or placed on the property

Animals and Pets: No animals, livestock or poultry of any kind may be raised, bred, kept or permitted within the Property with the exception of dogs, cats or other usual and common household pets in reasonable number, as determined by the Board; provided, however, any pets which are permitted within the property shall be under the exclusive control of the owner at all times whenever they are outside the building and any dogs which are household pets shall at all times whenever they are outside a building be on a leash or otherwise confined in a matter acceptable to the Board; provided, further, that any pets which are permitted in the property which endanger health, make objectionable noise, or constitute a nuisance or inconvenience to the owners or occupants of other units within the property or of any property located adjacent to the Property may be removed by the Board. No pets shall be kept, bred, or maintained for any commercial purchase. Without prejudice to the Board's right to remove any such household pets, no household pet that has caused damage or injury may be walked within the Property. Animal control authorities shall be permitted to-enter the Property to Patrol and remove pets. Pets shall be registered, licensed and inoculated as required by law.

(d) Garbage Receptacles and Woodpiles: All garbage receptacles and woodpiles must be hidden from public view and the view from adjoining property.

(e) Minimum Dwelling Size: All dwellings shall not contain less than 1200 square feet of finished living areas, exclusive of open porches/ unfinished basements, garages, carports and breezeways.

Trash and Garbage: No trash, garbage, construction debris or other unsightly or offensive material shall be placed or allowed to remain upon any part of the Property except as may be temporary and incidental to the construction of bona fide improvements thereon.

Utilities and Services: All utilities and services shall be placed underground. No utility or other service may be used, connected or operated except through easements and rights reserved unto the Declarant.

(h) Antennae: No exterior antenna, receiving dish or similar apparatus of any kind for receiving or transmitting of radio or video signals shall be placed, allowed or maintained upon any unit unless approved by the Board; provided, however, no such approval shall be necessary to install one antenna used to receive video programing (satellite receiving dish or television antenna) not larger than one meter in diameter or diagonal measure which blends with the color and is installed on or in the rear of the unit so as not to be visible from the street in front of the unit. Installation of an antenna deviating from the above provision shall be approved as reasonably necessary to permit the reception of an acceptable quality signal. The cost of cable television service shall be borne directly by each subscribing customer or by the Association if the Association approves handling the expense thereof as a service or function to its members.

Temporary Structures: The only type of temporary structure which shall be allowed on any portion of the Property is that used by the Declarant, contractors or builders during construction of improvements or shelters maintained by the Declarant or the Association. Under no circumstances may any kind of recreational vehicle, camper or temporary shelter be used as a temporary or permanent residence.

Clotheslines: No clotheslines shall be allowed on any lot.

(K) Fences and Walls: No fence or wall of any kind shall be installed or maintained on or around any unit without the written approval of the Board of Directors.

Land Use and Building Type: Unless otherwise expressly authorized by the Declarant, no portion of the property shall be used except for residential purposes. No building shall be erected, altered, placed or permitted to remain on any portion of the property other than one detached single family dwelling having a garage for not

~

less than one car. All garage doors shall remain closed unless the owner is present and using the garage area. No unit improvement shall be used for business, professional, commercial or manufacturing purposes of any kind. No activity, whether for profit or not, shall be conducted which is not related to single-family residential purposes. No noxious or offensive activity shall be undertaken in any unit or on the Property, nor shall anything be done which is or may become an annoyance or nuisance to the neighborhood. Nothing in this Section shall prohibit the temporary use of a portion of the Town Hall as a sales office until the last unit in the Property is sold. Nothing in this Section shall prohibit an owner's use of a residence for quiet, inoffensive activities such as tutoring or giving art lessons so long as such activities are in compliance with all applicable governmental and zoning requirements and do not interfere with adjoining unit owners use and enjoyment of their residences.

(m) Building Construction: The exterior of all residences shall be predominantly brick construction. (n) Interior Design and Construction: The interior design and construction of each dwelling shall be approved by the Board, with specific attention being given to insure that each dwelling meets the requirements set forth in the regulations governing housing for older persons. All dwelling shall be constructed in such a manner as to provide service to elderly persons.

(o) Window Treatment: The exterior view of all window treatment shall be consistent and shall be approved by the Board.

(P) Drainage and Erosion: Catch basins and drainage areas are for the purpose of natural flow of water only. No obstructions or debris shall be replaced in these areas. No owner or occupant of a unit may obstruct or rechannel the drainage flows after location and installation of drainage swales, storm sewers or storm drains. There is reserved a perpetual easement across all Property for the purpose of altering drainage and water flow.

(Q) Driveways: All driveways shall be surfaced with concrete or similar substance that is approved by the Board.

(I) Mailboxes: No mailboxes or mail receptacles may be located on or near the streets in the Property. All mail receptacles shall be located in the Towne Hall of the Condominium.

Signs: No commercial signs or signs of any kind including, but not limited to, "For Rent," "For Sale," or other similar signs shall be erected, placed or maintained temporarily or permanently on any Property by anyone, except: (a) temporary "For Sale" and "open House" signs during construction of a unit and prior to the initial sale of a unit;

8

:..

(b) signs previously approved by the Board; (c) signs used with the written permission of the Board, and (d) signs required by legal proceedings. The Board may restrict size, color and content of such signs.

(t) Trailers, Boats and Motor Vehicles: Without the prior written approval of the Board of Directors, no mobile home, motor home, truck with more than four wheels, camper, trailer of any kind or boat shall be placed, stored, parked, maintained, constructed, reconstructed, or repaired upon any portion of the Property, provided however, that the provisions of this Section shall not apply to emergency vehicle repairs. Notwithstanding the foregoing, such vehicles or equipment may be stored in the enclosed garage or basement of a unit provided such vehicle or equipment is concealed from view by neighboring residents and from streets.

Oil and Mining Operations: No oil drilling, oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon any part of the Property, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon the Property. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted on any part of the Property.

(V) Governmental Regulations: All governmental building codes, health regulations, zoning restrictions and other requirements applicable to the Property shall be observed. In the event of any conflict between any provision of any such governmental code, regulation, restriction or requirement and any provision of this Declaration, the more restrictive provision shall apply; provided however, that the Declarant shall be bound only by such governmental codes, regulations, restrictions and requirements and not the provisions of this Article.

(W) Leasing: The leasing of units by an owner is strongly discouraged in Sterling Mills Condominium. All leases must be in writing and in a form approved by the Board of Directors. Units may not be leased or rented except for one term of not less than twelve months or some lesser period as approved by the Board of Directors. No unt may be leased for more than twelve (12) months in any five (5) year period except in the case of the death of the unit owner or the physical inability of the unit owner to occupy the unit in which case a unit may be leased for twenty-four (24) months in a five (5) year period. All persons who occupy a leased unit must be related by blood, adoption or marriage; provided however, if all persons occupying a leased unit are not so related, no more than two persons, one of whom must be the owner of the unit may occupy the unit.

(x) Compliance by Unit Owners and Lessees: Each unit owner shall cause his lessee, or his sublessee, to comply with all of the restrictions set forth in this Article 14, and such other reasonable rules and regulations

concerning the use of the property as may be made and amended from time to time by the Board of Directors pursuant to Article 23 of this Declaration, notwithstanding the fact that such lessee or said lessee's sublessee are fully liable for any violation of such restrictions, rules and regulations. All agreements by which a unit is leased shall provide that the terms of such lease shall be subject in all respects to all of the terms and provisions of the Declaration of the Bylaw's and that any failure by the lessee to comply with the terms of such documents shall he a default under such lease agreements.

Sale by Mortgagee: Should the holder of a first lien mortgage on any unit become the fee simple owner of such unit through foreclosure or any other means pursuant to the satisfaction (in whole or in part) of the indebtedness secured by such mortgage or desire to sell under the power of sale contained in its mortgage, the sale of such fee simple interest or any lease or disposition of any interest in the unit by such mortgages pursuant to the satisfaction (in whole or in part) of the indebtedness secured thereby may be accomplished without regard to the restrictions of this Article 14; provided however, that the purchaser or lessee of such unit from such mortgagee shall take title to such unit subject to all the provisions of this Article 14, this Declaration and the Act.

14. Age Restrictions: Sterling Mills Condominium is being developed to provide important housing opportunities in the Oconee County, Georgia area for older persons. The provisions of this Section are intended to be consistent with, and are set forth in order to comply with the Fair Housing Amendments Act, 42, U.S.C. §3601 et seq. (1988), as amended (the "Fair Housing Amendments), and the exemption therefrom provided by 42 U.S.C. §3607(b)(2)(C) regarding discrimination based on familial status. The Association, acting through its Board, shall have the power to amend this Section, without the consent of the members or any person, for the purpose of making this Section consistent with the Fair Housing Amendments, as amended, the regulations adopted pursuant thereto, and any judicial decisions arising thereunder or otherwise relating thereto, in order to maintain the intent and enforceability of this Section.

(a) Restrictions on Occupancy.

Each occupied unit within the Condominium shall at all times have as a permanent occupant therein at least one person who is 55 years of age or older (the "Qualifying Occupant"); provided, in the event of the death of a person who was the sole Qualifying Occupant of a unit, the spouse of such Qualifying Occupant may continue to occupy the unit as long as the provisions of the Fair Housing Amendments and the regulations adopted thereunder are not violated by such occupancy. For purposes of this Section, an occupant shall not be considered a "permanent occupant"

unless such occupant considers the unit to be his or her legal residence and actually resides in the unit for at least six months during every calendar year.

(11) No unit shall be occupied by any person under the age of 18. For purposes of this Section, a unit shall be deemed to be "occupied" by any person who stays overnight in the unit for more than twenty-one (21) days in any sixty (60) day period or for more than thirty (30) days in anv 12-month period.

(111) Nothing in this Section is intended to restrict the ownership of or transfer of title to any unit; provided, no owner may occupy the unit unless the requirements of this Section are met nor shall any owner permit occupancy of the unit in violation of this Section. Unit owners shall be responsible for including the statement that the units within the Condominium are intended for the housing of persons 55 years of age or older, as set forth in this Section, in conspicuous type in any lease or other occupancy agreement or contract of sale relating to such owner's unit, which agreements or contracts shall be in writing and signed by the tenant or purchaser, and for clearly disclosing such intent to any prospective tenant, purchaser or other potential occupant of the unit. Every lease of a unit shall provide that failure to comply with the requirements and restrictions of this Section shall constitute a default under the lease.

(iV) Any owner may request in writing that the Board of Directors make an exception to the requirements of this Section with respect to his or her unit. The Board of Directors may, but shall not be obligated to, grant exceptions in its sole discretion, provided that the requirements for exemption from the Fair Housing Amendments would still be met.

(b) Change in Occupancy. Notification. In the event of any change in occupancy of any unit, as a result of a transfer of title, a lease or sublease, a birth or death, change in marital status, vacancy, change in location of permanent residence, or otherwise, the owner of the unit shall immediately notify the Board in writing and provide to the Board the names and ages of all current occupants of the unit and such other information as the Board may reasonably require to verify the age of each occupant. In the event that an owner fails to notify the Board and provide all required information within ten (10) days after a change in occupancy occurs, the Association shall be authorized to levy monetary fines against the owner and the unit for each day after the change in occupancy occurs until the Association receives the required notice and information, regardless of whether the occupants continue to meet the requirements of this Section, in addition to all other remedies available to the Association under this Declaration and Georgia law.

(c.) Monitoring Compliance; Appointment of Attorney-in-Fact.

(1) The Association shall be responsible for maintaining age records on all occupants of units. The Board shall adopt policies, procedures and rules to monitor and maintain compliance with this Section, including policies regarding visitors, updating of age records, the granting of exemptions pursuant to subsection 15(b)(4), and enforcement. The Association shall periodically distribute such policies, procedures and rules to the owners and make copies available to owners, their tenants and Mortgagees upon reasonable request.

(11) The Association shall have the power and authority to enforce this Section in any legal manner available, as the Board deems appropriate, including, without limitation, conducting a census of the occupants of units, requiring copies of birth certificates or other proof of age for each occupant of the unit to be provided to the Board on a periodic basis, and taking action to evict the occupants of any unit which does not comply with the requirements and restrictions of this Section. EACH OWNER HEREBY APPOINTS THE ASSOCIATION AS ITS ATTORNEY-IN-FACT FOR THE PURPOSE OF TAKING LEGAL ACTION TO DISPOSSESS, EVICT OR OTHERWISE REMOVE THE OCCUPANTS OF HIS OR HER UNIT AS NECESSARY TO ENFORCE COMPLIANCE WITH THIS ARTICLE. Each owner shall fully and truthfully respond to any and all requests by the Association for information regarding the occupancy of his or her unit which in the judgment of the Board are reasonably necessary to monitor compliance with this Section.

(ı11) Each owner shall be responsible for ensuring compliance of the owner's unit with the requirements and restrictions of this Section and the rules of the Association adopted hereunder by the owner and by the owner's tenants and other occupants of such unit. EACH OWNER, BY ACCEPTANCE OF TITLE TO A UNIT, AGREES TO INDEMNIFY, DEFEND AND HOLD THE ASSOCIATION HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, AND CAUSES OF ACTION WHICH MAY ARISE FROM FAILURE OF SUCH OWNER'S UNIT TO SO COMPLY.

15. REPAIR AND MAINTENANCE: The repair and maintenance of the property shall be in accordance with the following terms and conditions:

(a) Units: Each unit owner shall be responsible for the maintenance, repair, renovation, restoration, and replacement of all portions of his unit, including, without limitation, the heating, air conditioning and interior electrical and plumbing systems and exterior dors, glass surfacey and window screens serving this unit. In addition, cach unit over shall be responsible for the maintenance, repair and replacement of any exterior lights serving the unit. -All such maintenance, repair, renovation, restoration and replacement work shall be performed by each unit owner in such a manner

(e) Maintenance Required by Unit Owners: In the event the Board of Directors shall determine that the need for maintenance or repairs by the Association as provided in Paragraph 15(c) above is caused through the willful or negligent act or a unit owner, his lessee, or their sublessees, assignees, guests or invitees, and not paid for by insurance, the cost of performing such maintenance or repair shall be added to and become a part of the assessments to which such unit owner is subject.

16. PLATS AND PLANS: A Condominium Plat of the first phase of the property is being filed simultaneously with this Declaration in Condominium Plat Book L, Page 28, Oconee County, Georgia Records, and said Condominium Plat is by reference incorporated herein.

Plans for the units and The Town Hall located on the property, conforming to the requirements set forth in the same in the Act, are being filed simultaneously with this Declaration in the Office of the Clerk of Superior Court of Oconee County, Georgia, the same being File No.

17. CONTROL BY DECLARANT: Notwithstanding anything contained elsewhere in this Declaration, or in the Articles of Incorporation or Bylaws, which may be construed to the contrary, the Declarant shall be authorized to appoint and remove any member or members of the Board of Directors and officer or officers of the Association. The Declarant's authority to so appoint and remove members of the Board of Directors and officers of the Association shall expire upon the first of the following to occur:

(a) upon the conveyance of at least eighty (80%) percent undivided interest in the common elements; (b). seven (7) years from the date of the recordation of this Declaration of Condominium; (c) the surrender by the Declarant of the authority to appoint and remove members of the Board of Directors and offices of the Association by an express amendment to this Declaration executed and recorded by the Declarant.

18. ASSESSMENTS: Assessments against the unit owners shall be made to raise funds to pay common expenses of the property, and shall be governed by the following provisions:

(a) Liability: Each unit owner shall be liable to the Association for all sums as are lawfully assessed by the Association against him or his unit or units in accordance with the terms and provisions of this Declaration and the Articles of Incorporation and Bylaws. In addition to exercising the remedies provided for in Paragraph 18(g) below, the

Association may enforce such liability by an action at law to recover all amounts assessed against each unit owner in accordance with the provisions of this Article 18.

(b) Purpose: Assessments shall be levied against the unit owners and the units to defray the common expenses of the property. The common expenses of the property shall be. all of the expenditures which are made or incurred by or on behalf of the Association in connection with the exercise of its powers and responsibilities, and shall include the following:

(i) Common utility bills and charges for other common services;

(ii) premiums for all insurance policies maintained by the Association;

(iii) the expenses of performing the maintenance, repair, renovation, restoration and replacement work which is the responsibility of the Association under Article 15 hereof;

(iv) such other costs and expenses as may be determined from time to time by the Board of Directors to be common expenses; and

(v) the creation and maintenance of such reserve funds as are required to be maintained by the Association under Paragraph 18(c) below, and such other reserve funds as the Board of Directors shall determine.

￾(c) Budget, Payment Dates: No less than thirty (30) days prior to the commencement of each fiscal year of the Association, the Board of Directors shall adopt a budget for the succeeding fiscal year, which budget (I) shall estimate the amount of common expenses which are anticipated to be incurred during such years, and (ii) shall make provisions for an adequate reserve fund for maintenance, repair and replacement of those portions of the common elements that must be replaced on a periodic basis. Prior to the commencement of such fiscal year, the Board of Directors shall furnish a copy of such budget to each unit owner, together with a written statement of the amount of such common expenses which shall be assessed against such unit owner for such fiscal year. Unless otherwise determined by the Board of Directors, such assessment shall be due on January 1 of each fiscal year and shall be payable to the Association in a single annual payment which is on or before January 1 of each year. The Board of Directors shall be authorized to pro-rate the annual assessment into twelve monthly installments. In addition, any fees, charges, and other amounts payable by any unit owner to the Association shall be added to and shall, unless paid at the time the same are incurred or at some other time determined by the Board of Directors, be due and payable as part of the installment of the assessment next coming due. So long as required

by the Act, any monthly maintenance fee increase in excess of the percentage equal to the annual rate of inflation as measured

by the Consumer Price Index for All Urban Consumers for the immediately preceding 12 month period may be disapproved by unit owners holding a majority of the association vote.

Special Assessments: If for any reason, including nonpayment of any unit owner's assessments, an annual budget adopted by the Board of Directors for the fiscal year proves inadequate to defray the common expenses for such fiscal year, the Board of Directors may, at any time, levy a special assessment to raise the additional funds necessary to defray such common expenses, which special assessment shall be due and payable at such time and in such installments as the Board of Directors shall determine. Additionally, the Board of Directors shall be authorized to levy special assessments under the circumstances described in Paragraph 22(e)(I) of this Declaration. Provided, however, so long as required by the Section 44-3-80 of the Act, and subject to the exceptions contained therein, no special assessment fee per unit in excess of an average of $200.00 per fiscal year shall be enacted without the approval of a majority of the unit owners;

(e) Equal Assessment: Except as provided for differently in Paragraph 15(b) of this Declaration, no expenses associated with the maintenance, repair, renovation, restoration, or replacement of any limited common element shall be specially assessed against the unit or units to which such limited common element is assigned.

(1) Special Assessments for Capital Improvements: In addition to the assessments which shall be levied against the unit owners under Paragraph 18(b) and (d) above, the Board of Directors shall be authorized, upon the affirmative vote the owners of the units to which three-fourths (3/4ths) of the undivided interest in the common elements is allocated, to levy a special assessment for the purpose of defraying, in whole or in part, the costs of any capital improvements to be made upon the common elements, or for the costs of making repairs or replacements which are not provided for in the then current budget of the Association. Any such special assessment for capital improvements and repairs shall be payable at such time and in such installments as the Board of Directors shall determine.

Collection: In addition to all other remedies provided by law, the Association may enforce collection of the assessments for which a unit owner is liable, together with all other amounts as may be owned by such unit owner to the Association, as hereinafter provided.

(1) In the event that any unit owner shall fail to pay any installments of any assessment levied against him within ten (10) days after such installment shall be due and payable, the entire unpaid balance of such

assessment for the remainder of the fiscal year may, at the option of the Board of Directors, be accelerated and be declared immediately due and payable in full, without notice to such unit owner.

In the event that any unit owner shall fail to pay within five (5) days after the same shall be due, any amounts due and payable to the Association, such unit owner shall be liable for the payment of, and shall pay, in addition to the amounts so due the Association:

(a) a late charge equal to Ten Dollars ($10.00) or ten percent (10%) of the amount

so due, whichever is the greater;

(o) interest on the amount so due, and the aforesaid late charge appertaining thereto, from the date the same were due and payable, at the rate of ten percent (10%) per annum, until paid;

(c) the cost of collection, including court costs, the expenses of sale, any expenses ' required for the protection and preservation of the unit, and reasonable attorney's fees actually incurred; and

(d) in the event the Association shall seek to foreclose its lien on the unit of such owner, the fair rental value of the unit from the time of the institution of suit until sale of the unit at foreclosure (or until the judgment rendered in such suit is otherwise satisfied).

(ı1) The lien for assessments in favor of the Association provided by Section 44-3-109 of

the Act shall include all sums as may become payable by a unit owner to the Association pursuant to Paragraph 18(g)(!) and

(g) (11) above..

(h) Capitalization of Association. Upon acquisition of record title to a unit by the first owner thereof other

than the Declarant, a contribution shall be made by or on behalf of the purchaser to the working capital of the association

in an amount equal to two (2) months annual assessment for that year. This amount shall be in addition to, not in lieu of, the annual assessment and shall not be considered an advance payment of such assessment. This amount shall be disbursed to

the association and held in a separate account so long as the Declarant is in control of the Association. After the termination

of the Declarant's right to appoint and remove the officers and directors of the Association, such working capital fund may be used by the Association for unforeseen operating expenses or to purchase any additional equipment or services.

(iv) The right of a unit owner, and all persons entitled to occupy the unit of such owner, to use the common elements shall be suspended for the period of time any amount due and owing to the Association. in regard

to any unit owned by such owner shall remain unpaid; provided, however, that no such suspension shall deny any unit owner, or the occupants of any unit, access to the unit owned or occupied, nor cause any hazardous of unsanitary condition to exist.

Fee for Statements of Amounts Due: The Association may require the payment of a fee, not to exceed Ten ($10.00) Dollars as a prerequisite to its issuance of any statement pursuant to Section 44-3-409(d) of the Act.

19. COMMON PROFITS: Any surplus remaining after the application of the common profits of the payment of the common expenses shall be either distributed to, or credited against the next assessments chargeable to, the unit owners, as the Board of Directors shall determine.

20. COMPLIANCE WITH CONDOMINIUM INSTRUMENTS: Every unit owner and all of those persons entitled to occupy a unit shall comply with all of the provisions of the Declaration, the Articles of Incorporation, the Bylaws, and all rules and regulations which shall be adopted by the Board of Directors in regard to the property. In the event of any breach or violation of any such provisions, the Association shall have the right to proceed a law or in equity to compel compliance therewith. In the event any unit owner shall permit or suffer to exist any condition in his unit or in the limited

common elements assigned to this unit which is in violation of any of the foregoing provisions, the Association shall have the right to enter upon such unit or limited common element and remove the thing or condition causing such violation, and the unit owner who permitted or caused such violation to exist shall be fully liable to the Association for all costs and expenses it shall incur in connection therewith. All such costs and expenses shall be paid to the Association promptly upon demand. In no event shall the Association or its agents have any liability for so entering upon any portion of the property and removing such thing or condition. In the event the Association shall employ legal counsel to enforce any of the

foregoing, the unit owner permitting or suffering such condition to exist shall pay all reasonable attorney's fees so incurred by the Association.

In addition to the foregoing remedies of the Association, the Board of Directors shall have the power to impose and

assess fines against any unit owner who permits or suffers any condition to exist in violation of any of the foregoing

provisions. All such fines shall be in an amount determined by the Board of Directors; provided, however, that no such fine shall exceed the sum of $25.00 for any one violation, but each day a violation is continued or repeated after the Board of

Directors shall give the unit owner responsible for such violation a written notice of the same shall be considered a separate

violation. No delay, failure or admission on the part of the Association in exercising any right, power or remedy herein provided shall be deemed a waiver of the right to do so thereafter as to the same violation or breach, or as to a violation or

breach occurring prior or subsequent thereto, and shall not bar or affect its enforcement. In no event shall the Board of Directors, or any of its agents, be liable to anyone whatsoever on account of any failure to bring any action on account of any violation or breach by any unit owner of any of the foregoing provisions.

21. INSURANCE: Insufance (other than title insurance) which shall be obtained by the Association shall be governed by the following provisions:

(a) Types of Insurance: The Association shall maintain the following insurance policies:

(i) multi-peril casualty insurance policy covering the entire property, providing at a minimum for extended coverage, vandalism and malicious mischief, on a replacement cost basis in an amount not less than one hundred

(100%) percent of the full replacement cost of all structures within the Condominium. The name of the insured under such casualty insurance policy shall be stated as follows: "Sterling Mills Condominium Association, Inc. for use and benefit of the individual unit owners of the Sterling Mills Condominiums, Oconee County, Georgia". The amount of coverage of such casualty insurance policy shall be readjusted by reappraisal or revaluation of the insured property not less frequently than once every two (2) years. Such casualty insurance policy shall contain the standard mortgagee clause which shall be

endorsed to provide that any proceeds shall be paid to the Association for the use and benefit of mortgagees as their interest

may appear.

(i) A comprehensive policy of public liability insurance covering all of the common elements Such liability insurance policy shall contain a "severability of interest" endorsement which shall preclude the insurer from denying the claim of unit owner because of the negligent acts of the Association or other unit owners. Such liability insurance policy shall cover the Association, the Board of Directors, the officers of the Association, all agents and employees of the Association, and all unit owners and other persons entitled to occupy any unit or other portion of the property, shall be for at least $500,000.00 for injury including death to a single person, $1,000;000.00 for injury or injuries, including death, arising out of a single occurrence and $50,000.00 for property damage, with cross liability endorsement to cover the unit owners as a group and shall include protection against water damage liability, and liability for property of others.

(iii) A policy of fidelity coverage against dishonest acts on the part of the members of the Board of Directors, the manager of the Condominiums, and any employees or volunteers of the Association responsible for handling funds belonging to or administered by the Association. Said policy of fidelity coverage insurance shall name the Association

as the named insured and shall be written in an amount which shall in no event be less than one and one-half times the Association's estimated annual common expenses and reserves.

(iv) Such other insurance policies as the Board of Directors shall deem desirable for the benefit of the Association and the unit owners. /

(b) Minimum Qualifications of Insurance Carriers: Each policy of insurance which the Association is required to maintain under the provisions of Paragraph 21(a) shall be written by a hazard insurance carrier which has a financial rating in Best's Insurance Reports meeting the minimum requirements of the Federal National Mortgage Association ("FannieMae") or better and which is licensed to transact business with the State of Georgia.

(a) Minimum Qualifications of Insurance Policies: All policies of insurance which the Association is required to maintain under the provisions of Paragraph 21(a) shall (a) not allow contributions or assessments to be made against the owner of any unit, or the holder of any mortgage upon any unit, (b) not allow loss payments to be contingent upon any action by the insurance carrier's board of directors, policyholders or members (c) not include any limiting clauses (other than insurance conditions) which could prevent any unit owner or the holder of any mortgage upon any unit from collecting insurance proceeds, and (d) contain or have attached a mortgage clause which provides that the insurance carrier shall notify the in writing the named mortgagee on any of the units at least ten (10) days in advance of the effective date of any reduction in or cancellation of such policies.

(d) Unit Owner's Policies: The unit owners may carry at their own initiative and expense the following insurance policies:

(i) a building additions, betterments, and alterations endorsement to the master casualty insurance policy described in Paragraph 21(a) hereof for the exclusive benefit of the particular unit owner, such unit owner to be liable for (and the Association to be in no way liable for) the premium for such endorsement; and

(ii) a "Tenant's or condominium owner's policy" covering the contents of his unit, personal injury and property damage liability, burglary and the like.

In no event shall any recovery or payment under the insurance coverage obtained and maintained by the Association be affected or diminished by insurance purchased by individual unit owners or mortgagees, and no unit owner shall be entitled to exercise his right to maintain the additional insurance coverage set forth in this Paragraph 21(d)

in such a way as to decrease the amount which the Association may realize under any insurance policy which it may have in force on the property at any particularly time.

(e) Proceeds on Account of Damage to Common Elements: Insurance proceeds which shall be paid on account of damages to or destruction of any portion of the common elements which does not exclusively serve any unit or units shall be held by the Association in a construction fund, which shall be used for the purpose of repairing, reconstructing or rebuilding the portion of such common elements so damaged or destroyed, as provided in Paragraph 22(a)(1) of this Declaration. If it shall be determined in accordance with the provisions of Paragraph 22(b) of this Declaration not to repair, reconstruct or rebuild the portion of the common elements so damaged or destroyed, then the insurance proceeds paid on account of the occurrence of such damage or destruction to such portion of common elements shall first be used to clean up and landscape the common elements as necessary in view of the fact that such portion of the common elements is not to be repaired, reconstructed or rebuilt, and the remaining insurance proceeds shall be disbursed to the unit owners in proportion to their undivided interest in the common elements, such disbursement to be made payable jointly to the unit owners and their mortgagees. Notwithstanding anything contained int his Declaration, the Articles of Incorporation, the Bylaws, or the Act which may be construed to the contrary, in no event shall any insurance proceeds paid to the Association on account of the occurrence of any fire or other casualty by deemed to be common profits.

Proceeds on Account of Damage to Units and Common Elements Exclusively Serving Units In the event that any insurance proceeds shall be paid to the Association on account of any damage to or destruction of any unit or units and/or any portion of the common elements exclusively serving such unit or units, the Association shall deemed to hold such insurance proceeds in a serious of separate accounts, one such account for each unit which is so damaged or destroyed, or the common elements exclusively serving which units are so damaged or destroyed. The amount of insurance proceeds which shall be deemed to be held by the Association in each such account shall be determined by multiplying the entire amount of insurance proceeds which shall be received by the Association as a consequence of the damage of

destruction to such unit or units and/or the common elements exclusively serving the unit, on behalf of which such account is credited, and the denominator of which shall be the total estimated cost of repairing, reconstruction, or rebuilding all of the units and common elements as a consequence of the damage or destruction to which such insurance proceeds were paid. If it shall be determined in accordance with the provisions of Paragraph 22 (c) of this Declaration not to repair, reconstruct or rebuild any unit which is so damaged or destroyed, then the amount of the insurance proceeds, which shall be held by the

Association in the account for such unit shall be disbursed to the owner of such unit, such disbursement to be made jointly to the unit owner and his mortgagee. Such disbursement, however, shall be made only after the Board of Directors shall have entered into a financial arrangement satisfactory to the Board of Directors whereby such unit owner shall pay for the cost of cleaning up and landscaping the property on which such unit was located. Notwithstanding anything contained in this Declaration, the Articles of Incorporation or Bylaws of the Association which may be construed to the contrary, in no event shall any amounts as shall be held by the Association or the account of any unit owner pursuant to the provisions of this Paragraph 21(f) be deemed to be common profits.

For purposes of Paragraph 21(e) and Paragraph 21(f), common elements shall be deemed to exclusively serve a particular unit only if they constitute all or a portion of the walls, roofs or a foundation enclosing such unit.

22. DAMAGES OR DESTRUCTION OF PROPERTY: Repair, reconstruction or rebuilding of the property following damage to or destruction of all or any portion of the property shall be governed by the following provisions.

Estimates of the Cost of Repairs: As soon as practicable following the occurrence of any damage to or destruction of any portion of the property, the Board of Directors shall obtain reliable and detailed estimates of the cost of repair or restoring such portion of the property so damaged or destroyed to substantially the same condition as such portion of the property was in prior to the occurrence of such damage or destruction, and shall proceed with the filing and adjustment of all claims arising under the insurance maintained by the Association as a result of such damage or destruction.

(o)￾ Determination to Repair, Reconstruct or Rebuilding Common Elements: Any damage to or destruction of the common elements will be repaired, reconstructed or rebuilt unless the owners of the units to which seventyfive (75%) percent of the votes in the Association are allocated shall determine, within forty-five (45) days after the occurrence of the casualty, not to repair, reconstruct or rebuild the same.

(c) Determination to Repair, Reconstruct or Rebuild Units: The determination to repair, reconstruct or rebuild any unit which is damaged or destroyed by fire or any other casualty shall be made in the following manner:

(1) any unit which is damaged, but not rendered untenantable, shall be repaired in all events. (ii) in the event that any unit is so damaged or destroyed that such unit is thereby rendered untenantable, such unit shall be repaired, reconstructed or rebuilt unless, within forty-five (45) days after the occurrence of such casualty, (a) the owners of the unit which is so rendered untenantable, together with (b) the owners of the units to which

sixty-seven (67%) percent of the remaining votes in the Association (not including the vote of the owner of the unit which

has been rendered untenantable by such casualty), and (c) the holders of sixty-seven (67%) percent of this first mortgages on the units within the Condominium (including the holder of any first mortgage on the unit which has been so rendered untenantable) shall all determine not to repair, reconstruct or rebuild such unit so rendered untenantable.

(iii) for purposes of this Paragraph 22(c), a unit shall be deemed to be untenantable only if as a consequence of this occurrence of a fire or other casualty, such unit is not fit for present occupancy, and if the estimated costs of making repairs necessary to render such fit for present occupancy shall exceed one-half (½) of the fair market value of each unit prior to the occurrence of such casualty.

Manner of Repair, Reconstruction or Rebuilding: All repairs, reconstruction, or rebuilding to be made as a result of damage by fire or other casualty shall be made in accordance with the following provisions:

(1) Common Elements: The damage shall be repaired, reconstructed or rebuilt substantially in accordance with the plans and specifications for such damaged property prior to the occurrence of such

damage.

(11) Units: If the damage to be repaired, reconstructed or rebuilt is to any unit, such repair,

reconstruction or rebuilding shall be substantially in accordance with the plans and specifications for such damaged unit prior

to the occurrence of such damage.

(ji) All of the work of repairing, reconstruction or rebuilding any portion of the property,

the damage to or destruction of which caused the payment of insurance benefits under insurance policies maintained by the

Association, shall be performed under the supervision of the Board of Directors, which, in discharging such supervisory responsibilities, shall be authorized to employ such building supervisors and architects as the Board of Directors shall deem

to be in the best interest of the Association. The fees which shall be payable to any such building supervisor or architect

employed by the Board of Directors shall be a common expense of the Association.

(e) Costs of Repair, Reconstruction or Rebuilding:

Common Elements: The cost of repairing, reconstruction or rebuilding any portion

of the common elements which shall be damaged or destroyed and which does not exclusively serve any unit or units shall

be paid with any insurance proceeds which shall be paid to the Association on account of such damage or destruction. If such insurance proceeds are not sufficient to defray such costs of repair, reconstruction or rebuilding, then the-Board of

Directors shall levy a special assessment against all of the unit owners and units to raise the excess funds necessary to defray such costs.

(11) Units and Common Elements Exclusively Serving Units: The cost of repairing, reconstructing or rebuilding each unit /which shall be damaged or destroyed, and any portion of the common elements exclusively serving such unit which shall be damaged or destroyed, shall be paid with the insurance proceeds which shall be paid to the Association on account of such damage or destruction and held by the Association on account for such unit, as provided in Paragraph 21(f) of this Declaration. If the amounts which are held by the Association in the account for such unit are not sufficient to defray such costs of repair, reconstruction or rebuilding, then the Board of Directors shall levy a special assessment against the owner of the unit on behalf of which such account was created to raise the excess funds necessary to defray such costs.

For the. purposes of this Paragraph 22(e), common elements shall be deemed to exclusively serve a particular unit only if they constitute all or a portion of the walls, roofs or a foundation enclosing such unit.

23. RULES AND REGULATIONS: The Board of Directors shall have the power and authority to adopt, make and amend reasonable rules and regulations in regard to the use of the units, limited common elements, and common elements. Copies of all such rules and regulations, and all thereto, shall be furnished to all of the unit owners, upon request.

24. EASEMENTS: The following easements shall be applicable to the property:

(a) Encroachments: To the extent that any unit or common element encroaches on any other unit or any part of the common elements, whether by reason of any deviation from the survey of the plans in the construction, repair, renovation, restoration or rebuilding of any improvement, or by reason of any overhang or the settling or shifting of any land or improvement, a valid easement for said encroachment and for the maintenance of same, so long as it stands, shall exist.

(b) Utility and Other Easements: The Association and the Board of Directors shall have the irrevocable power as attorney-in-fact on behalf of all unit owners and their successors-in-title to accept easements benefiting the Condominium or any portion thereof and to grant easements benefiting the property, or any portion thereof, whether or not a part of the Condominium upon, across, over and under all the property for ingress, egress, installation, replacing, and maintaining all utilities including, but not limited to, water, power, telephones, gas, electricity, cable television and a master television antenna system. Such easements may grant to appropriate utility companies the right to erect and maintain the

necessary poles and other necessary equipment on the property and to affix and maintain utility wires, circuits and conduits on, above, across and under the common elements, the units or the roofs and exterior walls of the residual dwellings or the improvements comprising part of any unit. No structures shall be erected or maintained within the easements.

(c) Access to Uhits and Common Elements: Each unit owner shall afford to the other unit owners and to the Association, and to any directors, offices, agents or employee of either, such access through his unit and any limited common elements appurtenant thereto as may be responsibly necessary to enable them to exercise and discharge their respective powers and responsibilities. To the extent that damage is inflicted on the common elements, including without limitation any limited common elements, or any unit through which access is taken, the Association or the unit owner occasioning such damage, whether by itself or through agents, employees or others, shall be liable for the prompt repair thereof. There is hereby (I) reserved in the Declarant, (ii) granted to all policemen, firemen, ambulance personnel and all similar emergency personnel, as easement to enter upon the property or any part thereof in the proper performance of their respective duties. During the period that Declarant owns any unit or owns any interest in the property or any portion thereof, the Declarant shall have a transferable easement on, over, through, under and across the common elements for the purpose of making improvements contemplated by the condominium instruments on the property, or any portion thereof, for the purpose of installing, replacing, repairing and maintaining all utilities serving the property or any portion thereof, and for the purpose of doing all things reasonably necessary and proper in connection therewith. There is further reserved in the Declarant, and its successor-in-title a perpetual easement for the benefit of the property for ingress and egress over and across any road or drive which may now or hereafter be located on the property.

25. CONTRACTS WITH DECLARANT: The term of any agreement as may be entered into between the Association and the Declarant which provides for professional management of the Condominium or pursuant to which the Declarant is to provide any other services to the Condominium, shall in no event exceed three (3) years. In addition, any such agreement shall be terminable by either party thereto without cause and without payment of a termination fee on no more than ninety (90) days written notice. Provided, however, the terms of any contract set forth above shall be subject to the termination provisions of O.C.G.A. §44-3-101(c).

26. BOOKS AND RECORDS: The Association shall maintain and make available for inspection during normal business hours to any prospective purchaser of a unit, any owner, and the holders, insurers, and guarantors of any

mortgage on any unit, current copies of the Declaration, the Articles of Incorporation, the Bylaws, rules and all other books, records, and financial statements of the Association.

27. SEVERABILITY: The invalidity or unenforceability of any covenant, restriction or other provision of this Declaration shall not affect the validity or enforceability of any other covenant, restriction or provision of the Declaration.

28. CAPTIONS: The captions of all sections of the Declaration are inserted for convenience only and are not intended to define, limit, restrict, extend or modify any of the provisions of the sections which such captions relate.

29. MORTGAGEE'S RIGHTS: Notwithstanding any of the provisions of this Declaration or the Article of Incorporation or Bylaws of the Association, the following provisions are hereby adopted for the protection of the mortgagees of units within the condominium project, and to the extent they conflict with any of the provisions in the Declaration, the Articles of Incorporation or Bylaws of the Association, the following shall control:

(a) 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 Unit number), will be entitled to timely written notice of:

any proposed amendment of the Condominium Instruments effecting a change in (A) the boundaries of any unit or the exclusive easement rights appertaining thereto; (B) the interests in the common elements or limited common elements appertaining to any unit or the liability for common expenses appertaining thereto; (c) the number of votes in the association appertaining to any unit; or (D) the purposes to which any unit or the common elements are restricted;

any proposed termination of the condominium regime;

(üi) any condemnation loss or any casualty loss which affects a material portion of the condominium or which affects any unit on which there is a first mortgage held, insured or guaranteed by such eligible mortgage holder;

(1V) any delinquency in the payment of assessments or charges owed by owner of a unit subject to a first mortgage held by such eligible mortgage holder which remains uncured for a period of sixty (60) days;

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

maintained by the Association;

(V1) any proposed action which would require the consent of a specified percentage of eligible mortgage holders, as specified herein; or

(Vii) an annual financial statement, or audit if available, of the Association for the immediately preceding fiscal year, free of charge.

(b) Any first mortgagee who obtains title to a unit pursuant to the remedies provided in the mortgage, by taking deed in lieu of foreclosure, or foreclosure of the mortgage on a unit shall not be liable for the unpaid dues or charges attributable to such unit which have accrued prior to the acquisition to title of such unit by the first mortgagee.

(c) Nothing in the Declaration, nor any provision of the Articles of Incorporation or Bylaws of the Association shall entitle a unit owner, Declarant, or any other party, to priority over any right of the first mortgagees of units with regard to a distribution to unit owners of insurance proceeds or condemnation awards for losses to or the taking of units or common element.

(d) The Association shall give written notice to any first mortgagees of individual units of any loss to, or taking, of the common elements if such loss or taking exceed $10,000.00 or damage to a unit covered by a mortgagee exceeds $1,000.00.

(e) Upon written request of any holder, guarantor or insurer of any first Mortgage on a Unit, the Association shall provide audited financial statements for the preceding year which shall be available within 120 days of the fiscal year-end.

The approval of owners of units to which sixty-seven (67%) percent of the eligible votes appertain and approval of eligible mortgage holders of first mortgages on units to which at least fifty-one (51%) percent of the votes of units subject to mortgages held by such eligible mortgage holders appertain, shall be required to materially amend any provisions of this Declaration, the Bylaws or equivalent documents of the Condominium or to add any material provisions thereto, which establish, provide for, govern or regulate any of the following:

(1) voting rights;

(ii) increases in assessments that raise the previously assessed amount by more than 25%, assessment liens, or the priority of assessment liens;

(111) reductions in reserves for maintenance, repair and replacement of common elements; (iv) responsibility for maintenance and repairs;

(V) reallocation of interests in the general or Limited Common Elements, or rights to their use;

(vi) redefinition of any unit boundaries;

(ViI) convertibility of units into common elements or vice versa;

(viii) expansion or contraction of the condominium, or the addition, annexation or withdrawal of property to or from the condominium;

(ix) hazard or fidelity insurance requirements;

(x) imposition of any restrictions on the leasing of units;,

(xi) imposition of any restrictions on a unit owner's right to sell or transfer his or her unit; (X11) a decision by the association to establish self-management if professional management had been required previously by the project documents or by an eligible mortgage holder; (×111) restoration or repair of the condominium (after damage or partial condemnation) in a manner other than that specified in the condominium instruments; or

(XIV) any provisions that expressly benefit mortgage holders, insurers, or guarantors. (g) As used in this Declaration, the term "eligible mortgage holder" shall mean a holder, insurer or guarantor of a first mortgage on a unit which has requested notice in accordance with the provisions hereof.

(h) Approval of owners of units to which sixty-seven (67%) of the votes appertain and approval of the eligible mortgage holders of first mortgages on units to which at least sixty-seven (67%) percent of the votes of Units subject to Mortgages held by such eligible mortgage holders appertain, shall be required to terminate the Condominium.

(i) Any election to terminate the Condominium regime after substantial destruction or a substantial taking in condemnation of the Condominium shall require the approval of the eligible mortgage holders on units to which at least 51% of the votes of units subject to mortgages held by such eligible mortgage holders are allocated.

(i) No reallocation of interests in the common elements resulting from a partial condemnation or partial destruction of the condominium project may be effected without the approval of the eligible mortgage holders on units to which at least 51% of the votes of units subject to mortgages held by such eligible mortgage holders are allocated.

(k) Approval shall be assumed when an eligible mortgage holder fails to submit a response to any written proposal for an amendment within 30 days after it receives proper notice of the proposal, provided the notice was delivered by certified or registered mail, with a "return receipt" requested.

30. AMENDMENTS: Except in the case of an amendment to this Declaration by the Association to assign or reassign Limited common elements, or by the Declarant to relinquish its right to appoint and remove directors and officers of the Association, or by the Declarant to initially assign common elements as limited common elements, or by Declarant to expand the Condominium as provided herein, or as a result of condemnation or substantial damage and destruction as provided herein and in the Act or as otherwise required or permitted by the Act or by Georgia law; this Declaration may be amended only as follows:

(a) All amendments to this Declaration, other than as specified above, may be made only by the agreement of owners of units to which two-thirds (2/3) of the votes in the Association pertain.

(b) So long as the Declarant has the right to control the Association, no amendment to the Declaration or Bylaws shall be effective until approved in writing by the Declarant. So long as Declarant has the right to maintain sales activity within the Condominium, no amendment limiting or restricting that right shall be effective until approved in writing by Declarant.

(c) Notice of any meeting at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. Any member may evidence consent to any amendment in writing without the necessity of a meeting or to supplement votes received at a meeting

(d) No amendment by the Association shall be effective until it is certified by the officers of the Association. No amendment shall be effective until it is filed for record in the office of the Clerk of Superior Court of Oconee County, Georgia. Any amendment so certified (and executed by the Declarant, if required) and recorded shall be conclusively presumed to have been duly adopted

[SIGNATURES ON FOLLOWING PAGE]

HEREOF the authorized officers of Declarant have set their hands and affixed their seals this day of oke, 1998.

LITTLE RICE DEVELOPERS, INC.-

BY:

THOMAS R. resident

BY:

M. B.

Signed, sealed and delivered

in the presence of:

NE

....

Secretary of State DOCKET NUMBER 030900479

CONTROL NUMBER : K834884

Corporations Division DATE INC/AUTH/FILED: 09/21/1998

JURISDICTION GEORGIA

315 West Tower PRINT DATE : 03/31/2003

FORM NUMBER : 215

#2 Martin Luther King, Jr. Dr.

Atlanta, Georgia 30334-1530

STERLING MILLS CONDO ASSOC.

BRABARA W. RADCLIFF

3131 ROCKY BRANCH RD #100

BOGARI, GA 30622

CERTIFIED COPY

I, Cathy Cox, the Secretary of State of the State of Georgia, do hereby certify under the seal of my office that the attached documents are true and correct copies of documents filed under the name of

STERLING MILLS CONDOMINIUM ASSOCIATION, INC.

A DOMESTIC NONPROFIT CORPORATION

Said entity was formed in the jurisdiction set forth above and has filed in the Office of Secretary of State on the date set forth above its certificate of limited partnership, articles of incorporation, articles of association, articles of organization or application for certificate of authority to transact business in Georgia.

This certificate is issued pursuant to Title 14 of the Official Code of Georgia Annotated and is prima-facie evidence of the existence or nonexistence of the facts stated herein.

Catty COp

Cathy Cox

Secretary of State

EXHIBITIAI

ALL those three parcels of property situate lying and being in the 1331st District, G.M., Oconee County, Georgia, and being known and designated as Unit 110, Unit 220 and Unit 280, of Sterling Mills Condominium, a condominium development under the provisions of the Georgia Condominium Act (Georgia Laws 1975, Page 609, et seq., as amended) as shown on a plat of survey entitled "FINAL CONDOMINIUM PLAT FOR: STERLING MILLS RETIREMENT RLS, dated October 18, 1998, and recorded in Condominium Plat Book _ COMMUNITY PITASP ONB, UNTS 110, 220 & 280, prepared by Woods Lanage 22g5s, Inc, Philip D. Chastain, › Oconee County, Georgia, public records, together with and subject to all right, title and interest of Grantor in and to said unit and the appurtenances nereto under the Declaration of Condominium of Sterling Mills, a Condominium, Oconee County, Georgia, dated Octobe -, 1998, and recorded in Deed BookS 2, Page 1-Seof said records, which plat and Declaration are hereby incorporated into this description and made a part hereof by reference thereto; TOGETHER with all the undivided interest of each unit as stated in said Declaration of Condominiums, and subject to the reallocation of undivided interests as set forth in said Declaration of Condominium.

EXHIBIT (r)B"

TRACT 1: All that lot or parcel of land containing 8.770 acres, more or less, situate, lying and being on the westerly side of Rocky Branch Road in the 1331st District, G.M., Oconee County, Georgia, and being more particularly shown and described as TRACT A 8.770 ACRES on a plat of survey entitled "SURVEY FOR: M. BARTON RICE, JR. AND TOM LITTLE", prepared by Ben McLeroy, R.L.S:, dated March 27, 1996, and revised June 6, 1997, and recorded in Plat Book 28, Page/84, Oconce County, Georgia, public records, which said plat of survey and the record thereof are hereb incorporated into this description and made a part hereof by reference thereto, and being more particularly described as follows:

Beginning at an iron pin on the northwesterly right of way line of Rocky Branch Road, said iron pin being located south 6 degrees 29 minutes 17 seconds east 694.59 feet from the intersection of the 32 of Rocky Branch Road and the Mars Hill Road; running thence along the right of way of Rocky Branch Road in an arc with a chord south 12 degrees 30 minutes 42 seconds west 224.98 feet to a point; running thence south 18 degrees 41 minutes 12 seconds west 137.21 feet to a point; running thence along said right of way in an arc with a chord south 23 degrees 47 minutes 04 seconds west 289.44 feet to an iron pin; running thence north 74 degrees 55 minutes 59 seconds west 739.95 feet to a 26 inch hickory; running thence north 10 degrees 36 minutes 29 seconds east 337.70 feet to a 5/8 inch rod; running thence north 87 degrees 22 minutes 27 seconds east 387.53 feet to an iron pin; running thence north 81 degrees 19 minutes 22 seconds east 480.15 feet to the beginning iron pin corner.

TRACT 2: All that lot or parcel of land situate, lying and being on the Rocky Branch Road in the 133 1st District, G.M., Oconee County, Georgia, and being more particularly described as follows:

To find the point of beginning begin at a iron pin on the northwesterly side of Rocky Branch Road, said iron pin being located south 6 degrees 29 minutes 17 seconds east 694.59 feet from the intersection of the of Mars Hill Road and Rocky Branch Road, and running thence along the right of way of Rocky Branch Road in an arc with a chord south 12 degrees 30 minutes 42 seconds west 224.98 feet to a point; running thence along said right of way south 18 degrees 41 minutes 12 seconds west 137.21 feet to a point; continuing thence along said right of way in an arc with a chord south 23 degrees 47 minutes 04 seconds west 289.44 feet to an iron pin which is the point of beginning; continuing thence along said right of way in an arc with a chord south 51 degrees 30 minutes 04 seconds west 587.39 feet to a point; running thence along said right of way south 70 degrees 04 minutes 18 seconds west 773.26 feet to an iron pin corner; running thence north 19 degrees 04 minutes 26 seconds west 355.50 feet to a one-half inch reinforced rod at a rock; running thence north 50 degrees 27 minutes 55 seconds east 762.82 feet to a 26 inch hickory; running thence south 74 degrees 55 minutes 59 seconds east 739.95 feet to the beginning iron pin corner.

The above described property is shown as Tract 1 on a plat of survey for M. Barton Rice, Jr. and Tom Little dated March 27, 1996, revised June 6, 1997, prepared by Ben McLeroy, R.L.S., which said plat is incorporated herein and made a part hereof by reference thereto.

ALSO

ALL that lot or parcel of land situate lying and being in the 1331st District, G.M., Oconee County, Georgia, and being more particularly described as follows:

BEGINNING at an iron pin on the northwesterly right of way line of Rocky Branch Road, said iron pin being located south 6 degrees 29 minutes 17 seconds east 694.59 feet from the point of intersection of the center line of the Rocky Branch Road and the center line of the Mars Hill Road, and run thence south 81 degrees 19 minutes 22 seconds west 480.15 feet to an iron pin which is the point of beginning; running thence south 87 degrees 22 minutes 27 seconds west 387.53 feet to a 5/8 inch rod; running thence north 10 degrees 36 minutes 28 seconds east 400 feet to a point, running thence in-a easterly direction approximately 400 feet to a pine stump which is located north 10 degrees 36 minutes 28 seconds west 300 feet from the beginning point; and running thence south 10 degrees 36 minutes 28 seconds west 300 feet to the beginning point. LESS AND EXCEPT the property described in Exhibit "A".

1: 1

EXHIBIT I CI

ALLOCATION OF UNDIVIDED INTEREST IN THE COMMON

ELEMENTS AND VOTES IN THE ASSOCIATION

Unit 110 2,210 square feet 2,210 votes 22.90% Unit 220 2,750 square feet 2, 750 votes 28.50% Unit 280 2,295 square feet 2,295 votes 23.80% Unit 200 2,380 square feet 2,380 votes 24.80%

TOTAL 9,635 square feet 9,635 votes 100.00%

EXHIBIT IC"

ALLOCATION OF UNDIVIDED INTEREST IN THE COMMON

ELEMENTS AND VOTES IN THE ASSOCIATION

Unit 110 2,210 square feet 2,210 votes

6.8%

Unit 120 2,159 square feet 2,159 votes 6.6%

Unit 130 2,211 square feet 2.211 votes 6.8%

Unit 140 2,064 square feet 2,064 votes 6.3%

Unit 150 2,198 square feet 2, 198 votes

6.7%

Unit 220 2,750 square feet 2,750 votes 8.4%

Unit 230 2,250 square feet 2,250 votes 6.9%

Unit 280 2,295 square feet 2,295 votes

7.0%

Unit 200 2,380 square feet 2,380 votes 7.3%

Unit 290 1,977 square feet 1,977 votes 6.0%

Unit 160 1,949 square feet 1949 votes 5.9%

Unit 170 2,003 square feet 2003 votes 6.1%

Unit 270 1,965 square feet 1965 votes 6.0%

Unit 310 2,313 square feet 2313 votes _7.18

Unit 320 2,000 square feet 2000 votes

6.18

TOTAL 32,724 square feet 32,724 votes 100.00