WQ0000165_Renewal Application_20210121

Initial Review
Reviewer Thornburg, Nathaniel
Is this submittal an application? (Excluding additional information.)*
r Yes r No
Permit Number (IR)* WQ0000165
Applicant/Permittee Sands Villa Utilities, Inc.
Applicant/Permittee Address 1400 East Fort Macon Road, Atlantic Beach, NC 28512
Is the owner in BIMS? r Yes r No Is the facility in BIMS? r Yes r No
Owner Type Organization
Facility Name Sands Villa WWTP
County Carteret
Fee Category Major Fee Amount $0
Is this a complete
application?*
r Yes r No Complete App Date 01/21/2021
Signature Authority
Signature Authority Title
Signature Authority Email
Document Type (if non -application)
Email Notifications
Does this need review bythe hydrogeologist?* r Yes r No
Regional Office
CO Reviewer
Admin Reviewer
Below list any additional email address that need notification about a new project.
Email Address
Comments to be added to email notfication
Comments for Kendall
Comments for RO

Comments for Reviewer
Comments for Applicant

Submittal Form
Project Contact Information
Rease provide information on the person to be contacted by NM Staff
Name * John Phillips
Email Address*
[e-mail]
electronic subnittal, confirmation of receipt, and other correspondence.
Project Information
........ ......... ....................................................................................................................................... .
Application/Document Type* r New (Fee Req ui red)
r Modification - Major (Fee Required)
r Renewal with Major Modification (Fee
Required)
r Annual Report
r Additional Information
r Other
Phone Number*
919-467-9972
O Modification - Minor
G Renewal
C GW-59, NDMR, NDMLR, NDAR-1,
NDAR-2
r Residual Annual Report
r Change of Ownership
We no longer accept these monitoring reports through this portal. Please click on the link below and it will take you to the correct form.
https://edocs.deq.nc.gov/Forms/NonDischarge_Monitoring_Report
Permit Type:* r Wastewater Irrigation r High -Rate Infiltration
r Other Wastewater r Reclaimed Water
r Closed -Loop Recycle r Residuals
r Single -Family Residence Wastewater r Other
Irrigation
Permit Number:* WO0000165
Fbs Current Existing permit number
Applicant/Permittee * Sands Villa Utilities, Inc.
Applicant/Permittee Address* 1400 East Fort Macon Road, Atlantic Beach, NC 28512
Facility Name * Sands Villa WWTP
Please provide comments/notes on your current submittal below.
At this time, paper copies are no longer required. If you have any questions about what is required, please contact Nathaniel Thornburg
at [e-mail].
Please attach all information required or requested for this submittal to be reviewed here.*
(Application Form Engineering Rans, Spec'rfications, Calculations, Rc.)
Sands Villa Permit WQ0000165 Renewal Application.pdf 24.8MB
Woad only 1 R7Fdocurrent (less than 250 NS). NLftiple documents nest be corrbined into one RJFfile unless file is larger than
upload limit.
* W By checking this box, I acknowledge that I understand the application will not be
accepted for pre -review until the fee (if required) has been received by the Non -
Discharge Branch. Application fees must be submitted by check or money order
and made payable to the North Carolina Department of Environmental Quality
(NCDEQ). I also confirm that the uploaded document is a single PDF with all parts
of the application in correct order (as specified by the application).
Mail payment to:
NCDEQ — Division of Water Resources
Attn: Non -Discharge Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
Signature
Submission Date 1/20/2021

DIEHL & PHILLIPS, P.A.
CONSULTING ENGINEERS
1500 Piney Plains Road, Suite 200
Cary, North Carolina 27518
Telephone [phone] — Fax [phone]
TRANSMITTAL
January 20, 2021
TO: NC DENR - Division of Water Resources
Water Quality Permitting Section
Non -Discharge Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
FROM: John F. Phillips, P.E.
RE: Non Discharge System Permit Renewal Application
Sands Villa Utilities, Inc.
Permit No. WQ0000165
Submitted via email to: Non-Discharge.Reports(a)NCDENR.aov
WILLIAM C. DIEHL, P.E.
JOHN F. PHILLIPS, P.E.
ALAN R. KEITH, P.E.
No. Of
Description
Remarks
Copies
1
Signed original Form NDSR 01-20
1
Signed Operational Agreement, form HOA
01-15
1
Sands Villa Resort Declaration of
Condominium
1
By -Laws of Sands Villa Resort
Homeowners Association, Inc.
Amendment to Declaration of Sands Villa
Resort and Declaration of Restrictions
1
Concerning Sewer of Island Quay
Subdivision, including Exhibit ""C" —
Articles of Incorporation of Sands Villa
Utilities, Inc.
1
Site Map showing Monitoring Wells
1
Site Map showing Treatment Units
Cc: Mr. Michael Borasky

DWR
Division of Water Resources
State of North Carolina
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 01-20
This form is for renewal without modification for all non -discharge system permits, except Residuals Management and Single -
Family Residence Wastewater Irrigation System permits.
For more information, visit the Water Quality Permitting Section's Non -Discharge Branch Website.
L PERMITTEE INFORMATION:
1. Permittee: Sands Villa Utilities. Inc.
2. Signature authority's name: Michael R. Borasky per 15A NCAC 02T .0106(b) Title: President
Primary Telephone number: 2( 52) 247-0519 Secondary number: [phone]
Email Address: sanvilla&circamail.com
3. Permittee's mailing address: 1400 East Fort Macon Road
City: Atlantic Beach State: NC Zip: 28512-
4. Billing address (if different from above):
City: State: Zip: -
5. Contact person's name (if different from signature authority): Title:
Primary Telephone number: (� _- Select Secondary number: (_) _- Select
Email Address:
IL PERMIT INFORMATION:
1. Existing permit number: WQ0000165
2. Has the facility been constructed? ® Yes or ❑ No
If yes, has the facility been constructed in accordance with the permit and the Division -approved plans and specifications?
[15A NCAC 02T .01101 ® Yes or ❑ No
If no, a formal permit modification request shall be submitted to the Division.
3. Has any of the property ownership within the facility and/or disposal area changed from what is indicated in the current permit
(Attachment B — disposal field owner/lessee)? ❑ Yes or ® No
Has the Permittee had a name change or has the permit changed ownership? ❑ Yes or ® No
If yes to either, a permit modification request shall be submitted to the Division. [ 15A NCAC 02T .0105]
4. Is this facility a Privately -Owned Public Utility? ❑ Yes or ® No
If yes, provide two copies of the Certificate of Public Convenience and Necessity from the North Carolina Utilities Commission
demonstrating the Applicant is authorized to hold the utility franchise. [ 15A NCAC 02T .0115(a)(1)]
5. Is the Permittee a Home/Property Owners' Associations or Developers of lots to be sold? ® Yes or ❑ No
If yes, provide the following:
• For Home/Property Owners' Associations — Operational Agreement (FORM: HOA) and a copy of the proposed or
approved Articles of Incorporation, Declarations, and By-laws [15A NCAC 02T .0115(c)]
• For Developers of lots to be sold —.Operational Agreement (FORM: DEV) [15A NCAC 02T .0115(b)1
FORM: NDSR 01-20 Page 1 of 4

State of North Carolina
DWR
Division of Water Resources
6. Does the facility treat and dispose of industrial wastewater?
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 01-20
If yes, complete items below. If no, skip to the next section.
Indicate the approximate percentage of wastewater makeup:
Industrial: % Domestic: % Stormwater: %
For all industrial wastewater sources (excluding those permitted under a pretreatment permit), provide a detailed industrial
process description including:
• An overview of the manufacturing process
• An inventory of all materials used for manufacture, including chemicals and biological matter
• An overview of cleaning and treatment methodology, including an inventory of treatment materials and compounds
Has the nature of wastes (e.g., change in industrial processes, introduction of new materials or chemicals, etc.) described in the
approved permit application(s) changed? ❑ Yes or ❑ No
If yes, a permit modification request shall be submitted to the Division. [G.S. 143.-215.1(d)]
III. SITE MAP:
1. Provide an updated site map in accordance with 15A NCAC 02T .0105(d) that shows the following (if applicable):
The site map is not required to be signed or sealed by a Professional Engineer. However, the map must indicate the source of
information. For example, parcel lines taken from a county GIS map should reference the GIS website.
E Legend, north arrow, and scale
❑ Topographic contours on all disposal sites
❑ Soil mapping units on all disposal sites
® All facility -related structures and fences within the treatment, storage, and disposal areas
® All habitable residences and places of assembly within 500 feet of all treatment, storage, and irrigations sites
® Location of all wells, streams (ephemeral, intermittent, and perennial), springs, lakes, ponds, ditches, and other surface
drainage features within 500 feet of all waste treatment, storage, and disposal site(s)
® Latitude and longitude coordinates of all monitoring wells (decimal degrees to 6 digits)
❑ Location and identification of major components of the waste disposal system
❑ The wetted perimeter of all irrigation fields with field names (named according to the approved permit)
❑ Location and ownership of property boundaries within 500 feet of the disposal area (including road/rail right-of-ways)
❑ The delineation of compliance and review boundaries
❑ Distance measurements verifying all setbacks are being met
❑ Stormwater drainage controls
❑ 100-year floodplain
❑ For reclaimed water generation permits, provide a separate map showing all distribution lines and utilization permit
locations that are connected to the water generation facility and are permitted by the Non -Discharge Branch (excludes
Local Program permitted facilities). Include all reclaimed water distribution line and reclaimed water utilization permit
numbers.
FORM: NDSR 01-20 Page 2 of 4

State of North Carolina
DWR
Division of Water Resources
IV. GROUNDWATER MONITORING WELLS
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 01-20
1. Does the facility have a proposed or existing groundwater monitoring well network? ® Yes or ❑ No
If no, skip to next section.
If yes, complete the following table (NOTE — This table may be expanded for additional wells):
Well Name
Status
Latitude a
Longitude a
Gradient
Location
MW-3
Active
34.698700
-76.712780
Up Gradient
Inside Compliance
Boundaa
MW-4
Active
34.699550
-76.713260
Down Gradient
Outside Compliance
Bounda
MW-5
Active
34.699620
-76.712430
Down Gradient
Outside Compliance
Bounda
MW-6
Active
34.699250
-76.712280
Down Gradient
Outside Compliance
Bounda
Select
0-
0Select
Select
Select
0-
0Select
Select
Select
0-
0Select
Select
Select
0-
0Select
Select
a. Coordinates must be in NAD83 and have 6 decimal degrees
V. SETBACK WAIVERS, EASEMENTS, AND LEASES:
1. Does the permit have any setback waivers, easements, or leases? ❑ Yes or ® No
If yes, provide copies of all documents and complete the table below:
Document
Type
Grantor or
Parcel No.
Grantee
Expiration
Date
County
Registered
Deed
Book
Deed Page
Document
Description a
Select
Select
Select
Select
Select
Select
Select
a. The document description shall list any reduced setbacks with distance, etc.
2. For reclaimed water utilization permits:
Is reclaimed water utilized on property not controlled by the generator? ❑ Yes or ® No
A lease, easement, or agreement must be provided allowing for the utilization of reclaimed water on the property or within the
facility. For irrigation of reclaimed water, an easement is required per 15A NCAC 02U .0501(6). All documents shall be listed
in the table above.
FORM: NDSR 01-20 Page 3 of

DWR
Division of Water Resources
VI. RELATED PERMITS
State of North Carolina
Department of Environmental Quality
Division of Water Resources
NON -DISCHARGE SYSTEM RENEWAL
FORM: NDSR 01-20
1. If this permit has interactions with other wastewater permits (collection systems, NPDES, etc.), complete the table below
(provide additional pages if necessary):
Permit Type Permit No. Description
2. Does the facility have an approved flow reduction [15A NCAC 021.0114a? ❑ Yes or ®No
If yes, attach the measured monthly average amount of wastewater flow contributed per unit for the 12 months prior to permit
renewal. If any of these monthly averages are within 20% of the approved value, the Permittee shall provide a reevaluation
of the reduced flow value using the methodology applied to the original flow reduction application. Also, attach a copy of
the flow reduction approval letter.
APPLICANT'S CERTIFICATION 15A NCAC 02T .0106(b)
,�0aw ty G.
ttest .fiat this renewal application has been reviewed by me, and is accurate and complete to the best of my
knowledge. I understand that any unauthorized discharge of wastewater from this non -discharge system to surface waters or the land
may result in an enforcement action that may include civil penalties, injunctive relief, and/or criminal prosecution. I will make no
claim against the Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts
of this application are not completed, this application may be returned to me as incomplete. I further certify that the Applicant or any
parent, subsidiary, or other affiliate of the Applicant has not been convicted of an environmental crime, has not abandoned a
wastewater facility without proper closure, does not have an outstanding civil penalty where all appeals have been exhausted or
abandoned, arc compliant with any active compliance schedule, and does not have any overdue annual fees.
NOTE — In accordance with General Statutes 143-215.6A and 143-215.6B, any person who knowingly makes any false statement,
representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to
exceed $10,000 as well as civil penalties up to $25,000 per violation. The Applicant's Certification shall be signed in accordance with
15_ A NCAC 02T .0106(b). Per 15A NCAC 02T .0106(c). an alternate person may be designated as the signing official if a delegation
letter is provided from a person who meets the criteria in 15A NCAC 02T .0106(b)
Signature: Date:
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED TO:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
WATER QUALITY PERMr1rTING SECTION
NON -DISCHARGE BRANCH
By U.S. Postal Service: By Courier: By Email:
Non -Discharge Branch Non -Discharge Branch — Archdale 942W Non-Dischar e.Re ortsorts nedenr. ov
1617 Mail Service Center 512 N. Salisbury St.
Raleigh, NC 27699-1617 Raleigh, NC 27604
TELEPHONE NUMBER: [phone]
FORM: NDSR 01-20 Page 4 of 4

STATE OF NORTH CAROLINA
COUNTY OF Carteret
Permit No. WQ0000165
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. l 43-215.1 (d]) and entered into this
day of
2021 , by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and
Sands Villa Utilities, Inc. , a non-profit corporation organized
and existing under and by virtue of the laws of the State of North Carolina, hereinafter known as the
ASSOCIATION.
WITNESSETH:
The ASSOCIATION was formed for the purpose, among others, of handling the property, affairs and
business of the development known as Sands Villa
(hereinafter the Development); of operating, maintaining, re -constructing and repairing the common
elements of the lands and improvements subject to unit ownership, including the wastewater collection
system with pumps, wastewater treatment works, and/or disposal facilities (hereinafter Disposal System);
and of collecting dues and assessment to provide funds for such operation, maintenance, re -construction
and repair.
2. The ASSOCIATION desires, to construct and/or operate a Disposal System to provide sanitary sewage
disposal to serve the Development on said lands.
3. The ASSOCIATION has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and/or operate the Disposal System.
4. The Development was created subject to unit ownership in the dwellings units, other improvements and
lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C of the North Carolina General Statutes.
5. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and ASSOCIATION do hereby mutually agree as follows:
The ASSOCIATION shall construct the Disposal System and/or make any additions or modifications to
the Disposal System in accordance with the permit and plans and specifications hereafter issued and
approved by the COMMISSION, and shall thereafter properly operate and maintain such systems and
facilities in accordance with applicable permit provisions and law.
2. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System
and appurtenances thereto are part of the common elements and shall thereafter be properly maintained
and operated in conformity with law and the provisions of the permit for construction, operation, repair,
and maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire
wastewater treatment, collection and disposal system as a common element, which will receive the highest
priority for expenditures by the Association except for Federal, State, and local taxes and insurance.
FORM: HOA 01-20 Page 1 of 2

3. The ASSOCIATION shall provide in the Declaration and Association. Bylaws that the Disposal System
will be maintained out of the common expenses. In order to assure that there shall be funds readily
available to repair, maintain, or construct the Disposal System beyond the routine operation and
maintenance expenses, the Declaration and Association Bylaws shall provide that a fund be created out of
the common expenses. Such fund shall be separate from the routine maintenance fund allocated for the
facility and shall be part of the yearly budget.
4. In the event the common expense allocation and separate fund(s) are not adequate for the construction,
repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for
special assessments to cover such necessary costs. There shall be no limit on the amount of such
assessments, and the Declaration and Bylaws shall be provided such that special assessments can be made
as necessary at any time.
S. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the ASSOCIATION shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit may require as condition of accepting the Development's wastewater.
6. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the ASSOCIATION to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System, the ASSOCIATION shall
provide in the ASSOCIATION Bylaws that the ASSOCIATION shall not enter into voluntary dissolution
without first having transferred its said system and facilities to some person, corporation or other entity
acceptable to and approved by the COMMISSION by the issuance of a permit.
7. The ASSOCIATION shall not transfer, convey, assign or otherwise relinquish or release its responsibility
for the operation and maintenance of its Disposal System until a permit has been reissued to the
ASSOCIATION's successor.
8. The agreements set forth in numbered paragraphs 1, 2, 3, 4, S, 6, and 7 above shall be conditions of any
permit issued by the COMMISSION to the ASSOCIATION for the construction, maintenance, repair and
operation of the Disposal System.
9. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration
is filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of
the Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below_
FOR THE ENVIRONMENTAL
MANAGEMENT COMMISSION
S. Daniel Smith, Director
Division of Water Resources
(Date)
Sands Villa Utilities Inc.
Name of ASSOCIATION
B� s._...
(Signature)
�r� Kr V-,a
Print Name and Title
(Da
FORM: HOA 01-20
Page 2 of 2

SANDS VILLA RESORT DECLARA
TIaN OF CONDOMINIUM
r
'
TABLE OF CDN NTS
ARTICLE I
SUBMISSION OF PROPE�j'•Y Page ...... 1-2
ARTICLE It
DEFINITIONS Page ...... 2 6
ARTICLE III PLAN OF DEVELOPMENT AND Page ..... •O-g
S(;OPE O D C AR T OPT
ARTICLE IV OWNERSHIP R1GHT5
Page......9-13
ARTICLE Y
EASEr MENTS Page ...... 11-14
ARTICLE YI THE A55_..� OCIATIDN
page ...... 14-28
ARTICLE VII DECLARATION BINDING UPON Page... 28
UECCA
ARTICLE V1Il iiATt—
TERMINATION page ...... 28-29
ARTICLE IX LIMITATION Of RIGHT..fO Page ...... 29
R OI
ARTICLE X AMENDMENTS OF DECLARATION Page ...... 29-31
Cf
ARTICLE XI
EVERT Of DE^EFAULT Page......31-32
REMEDIES IN
ARTICLE X1I RIGHTS RESERVED UNTf;' page...... 32-33
N IiDTTONAC—LEi�D
ARTICLE XIII COMMITTING A UNIT Tp Page .... „ 33
LATER ALL IF
e 33-34
ARTICLE XIY NOLIIOYER INTERVAL (4ILRSHIP page ......
ARTICLE XY PERSON To RECEIVE 5-1VICC page
......
34
OF pRaCES�—
WARRANTIES Page..... 34
ARTICLE XYi .-1 34-35
MISCELLANEOUS Pag.......
ARTICLE XYI! �--•--
EXHIBIT "A" PHASE I DESCRIPTION
EXFIIBIT "A -I" DESCRIPTION OF PROPl.'.SE0 `
TPTfn�€��
EXHIBIT "B PERCENTAGE INTEREST IN
R A D E aMMON
EXHIBIT "0-1" INTERVAL OWNERS' PP.:•_CEN?AGES P �.
EXHIBIT "C" PLANS
,,-LAWS AND ARTICLE.- Of INCORPORATION
EXHIBIT "D" -
J (� COT

r
COUNTY OF CARTERET:
STATE OF NORTH CAROLINA:
DECLARATION CREAilNG UNIT
OWNERSHIP OF PROPERTY UNDER
THE PROVlsloNs OF CHAPTER
47A Of 'fHE GENERAL STATUTES
of THE STATE Of NORTH CAROLINA
made this 5th day of August, h ANDS
INC, a South Carolina corporation, having
THIS ' DECLARATION, and being authorized to do
DEVELOPMENT NORTH Ce Beach,INA.
to as
its office at Myrtle Bearh, South Carolina,
bus ;Hess in the State of North Carolina, hereinafCer referred
"DECLARANT";
KNOW ALL BY THESE PRESENTS:
4n the Town of Atlantic Bench, County
THAT WHEREAS, the Declarant is tile' owl' of record of fee Couple
ro erty which is more particularly
title of certai" realofp North Carolina,
of Carteret, =.A" and "A-1" attached hereto and made a part
described in Exhibits
hereof by reference; and s and cer-
WHEREAS, the Declarant is the owner of several building
ted
twin of}rer improvements heretofore construcupon the aforesaid pro-
per-Ly; and property described as Phase
WHEREAS, the Ueclarant will convey the
sublect to certain_pratective and restrictive
11n said Exhibit "A"
reservations, liens and charges
ship
covenants, conditions, restrictions, said prnJect to be
as herein after set forth into unit ownership dtfa roJ theerval rPro
( gnmetimes ref erred to as fondinnthe 11mannersprovided
known as "Sands Villa Resort", ur5uant to Chapter 93A of the
visions of Chapter 47A of Act the General of North Carolina.
entitled "Unit ownership
General Statutes of North Carolina, entitled "Tome Share Act"; an
right to convey an interest
11 Interval Ownership'. the provisions of
WHEREAS, Declarant also reserves thr.. r g
in units 6y a plan known as "
w{rich being set forth }n subsequent Articles of this OeclaraCion; and
WHEREAS, it is the desire and intection of the Declarant
oflDeeds
to submit said condominium project
recordation of this NorthRCarolina,the Office of'the e9
of Carteret County,
to the provisions of the said Chapter 47A;
NQW, THEREFORE, THE DECLARANT DOES i�ERATTACHEDAHERETo AMU MADE RE THAT ALL OF NA
AS WELL AS ALL OF THE IMPROVEMENTSED,
REAL PROPERTY DESCRIBED IN EXHIBIT °A"�CONVEYED,
PART HEREOF BY REFEREN15 ' HELD ANU SHALL BE HELD,
CONSTRUCTED THEREON. USED, OCCUPIED, AND IMPROVED
SUBJECT
T TIll'
HYPOTHECATED, ENCUMBERED, Cpo;OITIONS, IN
AND OBLIGATIONS, ALL OF WHICii ARE DECLARED TO BE
foLLOHING ARTICLES OF COVENANTS,
ID
TY
FURTHERANCE
FURTIiERANCf OF A PLAN FOR THE IT�RRUN WITH THEOF ALAND ANDRSHALLUBEHA
DIVISIUN THEREOF INTO CONDOMINIUM UNITS AND COMMON AREAS AND
FACILITIES, AND SHALL BE DEEMED ITS SUCCESSORS AND ASSIGNS,
BURDEN AND A BENEFIT To THE DECLARANT,
REAt-
OR ANY SUBDIVISION TiIEREOF, FANS ASSIGNS-
ANY PERSON OR ENTITY ACQUIRING OR OWlITNG AN INTEREST IN THE
PROPERTY AND SMPROVE14ENTS,
SUCCESSORS, DEVISEES, HEIRS, EXECUTORS, ADMINISTRATOR ,
ARTICL1 11.
Submission of Pro e
,,visions of Chapter q1A of the Hoy sub,5 tlall
Pursuant t the p the Declarant does t ch d hereto and
General Statutes, Sectidosc4ibed, in Exhibit erA with all i:nprovemenls
of the real property "unit Ownership
made a part hereof by reference, r visions of the
thereon and described herein, to the P P,,y-Y__Ic D b 3

described in Exhibit "A", h attachedhereto
improvements
nd
Of the real property reference, together with
made a part hereof by the provisions of the "Unit Ownership
thereon and described herein, to codified
which
Act" of General StateofOf of the State e f North sCarol Ina -of as Chapter 4
ARTICLE 11
Oerinitions
For the purposes of this Oeclaratian and the By -Laws for of the
Association, hereinafter defined, the°l�nless otherwise"definedtby
terms used herein and therein shall apply
the context thereof: Act, Chapter
of
A- ACT shall mean and refer to the Unit Ownership
47A of the eneral Sortamendef from 5titate me to t{mel Carolina, as such it
may be supple
g. ASSOCIATION shall mean and refer to the SANDS VILLA RE50RT
14OMEONNER5_ ASSOUMTION, INC., a non-profit North Carolina corporation
and the mandatory association or all unit owners, as is more par-
ticularly described in Article VI hereinbelow-
C, ASSESSMENT shall me expenses, and refer to that hereeinafterthe
defined,
necessary or the payment of the cornnon expshall be enses. or assessed
sed
of the
tAssociation
s unitt onwhich
and him timt t theeAssociation, levied
dpro assessed
herelnbelow•
DBUILDING shall mean and refer to those buildings shown nu
Exhibit "Cproert'wi ch the Decla a be c nforures{dentialcted upon heandacommercial
described in Exhibit "A"' Attached hereto and made a part
purposes, as hereinafter Provided consists of a full and exact
hereof by reference is Exh161t "C which as a Survey
copy of the plans of the buildings
uildl catiunwoflthe buildings thereonand
property, drawn by showing law In general, the main
showing all per as required by
building has Five (5) starlesasnw�l s asetheucornion areas andefactli
units, hereinafter defined, of the building. The building is
tles, also hereinafter deFtned, frame
constructed principally of concrete block and steel. The Commercial
Untt Is located adjacent to the main building and is one story
construction.
E. BOARD shall mean and refer to the Board of Directors of the
UIREGTOR shall mean and refer to a member of
Association and said
Board. time by Laws of the
f. BY-LAWS shall mean and refer to those istion as
Association pravTding for the government of the AcptSnessociation�heA
are duly adopted and amended from, time to
copy of the initial B eP reocare attached hereto as Exhiblt "O" and
made a part hereof by
to
G. COMMON AREAS AND FACILITIES genee. rally shall meanda nd allreofrthr_
all of the rea property+ escr Wed on Exhibit "A„ as defined
improvements and facilities thereon which
rsonanOpr Pp ty owned, held
p areas
hereinafter, and which are not Items o and facilities
and maintained by unit owners and Whir nvenient use and enjoyment,
are intended for the necessary or of the condominium project, without
existence y limitingintenathe generality of thce or safety e foregoing, the common areas
in any Y
,hail include, but not be limited to, the fo}iaw "g' described in
1, All of the real property more particularly
Exh{bit "A" attached hereto, which are "0articular
reference to which is' hereby made for a more p
description thereof.
boo 0b_el�� ��

2 All foundations, blacks, columns, girders, beams, sup-
porCs, roofs, ventilation f:ns and vents, load bearing
walls, including all exterror wails and all interior
wails (except non -load bearing partition walls who11Y
within a unit) of a building" and elevators, and
3. All stairways, stairwells an<S stairs,
their components which give access tp the units;
q. All yard and garden areas, Parking and drive areas,
sidewalks, swi+mting Pools. tennis courts, Maier slide
and health spa; con-
s. All installations of and Facilities, apparatus,
f al utiity
dints, and equipment but of limitedprovision o to,alllwaterla+W
services, including, heating, air conditioning,
sewer service, electricity,
disppSal, and cable T.Y.,
if any, may be supplied far the common use and
if any, and which are not
convenience art ofhthe unitunit s,, hereinbelow;.
defined as P
{. All sewer pipes and sewer systems;
7, Al l other portions of the rrnl Property
anthetimuF pthe
ments thereon which are not specificallyor owned by
units themselves hereinafter
y. shallebe common areas
unit owners as personal
and facilities'
{{. COMMON EXPENSES shall mean and refer to the total cost and
incurred by the A.enjoyment,rations enjoyment,er Provided) for safety- repair, and
expense maintenance, operation,
air, maintenance,and
ther
replacement (including a capital reserve for rep ,
the Association pursuant to the fulfillment of its
replacement) of the common areas and facilities as well as any
expense incurred by
s stated herein candorefere
obligations and purposes ato
ses. Common expenses are additionally intended to mean
any expense incurred he Association e5 shall owners as common expen-
be hereinafter agree
d bt
upon by the Association of
unit and unit week owne
ses of the Association.
i COMMON SURPLUS shall mean and refer to the balance of all
revenues of the assot chiOCn o�is ynp}ustshaller ebeeUsedotearreduce
d cen of the the
cthe
man expenses. Any for the fallowing fiscalAsiociation for
assessments for members
Association, based a�pyearhesirbjecteh wte
proposd ever, to the terms of Article
the following
Vl.
r to the entire proposed deve-
1, C031DOMINIUM shall mean and,refe and the buildings, all
nd
lopment cons ft�g of 'lures
the real property ra erty.
and all easements
improvements and st{+uct�he�etoheand nall articles whiceeefenintended to
appurtenances belonging
this Declaration, and the
Intended for common use In connection thcreMit +
++ rovided for hereinbe ow,
6e submitted to the provisions of the Act y
so lements and amendments hereto as ar_
DECLARANT shall mean and refer to SANDS DEVELOPMENT NORTH
K.
CAROLINA, NC., s successors and assigns.
L, DECLARAT1011 shall meaden�edrefer
supplementedinstrument as it may
from time to t me a lawfully
+n
trte
M. INTERVAL OWNERSHIP is a conveyed far nd COMMOP
rperiodseby To€atime, t
to L e i eriod of years,
AREAS assigne a stated time period for a p
Purchaser receiving
together with a remainder over in fee simple as tenant -in -common with
'z-
I_,! 0 q c1 6�� D (I �
-3-

all other owners of intervals in each such unit, other than the
Association when the Association's ownership is far maintenance pur-
poses only.
N, shall mean and refer to those CUMMOH
LIMITED COMMON AREAS
AREAS reserve far the exclusive use of certain UNITS.
are
f the
G. MAINTEN--'ANC ent shall merle expensn and es associated fer to a h+fithoa UNITfcoms
required �r the Paym i which from time to time are assessed
mitted to interval ownership.
against the owners of UNIT WEEKS within such UNIT.
p, MAJORITY or MAJORITY OF UNIT AND UNIT WEEK OWNERS shall mean
and refer to the owners of f fty-ono percent 5 ) of the aggregaas
te
interest in the th{�ope larationa reas an orclAmendments and/orlities of the , Supplements,
estahIished by rtioOXY at a duly called meeting of the unit
assembled in person or by p
and unit week owners, or as otherwise provided herein. oration,
n, PERSON shall mean and refer to an individual, core
partnership, association, trust, or other legal entity.
of
R. REAL PROPERTY shah mean attachend d Tto hereto l and thereala al Part
perty described�n exhibit "A"
hereof.
S. TIME SHARE ACT shall mean and refer to the Time Share Act,
Chapter 93A- othe General Statutes of the State of North Carolina, as
such it may be supplemented and amended from time to time-
T. UNIT or CONDGMINIUM UNIT shall mean and refer to antile
y one of
in main
those ninety (9er with any additionalclareas ora spacesce haccompanying
building, are
scoldo or will he
s as dwelling units inbelow,pursuantant which
Act andenthis tDeclaration.
Additionally, there shall be a commercial unit, the location of which
unit is shown on !Exhibit "C". The deed Tor any particular unit shall
convey such unit by its unit designationrt of thatruniteashstated all be sped©
to include all that is deflned as a p appurtenances
accompanying
In g thisdefinition
unit aandwell subject torthelcovenants, conditions -
accompanying
restrictions and obligations applicable to unik owners as al are more
generally stated and described throughout this Declaration. The deed
to UNIT WEEK OWNERS shall also contain a number designating the week
conveyed.
The ninety I901 units of the main building are and will be
Identified by their unit designations, wl?ich are as follows:
(1) pj40� pathe
shall be rst
of the atbuilding ed on hand ithe
unit designations shall ascend numerically in a
southerly direction. -The units on the second, third,
fourth and fifth floors shall b 3 num reantl im5-1 respect
the first digit shall be "2 .
tively to designate either the second, third, fourth*or
fifth floor.
I21 Units 114 through 126 shall be located the first
b
floor of the southern portion of the building and
the unit directioni9i1Sshall Theunitsascendnumerically
my second,third
westerly
fourth and fifth floors shalt be numbered similarly
the first digit shall be "2". "V, „
tively to designate either the second, third', fourth or
fifth floor. C-1 arid Is
as
I31 located r.omllierlal unit shall be
buildingdesignated
Ofand djacent to
the main building.
-4-

These units and their des i'.trlatIons are shown upon the
buildings attar'hedall r➢a°in rticularrsblof 1'the
plans a the raphical$Y
which also shows 9 Including, but not limited
buildings and their units, and floor elevations,
to, the layout, location, cell eglayout and la cation of
dimensions °arthe eas unit , and tries. Reference is hereby
ur ose of identifying and
the common as well as
made to seachPunit within thepbuildings, and
locating its rkimensions, approximate areas,
Identifying lio unit boars the same designationthis
as
number of roe %. conflict heCween said Plans and said
any other. resolved by reference to the
definition shall be
plans, which shall control.
tq) All units, as well as the additional areas defined and
as
the floors
part of each unfit hereinhelow, are bounded both as o
subject to the easeraent reserved
horizontal and vertical boundaries Y
walls respectively, be caused
hereinbelaw for Suc tlrein
csamehnowtexist or may tamed or
the building existing crnstruction, settlem�eptairs,
or created by or by Permissible
:aavearant of the building,
construction or alteration' the same in coristruc-
All units shall be substantially other than
tion material. Each of the ninety t90) units,
the Commercial Unit, is wholly contained within one of
the five Commercial
levels or stories of the main building.
All ninety t9U) units are alike, except for their exact
physical location within khe condomiaiuroxi atelyU1125
other than the Commercial 11n1jvi�g/dlning area, study,
square feet and contains
kitchen. 2 bedrooms, 2 full baths and balc°ny•
(5) Each unit is hereby defined to also include'
All non -load k)"rIng partition walls located
(i) entirely within the unit.
All materials, including'
but not limited to,
tiI} end vinyl attached to, °r on.
carpet. Paint. eri
the interior finished surfaces of the P
meter walls, floors and ceilingsoof ne 'lie terior
and all window panes, frames, p y
doors and screening For the porch.
ondensing units, duct. water, power.
All air -handling and c
and components, and all
telephone, television and cable television.
electricity, Pll'1ebing, gas and , however,
located within thidedd,e unit; prov
that the portion of said lines taliatianlocated tof,
a common compartment for,
or ties such lines shall
allhbe Cumm
ereinahave On areas and facili-
as
Each unit is served by. an individual heat
tivl it conditioning unit located underneath
the f This heat pump a r it
the first floor•ducts
ld
andiaccessoriesunit ��are h Considered connecting parts Of the
respective units they serve,
ned to exclude all pipes, ducts,
(6) Each unit Is hereby deft
wires, conduits and other fact t es for the furnishiry
k0gq -5- Q� D L3

vices to
he
its
of utility servicethendpointother Ofrentry of tsuch npipesi,
to and including
inter{arif{nishedconduits
surfacedmaterialother afor iperimeter uwalls.
ceilings and floors of urlts except Al such cifiIPES-
e.
included under condsubuits rand otheraph
such. facilities pare
ducts, wires,
defined as a part of the unit at and from their point Of
entry into the unit,
such as style, construction, materials,
{7) The specifics,
and Finishes of the
lansuofJthe building which areeshown
described In the p
in Exhibit "C", attached hereto and made a part hereof
by reference, 'ad
rowhich
shall
control in case of
conflict with the provisions
V. UNIT DESIGNATION shall mean and refer to the number which
designates a un t w t n the condominium as the same Is shown upon the
plans of the building in Exhibit "C" attached hereto.
W. UNIT AND/OR UNIT WEEK OWNER shall mean and refer to a person,
corporatlan, partners p, assoc at on, trust, other legal entity, or
any combination thereof, in whose name or names the title to or an
interest in the title to any unit is vested, excluding those who own
or hold such title or interest under the Lerms of any mortgage or deed
t for the
paynentthe
tOfranthindebted essnorrthenperformanceuofosan obligationcurines of se 9 and
excluding the Association when the Association's ownership is For
maintenance purposes only. perr
X. UNIT WEEKS: "Unit Week" or "Interval" meansWhia Shall
n a un t committed to itervntt week Number 1 is the seven
sist of not less than seven (T)days,
ek
2the commencing On
the first
gtAdditional weeks rup toiand eincNumber including
er
Unit Week Number+51 are C0€°succeeding theeendnofrUnitnWeekeNumber1h51
52 contains the sewn days
without regard to the weeks month
run fromednaonor r u an nthex first aSaturdayt of wthe
aSrSigneperiod to noon on the last Saturday of the period.
ARTICLE III
Plan of Develo ent and Scope of Declaration
A. The name by which this condominium shall henceforth be known
is SANDS YILLA RESORT. The Declarant has caused to be constructed
it
the
5) story
scribed in
main building cantaininganinety (90)Euiits as"well aisYea(swiand a
pool/water slide,. two (2) tennis courts, enclosed pool,
building, known as the Commercial Unit, containing the health spaof
,
restaurant, fFices and lobby, and the cmmMon areas and facilities ve
both the buildings and the real property, all as defined herelnereto
and as shown upon the plans rcontained eference. inTheExhibit
its"of atta
t hecbuildings�
and made a part hereof le appurtenances,es and shall be offered for
together with their priihee0eclarant as Condominium units pursuant to
sale to the public by
the provisions Of baectrto the covenants, f the Generalconditions, restrictions,
North Carolina, Statutes of the State Of
s f Laws
and obligations stated in the Articles of its duly eadoptedoBy- the
Articles of Incorporation of the Association,
and its Rules and Regulations-
B. The Declarant, by this Declaration, submits only the real
property described on _Exhibit "A", attached hereto, together with the
Improvements khereon, to the Act and hereinafter this submission shall
improvements
referred to as SANDS VILLA RESORT, pNASE I. Nevertheless, the

reserves to itself the .xrlusive right and option,
anon, to add to or ex�ond tine property subject to
Declarant hereby onion or portions of
but. not the obligation
addition of all or anattached hereto and made
this Declaration bythe'
an Exhibit "A.,1� phases of SANDS
the real property in one or morn additional P manner:
a part hereof by reference, terms and in the fallowing
VILLR RESORT upon the fallowing to this
Any addition of real Property subject istra-
(Il if any, shall Occur only by the rCa
Declaration, Register of Deeds °1e>nentsrto
tfon in the Office of the Reg
County, North Carolina„ of one ar mare supp
this Declaration, which shall be E7(ECUTEU ONLY a THE
The addition to or expansion of the real
DECLARANT• this Declaration shalt be at the
property subject to
unit owner. Every unit owner in
sole discretion of the Declarant without consultation
with or consent of any
all phases, by accepting a deed for
SANDS VILLA REIDRT, reed for him-
a unit therein, shall be deemedcce'sors and assigns
self, his heirs, devisees, ro erty subject to
this Declaration oine accordance
with f the p the provisions of
this Article: and its right and
(2) In the event the Ueclarant eeaf said Phase 1'1
T once
option to add hase 11, the property
will become an integral part be SANDS VILLA hereinafter
amendments have been filed b shall
appropriatef constructed and submitted.shall
provided. Phase !I, i
of .t.ianeot ovem 5 a351twonbedroomLI suni is h may
(3) if, Option to add Phase lIl. the property of
after submitting Phase Ii, the Declarant exercises
its right and °p {ntease part of SAHDS VILLA
said phase will become an
RESORT once appropriate amendments have been file and
as
rov appropriate
Phase IlI, if constructe units
hereinafter p not over ninety (go)
submitted, shall containefficiency, and/or one bedroom
which may consist ofM Units,
and/or two bedroom and/or three be!drou Declarant exercises
If, after submitting Pltase }I1, the property Of
its right and option to add Phase IV.the
of SANDS VILLA
said phase will beriateaanendments ral have been filed as
RESORT once rovided. Phase IV, if constructed and
un1ts
hereinafter p sixty-six (66}bedroom
mitted, shall contain not over and/or one
which may consist of efficiency,
and/or two bedroom and/or three bunco aitself,
op its suc-
14) The Declarant hereby reserves o tions, to be exer-
cessars or assigns, the rights and
to the provisions of this Declaration
clsed in its sole discretion, to submit timesaPri Phase
II property t soy to submit
{including amendments heretOl a
December 31, 1990 or its right and option
Phase I! shall be void and to likewise submit the Phase
111 property to the provisions ofthis
his Declaration
time P
{including amendments hereto) at t;on as to Phase
pIoc'uer 31, 1995 or its right and op
to the provisions of this Declaration
lil shall be vvid and to likewise submit the Phase I
property amendments hereto) at any time prior to
(including 2000 or its right and opkian as to Phase IV
December 31, articular phase to be submitted
shall be void. The particular
execution by the Declarant, its
shall be added only P within the time speclfled above.
successors or assigns,nts to this is er
of an shall amendment
end edtfor or record min the office poflthe tReg Which
Udga 0 3
-7-

of Deeds of Carteret county, North Carolina• Any such
amendment shall expressly submit the applicable phase
property to all of the proVisi°ns of this Declaration
and By -Laws of SANDS VILLA RESORT; such By -Laws made a
part hereof as either or bath may beoameons, Upon the
exercise. If any, of said rights or options, the provl
sl°ns of this Declaration and ail exhibits hereto shall
ase I
then be cons
true le hereintdefi ed)�Phase n�[�hPhase
(the basic P P as appropriate, together With 311
III, and Phase IV, hound
hould
improvements then or thereafter constructeOr d. ptio
the Declarant failercise herein.t them in thatoevent,
within the time specified
said option shall expire and be mf no therto pforce[ald
effect. Abase II must be submitted prior
and Phase Ill must be submitted prior to Phase IV.
Phase III r
The right to add either phase
11,If Declarant elects td
is assignable by
the assign any such right, the assignee shall be soleyto
respinsib of therefor including
luandg compliance not iwithedthis
qualDeclaration.
In the event the Declarant WiYh{n thedtlme°pimitsPhase
spe�
III or IV of the property
cified above, those tracts or parcels
are tl and lei g designated
as Phase II and future development
Leached hereto,
par-
ticularly described an Exhibit A-1" a
shall immediately be deemed imposed by be this ree aDeclaration annd clear of d
and all encum�otncesthereafterexe exercise
its option to sub-
peclarant may to the terms
mit the additional phases and its property
and conditions of this Declaration. Qeclarant
C. As to Phase 1, Phase II, Phase lil and phase IV,
reserves all necessary rights and easements fohases andthe sthecunitsdcon-
lopment and marketing of each other phase or phases Declarant
twined or to be contained therein• support as to all three
specifically reserves a right aand Pha3e IV be nd easement of So al- to
phases should Phase It, Phase lllhase and the further tright dand ease -
physically
attach to any prior P
ment to so connect and attach ay such phase or, phases to each other
and extend halls, lobbies, utility lines,
phase or phases and to °pen
and other common or
limited
their point °r R°Intson areas rofgconnection. Walls of
such connected phases
ve
p. All of the rights, easements and successors s andtassignsout o
f as
shall inure to the benefit oDeclarant,
Declarant; and
{1) The Ueclarant convenants and ,agrees that property whichmay
containing units built upon the real sderiesy in height
be subjected to this Declaration under this Article
,hail be not In than
radefive level and which s similar
situated upon finished g
constructed with materials like or substantially
to those used in SANDS VILLA RESORT. PRASE I; and sole
(2) The Declarant may, from time o time, the rin eaall property
its
discretion, expand_ and add
described in Exhibit "A" attachedd hereto. Such III of th's
sion and addition authorizedf by al3lciconsistent with
peclarati°n shall 6e done.
Phase 1 in terms Of quality_of construction. danc add
tivnai phase or phases shall be built in accordance with
RT as shown in
the Plaster plan Of hereto DS with VILLAsuch Omodifications as
Exhibit "C" r as provided hereinafter,
might be necessary. o

the vent the Declarant.
(3! It is fur thetheeto Or
provisiansared t of this Article,
pursuant to erty, and therefore the number or units,
expands the prop areas and facilities subjectto
unit Owners, and common tie jurisdiction
he
this Declaration and the fractional or percen-
Associatio", then consequently comman areas
tage interest owned by each unit owner of units in SANG
YILLA RE5()Ri, all pleases, in the expanded phases,
all phases, shall
and facilities of toHOchange AfromaRthat as established
necessarily have In the event Declarant adds
under Rrticle III fiercull e y sun ect to this Declaration,
to or expands the P P then every unit owner of units
pursuant to this Rrticle, base , by the acceptance of,
in SANDS VILLA RESORT, any P emed the deed for his unit shall his dheirsto have spec -
, devisees, suc-
cally agreed for himself, have the
cessors and/or assigns that shoe establish the lundivided
it
exclusive right and Power
fractional or percentage lone areas rest nand afacilities such not
owner in the expanded c�h phases, and that the Declarant
SANDS VILLA RES()RT, all p + and power to establish
shall have the exclusive r ght ner in the
the percentage responsibility of each voting
rights in the
common expense linglitiesthedi
percentage or fractional
Association so uidelines:
interest is within the following g urtenanC to each
The percentage of undivided interest app
unit In Phase I in the general common s been determinarea rd o ofthe
common areas has by
value of the IT, unit If Decia�ent exercises then
value of ti+e whole property • provided herein,
right to add additional phases as p each unit
the fractional or percentage interest 1bewned by At
owner, including those in Phase I. wilthee percentage of
the time additional phases are added,
undivide�ases rthat oareaadded ch iwill bt in kesdetermin de I and etermined
tional P including
bases, as the same
ratio of the value of each individual unit Anew value
those in Phase I and the addnlenproperty•
bears to the value of the the fractional or per -
will he given which repres,nts time an
tentage interest owned by the unit owners each
additional oelase 15 clarantadshall added -based theon t501ehe b authority ove min
formula. w ercentages.
determining value In order to compute no p
Declarant shall include in any amendment incorporating
the
an additional phase, as allowed by this Deciaratiuni the
new percentage of interest appurtenant to each
added[. in
phase I and any additional phases, existing
ARTICLE IV
>Jwne� rsh1P Rill+ts
A. m!14 N AREAS'
and the
I, Each unit shall be conveyed and treated as an individual
property the
as an appurtenance to
capable of independent use and fee -simple Own ten p.
n areas
the comma
owner or owners of each unit shall owns appurtenant
to each
ownership of each said unit* OnundivideI iundivided nterest purtenan assigned
and limited cwnnontha[aswhich {s herel after specifically-
said unit being changed except
thereto. The percentage of undivided interest in the common areas an
limited common areas assigned to each unit shall not 6a amendments which
with the unanimouscoein thislUeclaral of h ti nnand any all of the units,
and except as provided

M
may be added. Whenever tine tern unit owner(s) is used herein (or any
as one unit
wn,uglme ks nt heCein suchiunitacommittedsttoeantervaito lawnershiude all pwneek of unit
owner. The respective interest of each owner oafs uannexedksto ithis
such unit committed to interval ownership �Witfirespecn to each other
shall be delineated on xhibit "B-1",
Declaration and made a p
art " " nor shall any unit or
Z. No unit may be divided or subdivided into a smaller un t
°r units than as shown °n Exhibit C hereto, Cher unit. The
portion thereof be added to or incorporated ton each unit shall not be
undivided interest in the common arasad limited common areas and
facilities declared to he an appurtenance
conveyed, devised, encumbered, or otherwise dealt with separately rem
said unit, and the undivided interest in common areas and facilities
though such undivided
appurtenant to each unit shall be dtheeemed conveyed, devised, encu -
bered, or otherwise includedmQ�t1° ed oridescribedt eve, n tine Instrument
interest is not expressly or otherwise dealing wissuch
to grant
conveying. devising, encumbering,
Any conveyance, mortgage, °r other instrument which purport
any right, interest, or lien in, to or Upon our orts stolafFectuany
void and of no effect Insofar as the same P p• devise,
interest In a un1L and its appurtenant undivided Interest common
areas and facilities, unless rade fhe or deal with pu'°the entire" unit. An
encumber, °r otherwise
instrument conveying, devising, excep ,
encumbering, or otherwise dealing With
Lion
any unit, which describes said unit by the letter/numerical des gna-
tion assigned thereto In Exhibit "C" Without limitation or
shall be deemed and construed to affect the entire unit and its appur-
Ing or preventing
tenant undivided interest in the coimaon areas and facilities. Nothing
herein contained shall be constrte� mots undivided interest in
the
ownership of any unit and its appurtenant
cannon areas and facilities by more than one person or entity as
tenants -in -common, joint tenants, or as tenants by the entirety.
Further, no contained herein shall be deemed to prohibit the
establishment of interval owneresohitajne+lhhe�eineshall be yance of uconstrued anit weeks s
Declarant. Further, nothing
limiting or preventing the Declarant, it7 successors or assigns,from
adding Phases 11, 111 and lY as provided herein.
3, Except For the limited cr"Mon areas which are reserved
For the exclusive use of particular toowners
ens' jecCthe okoo a areas
aPetuai shall
and the same are hereby declared
exclusive epn-
asement in favor of all °f the owners of units in a es,
for all proper and normal purposes, and For the
exclusive
for their use and the use of their immediate families,
quests, and nvitees,
i
reaso-
furnishingOfe viCes n facientof swhich he a
aidowne sof unitsesubject
or
nobly intended,
nevertheless to the easements and rights herein elsewhere set ou or
Notwithstanding
reserved In favor of Declarant with respect to the construction o
additional phases uailed in modifications
fils ions of the Association shall have
anything above p ulations pursuant to which the
the right to establish the rules she entitled to the exclusiieduse OF
ividuai
owner or owners of any unit may Board of
any parking space or spaces and to exclusive use of any
mailbox or receptacle. irovided further, that if the
ion determines it to be in the best interest
Directors of said Associat
of the owners, the Board of Directors may hereafter
therant easements
owners or any
for the benefit of the condominium propertip the Board of Directors
number of them. The Declarant hereby grantsrits as may
of the Association the theBoard of
eauthority execute
torany ase a common areas
determined necessary y owners of unit weeks in units committed to
and limited common areas by
interval ownership, or any other person using the facilities throyear gh
of
said owner, shall be limited to the period of ownership each year of
said owner of unit weeks in such unit. owner
q, Recognizing that the prrper use of a unit by any
or owners is dependent upon the use an:J enjoyment of tare common are s

a owners of all other units,
and limited call on areas in common with tof units that the
and that It is in the interest of all owners it is declared that
ownership of the common areas and themcond"If,lutleecas declon reasdand
coi°non by the owners of undivided interest, in
the percentage or the rtdivint to each unit shall remainit to hr}ngiany
limited common areas unit shall bring or hive any g
and no owner of any be owner's
action for partition ar division• Provided, however, as the owner
dfini-
the addition of -additional phases as herein provided.
interest in the common areas and limited common areas may
nished by
p, UNITS: Its limited common
1• Except for the commercial unit,
areas, rights and easements, each unit is hereby restricted to resi-
however, that sa long as Declarant
areas
use by the owner or owners thereof, their immediate families,
provided, utilize a unit or
shells, and invitees; P for sales office, model, or
shall retain any interest in the condominium, t may
units of its choice from time to time.
for the purpose of selling units in said right
t in um.
assign this commercial usage right to such
other usage rovided, however, that
Further, Declarant may choose; P
other persons or entities as it may this right of commercoz�hie9ag�
when all units have been conveyed, the foregoing.
shall immediately cease. Notwithstanding xilf
ally
this Declaration shall be construed to restrict the DinlaroFnti interval
successor in interest to the Declarant
underthoriau aep in p.t}ore other
from selling and/or conveying up of persons, partnershi o
ownership, ar any person, 9 ar in any other way transferring
reconveying, The ter -
entity, from selling, tan of interval ownership
same, at any time under Said p
minatian of commercial usage upon the o thefcomnercial un}�ludNothiog
d,.Imed to allow any person or
interval onerships) shall not aPP1Y to to commit a
contained in this Declaration Its shall be timesharing and the accep-
entity other than Declaran or otheruformsors and assigns, eft
ui+it to interval oncerofiany interest in the property shall cally successor
Lance of a convey
an agreement that no unit owner other than Declarant or 1i
io interest to tl+under larPlan f interval a vialQeh nerin shipCle RIII shall Sell
or convey a unit, together with
Z Any person who is the owner °finvitees and licensees,
members of his family,
social guests, lessees, Where a
the use of said recreational irecro�stior
may use the recreational facilities which are common are
corporation is a unit owner, time to such officer, possession
shall be limited at any the unit owner
einployees of said corporation who is in actual resiartyeo- ns one con_
of the unitPurposesOfthisviparagraph shalldual b Where to
Qo 6e
fur the p p tf+e lessee shall be entitled to theuse
thereto shall
dominlum unit and leases same, the unit owner and during the
of the recrea N anal facilities and W$`ed lessee's rights
be the same as though said lessee a Use of the recreational
term of the lease, the unit owner And his family shall not be entitle
owners of, unit weeks in units committed to Interval
to the use of the recreational facilities'
facilities through
said owner
Facilities by
Uwnership, or anY other erson using
of
shall be limited to the period of ownersl+Ip each year of said owner
Unit weeks in such unit.
however, "°thin, in this Oec shanei
Provided, the commercia
prohibit the owner of l unit from permitting
portion of such unit shall be subject
ur ales only and be subject to the residential
declaring that such unit or any P
to use for residential Purpose"
restrictions set out in this Article.
C. foMMERC- gAL UNIT, A commercial unit shall be a part of as
rnlans bowel E� lExhlbite"C„fled as
sands V}l�gesort con3aminium p J
"Commercial 8ullding C-I" on the P

commercial unit may be used for any legal commercial purposes
interval ownership administration iahk including, but nut limited
i it d to,
, the purposes of generhealthal tspa, mag -
gement, Shops, restaurant, lounge, game room,
sales, meeting rooms, whether or not related to the
club, or any combination of such uses. areas:
Phase I, II, fit or IY properties. Suck commercial unit shall have
the following limited common laundry room, as associate
chutes d with its oandlor mail
maid and other support rooms,
chutes together with necessary and proper easements for access to an
maintenance of said areas.
There shall be ooitted and excepted from the commerial Unit
that area located west of the kitchen• and north Of th p game This room
shown on the m as
plans in Exhibit C and erititlpd,
Shall be considered CoM00 AREA.
It is and weight t roam t This t roams and l at l
used as the health spa,f this room
equipment located therein shall be a common area of the Sands Villa
Resort condominium project and the maintenance and upkeep v
shall be malntalned by the homeowners as a common expense and managed
by Assoclatic
easements ts ifordesigneeIngress and regresse ise5across inervedacrosshcorr id
for the
lending and theThiss- authorized individuals access to the
to xeguestrvamThis easementfiis ofornitheanpi poses eaf
allowing owners, guests other
exercise room through the commercial unit.
The enclosed pool is not considered a part of the commercial
unit and Is a common area of Sands Villa Resort condominium project.
An easement is hereby reserved for the benefit of the
oowners
s of
of the commercial unit. This easement shall bo for the
uests, invi-
ingress and egress to the commercial unit for patrons, g
tees, licensees and other authorized individuals over common areas
jnt to the commercal
including corridors and walkways located
arklndCeis hereby gran edito
unit. Additionally, an easement for p 9
patrons, guests, invitees, licensees and other individuals authorised
by tine owner of tsh 1l �e liimited to maximumnit to enter its of twenty-five (Zb) spa-
ment for parking
ces.
D. USE OF COMMDIl AREAS AND LIMITKD CeMMopneAREAS: Of
owne s ofeall
Common areas an� to common areas Y be at
units, and all other parties authorized to use 'the haslmay be
all time subject to such reasonable rules and regulationshereafter
prescribed and established governing Sut11eusAssociation or which mor By -Laws.
be prescribed and established by so ll have the I
dominium� the unit orcUnitnweekais being heldibytthe petlarantofor (sale vin
anhe d llmitedycoUrse of camnon a e s forness the purpose of aiding in the saleto use A ott4od of the oofacnn�
dominium units and/or unit weeks inciud(hg the right to urchase serser iand
of the.condominiumt property for parking br.prdspettive p
such other parties as Declarant de{erm?IIPS: the foregoifig right sha1d
placards andlude storee iceeptto display and exhibit as me rand diect strihutensi l audio and
visual promotional materials upon the comddh a easura d im tedccommon
areas. The use of the limited coethea owner thereof (except a
cial unit shall be exclusively that ofand is
the owner thereof may pormlt) and such use may be
Shops, pply, night
permitted to be in the nature of storage, su
club, game room and all other uselawful of the permitted usesyofuthe
tions which are related to or supportiver
commercial unit.
1 No immoral, improper, offensive or unlawful use shall be
made of any unit or of the common areas and facilities, nor any earl
thereof, and all laws, zoning ardinnnces and regulations of all
governmental authorities having jurisdiction aF the. unit shall be

observed- No owner of any unit shall permit or suffer anything to be
in his unit, or on
insurancethe m on on athe unit, orwhichwhich
done or keptthe rate of ants of the other
will increase the right of other occup owner under —
obstruct or interfere with
units or annoy them by unreasonable noises nor shall an a peaceful
take any use ar practice which saaltih1 hainterferesswilhtthe peaceful
to any other owner of a unit,
possession and proper use of any other unik or the common areas an
facilities. strut*
2. No owner of a unit shall permit to be made any the
taining
he
on.which consent may be witheld by
tural modifications or alterations therein without
t�es,aadificatlantOr
written. consent of in theiralediscretion.
Hoard of Directors in the owner Of any unit involves the a right to
alteration desired by artit1on, Association sbaTl haver{ntiangto be'
any permanent interior p as the permanent inter{or as the removal
permit such removal: sa long artition; and sO long
gthe provision of
removed is not a loadbearing, p
thereof would In no manner affect Or interfere with or cause any
utility services constitukingrlsomm !t to as
therein.NONO owner shall
cause the balcony abutting made ors th+' exterior of the building,
improvements or changes to be
Or the installation of
including PA or other decoration,
electrical wiring, television antenna, machines or air condition ng
nor shall storm panels or awnings
units. which may protrude through the walls or roof of the building
rst
not within the walls of such unit,
Association
being
be affixed, without the written consent of
Obtained. and in
3. As to units committed to interval
nonowner pof a unit
provision5 of this paragraph.including paint,
addition to all
any way way alter. modify. redecorate (including
unit
week shall holstery, furniture, fixtuW 'mission arOfhathe Board of
wallpaper, i the written p^
without first obtaining
Directors of the Association. without consent Of
q, The+owner of the commercial unit may, modifications
in
the Board of DirectorsOf
tile
Association,
I acommonke hareasdoanoti tenant
as such changes
the commercial unit (including}n which they are located and
thereto) as it deems advisakhe building as are specifically
the structural Integr makef such modifications
may, additionally,
provided for in Article 1Y.
ARTICLE Y
Ease_., monks
I tsi estableasements,ed loanc rightsreserved
and
elseIn wherediniathiso Declarat}onan thelg al.nwing
limitations are hereby establishedOvementsenants thereon�d burdens running
with the real property and the p
A. in case of any emergency origlnanatrthertime
nofgtuch
or any Other
unit, regardless Of whether the owner s present eft, shall have the right
emergency, the Hoard of Directors
the man ginaeag agent.
shall
the cause
person authorized by It. ur aso Of remshaingll o immediate.
to enter such tonic aid such the right Of entry
of such emergency,
ith the
, wires, ducts, cables, Con—
B. Each unit Owner shalt have an easement in COMM" w
other °wubllc°utilikynits to use all pipe , Each unit shall be subject
ducts, p lines and other common facilities located n an
his unit.
f all other u liioest andsnther
the
Of the other units and serving b1iC utility
to an easement in favor of kcvnduitss p+ such unit.
pipes, ducts, cables, wires,
common facilities serving
such other units and located sha11 have
The Board of Directors of the Association or Its
—13—
i.

OF access to each unit to inspect the same, to remove viola-
replace the common facili-
tare right
tions therefrom and to maintain, repair, nr
in the building.
ties contained therein or elsewhere
iocatel
C. There shall be reserved for maid service, those main areas building
emaid
starage9
on each floor in the elMvator and/or sdeisi prated asof
Page A9. 9 and/lie or
Exhibit C 9
s
and shown on
Additionally, those storage areas located in tli2 eipYad stord.ggteear
designated as.
w"�
tti9i AssvclatlonhOrlthe
stairwell on each float grid Not
authorized: 6y
�� kWA.,
reserved for storage of items as maidservice,
-there: also be eservei the hfirst
i� r����
l $ l t
mansging agent. sfidll lfnrated
{hose encltl ed
storage, shall not be used
�
keeping and ed
floor of the main bgilding. These storage areas
persona] items unless authorized
`
unit owners or
rtoeests for
Directors.
in writing by
There shall be parking for vehicles under the first floor o
designated
pbearkin or
D. common
the main building. The remaining areas oabove shal l
building, as provided
storage under the main
e of personal
Boarditems
shall be or Directorsor
area and
by property
and hold any P p
owned
its
shall have the erof this
bagents
Pa
to
E. Ingress and egress is reserved for pedestrian traffic over,
is the same from
through and across sidewalks. paths, waits, and,lanes.as
the cannon areas and facilities; and, for
time to time may exist upon of t coinflowl
traffic Over, through and across such portions
andhintended
velrlcular
nits in all
areas and facilities as from time to time may
and unit week owners
for such purposes, for all unit invitees,
SANDS 'VILLA RESORT, their guests, families
its successors and
phases of
the Association, and the Declarant,
lessees,
assigns.t to rant
tiofrthlis
reserves
facilitiesitself
F. The Declarantherebyphase of
a areas and
easements over any or in connection with any other
to be used for, by,on
SANDS VILLA RESORT
5AND5 VILLA RESORT, which may
this Declaration, or
phases of tetot
described in Exhibit "A-)" P
the
asuch i
property
as may become necessary for the purpose fn v clog adjacent
assigns,
tees, lessees, successors, or
drainagr. and easements for ingress,
phases with utility services,
egress and regress.
sh.111 encroach upon any of the
G. In the event that any unit utter unit
Facilities, or any
car non areas, limited common areas and
by tt+e purposeful or negligent acl
or units, for any reason not caused
or agents of such owner, then an easement appur-
encroach -
of the unit owner,
unit shall exist for the continuance of such
and facilities or
tenant to such
x
inept upon the cannon areas, limited cannon areas
encroachment shall naturally exist.
cill
upon a unit for so long as such
t nOffafiretors other Shall
areasalimited
casnoa
if any unit or common resulareas
estroyed
be partially or totally or eminent doma n
casualty, or as a result of condemnation areas
of such unit and/or cannon areas
this
ceedings, and if upon reconstruction
accordance
itsieof ipv the common
and limited there existareastuns
encroaci>fnenall
it, or of any
ncommon
Declaration,
areas, limited common areas and areas.
iortion°ofnthe
n, any
unit upon any other unit or upon any
facilities, such encroachments shalt be
limited common areas and shall exist
for th
permittedall naturally remainthereof
atleaevalid easement
ments
ong
_ARTICLE
The Association
for the
maintenanceoefficiently
fficienof 5AN0SnYILLA RESQRTyfiIlASEd[ and futurenphasesatiFnany�,

DS
IHC. (herein the(
a non-profit corpuratiOtl and designated
igtatArticlesas HOf
VILLA RESORT organized, a true COPY in
"Association"), has been at PageCou North
Incorporation having been recorded in s Carteret County.
revisions thereof are incorporated herein by
the office Of the Register of Deeds ° ration and manage -
Carolina. and the P PliASE E, as well as
reference. The Associatlan shall administer re op
ment uF the Condominium, ANall VundertakeILLA D and perform all acts and
ticles
future phases, Of the
duties incident thereto in accordanceWith
Laws,teAsta� iCOPY ts ry made
of Incorporation and its duly adop- and expressly
original BY -Laws is attached hereto in Exhibit D'
a part hereof by reference.
A• Declarant Control: 5O long as the Declarant hereill absolute ighttos allease or
any unit, the said Declarant shall hfir, or corporation. for and upon
sell any such unit to any person,
any term or terms and conditions as it shall deem to be a is ow
r,lt is the own
It
interest. Further, so lorry as ofeunitlweeks in five
the�)8or more
oard Of
(5) or more units or tile majority bases, Board
Or has the right to add additional p
Directors Of the Astl°�i4eclon arant1toOtheii^{tialst of tBoard f of Directors of
duals appointed by adopted
provided for in the duly
the Association as stated in its Articles OF incorporation,
respor
successors or 1,epIacements, as P xer-
By-Laws of the Association. Said Board shall exclusively free from
duties, and obligations thereof,
siUle for the total operation and management of the etfree
rising all powers, any and all unit owners; provided,
interference or control by operate the Association in aamanny arid
that said Huard shall ma^age and np f this Association's Articles of
allconsistents mmith ents fhe teralsor amendments conditions
t1 a provided furthers, however,
all supplements adopted By-LawS; P
Incorporation and its duly
fest
that the Declarant may, by written notice to each unit owner, manioar
meeting of the membership of the
its Intention to cause the resignation of any or all of the said Boar
Of Directors at which time a ur ice pf the election of a new
Association shall, be called for the P P
member or new Bohn sof hall( then rs of bec the Assoc
the operation
bershiP thereof,
and management of the Association.
ted by Declarant need not be
Any Director designated and selechave
a resall
ident of the condominium.. The Declarant sh'aragraph the right, in
is sole discretion, to waive the Corms of that to control the Boards of
Notwithstanding the above, the rig
Directors as given under this paragraph expires r December 31, a 11
if phase lE has not been submitted to this Declaration• if right to
has been submitted before December 31, 1990, the DOClardnt'S right to
control the Board of Directors expires on December 31, 1995,
1995, the right to
III has not been submitted to this Declaration. If Phase 111, has "en
submitted to this Declaration before December 31,
ctors expires on December 31
control the Board of Diret serving on the Board of
Any representative of Declaran
management contract or other matter bet -
Directors of the Association.shall not t+e required to disqualifiavema
seif upon any vote upon any of
Similarly, Oeclarant, as a many vote
ween Declarant and Assoclatlon where C1ra said Declarant May
pecuniary or other intebe require4 to rest. manage-
Associatio,' shall not the membership Of iAs Association t upon anyany
which may come
meet contract for other
pecsntiary ortatfiereIntere { and Assaciatlon where
Declarant may rights
and voting Laws
B, Membershi and Vot{a; provhted InelArticlepIII of its BY -
In the is at On s aT a Bases of
referred to and fno�Oral1 UPIitl+ownerserein aof�altledunitsiinball membership
P
being mandatary
SANDS VILLA RESORT,
�%�•1Gy i��Lf CJ �I �1 -15 �'1�� �a 3

C, Powers: The Asociation shall Save all powers granted to It
as stated m tSe By-Laws.D• Percents a of Common Ex enses: Each unit owner and the
each
interval owner 7n share
Phase v SARDS 1 A RESORT s>tato said unit
Common expenses of SANDS 'VILLA, RESORT at the rate equal
reas and facilities as
owner's interest in the undivided cunt owners and interval owners
determined in Exhibits."B" and "B-I"• if any, together with the
within additional phases of the property,
unit owners and interval owners of Phase I shall share the common
in
owner's U
interest Tin athemcomvmonount qual to areas assaid
determinedInterval
amendment ntovthis
Declaration as provided in Article III-
E. Mana ement and Maintenance:
I. Except as set out below, the p�SOt�etion, Ot Its
maintenance,
expense, shall be responsible f
the comin area
repair and repl5ettleoUtvfhelowall �f limitedmocommonsareas
except as
Including those portions thereof which contribute to the
support of the andldother and facil iitlies vts
located nduido cthe
plumbing, wiring
common areas or limited emmman areas for the furnishing
of urillty
itServices to ts andshould any
units
and said
o
andlimedcommon areaIncidental
damage be done or caused to be done by Association in
acement of any
ate lreamorT1limited,
common tenanceiarea the r or lsaid Association shall,,
at its expense, repair such incidental damage. The
Interior surfaces of
walls IImitedancommon rsand areas shall r be
the doors
located within the the owners of the units to
repaired and maintained by this shall
which the exclus+ve use is reserved, although
not include replacement or repair following a fire or
he Assoc
other catastrophe or happening for whit
in tinsuranceatioproS�
such
ceeds s shall be used t° rep
cinsurance and lace or repair r pair pursuant to the
eds r
Article dealing with insurance and damage to common
areas and limited common areas.
p• Association shall have the right to make or cause to be
made such alterations or improvements to the commSon
areas
unit,rovidedptheudm ki gice erights
such oOwnerf the
alteration
of
anyanti
improvements are approved by the Board of Directors of
said Association, and the cost of such alterations or
m
improvements shall be assessed as common expense to be
assessed and he collectedfrom
set Outhe owners InExhibitsof Bun anti
according to the percentages where any altera-
tions of the Declaration. However,
bans and improvements
vtenexclusively
vnruowners iof l8
exclusively hebenefit Of the owner or
unit or units requesting the same, then the cost of such
alteration and improvements shall be assessed agains',
said owner or owners of a unit or units and the
assessment shall be levied in such proportion as may be
determined by the Board of Directors f Aess ciidaetion-
Alterations or improvements may
not bY
Assoclation to limited common areas without the express
written consent of the owner of the unit to whom use of
the limited common area is restricted. Provided, that a
unit committed to urenantvthereto mayownershipbe and
alteredland/or
imited
common areas appt
Improved by direction of the Association.
3. Dele anon of Mail ement' In order to provide the
necessary maa i,..lr and maintenance of the condominium
project. the Declarant shall immediately enter Into a
f6

properties. Inc., for a Period of
the initial maintenance, supervision
contract with Sands Prop roject. Said firm
two (2) years for aid for
and management of the coed mini um P
an Independen�heon��nthly ctoranassessment paid
the
shall be from
Its services the expiration of the
association dues. the Board of Directors or
homeowners' year period,
initial two (2) Y either renew said
late anrther contract with any ocher
said contract on to i neg°ts the 'ight °
person, firm or entity. perform
Unit owners Maintenances Every owner shall
ma ntenance and repair work withln hieither
prOmPt y a would affect the condominium•owners,
which.- if omitted, art belonging to °
In its entirety or, ipressly responsible for the damages
ownerbell expressly may engender.
andrliability ,which his failure to do so responsible
maintenance, repair, and replacement, as the
The owner of each unit shall be liable c
for the of all air conditioning and heating
ip-
case may be. refrigerators, fans, or ether appliances
ment, stoves$ flxtures and/or thei con -
or equipment, including a�nnvide water, Such
sections required to P
telephone. sewer and sanitary service to its un
owner shall further b�dr�enlacementIble aof the nd bsurfacestof
maintenance, repair, and floors which are a part
any and all walls, cellings, an g. decorating, and fur -
may
or his unit, including Pes w
nishings. and
all
nather maintasor
insin his unlit. henever the
desire to place re or re lacement of any item for
and P is obligated to
maintenance, P of a unit
which the owner
maintain, replace or repair at his ownbexcoveredsbycany
si°ned by any loss or damage which th Association, the
insurance mains ai e in uranceorce recebved by the Association
proceeds oused for the purpose of making such main -
proceeds be i or replacement exceAt that efired he owner
pay
teoance, repair, air,
such unit shall he, In said instants. llcabi-
such portion of the costs bf reasonsuc aofetilecappC1r
and replacement as shall, rovision of such lnsjan e'
lily of any deductibility P roceeds apP
le
lr or replacement• All glass
exceed the amount of the i�surane p are a part of
to such maintenance, reppai and screens
doors, window frames,
the respective unit.
A}} f a unit shall be kept in good condition
parts oThe
and repair by and urllr
at the the eawnerf in eao lean and safe
shall befreeinOf bnuisance. Each unithewinsurance
ner will
condition, omply with any requirements of
promptly the insurance for the common areas and
underwriters of h the guard or
to
facilities when so requesteAdj1yn failure on owner
Its designated nt in, or replace as may the
repair, or a determination by
pursuant to this Declaration,
Board or its designated agent that such failure
on areas and
endanger or impair the vBlueupan writtethe nnnotice to the
facilities or any unit may ulred repair, maintenance,
owner of sha nature of aired Per ereplaced by the Associatlu"
or replacement, P to be collected by
expense of the unit owner. and In
at the expe as provided he
special assessment include the cast to
the By -Laws. Such assessment the abatement of any
the Association incurred in
nuisance maintained by thr. unit owner therein. `

5. Unit Week Malntenance: Eac� owner of a unit week in a
U��lt comm tteT tnterva] ownership agrees:
(a) To pay his proportionate share of the Cost of the
maintenance and repair of all interior a ddaex eeanceor cand
r
portents. of said unit, the cfurnitureast Of l,e carpeting, fix-
repalr of all appliances,
tures, systems, utensils and other, personal property
within said unit' and and suchother
coftsthf run.itr�asa�is
epa
tenance, upkeep
sell
cesownersoo€he Call
tinuedit weeks therefnent of said unit 6y a
id
(b) Not to make, cause or allow to be made, any
acementto
repairs, modifications, alterations, or rePl outside utsideor
the common areas, limited common areas,
f the
h
in
ortio buildings
t part our the Jim i ted common areas t or comn1on areas,
exterior or interior of his °nior decor thereot or of the f. without
appliances, persona! property,
the prior written consent of the Board of Directors of
the Association, and all other owners of unit weeks
therein. in
fur-
(c) replacements bear
to ithe n Unit entirety
iits xPcomponentenses of ,epfurs
nishings, carpeting, appliances, or other property,
real, personal, or mixed, occasioned by the specific use
licensee or tenant owner ofunaid it weeks in any unit, or any
or abuse of any (d} That the Association. r.
shall determine the interior
Association -
color scheme, decor and furnishings, of each such unit,
as well as the proper time for redecorating and replace-
ments thereof-
,nits
of unit aweeks '" utenancefee". tTye,main-
ownershlp shall pay
tenance fee shall include the following:
The unit's share of COmntln expenses, as set forth in
paragraph (a) above;
Cosof repair andttear (example: d repainting interior wallsupkeep Of the unit for ) rural wear
;
Cost of repair and replacement of furniture, fixtures,
appliances, carpeting and utensils;
Premiums for casualty and/or labilitinthe un Insurance an
�the
unit and on personal property located
Utilities for the subject unit;
Personal property, real estate. and any other applicable
taxes not billed directly to the owners of the unit week
in the unit; and
Any other expeseinurre
in
he
operations
and ma ntenancenofs thecunitd which, n
cannot be attributed
to a particular unit week owner.
The maintenance fee shall be proratapplying
dlaingaafractions
of unit weeks Ir a specific unit by pp Y 9
the numerator OF
owneric nit
the denominatorthe number oOFuwhich eissfifty
�
he
onea (51? to the total of all such unit weekecoveyedTto
foregoing shall not app1Y to any
the Association.

ali other remedies granted to the
ape of law, the Board
In addition to right to
Association hereunder oanyyinterval owner the rip
of Directors may deny
use his unit week so long as such owner asessmentgornspen
the payment or any maintenance fee,
eial assessment* in exercising this right, it shall be
meat Agent to deny such right of use to all
F UTrectors to instruct tile
appropriate for tlle .Board n
Manage
delinquent owners.
Om -
Upon conveying thirty (30) unit weeks in any unit cthe
mitted t° interval ownership, or six (6) rtonths from the
date Of the first conveyance under intervalidate
any unit committed to interval ownerstop.convey and the
comes first, the Declarant agrees
Association agrees to accept onttei0eclarentwsha11 have
used for maintenance purposes. be so conveyed- In
the right to choose the unit
neeko�a°they legal entity,
the event any one (l) P
weeks
becomes holder of reel d tltl5 o or .11ather�iegaltentity
in any one (1) unit, ey said unit week can -
MAY cause the Association to tonvit by notifying the
veyed to tire Association its desire that said unit
Association, in writing, of The
cease being a unit committed to interval ary.papers to
Association shall execute the necessary, papers
complete said conveyance n° Rile expensesr than y said co 5
after receipt °f Notice.
ding fee" shall be
veYance, including stamps and recoraln entity+ desiring
borne by the person, or other leg
such conveyance. the duty of
6, Limitation of Liabill�t': No
the Assec at on to maintain and repair parts of thliable
e con-
dominium property, the Association 5_y or de age caused
for injul
to unit or ttnndition of ownerst week maintained
the popes Y to be
by latentr the Association, or caused by the ele-
and repaired by ,sons.
ments or other owners or Pe' shall be
F. insurance: insurance coverarp on the property
governed by the FuYTowing provisions: at his
The ow
(i) Personal LiaUili ner of each unit, may'
for loss of or damage to any
awn expense, obtain �Surance coverage Personal
property
furnishings, personal effects and other P obtain
furniture, at his awn expense and o oithe Person
belonging to such owner and may, liability for injury
insurance coverage against personal
or property of another while within such owner's unit or upon the co
Lion shall be available,
men areas and/or limited common areas. All such insurance obtained y
the owner of each unit shall, wherever igrt °p and the respective
provide that the insurer waives its rights of subrogation as to any
claims against other °nests of saids OF s°ther°ownersnand Association, and
servants, agents and g said
o be obtained from the insurance
such other insurance coverage should
-he same risk,
company from whiilAsifcsaid Ass ciatlorvhasgsSchae vera C. effectskaa
liability or perto any furniture, furnishing personal
and
loss of or damage ther than such furniture.
constituting a portion of the cocoon areas)
other personal property (o
personal property person of the owner of each unit, or
belonging to or carried on the Pe to or upon common areas and
which may be stored in any unit, °r In, the owner of each such unit.
limited common areas shall be
borneby
property constituting a per"
All furniture, furnishings
tion of the common areas and limited Gammon areas and held for the
joint use and benefit of all owners of all units shall be covered by
such insurance as sha11 bn maintained in force and effect by
Association as hereinafter provided. The owner of a unit shall have
-t9- ��ac1 3

no personal liability for any damages
connection with the use of the t:rmnon
The owner of a unit shall be liable
fromowner accident
u
nit to
house would be
theliable
caused by the Association or it,
areas and limited common areas,
for injuries or damage resulting
the same extent and degree
for an accident occurring Within
the house. The
(p) insurance C^fiver a to heeM a nCa e b mesa iatior, and
following insurance coverage s a
effect by Association covering the operation and management of the
condominium and the said condominium, in the units and common
... Ac_ to -wit:
{i) Coverage: All buildings and improvements upon
the iant3 and all personal property included in
the common areas and facilities shall he
Insured in an amount equal tothe
maximum
insurable replacement value, excluding
per-
dation and excavation costs, or by nsiuch yother�
cent co-insurance rove
g B
Form OF policy a.oarb d of Directors
annually determines will most to sonablyrepaipro-
or
vide the funds necessary
reconstruct the insured improvements. Such
coverage shall afford protection
other against
(a)
loss or damage by fire
rds
covered by a standard extended coverage endor-
sement, and (b) such other risks s from
with
to time shall be customarily covered
respect to buildings similar in construction,
location and use as the buildings rn the real
property, inclvdfmi, but not limited to, van-
dalism and malicions mischief.
{11)
public liability and property damage insurance
In such amount and in such form as shall be
required by Association to protect said
t Association and the owners Of all units,
including, but not limited to, water damage,
legal liability, hired automobile, non -owned
automobile and off premises employee
coverage.
(ill) Workmen's Compensation insurance to meet the
requirements of last.
(iv) The Board of Directors of the Association,
shall obtain casualty and liability insurance,
and Insuranceas needed, lonfall iunits ture apersonalnd
committed to
property, interval ownership, in such amounts and with
Board cofeDirector,. Each such required
such suchpolicy shall
reflect the respective interests of the
Association. and all owners of unit weeks in
be the
such unit- in ,
Theure
raired as shallasfor
Association dividually
a!1 of the unit them,eek owners
asnagent such
for their
without naming remiums shall be a part of
mortgagee. The F
the maintenance fee
tthe Insurancelosses shall be payable r Trustee
hereinafter desiglated. All such P
shall be used for the purpose of repair .or
replacement of any loss, or in theloss is riot to be revent such
as
determined elsewhere,etoibe dividedplamo g� all
owners of unit weeks in such unit in accor-

(v)
danre with their Percentage interest in
remainder. Any deficit or average in such
proceeds, after repair or replacement, shall
wners of
be divided ratably among al0eficits1 such oshall be
unit weeks iarthof the
maintenance fee next"
treated as p
due.
Such other insurance coverage, other than
title insurance, as the Board of Directors may
Assoclotion, in
its sale discretion,
interests from
oof mssime ion to iand the Ownerslne to be in iiofball
of the units.
Insurance Premiums as Common Expense..: All
If coverage author ze o be P°rchosed
shad he Qurzhas'ed by Association for itsof
elf
and for the benefit
cost all
lof f th
Obtaining the
all units. authorized above is
Insurance coverage as are any
declared to be a common expense,
other fees and expenses incurred which may 6e
necessary or incidental to tharinsurrance preIng Out -
provisions hereof. Exce rnceained pursuant to
miums for insuahove for the benefit of the
Paragraph (Ivl only slFall not be a common
interval ownersshall
expense for arlt afithewintervalhowners' main -
be made a P
tenance fee.
Ac uisition: Ins"rance Policies upon the con-
nm n um, oother than title insurance, shall be
purchased by the Association in the name nF
the Board of Directors of the Association, as
Trustee for the unit owners and their raesppec-
tide mortgag ovide their
interests
ssuancey of appear,
shall p endorsements to the
tifirates or MIrtgage
holders of mortgages an the units u any lif
them, and if the companies writing such P
ties will agree# the Policies ss of hall provide
that the insurer waives its right
owners,
tion as to any claims ag
Association and their respective servants,
agents, and guesLs.
1 ds
Distribution of insurance ProbeePayahleraethe
o nsurance po c es s a
Board of Directors, as insurance trusted "and
for the
to
thrill be distrheneFicialbutownersorin -the
bfol}owing
Or
manner:
E ense of the Trust: All expenses of the
nsurance true ee s all be first paid or pro'
vision made therefor, if any;
Reconstruction or Re air: If the damage for
w {c the Procee s are Paid is to 6e repairer'
or reconstructed, the remaining proceeds shall
eter-
be paid to defray the cost thereof asroceeds
mined in Paragraph (ix) hereof.such cost shall be
remaining after defraying pursuant to
distributed as common surplus
Paragraph H(12) hereof;
/ ,, J1 I I A c r n —21— ('"��r" �) 6 3

Failure to RP.ConStrUct or ne_�iagraphf(ix)(b)
e aF" ne as pro+a�7proceeds
hereof that the damage for which he pro as
are paid shall not be proceeds shall he
repaired, the remaining P pursuant to
distributed as common surplus p
paragraph N(Iz) hereof;
Mortgagees: in the event a mortgagee endor-
sentent has been issued as to a unit, the share
ld in
of tile. Unit owner shall
be unit Downer trust
s their
the mortgagee a provided, however, that
interests may appear; p right to determine
no mortgagee shall have anyto
or participate in the determination as be
whether any damaged property shall be
reconstructed or repaired.
(ix) soma a and Destruction:
Determination to Reconstruct or RepairIF
—shall be
any par! of titthe congo whether pit yshall be
damaged' by casualty,
reconstructed or repaired shalt he determined
in the following manner:
(a) Common Areas and Limited
amige imp- ovem nLand
Faci� lames:
conrnan area, limited
sl�all be recamon area �structedtvr
the damaged property repaired, unless it is determined in the
manner elsewhere provided that the condominium
shall be terminated;
(b} i}nits:
(;} Partial Destruction: If a
3a,4age mprovement 's rovided
and if termination as p
in subparagraph (ii) below does
not take place, the unit owner
shall not be required tr,
rebuild the unit unless all
units are insured under a gYoup
or blanket hazard insurance
policy which contains
Replacement Cost Endorsement
providing for replacement of a
unit from insurance loss pro-
ceeds. However, such require
not bc
lent to
effective rifuiit isadetermined
by agreement in the manner
elsewhere provided herein
within sixty (60) days after
casualtythe �
dominiumshall be termintated;
Total 4estruction: IF more
than Lare d troyed) of the
and the
units are
owners of three -Fourths (3/4)
of the units in the entire d,mi
nium
proceed w
ouatit repair not
or
restoration, then the con-
dominium shall be terminated
er inatedof tLc
provided in 4

Harth Carolina Statutes, and
ar:y amendments thereto.
d M
�, Association to Maintain Re isl.rr of Ownes{e`nsektrnga orth
The Associat on shal at a1T—time ma nt.a n a rag
unik or unit week to a third
the names of tile. owners of all of the units and unit weeks• In the
event pF the salor transfer of any
party, the purchaser or transferee shall notify the such recording
rding
writing of his interest in such unit togeth thewinstrumentrbyowhich
information as shall be pertinent to indentify unit -
such Association of the
such purchaser or transferee has acquired his Interest n any
mortgage or mortgages on any unit,
Further, the oartiesf holdingach nartyit shall not Y information
names of the P
tile amount of such mortgage or mortgages and the recording The
or mortgages upon any unit may, if he so
which shall be pertinent to indentify the mortgage or mortgages,
or
holder of any mortgageOf
desires, notify the Assoa� tlo6 oa�y existe
upon. receipt of such
-
mortgages held by such p y register in its records all pertinent
notice, the Association shall
information relating thereto. LiabiiIt Lien and
}{, Assessments Maintenance Fee
Enforcement: Assoc at on S g ven he author be to adm n star t e
operat Gn and management of the condominitrm•iit
in being
gbest interestgnized of
Lite delegation of suc1, duties to one entity the operation and
the owners a all units• To properly
management ual
of the project, Association will incur, far the
casts, , the case may be, which costs
bane€it of all of the owners of units, costs and expenses which will
be continuing or non -recurring as
and expenses are sometimes h f einsuce�eP�p�erooperationoandxmanagement,
provide the funds necessary
the said
Assoc ItLlon has
s herts against bee
erownerspoftall uinihts andsaid
levy rant of authority to the Association
units. In furtherance of said g the costs and expenses
to make, levy and collect assessments t.o Pay
For the operation and management
angee t ofbimfengonponinthe,wolw
nersofall
beoperative
provisions shail}
units, to -wit:
1 All said owners Of Units ao')
units eshall be dUniform g-iiande unless specifically
the
otherwise provided for in this peclaraproportion
assessments made by Association o hall �omrnonpareas and
to the percentage of ownership
limited common areas ofo�atkrisunpeclaratlon.forth
Should
Exhibits 'B" and "6-1' unit or unit weeks, the
Association be the owner of any
assessment which theuownerhofwise be due such unit ordunitaweeksr.
by
Association by
reduced by the amount of income derived from the, leasinbP
g
of such unt or u�ljt apportlanediand assessmentothe hey orsleviediratablya ll among
the owners of all units which o
ortionate interests it Owned r'
Association, based upon their P P
the common areas and limited L enant ato aanysuni t exclusive. arunits
the iota n apP
awned by Association.
Z, The assessment levied against
tin he oan er of
quarterly each unit aorr'
his unit shall be pay
monthly installments, ar in such other the
Board and
at such times as may be determined byy
Directorspayable 0f w roci of uatinit weeks in like emanner.
es shall also
be
3. AnpuajarBudgeti in LadvanceAssociation "Sc
Annualestablish
shall correspond to the calendar year, and such Budget
q -23-

shall project all expense for the forthcoming year
which may be required for the proper operation, manage-
ment and maintenance of the reservescondomin.
such Budgetito
allowance for contingencies and reserves.
take int°liedaccount
re uctiondnfntheiamountated irequired ncome itn be
to be app year. Upon adoption of
collected as an assessment
thechBoard of Directors of
such Annual Budget by
Association, copies of said Budget shall be delivered to
year
each owner of a unit and the assessment for said
though
Shall, be established .6asof Bald Budgetpon such Budget.
tl u°teach owner
the delivery of a copy
shall not affect the liability of any owner far such
assessment. Should the Board of Directors at any tof
ime
determine, in the sole discrt the etion of said Boardor may rave
fDirectors.be insufficient to pay -the costsnts of f are
and
the eve
t of
man aement emergencies,afsaide Board iium, or Directorsinshall have ethe
authority to levy such additional assessment or
assessments as it shall deem to be necessary.
The Board of Directors of Association, in establishing
said Annual Budget for operation, management and a Su
tenance of the condominium shall inclreservetherefund for
to be collected and maintained as
areas and limited common areas,
replacement of common
whichAssociationvtofund replacelstructuralhelementseand mechani�
cal equipment constituting a part of the common
wareas
mas
well as the replacement of personal property
constitute a portion of the common areas and limited
common areas held For the joint use and benefit Of all
of to the owners reserve l l fundts for Thereplacements amount to be shall
atbr,
established by said Board of Directors so as to accrur
and, maintain all tifor replacementsabof ly n said ecessCommon
anticipate thea needCollected
areas and limited common areas. The amount ent$Fro
tandimeato° time shall be maintained infund rr aseparateaccount
by Association, although nothing herein mon a nin shall
limit Association from applying' or
anyreserve fund for replacements to meet other needs
requirements of Associatie+, in operation or managing the
condominium in the event of emergencies, or in the event
thatnits ar
the
sum tocmeetcthe then fiscalted from the wfinancialners of u require-
meets of Association, but it shall not 6e purposes, asna
that these monies be used f levl d� therefor if deemed to
separate assessment may
be preferable by the Board of Directors OF Association
in the sole discretion of said Board of Directors.
The Board of Directors of Association
in a tablishing
said Annual Budget for operation, 9
tenance of the condominium, shall include
etherein
a sum
ined as a ge
ig
to be collected and maintained
reserve which shall be used to provide a measure of
financial stability during periods of special stress
d to meet
t{en isuh sms mabe ° ctimeu existing asuaeresult of emergencies eorifor
other reason placing financial stress upon file
Association.
The payment of any assessment, maintenance Fee o"
installment thereof due to Association, shale be in

iF such assessment, maintenance fee or any
is not paid unto Association, on or
default
installment thereof, uch a ment. when such Payment
before the due �heefor BoardsOF Directors may accelerate the
Is in default, n
remaining installments of the annuall Ghee us�€t townema or
tenance fee upon notice thereof
wI ereupon the entire unpaid
owner of a unit week.assesament or maintenance fee
balance OF the annual date stated in the notice'
shall beeome due upon ti+e days after
which shall not be less the.eventanyn ten Das5essment, maln-
date of the notice. 201 days
tenance Fee, installment °aldcwithinteE enty s(20) s o
maintenance fees is not P thrnu h its Board
after their due date, teedssc rc,jation�e andi collect the
of Directors, Provided
said assessment or mai`hensame fin anyimannerepun it or
un€t week owner owing
nclu the right of foreclosure and
for by the act, including
sale. when in default, the delinquent assessment, a to
tenance fee or delinquent installment thereofdue
rate
Association shall bear interest at
aif the
such rathen h te, at 10%
°f interest permitted by t ueat assessment or main -
per annum until such del nq
tenance fee or instailmeid nttthereo°ciakionll interest due
thereon, has been p
a ment of all
The owner or owners of each unit or unit week shall e
personally liable to ar or special,ion hmaiintenance fees
assessments, regular or sp-
whir u
ch maY be levied by Association while such party or
parties are owner or owners of a unit owners orwowners
the condominium. ln the ofneny hassessment, maintenance
are in default in payment Association, such
fee or installment thereof nit ore unit week shall
be p delinquent
or Owners offor Y interest on such
so°allyce such
assessment, maintendn forfeallorcaststofl collecting° as
above provided,
I and
maintenance fee oTeaso alleenttorney'sf fee,
interest thereon, including a
whether suit be brought or out. exempt himself from
0. no owner of a unit or unit week may t week by waiver
assessment or maintenance fee levied
liability for any
against such owner a d M!, anythethei common areas, Of'
of the use or enjoym in any
by abandonment of the unit or unit week, or
othet
manner. ro er
g, Recognizing that the ner:?ssy }tfor providing P P
operation and management of the condominiumentails the
,
continuing payment of costs and expenses therefor, r unit
which
results in benefit to all entheofwnsuch o commons expense
weeks, and that the payment
Y
represented by the assessments and maintenance fees
levied and collected by Association is necessary io
order to preserve and protect the investment herebY
WOO
owner of each unit rsu+cht unitForssuniittweekion isand whi[h
granted a lien upon
appurtenant undivided int=rest in common areas,
lien shall secure and does secure the monies due For all
which lien
assessments or maintenance fees now or hereafter levied
against the owner of each unit or unit . whichemay be due on
shall also secure interest,nenti assessments or maintenance
the amount of any delinq
fees owing to Association, and includingena sreasonabie
secure ail costs and expenses,
attorney's fee, which may be incurred by Association in

lien
or unit
and its
is
eek
aenforcingppurtenanthundividedPinterest ini the conmonwareas. The
same granted to theprovidedNorth may Northe Carolinaforeclosed
General
in the
same manner as
Statute 41A-22, and in any suit Far the foreclosure o
said lien, the Association shall be entitled to rental
From the owned of e an
ofunit
anyrassEssme¢t form installments
the date on
which the payment
thereof becomes delinquent and shall be entitled to the
appointment of a receiver for said unit ar unit week.
yThe
enta t ncharged requford to be comparable paid
typesshall of el uni is or the
unit
weeks in Atlantic Beach, North Carolina. The lien
granted to the Association shall further secure such
advances for taxes, and payments on account of superior
h may be required
mortgages, liens, or encumbrance
to be advanced 6y the Association win corder to preserve
and protect its lien, and the Association shall further
be entitled to interest at tire then highest rate or, if
dvances made
no such rater purpose. All peruonsr, firms for acorporations
for such p p whatever means, any interest in
who shall acquire, by
giventhe worracquire aship Of n mortgage, lien ory unit or unit eother encumbrance
thereon, is hereby placed on notice of the lien granted
to Association, and shall acquire such interest in any
unit as unit week eagainstyanSubject
owner of unit weeks inla
the case of a lien to said lien shall be
unit committed to interval ownership,
1 tmi ted to the unit wee o'' ned reaby or id owner Personal anshall Of ally
not encumber the property,
❑ther owner of unit weeks Ir said unit.
be effec-
lil. tives Fromanda tern the time Association
orecordingShall The ien in the public
records of Carteret County, North Carolina, a claim Of
lien stating the description of the unit or unit week
encumbered thereby, the name of the record owner, the
amount due and the date when due, and the lien shall
continue in effect until all sums secured by said lien,
as herein provided, shall have been fully Paid. Such
claims of lien shall include only assessments or main-
tenance fees which interestue and pa osts,when attoriney'sle afeesim f
lien is recorded, plus
advances to pay taxes and prior encumbrances and
interest thereon, all as above provided. Such claims of
Tien shall be signed, and verified by can f fall Sums
or
agent of the suchcicla,m ofpolien 11 themsame shall be
secured bythe
satisfied of record. Tire claim of lien filed f any
Association shall be subordicorted to
olthe time ypf
mortgage or any other lien
recording of the claim of lien,
in the event that any person, firm or corporation shall
tacuititle to any unit or unit enant undivided interest In common wareas eek nbyits u
virtue of
any foreclosure or judicial sale, such person, firm or
corporation sa acquiring title shall only be liable and
obligated for assessments or maintenance Fees as shall
e and payable far said unit or unit
accrue and become du
week and its appurtenant undivided interest in common
areas subsequent to the date of acquisition of such
title, and shall not be liable for the payment of Association reprey
assessment or maintenance fee by
levied y taxing ioniTlent Of authoritiestaxes or against thecial condominiumein
Sevier by 9
its entirety. In the event of the acquasftlon of title
T"I n i 7

to a unit or unit week by foreclosure or Judicial sale,
ments 0"
any assessment or maintenance which the party ssossacquiring
maintenance fees as to aid by
s a art of the
tilde shall not be liable dut It weeks be absorbed an p
all owners of al lalthoughanothing heretnacontai far such
all
Common expense, the party liable the
be construed as releasing
delinquent assessment or maintenance fee from
ie r-.ement of collection of such
Payment thereof
onsoth
oler thanforeclasure9
payment by
a ment of any assessment or
ll. in the event that a unit or unit week is to he sal or
mortgaged at the time When p Y
maintenance fee against the owner of said unit or un
ie to ee}nand suchdefaultu(een
whethernor natnit or uit ka claimAOfolieniha5sbuch
brecorded ul As then the proceeds
b s
of such
purchase mortgage, shall be applied by the purchaser
or mortgagee first to payment of any then delinquent
ally roreeds of
assessment, maintenance fee or installment thereof due
unit
to Association before proceeds
+anthefownonsible for aer of aly such
purchase or mortgage p
or unit
eassessment orho is enaintenance fee
-
delinquent any voluntary conveyance of a unit or unit week, the
Grantee shall be Jointly and severally liable with the
ance fees
Grantor for all unpaidiaysrstosthe timments e ofasuch nvoluntary
against Grantor
made
hout priorprejto t to the rights of the
conveyance,
aid by
Grantee to recover
fro[nstitutinnooftla suitnatplaw to
the Grantee payment of any
attempt to effect collection of the PaYmlot
deemed totbe ssessment on electionrmaintenance by Associationfee whichashall pree
the collec-
vent its thereafter seeking
aining owing to a it by fment of oreclosure,
Lion of any h foreclosure to attempt to effect
nor shall proceeding Y attempt to effect
such collection be deemed to be an election to effect
precluding
the institution of suit at law to wing
o
collection of any sums then remaining owing to it to the
Notwithstanding anything in this Declaration
contrary, it is
each declaredthat
his submitted three (the years
from the h to each unit or unit week in such
hash
daminium with respectapplicable p
phase, each unit or unit Week in the
unit or unit week
Shall be exempt from the assessment and maintenance fee
created herein until
such
time
i e stthe a Grantee (owner)•
is conveyed by leclard herein, nu unit or unit
Except as expressly provide
week and its appurtenantpercentageormainte anceallfee.
exempt from
commencing at each appropriate assesfseeiate date as set out above,
the Declarant shall be subject to assessments and main-
thener this
ame paidis by dunitvvruunit week
owners.
12. Common Sur lus: Common surplus, meaning the excess of
yr tech pCs of tire Association, including, but not
limited to assessments over the amount of common
expense, shall be owned by the owners of all units in
the same proportion that the uurtf 'allenanundt to vided Beach ownerest in r's
mon areas and facilities apP
unit comnvneareasvandefac}1i1t4v5 appurtenantetoiallrunitsr;

on
yrovidud, however, that n the manner; aad ssubject to
held by the Association in and conditions of this
the terms, provisions,
Declaration, imposing certain 1(mitations and restrfor
flans upon the use and diskribart�emnj��rerEinE�ropided,
distribution of any insurance distribution
ar upon termination of the cnndomi bermadeyfrom time to
of the common surplus which mow ners ay
time shall be made to
octhe
teeinte interest ofunits
uco ma nnsurplus
dance with their P- g
as declared herein.
ARTICLE Yli_
Declaration Binding D on Orclarant
The restrictions and burdens imposed by
the covenants of tiers
Declaration are Intended to and shall constitute an equitable
vlt,rde upon each nnit and its appurtenant undivided interest In co+nnort
w become owners of
areas and tills Declaration shall be binding upon its successors an
assigns and upon all parties ha may srhslye heirs,
legal represen-
units in the condominium and their respective heirs, 9
tatives, SmCCessor5 and assigns.
ARTICLE Y111
Termination
This Declaration and said plan of condominium ownership may only
be terminated by no less than a 75% a€llrmative vote of all of the
in which event the ter-
ormers of all units and -all of the parties holding mortgages, liens or
other encumbrances against any OF said units, lan as may be then
minatirnr of the condominium shall be IrY suanypmortgages, liens or
adopted by said owners and parties holding
all of the afore -
other encumbrances. such eler.tion to terminate this Declarat on
established herein shall be executed in writing by North
named parties• anl) such instrument or instruments shall be recorded ill
tine Office of the Register of Deeds of Carteret County.
Carolina.
It is understood that on August 5, iAZS, the purchasers of melts
cnmanitted to interval ownership shall become tenants in n Sixty
The
Board nF Directors of the Association riariiI lie no actuess aladate xof such
f unit
days, nor more than ninety (90) days, P'
At such meeting, a
wveksrionto niitstecamnittedcto�Interval ownervnPOFa meeting Fthelunitsrconmitte,i
vote shall be taken to decide tileatisu,.h nsi meeting shall be a majnrlty
to Interval ownership. appointed proxy•
of the total outstanding votes of
all
orsbyfduly Lapp in do reel
committed to interval ownership,
majority vote of those present or by
At such meeting the owners, by
ch
duly appointed proxy, may vote to continue their intervals, in ll be
with the land for a period of ten (10)
case the restrictive covenants set forth in this Declaration wilt e
adopted as covenants running rill to the actual
years. The Board of Directors of the Association shall, no less trap
sixty (601 days, nor more than ninety (90) days, P of ail. owners
expiration of said ten (1D} year period, coil a meeting quorum at
of unit weeks In units committed to interval ownership. A q in per,
such meeting shall be a majority of the total outstanding votes of all
The owners may then vote to continue
owners et unit weeks is molts committed to interval axne+sh p,
son or by duly appointed proxy, year period.
This process
the intervals for an additional ten (10) ye P year eriod
Shall be repeated as tile
uorumrinnt be obtained of each sat any Oflthese mecall
approaches. should a q
mentioned in this paragraph, then the Board of Directors shall call
N
new meeting and give proper notice to all intervaldays enor nrorestlrarr
meetlnq shall be called not less than thirty (30)
sixty (60) days prior to tl,e time said Interval owners will become.

shall be those present at this
tenants in cOmrnou, whether sn the initial date or an a At nSUCh
thereof, A quorum at such meeting
appointed proxy.
person or by may vote to
second meeting, in p roxies, by majority vote, Y
meeting, the owners or their p with
cantimre theset
ir intervals, in which case the restrictive ronts uenints it
forth in this Declaratioofwten beill adopted
years. This covenaprocess
nnshall be
the land far a p ten il0) year period
repeated as the end of each successive owners present at the
approaches, Should less than aduly9 appointed proxy. to continue the
meeting vote. in person or by then the Board of Directors OF the
interval
intervals at any such meeting,
Associationshall ro rarntat the conof
dominium, atthe necessary stepstwhich atime Uethe enoardnit
ownership F g
Directors of the Association and each owner othe f a riguniht eelevt ofn a the
committed to interval ownership shis all
114" o and right to take such
action as is permitted by
5tate of North Carolina. This shall include, but not be limited °,
Filing suit in a Court of competent Jurisdiifi ermitCedn in rby applicable
North Carolina, for partition of the units, p
law.
eir Interval
In the event theowners
eachvote
owne�s altlinhaveue hthe exclusive vareas hOf
as provided above, +urtenant to his unit during
his unit and the rights and easements api maintenance weeks. No owner
his unit weeks to maintain and repair during an steer
si+al i occupy his unit, or exercise n he, einstofhim+,eduringin y steer
to his Lull Other than the rights provided
interval unless expressly SO authorized by the owner entitled is unit a oall ccupy the
unit during such interval. Each owner shall keep
unit weeks, vacatefthe
nishings in good condition and repair during property
unit at the expirat+a�lyfhis furnishiingseleave'the unit"Ove all in good and sanitary
therefrom excluding w
procedures as may
ith such reasonable checkout
condition aand
rwise from timelto time be contained in rules
and other p
approved by the Association. no owner or
Subject to the laws of the State of ht,t tlelorainterest Inva
Other person nr entity acquiring any le iI procedures, judicial par -
unit sl+all seek or obtain through any 9 partition at any
tltlon of the unit or sale of tine unit in lieu of p ear period
date prior to majolrityxoFraw er'satiCrO Oatethe meeting' If, howeveach successive ten (10) r, any unit
voted by two or more persons as tenants in common or as
week shall be owned by
joint tenants, nothing herein cotaieohs lbetweenbsuch co-tenantsor
of the unit weeks in lieu of partition
joint tenants.
ARTI� �tE 11
Limitation of Ai ht to Partition
No condominium unit owner shall bring, or have any right to bring,
any action For partition or division of the condominium property, nor
have any right to firing any such action with
shall any owner of unit weeks within any condominium cacti on e o
interval ownershipn such
reference to other
runtil owner's Ort unit
me asweeks
provided for din Articlinium e Vill�
permitted 6y
The interval ownership consists of an estate far years, together
with a remainder in ver scondomintenants iurtnunitna5 son tet forlth t1, the her rdeed eof
of unit weeks,
conveyance. No owner of a unit week in a unit committed to interval
ownership, shall have the right to separate the estate For years from
the remainder interest.
_ARTICLE X
Ame++dments of Declaration of Condominium

{1) The Declarant, so long as it owns more than ten (10%) percent
s or unit weeks in the condominium, reser-
of the condominium unit
ves the right at any time to amend the Declaration, as may be
required by any lending institution or public body, In in such
manner as the Declarant may determine to be necessary in its sothe
le
pdiscretioroportion ncrease
f cvommnn eroided lat xpensesr normdecmrease the lownershnot iip f common
areas 6vrne by the unit owners, change a unit owner's votiOF
ng
rights or change the size said of the
ent�oneede onlyas be eexecutedejudiGeand
the unit owners. unit owners,
acknowledged by the Declarant and the consent of the
the Association, the owner and holder of any lien encumbering a
in'this condominium, or any others
condominium unit or unit week
shall not be reluired.
the owners of unit weeks or the plan of interval ownership except
(2) This Declaration shall not be amended to alter the rights Of
venty-five 175%) percent of the owners bf
with the consent of se
owed by the Declarant herein.
all unit weeks or as all
(3) the Declarant, its successors or assigns, may, without the
consent of the unit owners or mortgagees, at any time prior to
December
31, 1999,ion ethebmanner. set 5forth and in Article er cif [[ so asto
subject the Phase I1, Phase III and Phase IV property -respectively
to the provisions of the Declaration and the condominium. Any
ogether with this Declaration, contain al
the said Unit Ownership Act of
such amendment shall, t
of the particulars required by
Korth CiSands Villas Resort shallna and from nanciude all of after the said Ph se ording Of such amendment.
Phaseeof
Ill
and Phase IV property as may be appropriate. The de the
each unit number and its proportionate interest in which
common areas and COMMn areas are set forth in Exhibit "Il",
is attached hereto and made a part and parcel hereof. 1C is not
comrnon
areas which
contemplated tthe
emareas
and
may bbsubmittedinPhas11,PhaseIII oPhaseV will substan tially increase the proportionate amount of the common expenses
payable by existing unit owners.
.ARTICLE I
Remedies 1n Event of Default
ned
k shall be
ov
The owner or owners of eachrovisionsunit d fithiseAeclaration gandrthe
by and shall comply with the p )eany of
Articles of incorporation
and By-laws aF thmay e amendedtarnsupp any o
the same are now constituted or as by the theyowner of any unit or unit week
from time to time. A default
the Association, or the owners of other
shall entitle the Declarant,
units to the following relief:
A. Failure to comply with any ar the terms of this 0eclaratiof
Ior other ncorporatianes of
tor By-LawstiOns regulations
Association, iordWhich in t maybeadopted
pursuant thereto, shall be grounds for relief Includingunctiveithourelief,
tatiun, an action to recover sums
dufo thereof.damages, Such relief may be
foreclosure of lien, or anyif aRPrSPriate, by an aggrieved unit
sought by the Association or,
owner.
g. Each unit owner hall bell liable
rerider for
the
necexary5ehyf fiis any fact,
tenance, repair. or rep
neglect, or carelessness, or 6y that tsf, or lessees of but hisfamily,
to the
ills or their guests, employees, ag
exte t by sch expense. theuAssociatlon.i Suchtmet bliab111ty proceeds
include of nyiIncrease
carr
f lr O L� -I,- Ill 'y_ D t'

e rates occasioned by use, rrlsuse,
in Fire insurancoccupancy, or ahart-
urtenances. Noticing herein contained,
donri+ent of a unit or its aPD to modify any waiver by
Insurance
however, shall be construed so a5 0
companies of rights of subrogation.
C. proceedings arising because of an alleged default by a
In any p if successful, shall be entitled to
unit owner, the Assoeiatior�oceeding and such reasonable attornu�t
recover the bEudeterminedeby the Court,. but in no event shall any
fees as may s fees.
owner be entitled to such attorney'
D, n or any or
The fce
ailure of the Assocriacondition which may it rrbe granteder to by
not
any right, provision, covenant, v
this i)eclaratlon O oFhethetrighther hOfe the to sociationm01, ofs the unit
cnustILute a rovision, covenant, or condition in the
owner to color cc such right, p
future• ranted to the
All rights, remedies, and Privtle9eS g terms.
E ursuant to any
Association or the owner or owners aF a unit P and the
provisions, covenants, or conditions of this Declaration ar other
above-mentifoaey documents,
51 shalll notbe dbemdeemeded to bto constittute an elec-
exercise o arty thus exercising the
tion of remedies, nor sl+all it preclude the P
same From exercising asuch le Other rd additpartyoatllaw gorsin equity. remedies, or
privileges as may F, The failure of the Declarant to enrorce any right, privilege,
eclaratlon
covenant, or condition which may be granted to it by this right,
6ll not constprovision,
or Other aofa
v -mentlnt dto utherearter aenfo enforce such irige a waiver v
righ
covenant, or condition in the future.
�nder or G. onal len-
The Failure ohtnpInstitutional
nsti i do alvlilege, covenant toricondition
ders to enforco any rig this Declaration or other above -
which may be granted to it or them by or
mentioned documents, partiesshall
thereafternot ienforcetute a wsucfirright, privilege,
said said party or
covenant, or condition in the future.
ARTIG_ LE X11
Ri lcts Reserved Unto instIt..tivnal Lenders
"institutional Lender" or "Institutional Lenders", as the terms
or other reputable mortgage lenders.
are used herein, shall mean and "refer to hanks, savings and ,loan de -
ciations, insurance companies,
411
So long as any institutionai lender s Institutional the owner ofany
hold any mortgage upon any unit or units, or obeli be
unit or units, such institutional lender or institutional lenders
shall have the following rights:
A. To examine, at reasonable times and upon reasonable noti�fi�
the books aof records
annualthe
financialti statement on and tob andurreport nished aofleast
one coPy 6y a certified public accountant designated by
Association, prepared
the Association, such financial statemen+. and report to he furnishe
by April 15 of each calendar year.
vciatlon of the call of any
U. To be given notice by tire ASr'
r considering
meeting of the membership to be held For the purpose o
any proposed amendment. other than as provided by Article Ill hereina-
Declaration, or the Articles of incorporation and
have, to this n, which notice shall state the nature of the
By -Laws of tt+e-Associatio
amendment being proposed.
C. To be given notice of default by any owner owning a unit
encumbered by a raurtgage held by the institutional lender or Institu-
r , !T. , r it .. -) (n '2)

Clonal lenders, such notice to he given in writing and to be sent to
the principal office of such institutionaim lender
des€gnate niniwriting.
lenders, or to the place which it or they
Whenever any institutional lender applicable to tor inst€tutloIt lenders
shall serve or
ders desire the
provisions of this Article to be ,
cause to be served written notice of such Fact upon the Association by
addressec
the unit or units upon
Segtstereds�naail ddreor ss stated theretni,l identifying the the Assoc.tation an
any units awned by them, or any
which any such institutional lender or institutional lenders hold any
mortgage ar mortgages, or identifitngar them, and which, notice shthe
of them, which may he held by to be given by
designate the Place to whtch notices are
Association to such institutional lender or institutional lenders.
ARTICLE XIII
Comarittln a llnit to Interval OwnersRf
on
A unit shall thecflrst deeid inommiitdtUd to Its, Interval ownership con eying unit weeksby
the recording o
A unit will no
file Declarant. Ha unit may be camnitted to interval ownerslrlp y any
Person or other entity other than the Declarant• the above, the
longer be co+nnitted to interval ownershipll unit weeks are
rship
owned by the same legal entity. units to
Declarant +nay assignitsrl- itt�onveysitsubstantially tall aunits eWhich
to any other entity it may assign such right to
it owns within the condominium property or
Sands Resorts, Inc.
' ARTICI-E 'IV
holdover Interval 0wnersh€
In the event ally owner of a unit week in a unit committed to
ear, or at such earlier time as may be fI4ed
interval ownership fails to vacate his unit at'the expiration of his
period of ownership each y the Association from time to
by the rules and regulations adopted by it shall he the respon-
time , tie shall be deemed a "Holdover Owner". be necessary to
slbilitY of the Association to take such steps as may
the EIDldover Owner's
anYof
osusuch bsequenitlunitrweekewhormaytbe affecteddbyo assist the Downer's
failure to vacate to find alternate accormnadations during
holdover period.
in addition to such other re+Wadies as may be available at it, the
Association shall secure, at its expense. alternate failu3cCOMre
to vacate
for
any owner who may not occupy his unit due to the failure to vacate of
any Holdover Owner. Such possible. od The Holdovler Owner shalll be as near ibevcharged
the owner's own unit as p other costs
for the cast of such alternate accommodations,
anY of
incurred due to issucfailure
adtninistrative vacate, feedw{a1cladministrative
isithe, spa ifie in
E50.00, Per day, during his period of holding over. In the
the Rules and Regulations, 9 erfod
even[ it is necessary that the Assaciatiowoveantin corder to secure
greater than the actual period of holding the entire period shall
alternate- accorraoudations as set forth above,
be the responsibility of the Holdover owner although the aforesaid
Bally administrative fee shall cease upon actual vacating by the
€luIdover Owner.
-33-

The Association shall submit a biil to the Holdover Owner in
accordance With this paragraph. in f the
elite ofesame. aeliennshallfalls
be
to pay same within ten (19) days v
fileprovisnst ofiArticlevYEll ereo'f, unit week(sl in accordance with
the provisions of Article VII shall rot abridge the Association's
right to take such other action as is provldeil by aw.
ARTICLE 11
Person to Receive service of Process
John M. Harris is hereby designated to receive service of process
to this
in any action which may be brought against or
rInrelation uf buslnessis c115
dominium, and such person 's residence cr Place
et
ll
orehe sold d Avenue,Atlaprocessntic
Beach,
ach , addr
North ssed Zo 1post2. Ar
office Drawer
dence 3099, Atlantic Beach, North Carolina 28512.
r
AIlTICI_E XYI
Warr_�nIIes
All construction warranties are contained in purchase agreements,
separate warranty instruments and/or individual deeds to original
purchasers of units or interests therein and BEGLARANT MAKES No OTHER
WARRANTIEBILITTR ORE F1INESSPLF9R� AN PARTIICULARANY
PURPOSE PLIED HEXCEPIT 1THOSE
OF
bene-
PRovloEo BY THE LAWS OF THE STATE of NORTH CAROL1NA, norranteda re tothe original
fits of any warranties, except those expressly g
purchasers extended tinaaty +y unistgorn omnonl a solders or other parties
claiming
ARTICLE 1(Y�1
Miscellaneous
Env�al�ld�it. The invalidity OF, any provision of this Oeclaratfon
sha1T not oe ueemed to impair or affect In any manner the validity and
enforceability OrFethecathortprov remainder
of hishDeclarationishall
ncanR

p, Other than as provided for In Article III hereinabove, this
or
Declaration may be amended in the fallowingmanner: byAtheeBo amendment of
amendments to this Declaration may be proposed of a
Directors,owhether f the Asmeeting soc I at oas�memberspar by on a vaneinstrumentrim writing
signed by them. Upon any amendment or amendments to this Declaration
being proposed by said Board of Directors, such proposed amendment or
amendments shall he transmitted to the President of the Association,
or other officer of the Association in the absence of the President,
who shall thereupon call a special meeting of the members of the
Association far a date not
receipt ebythan
him thirty
he 30) days prop proposed"or
amendment than
or
sixty (60) days tv lve to each
amendments. It shall be the duty of the Secretary g statingthe
member written or printed notice of such speecial meeting, or aend-
time and place thereof, and reciting the proposed
ments in reasonably detailed form, which notice shall be mailed not
less than thirty (39) days before the date set for such special
meeting. !f mailed, such notice shall be deemed to be properly given
when deposited in the United
don tattles recordsofaddressed
the Associatfonertiste
Mail
his address as it ape b written waiver of notice
postage thereon prepaid. Any member may, Y
r, waive such notice, and such waiver, w
signed by such me+nbehen filed
in the records of the Association, whether before or after the holding
Of valent to
Suchhmemberi.ng�Athtf e be deemed meeting, theiamendment or le amendmiving of n sall amendments proposed
must be approved by an affirmative vote of sixty-seven percent (67%)
of total outstanding votes, as provided in Article III of the By -Laws
and this Declaration. thereupon, such amendment or amendments of this
Declaration shall be transcribed and certified by the President and
Secretary of theAssociationofIuch amendmenteorduly adopted. a amendments, so certified he urigi-
executed
nal an execute)dcopypy
and executed with the same formalities as a deed, shall be recorded
the Office of the Register of Deeds of Carteret Countapproval of such
Carolina, within ten (10) days from the date of app date
amendment or amendments to
specifically refer to the recording
identifying the Ueclaration and to become effective only upon
amendment
id
amendmentsor
aaforesaid.
tileform in which athe ry
same wasplacedaof record by ti+e
officers of the Association sthereof Shullll be
be ared to hco dition prece-
e owners of all
units, but delivery of a copy
dent to the effectiveness of such amendment or amendments. At any
Or
meetin
aF any memberssidof ethe such
Associationtshall bedrecognized if ments, the written
at such meeting or represented there by
member is not in attendance
proxy,
ocfatiovidedsuch
written
uch meeting or atvote is lsvchemeetingd to e Secretary of the
Ass
n prior to
g. Except as is provided for in Article III hereinabove, no
alteration shall e made
utile
t topercentage
unitf orwnershiin lteration Ofrnthe
on
areas and facilities apprtenan
basis for sharing common expenses and other apportionment of
assessments which may be levied by the Association in accordance with
the provisions hereof, or alteration of basis of ownership of owners
of all units and all of the institutional lenders holding mortgages or
deeds of trust on the units.
C. No alterative, amendment, or modification of the rights and
privileges granted and reserved hereunder in favor of an institutional
lender or institutional lenders shall be made without prior written
consent
OF
all institutional
lenders holding mortgages on units in the
ng
nd
fication
D. No canted tandion� reservedn hereunder in favor ofthe
tr amenmet, or the Declarant
privileges g
shall be made without the written consent of Said party being f rs
had and obtained.
E. Notwithstanding the foregoing paragraphs of this Article:

tin'ue In full force and effect as if such invalid provisionshadnever
been included herein.
No. provisions contained In this failure
shall he
Waiver: Nsue Lo rrespective of t
have been abrogated or walv=d by reason of any ilure es
enforce the same, ihe number of violations or breaches
dPe
whidr may occur.
of
Ca tions: The captions herein ar^ inserted only as a m or
conveMb th_ s npe of nreferenceara ion error the Intent dofiany provision
no way to and or
escri
this
hereof .
Law Controlling: This Declaration and the By -Laws attached herPlo
51,a1j be cans rued and controlled by :nd under the lass of the State
of North Carollna.
Whext so
mits
Sin�culura slaluse
al GenderFfn�uTe trensireigularr,ctheesingularrshali include
aF fppT ~
the pll ural. and the use of any gender shall be deemed to Include all
genders.
- IN WITNESS WHEREOF, the Declarant has Caused this Declaration to
be executed by its duly authorized ofcers n,g85 d its corporate seal Lo
be hereunto affixed, this Lhe$Ikday of
" .• 4", .. SANDS DEVELOPMENT NURFII CARVLItIit,
ra ;' CORPORATE'.` INC.
SEAL 7
x mconrvnn+eo u+
BY, -
''•�Ory C6Ra��;�•'`•
LITIA, CARTERET C#]UI�T�`l p n
ATTEST -';' a . JJ , : #:I(OrBing CBrli!#Cale{s}
� f'.•���C _�_;;'' re) eertlfied to be correct. its Instillment was pr
ll-
cretary •�^,d tar retistratien gild recorded ill this office ill
�y
SPATE OF NORTH LAROLIPIR lii, llay.l'•Y
COUNTY OF CARTERF'T
�ia notary public In and for the
1• do hereby certify
above Td#dthat personally
above na+ d State and C +ty,
day LESLIE M. MVRof dds ve being by me
appeared before me this
duly sworn says that he is the Secretary TOM of Sands Development North
ws
president, Iand,
thatdhehk owsetheocommonaseal ofEthe Asaid Corporation;
on
that the Corporation's name was subscribed to the within Oecwithtits
by its President and was attested by h mselfas Secretary,
Board of
Corporate seal thereto affixed, and all by order
that the said instrument is the act and deed
Directors duly given, and
of said Corporation.
notarial seal, this _
day of August,
WITNESS my hand and
1985.
NOTARY
FLOWS,, fA— ion Expires: //

EXHIBIT "A-1"
Legal Description of Prop erty for Future phases
w
additionin the
Decla ant shall tithe right property
described
it
option to construct additional
units on the following described property or any portion or portions
thereof; and to submit those .units and property to this Declaration by
amene no more
thandment threeas provided in (3) additional phases iPhase II rllnsha l consist . There lofbthat par-
cel of land indicated as Phase II on kurvey by Fioydi Coleman, Askins
and Kellahan, dated My 10, 1985, revised duly 23, 19851 and being a
part of Exhibit "C".. phase ill and phase IV, if. submitted,«shall be
on a portion or portions of the property described below with the
exception of phase I and Phase 11 and as indicated as Future
Development on a survey by Floyd{ colemani Askins, and Kellahan, dated
July 10, 19851 revised July 23, 19861 said survey being a part of
ExhithisbiDeclarati n,Cethe then Declarant s ertY righteto add additionalsubmitted
phases
shall cease:
BEGINNING at a concrete marker located In the northern right-af-way of
N.C. Highway 58 (Fort Macon Road); said corner being the southwest
corner of Triple ESS Shores and the southeast corner of the property
known as Sound Watch Trailer Park- and .running thence across N.C.
Highway 58 5 04-3146 W, 49.41 feel to a nail in the center line of
N.C. Highway 58; thence running, S O4-24-30 W, 49.83 feet to a
concrete marker located in the southern right-of-way line of N.C.
Highway 58; thence running S O4-30 Wi 1290,05 feet to a point in the
high tide line of the Atlantic Ocean; thence WJth the high tide line
of the Atlantic Ocean H 16-46-20 W, 778,79 feet to a point in the
eastern right-of-way line of 3rd Street, Club Colony (extended);
thence with the said right-of-way line N 04-12-40 E, 401.136 feet to a
concrete marker in the northern right -of -Way line of an unnamed 4O
foot street in Club Colony; thence With said right-of-way line N
77-42-15 W, 66.46 feet to an iron marker in the northern right-of-way
line of an unnamed street; thence with the wattero line of property
owned by Shelby M. Freeman And crossing the right-of-way of N.C.
Highway 58 N 01-25-17 E, 959A2 feet to An iroh marker located on edge
of marsh line;. thence with the marsh lloe, established by the Office
of Coastal Management on August 8, 19841 running the following courses
and distances: N 65-29-55 E, 52.62 feet to a point; thence N 44-29-06
E, 32.85 feet to a paint; thence N 21-09-14 E, 62,09 feet to a point;
thence S 82-55-23 E, 71,91 feet to a point; thence S 40-22-36 E, 87.24
feet to a point; thence S i1-46-59 t, 33:65 feat to A point; thence S
4844-57 E, 25.10 feet to A point; thence N 85-25-29 E, 58.63 feet to
a point; thence N 12-38-35 Wi 67.02 feet to a point; thence N 84-18-36
E, 90.57 feet to A point; thence 5 49-14-89 ti 59172 feet to, a point;
thence S 88-51-45 E, 32.03 feet.to a Pettit' thence 5 00-10-00 W, 43.11
feet to a point; thence S 27-50-02 E, 43,43 feet to a point; thence S
60-10-14 E, 52.84 feet to A paint; thencd N 80-30-22 E, 26.35 feet to
a paint; thence N 42-21-17 E, 39:37 fdet.to A point; thence h 66-52-47
E, 31.86 feet to a point; thence S 89-44-14 t{ 46,33 feet to a point;
thence N 70-41=05 E, 62.45 feet to a point' thence S 47-39-17 E, 42.86
feet to a point; thence S 75-56-57 Ei 28,46 feet to a point; thence N
33-29-53 E, 59:84 feet to A point; thence N 87-36-06 E, 27.64 feet to
a paint; thence S 12-59-62 E, 45.44 feet to A paint; thence N,88-56-46'
E, 35.00 feet to a point' thence N 46-01-19 E, 21 A feet to an iron
marker; said iron marker going located ih the Wektern property line of
Triple ESS Shores; thence with the wdktei-ri line of Triple ESS Shores
property 5 04-31-42 Wi 120.00 feet to the toncrete marker located at
the point of beginning.
Less and except that tract of real property described on Exhibit "A"

EXHIBIT "A"
Legal Description of Proper Suhmitted as Phase_I
PHASE I:
BEGINNING at a ;concrete marker located in the
southern right-of-way of H.C. Highway 98 (Fort
Macon Raad); said marker being located S O4-24-30
W, 49.83 feet from a nail in the tenter tine of
N.C. Highway 58; and said paint in center line
being located S O4-31-26 W, 49.41 feet from a
concrete marker located in the northern right -of -
way -of M.C. Highway 58 (fart Macon Road); said
point being the southwest corner of Triple ESS
Shores and the southeast corhar of the. property
known as Saund.Watch Trailer Park; and running from i
the beginning point S O4-30 Wi 1290405 feet to the
high water mark of the Atlantic Ocean;, said point
berg the southeastern torner of the property for
merly known as Sedwdtch Estates; hUnning thence H
76-46.w20 W 382.0 feet to a point In the high water
mark of the Atlantic Ocean; thence N 04-30 E,
243.g7 feet to a paint; then H 85-30 W, 120.00
feet to a point; thence N 04-3 E, 980JO feet to a
point in the southern right-of-way fine H.C.
Highway 50, thence with the soutfiarn right-of-way
line of H.C. Highway 58 S 88-31-15 Eb 496,74 feet
to the point and place of beginning,
There Is excepted from the above description, that
parcel of land designated ds-hhasa 11 an the plat
entitled "Sands Villa Resort"I pro Arad by Floyd,
Coleman, Askins and kellahan,.dated JUly 19 1985;
and beingg a part of Exhibit "C'i, recorded WUh thls
veclaratlan.
.. Y
v

Y
r ' %Legal !Q#scri.btian af:.Prooe'ty Spitted as: hase I
PHASE I:
.BEGINNING',.a� ..a w.a.concretie­,marker-locited in:`:the r
=' -southern,.'righ Hof -way of ..;k.C...H?r�i;way 58.. {Fort
t4ac^a.. Read„ ..said .marker .being located :S O4-24-30
.49:83:- feet,;from , a nail: in the! ..tenier line of
�,�: _: 58::'and:'said
-point in •.center .Tire
located. S.--04-3I-26 , W,...;.49.43 . feet .from a
concrete =rker. ocated-in :thee°northern -rlaht-of-
way .4f N.C.: HIghMay "68 .{Fort .4i�!-en Road):. said
point being the .:.southwest,, corner of Triple ESS
Shores., and.,the .southeast, corner:.of .the property
known as :.Sound_ Watch Trailer Park; .and .running fromthe.beginnIng point IS O4-30 Y,. 1290.05•feet to the
high ..water -mark _of: -the -Atlantic., Ocean; ..said.:Point
being the Shc7theastern corner bf the property for-
merly known as Seawatch' Estate:,; running thence ii
16-46-20. W .382.43 feet. to. a.point in the high water
mark of' the. Atlantic Ocean; thence -N 04-30 E.
243.97 feet to a point; .thence ff.85-30 W. 120.00
feet to a. point; thence N 04-30:f, 960.90 feet to a
point . in the southern right -of -gray line N.C.
Highway. 58; thence with the. southern right-ofwway
line'of W.C. Highway 58 S 88-37-15 E,:498.74 feet
to the point and place.of beginning.
There is excepted from the above description, that
parcel ,of land designated as Phase II on the plat
entitled "Sands Villa Resort ",.prepared by Floyd,
Coleman, Askins-and Kellahan, dated July 10, 1985;
and being apart of Exhibit "C", recorded ;jith this
Declaration.
_ ry

EXHIBIT "A-1"
Legal Oescri tion of pro sr#v for Future Phases
In addition to the Phase I property described in Exhibit "A", the
Declarant shall have the right and option to coc trust additional
units or, the following described property or any portion orportions
thereof; and to submit those units and property to thi. Declaration by
amendment as provided in Article III herein. There shall be no more
than three (3) additional )hases. Phase 11 shall consist of that par-
cel of land indicated as Phase II on survey by Floyd, Coleman, Askins
and Kellahan, dated July 10, 1985, revised July 23, 1985, and being a
part of Exhibit "C". Phase III and Phase IY, if submitted, small be
on a portion or portions of the property described below with the
exception of Phase I and Phase it and as indicated as Future
Coleman, Askins, and Ke]lahan, dated
Development on a survey by Floyd,
July 105 1985, revised July 23, 1985; said survey being a part of
ExhithisbiDeclaration,Cethe entire then Ceclarant'seightelow has been submitted
to add additional Phases
,-shall cease:
BEGINNING at a concrete marker located in the northern right-of-way of
N.C. Highway 58 (Fort Macon Road); said corner being the southwest
corner of Triple ESS Shores and the southeast corner of the property
known as Sound Watch Trailer Park; and running thence across R.C.
Highway 58 S O4-31-26 W, 49.43 feet co a nail iW the 83center line oa
N.C. Highway 58; thence running
concrete marker located in the southern right-ef-way line of N.C.
Highway 58; thence running S O4-30 W. 1290.05 feet to a point in the
high tide tine of the Atlantic Ocean; thence
wj the high
tide line
of the Atlantic Ocean N 76-46-20 W,
eastern right-of-way line of 3rd Street, Club Colony (extended);
thence with the said right-of-way line N 04-12-40 E, 401.05 feet to a
40
footete streeter in inClubhe northern Colony; thence with wsaidine of an right -of -day unnamed
e
77-42-15 W, 66.46 Feet to an iron marker to the northern right-of-way
line of an unnamed street; thence with the western line of property
owned by Shelby M. Freeman and crossing the right-of-way of R.C.
Highway 58 N 01-25-17 E, 959.12 Feet to an iron marker located on edge
of marsh line; thence with the marsh line, established by the Office
of Coastal Management on August 8, 1964, runni-ng the following courses
and distances: N 65-29-55 E, $2.62 feet to a point; thence N 44-29-06
E, 32.85 feet to a paint; thence N 21-09-14 E, 52.09 feet to a point;
thence S 82-55-23 E, 71.91 feet to a point; thence S �!0-22-36 E, 87.24
feet to a point; thence S 11-46-59 E, 33.65 feet to a point; thence S.
48-14-57 E, 25.10 feet to a point; thence N 85-25-29 E, $8.63 feet to
a point; thence 1i 12-38-35 W, 67.02 feet to a point; thence N 84-18-36
E, 90.57 feet to a point; thence S 49-14-52 E. 59.72 feet to a peirt;
thence S 38-51-45 E, 32.03 feet to a point; thence S 00-10-00 W, 43.11
feet to a point; thence S 27-50-02 E, 43.43 feet to a point; thence S
60-10-14 E, 52.84 feet to a point; thence N 80-30-22 E, 26.35 feet to
a point; thence 0 42-21-17 E, 39.37 feet to a point; thence N 66-52-47
E, 31.86 feet to a point; thence S 89-44-14 E, 46.33 feet to a point;
thence N 70-41-05 E, 62.46 feat to a point; thence S 47-39-17 E, 42.86
feet to a paint; thence S 75-56-57 E, 28.46 feet to a point; thence N
33-29-53 E, 59.84 feet to a point; thence N 87-36-06 E, 27.64 feet to
a point; thence S 12-59-52 E, 45.44 feet to a point; thence h 88-56-46
E, 35.00 feet to a point; thence N 46-07-18 E, 21.83 feet to an iron
marker; said iron marker being located in the western property line of
property,S D4-31-42tW, 1 20.00 feet tosthe c ncrete marker loca.tedrat
the point of beginning.
Less and except that tract of real property described on Exhibit "A
m.
�. k t) - � C) -�

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In the cast of a unit co mitted to Interval Ownership, earh owner of
unit ae s in said unit, other than the Association when Association's
interest is for maintenance purposes only, wil i own In remainder, a
percentage share of the unit and the percentage interest assigned to
the suit by Exhibit -B" according to the following:
Each owner of a unit week within a unit shall have
a 1/51 interest therein and shall be responsibla
for 1/51 of the cow.on expenses of said ur+it.
cxt�'K ��-.. --PG-3 e, 4t3

pr
rysn, nie„`"
xs,
.EXkItBIT,�°,G° - ..
graphic detcriPtiun and Plans of the iSarridsE�ents 411a Resort tuttlantic
r the same being. entitled.."• _ is
condomif, A.
-Beach 9lorth Carolina for Sands inves�aents (Sands acts, i ent identifying
' ■ :Tik'lbes, �j ius,u .and..Usry, architects,
,identifying
'Carolina..Incj% Y
te plar,
'the condrsiot-- .units and coon ar Phased -I—,— 'Atlantic�nUach� North
Ca oll a; `ar Conda'oinil� Project developed by.5ands I3vest„ants. kin
" by Floyd, Cole► l), ps[cins
i (Sands, DeveloPr"ani:..Rortts Carolina,• Inca 1985, revised
and Kellahan, engineers and surveyors, dated July Yi3,
July 23. 1985, identifying the Candamini X__llnatspagee ott Carteret
Facilities are recorded in Platcorporated herein y reference and
County Registry, the saeae being
referred to throughout this Declaration as Exhibit "C".

s BY -LAMS OF
SANDS YILLR RESORT ?fOME04fHER5' ASSOCIATION lNC.
ARTICLE I
Plan of Unit Ownershi
I. The property described in the Declaration attached hereto has
been submitted to the provisions of Chapter 47A of the North.Carolina
General Statutes by said Declaration as the same relates presently to
Phase I, and these By -Laws and any Amendments thereto shall apply to
said Phase I and any later Amendments to said Declaration with regard
to additional phases of said property. "Sands Villa Resort"
(hereinafter referred to as "Condominium") shall consist, initially,
of Phase I as shown on Exhibit "A" attached to said Declaration, and
at the Declaration, tioshall also n of the Declarant,
o, additional by respective
phasesm of endmsaid E hibients to t
"A",
2.' The provisions of these By -Laws are applicable to the pro-
perty of the Condominium, initially Phase 1, and hereafter as to
additional phases. The.term "property", as used herein, shall include
the lands, buildings and all improvements thereon (including the
units, the common areas and facilities and the limited common areas
and facilities), owned in fee simple absolute, whether fee simple of a
Unit in its entirety or by interval ownership, and all easements,
rights and appurtenances belonging thereto, and all other property,
wpersonal
o
hichareintend d,Intended
n
tobesubmitted to thecprovisions therewith,
Chapter 4l� o{
the North Carolina General Statutes in the manner prescribed by the
Declaration as to all phases of said Condominium.
{' 3. All present and future owners (including owners of an inter -
V
al ownership interest), mortgagees, lessees and occupants of units
and their employees, and any other persons who may use the Facilities
of the property in any manner, are subject to the Declaration, t�ese
By Laws and Rules and Regulations made pursuant hereto and any
Amendment to these By -Laws upon the same being passed and duly set
forth in the minutes of "Sands Villa Resort" Homeowners' Association,
Inc. when duly recorded in the Office of the Register of Carteret County, North Carolina. Deeds,
The acceptance of a deed of conveyance, including a deed to
an interval ownership interest, or the entering into of a ]ease or the
act of occupancy of a unit shall constitute an agreement that these
By -Laws (and any Rules and Regulations made pursuant hereto) and the
provisions of the Declaration, as they may be amended from. time to
time, are accepted, ratified, and will be complied with.
ARTICLE II
Definitions
The following terms as used in these By -Laws shall following meanings: have the
A. DEVELOPER shall mean Sands Development North Carolina, Inc.,
and any successor in interest by merger or express assignment of the
rights of DEVELOPER hereunder by instrument executed by DEVELOPER and
.recorded in the' Office of the Register of Deeds of Carteret County,
North Carolina —
UNIT WEEK means one (I) •week of use in one (1) of the con-
dominiums oc1- ated on phase I of 'Sands Villa Resort" when such unit,
at the discretion of the DEVELOPER, has been subjected to a plan of
interval ownership by the DEVELOPER.
C. INTERVAL or INTERVAL OWNER shall designate the owner or
ownership a the use period in one of the units subjected to int=real
ownership by the DEVELOPER.

D. OWNER shall include the owners of intervals as well as the
sale owner, in fee simple, of all of the units in Phase I, "Sands
Villa Resort", whether or not such unit has been subjected to a plan
of interval ownership.
E. UNIT OWNER shall refer to the owner(s) of one or more con-
dominium un is wh ch have not been converted into interval ownership.
E. AGENT shall mean the management firm appointed by the Beard
of Directors to manage the affairs of the corporation,
G. OWNERS' ASSOCIATION shall mean the unincorporated group of
the owners of a the intervals of any individual units together with
those individuals, firms or corporations having fee simple title to a
single unit which has not been subjected to interval ownership.
ARTICLE III
Membership and Voting Rights
I. All persons, firms, partnerships and corporations who shall
become owners of. any unit or units or any interval within "Sands Villa
Resort" shall automatically become members of "Sands Villa Resort"
Homeowners` Association, Int.,•a not for profit corporation, and shall
be entitled to voting rights as hereinafter set forth. The interest
Of a member and the funds and assets of the corporation cannot be
assigned, hypothecated or transferred in any manner, except as an
appurtenance to his unit and/or interval. The funds and assets of the
corporation shall be owned solely by the corporation subject to the
limitations that the same be expended, held or used for the benefit of
the membership and for the purposes authorized herein.
On all matters on which the membership shall be entitled to
vote, the unit owner and/or interval owner shall have the following
vote:
(a) The owner of a fee simple interest and title to a con-
dominium unit(s) shall be entitied to one (1) vote `or
each unit so owned. The Developer shall be considered
the owner of a fee simple title to a unit so long as the
same has not been committed to a plan of interval
ownership or otherwise conveyed by the Developer to a
third party.
(b) Where a unit has been subjected to a plan of interval
ownership by the Developer, such owner of an interval
�3 1 shall be entitled to one -fifty-first (1/51) of one (1)
vote per interval owned.
(c) Unless otherwise provided, A quorum at members'' meetings
shall consist of persons entitled to cast a majority
(fifty-one pErcent (51%) of the votes eligible to be
cast) of the votes of the entire membership. The
joinder of a member and the action of a meeting by
signing and concurring in the minutes thereof shall
constitute the presence of such person for the purposes
of determining a quorum.
(d) The vote of owners of a unit and/or interval owned by
more than one person or by a corporation or other entity
shall be. cast by the person named in a certificate
signed by all of the owners of the unit and/or interval
and filed with the Secretary of the Association„ and
such certificate shall be valid unitl revoked by a sub-
sequent certificate. If such a certificate is not on
file, the vote of such owners shall not be considered in
determining the requirements for a quorum, or for any
other purpose.
(e) votes may be cast in person or by proxy. Proxies shall
be valid only for the particular meeting designated
-2-

N_ .
thereon and must be filed with the Secretary before the
appointed time of the meeting.
(f) Approval or disapproval of a unit owner or interval
owner upon any matters, whether or not the subject of an
Association meeting, shall be by the same person who
would cast the vote of such owner if in an Association
meeting.
(g) Except where otherwise required under the provisions of
the Articles of Incorporation of the Association, or
these By -Laws, or where the same may be otherwise
required by law, the affirmative vote of the owners of
the majority of the units and/or intervals represented
at any duly called members' meetings in which a quorum
is present shall be binding upon the members.
2. For each unit not subjected to interval ownership by the
Developer there shall be. one person with respect to each unit
ownership who shall be entitled to vote at any meeting of the unit.
..owners. Such person shall be. known and hereafter referred to as the
"voting member". Such voting member may be the owner or one of the
group Composed --of all of the owners of a unit or may be some person
designated by such owner or owners to act as proxy on his or their
behalf and who need not be an owner. Such designation shall be 'jade
in writing to the Board and shall be revocable at any time by written
notice to the Board by the owner or owners and the Board shall note
such revocation, when received, in the minutes of the Board of
Directors. Each voting member (including the Board of Directors and
Sands Development North Carolina, Inc., ar its respective designees,
If either shall then hold title to one or viore units) shall be
entitled to one vote, that is to say, there shall be one vote per
unit. If only one owner of a unit votes, in person or by proxv, it
shall be presumed that he was the authorized voting member. Written
designation as provided above shall rebut that presumption.
unit has
ownershipbythey Developer, been eachsownerteof.tan aPlan intervalf Inteal
Shallrvbe
rf entitled to one fifty-first (1/51) of one vote per interval owned.
Any representative of Sands Development North Carolina, Inc.,
serving on the Board of Directors, shall not be required to disqualiL�
himself upon any vote upon any management contract or other matter
between Sands Development North Carolina, Inc., and the Association,
where Sands Development North Carolina, Inc, may have a pecuniary or
other interest. Similarly, Sands Development North Carolina, Inc., as
a member of the Association, shall not be required to disqualify
Itself in rshiof the
Association upon v any managementote which ycontract come before
e othematter e between Sands
Development North Carolina, Inc., and the Association where Sands
Development North Carolina, Inc. may have a pecuniary or other
interest.
lil
�ng'amember shallbe entitled .ta. vbt
�t'hecandydate ig est um er�ofvotes with respect
4. Any unit owner or interval owner may, at any time, waive
notice of any meeting of the owners in writing, and such waiver shave
be deemed equivalent to the giving of each notice. Attendence by a
unit owner or an interval owner at any meeting of the owners shall
constitute a waiver of notice by him of the time and place thereof
except where a unit owner attends a meeting for the express purpo3e of
Objecting to the transaction of any business because the meeting was
not lawfully called, If all the voting members are present at any
meeting of the owners, no notice shall be required and any business
may be transacted at such meeting.
5. Any action which may be taken at a meeting of the unit owners
and interval owners may be taken without a meeting if a consent in

writing, setting forth the action so taken, shall be signed by all of
the persons who would be entitled to vote upon such action at a
meeting (that is, the voting members), and filed -with the Secretary of
the Association to be kept in the Association Minute Book,
ARTICLE IV
Annual and Special Meetings of Membership
1. The Annual Members' Meeting shall be held at the office of
the Association at 10:00 o'clock a.m., Eastern Standard Time, on the
fourth Saturday in April of each year for the purpose of electing
Directors and of transacting any other business authorized to be tran-
sacted by the members; provided, however, that if that day is a legal
holdiay, the meeting shall be held at the same hour on the next suc-
ceeding Saturday.
2. Special Members' Meetings shall he held whenever tailed by
the President or Vice President or by a majority of the Board of
Directors, and most be called by such officers upon receipt of a writ-
ten request from members of the Association owning a majority of the
units.
Notice of all members' meetings, regular, or special, shall be
given by the President, Vice President or Secretary of the
Association, or other officer of the Association in absence of said
officers, to each member, unless waived in writing, such notice to be
written or printed and to state the time and place and object for
which the meeting is called. Such notice shall be given to each
member not less than ten (10) days nor more than sixty (60) days prior
to the date set for such meeting, which notice shall be mailed or pre-
sented personally to each member within said time. If presented per-
sonally, receipt of such notice shall be signed by the member,
indicating the date on which such notice was received by him. If
mailed, such notice shall be deemed to be properly given when depo-
sited in the United States mail addressed to the member at his post
office address as it appears on the records of the Association, the
Postage thereon prepaid. Proof of such mailing shall be given by the
Affidavit of the person giving the notice. Any member may, by written
waiver of notice signed by such member, waive sdch notice, and such
notice, and such waiver, when filed in the records of the Association,
whether before or after the holding of the meeting, shall be deemed
equivalent to the giving of such notice to such member. If any
members' meeting cannot be organized because a quorum has not been
—attained, or because the greater percentage of the membership required
to Constitute aquorum for particular purposes has not attended,
wherever the latter percentage of attendence may be required as set
forth in the Articles of Incorporation, these By -Laws or the
Declaration, the members who are present, either in person or by
proxy, may adjourn the meeting from time to time until a quorum, or
the required percentage of attendence greater than a quorum, is pre-
sent.
3. At meetings of membership, the President shall preside, or in
the absence of him, the membership shall select a chairman.
4. The order of business at Annual Members' Meetings, and, as
far as practical, at any other members' meetings, shall be:
i) Calling of the roll and certifying of proxies
ii) Proof of notice of meeting or waiver of notice
iii) Reading of minutes
iv) Reports of officers
v) Reports of Committees
vi) Appointment of Chairman of Inspectors of Elections
vii) Election of Directors
viii) Unfinished business
ix) New business
x) Adjournment
ARTICLE V
t -4 -

ON
Board of Directors
1. The first Board of Directors of the Association and suc-
ceeding Boards of Directors shall consist of five (5) persons. At
least a majority of the Board of Directors shall be members of the
Association, or shall be authorized representatives, officers, or
employees of a corporate member of the Association. The Developers,
however, are expressly permitted to serve on the Board of Directors so
long as any units or intervals•remain unsold.
There shall be an "Initial Board" of Directors elected so as
to provide staggering terms for the continuity and efficiency of the
Board and its members. The "Initial Board" so elected at the Annual
Meeting of the members shall be elected to serve for the following
terms: one (1) director shall be elected to serve for a term of on!
(1.) year; two (2) directors shall be elected to serve for a term of
two (2) years; and two (2) directors shall be elected to serve f;r a
term of three (3) years. The be
of the length of the 'erm
of each director shall be determined by the number of votes cast, the
more votes being cast for each director by the members, the lc�ger
their term.
- any-membee e#-thE--fr.a1
�.,. �� Boardl thereafter th Directors so elected as their suc_ce•s•sn�s"at the
.� Annual Meeting of a members each year shal he-fSF"a^'-term of two r,2)
! V, years: The two ( years shall e
each Director's elect �"�m` she Annual Meeting following
vided or a a' ems removed in the manner elsewhere pro-
e provided by law for the removal of Directors of
Nnz�- ar-ol4na-GOr[aora-ti" -r F,, .,--CA,
2. Election of Directors shall be conducted in the following
manner:
(a) Al.l.'members .,of.,the _Board ..of:.Directors shall be elected
by a plurality of the votes cast at 'tfie" Annual:'Neetlnj: of the Members of the Association'.
(b) Vacancies in the Board of Directors may be filled until
the date of the next Annual Meeting by the remaining
Directors.
(c) ne�ec t nno�#hie Directbrs,th
ere,
shall bea"Pig
tenant to each unaL and/or •Snterval as; manyva*es far Drecors�°asthere e'D.tirectors to be elected as set
forth in Article III of these By_'Laws.
3. The organization meeting of a newly elected Board of
Directors shall be held within ten (10) days of their election, at
such time and at such place as shall be fixed by the Directors at the
meeting at which they were elected, and not Further notice of the
organization meeting shall be necessary, provided a quorum 'shall be
present.
4. Regular meetings of the Board of Directors may be hell at
such time and place as shall be determined from time to time ty a
majority of the Directors. Notice of regular meetings shall be given
to each Director, personally or by mail, telephone or telegram, at
least three (3) days prior to the day named for such meeting, unless
notice is waived.
5. Special meetings of the Directors may be tailed by the
President, and must be called by the Secretary at the written request
of one-third of the votes of the Board. Not less than three (3) days'
notice of a meeting shall be given to each Director, personally, or
by mail, telephone or telegram, which notice shall state the time,
place and purpose of the meeting.
G. Any Director may waive notice of a meeting before or after
the meeting, and such waiver shall be deemed equivalent to the giving
of notice.
Cc
�y -5-

7. A quorum at a Directors` meeting shall consist` of the
Directors entitled to cast a majority of the votes of the entire
Board. The acts of the Board approved by a majority of the votes pre-
sent at a meeting at which a quorum is present shall constitute the
acts of the Board of Directors, except as specifically otherwise pro-
vided in the Articles of Incorporation, these By -Laws or the
Declaration, If any Directors' meeting cannot be organized because a
quorum has not attended, or because the greater percentage oe the
Directors required to constitute a quorum for particular purposes has
not attended, wherever the latter percentage of -attendance may be
required as set forth in the Articles of Incorporation, these By-:aws
or the Declaration, the Directors who are present may adjourn the
meeting from time to time until a quorum, or the required percentage
of attendence if greater than a quorum, is present. At any adjourned
meeting, any business which might have been transacted at the meeting
as originally called may be transacted without further notice. The
joinder of a Director in the action of a meeting by signing and con-
curring in the minutes thereof shall constitute the presence of such
Director for the pupose of determining a quorum.
8. The Presiding Officer of Directors' Meetings shall be the
President. In the absence of the President, the Directors present
shall designate.one of their number to preside.
9:_.-Directors' fees, if any, shall be determined by the members.
la ,. The Board of Directors shall manage and direct the affairs of
the Association and subject to any restrictions imposed by law, or
these By -Laws, may exercise all of the powers of the Association sub-
ject only to approval by the owners when such is specifically required
of these By -Laws. The Board of Directors shall exercise such duties
and responsibilities as shall be encumbent upon it by law, or these
By -Laws, if it may deem necessary or appropriate in the exercise of
Its powers and shall include, without limiting the generality of the
foregoing, the following:
(a) To make, levy and collect assessments against members
and members' unit and/or interval to defray the costs of
the Association and to use the proceeds of said
assessments in the exercise of the powers and duties
granted unto the Association;
(b) The maintenance, repair, replacement, operation, sur-
veillance and the management of the Cemmon areas, units
and facilities wherever the same is required to be done
and accomplished by the Association for the benefit of
its members;
(c) The reconstruction of improvements after casualty and
the further improvement of the property, real and
personal;
(d) To make and amend regulations governing the use of the
property, real and personal, so long as such regulalons'
or amendments thereto do not conflict with the restric-
tions and limitations which may be placed upon the use
Of such property under the terms of the Articles of
Incorporation or these By -Laws;
(e) To contract for the management of the areas and facili-
ties ofnthethe
Powersproject
andand
dutiesdesignate
Association,�tractor
except
those which may be required by the By -Laws to have
approval of the Board of Directors or membership of the
Association..
(f) To enforce by legal means the provisions of the Articles
of Incorporation and By -Laws of the Association, and the
regulations hereinafter promulgated governing the use of
the property.
(g) To pay all taxes and assessments which are liens against
any part of the property governed by the Association,
5

and to assess the same against the members and their
respective units and/or intervals subject to such
liens.
(h) To carry insurance for the protection of the members and
the Association against casualty and liability.
(i) To pay all costs of power, water, sewer and other uti-
lity services rendered to or for the benefit of the
owners and not billed to the owners of the separate
units and/or intervals; and
(j) To employ personnel for reasonable compensation to per-
form the services required for proper administration of
the purposes of the Association as well as the dismissal
of said personnel.
11. The first Board of Directors of the Association shall be
comprised of the five (5) persons designated to act and serve as
Directors in the Articles of Incorporation, which said persons shall
serve until Developer's right to appoint Directors has expired as pro-
vided herein.
So long as the Developer is the owner of five (5) or more
units; or the majority of unit weeks in five (5) or more units; or has
the right to add additional phases, the Board of Directors of the
Association shall consist of those individuals appointed by the
Developer to the initial Board of Directors of the Associaticn, as
stated in the Articles of Incorporation, or their successors or repla-
cements, as provided for in the By -Laws or this Declaration.
Should -any member of said first Board of Directors be unable
to serve for any reason, a majority of the remaining members cr the
Board of Directors shall have the right to select and designate a
party to act and serve as a Director for the unexpired term of said
Director who is unable to serve.
12. The undertakings and contracts authorized by said first Board
of Directors shall be binding upon the Association in the same nanner
as though such undertakings and contracts had been authorized "y the
first Board of Directors duly elected by the membership after the pro-
perty identified herein has been submitted to the plan of condominium
ownership and said Declaration has been recorded in Carteret County
Public records, so long as any undertakings and contracts are within
the scope of the powers and duties which may be exercised by the 8oard
of Directors of the Association in accordance with all applicable con-
dominium documents.
ARTICLE VI
Additional Provisions About Meetings of Members and Directors
I. Notwithstanding anything contained in these By -Laws to the
contrary, any meeting of members or Directors may be held at any place
Within or without the State of North Carolina or which notice is given
in the notice of any such meeting or notice of which is waived by any
person otherwise entitled thereto, at during or after any such
meeting.
2. To the extent now or from time to time hereafter permitted by
the laws of North Carolina the Directors may take any action which
they might take at a meeting of Directors without a meeting, a record
of any such action which they might take 'at a meeting of Directors
without a meeting, a record of any such action so taken, signed by
each Director, to be retained in the Association's Minute Book and
given equal dignity by all persons to the minutes of meetings duly
called and held.
ARTICLE VII
Officers

1. The executive officers of the Association, shall be a
President, who shall be a Director, a Vice President, who shall }e a
Director, a Treasurer, Secretary and an Assistant Secretary, a1T of
whom shall be elected annually by the Board of Directors and who may
be peremptorily removed by vote of the Directors at any meeting. Any
person may hold two or more offices, except that the President shall
not also be the Secretary or an Assistant Secretary. The Boarcl of
Directors shall from time to time elect such other officers and
designate their powers and duties as the Board shall find to be
required to manage the affairs of the Association.
2. The President shall be the chief executive officer of the
Association. He shall have all of the powers and duties which are
usually vested in the office of the president of an association,
Including but not limited to the power to appoint committees from
among the members from time to time, as he may 1n his discretion
determine appropriate, to assist in the conduct of the affairs of the
Association.
3. The Vice President shall, in the absence or disability of the
—President, exercise the powers and perform the duties of President.,
He shall also generally assist the President and exercise such other
powers and perform such other duties as shall be prescribed by the
Directors.
4. The Secretary shall keep the minutes of all proceedings of
the Directors and the members. He shall attend to the giving and
serving of all notices to the members and Directors, and such other
notices required by law. He shall have custody of the seal of the
Association and affix the same to instruments requiring a seal when
duly signed. He shall keep the records of the Association, except
those of the Treasurer, and shall perform all other duties incident to
the office of secretary of an association and as may be required by
the Directors or President. The Assistant Secretary shall perform the
duties of Secretary when the Secretary is absent.
5, The Treasurer shall have custody of all of the property of
the Association, including funds, securities and evidences of indeb-
tedness. He shall keep the assessment rolls and accounts of the mem-
bers; he shall keep the books of the Association in accordance with
good accounting practices; and he shall perform all other duties inci-
dent to the office of Treasurer.
6. The compensation of all officers and employees of the
Association shall be fixed by the Directors. This provision shall not
preclude the Board of Directors from employing a Director as employee
of the Association, nor preclude the contracting with a Director or
other firm or individual for the management of the condominium.
ARTICLE VIII
Fiscal Management
The provision for fiscal management of the Association set forth
in the Articles of Incorporation shall be supplemented by the
following provisions:
I. The assessment roll shall be maintained in a se; of
accounting books in which there shall be an account for each
unit and/or interval. Such an account shall designate the
name and address of the owner or owners, the amount of each
assessment against the owners, the dates and amounts of each
assessment against the owners, the dates and amounts in which
assessments come due, the amounts paid upon the account and
the balance due upon assessments.
2. The Board of Directors shall adopt a budget for each calendar
Year which shall contain estimates of the cost of performing
the functions of the Association including but not limited to
the following items:
(a) Common expense budget, which shall include, without
limiting the generality of the foregoing, the estimated

amounts necessary for maintenance and operation of
landscaping, street and walkways, office expense,
swimming pool, utility services, casualty insurance,
liability insurance, administration and reserves
(operating and replacement), or the contractural costs
attendant to the hiring of a professional management
firm.
(b) Proposed assessments against each member. Copies of the
proposed budget and proposed assessments shall be
transmitted to each member on or before January 1 of the
year for which the budget is made. If the budget is
subsequently amended before the assessments are made, a
copy of the amended budget shall be furnished each
member concerned. Delivery of a copy of any budget or
amended budget to each member shall not affect the
liability of any member for any such assessment, nor
shall delivery of a copy of such budget or amended
budget be considered as condition precedent to the
effectiveness of said budget and assessments levied pur-
smuanzt thereto, a6d , nothing herein conta_ined,. shall be'
construed :as restricting the H gfit.:af the Board of
Direc=tors :to at any time in their sole discretion levy,
an akli%nal assessment in tie event that the budge"t "
originally adopted' shall' appear to b'e insufficient to
p.ay costs and expenses=,taf operation 'and management, or
i`n 'the event of emergencies.
3. The Board of Directors shall determine the method of payment
Of such assessments and the due date thereof and shall notify
the members thereof. The assessments will initially be on a
monthly basis unless changed by a vote of the majority of the
Board of Directors. A unit committed to interval ownership
shall collect assessments of interval owners and make one
i payment to the Association,
4. The Board of Directors of the Association shall fix and
determine from time to time, the sums. necessary and adequate
for the maintenance fee on condominium units committed to
interval ownership. The maintenance fee on such units shall
include the items specified in the Declaration to which these
By -Laws are attached,
5. The depository of the Association shall be such bank or banks
as shall be designated from time to time by the Directors and
in which the monies of the Association shall be deposited.
Withdrawl of monies from such accounts shall be only by check
signed by such persons as are authorized by the Directors.
G. An audit of the accounts of the Association shall be made
annually by a Certified Public Accountant, and a copy of the
report shall be furnished to each member not later than April
1 of the year following the year for which the report is
mad
7. �FdeIity__bd ds may berequired by the Board of Directors from
officers and employees of the Association and from any
contractor handling or responsible for Association funds.
The amount of such bonds shall be determined by the
Directors, but shall be at least the amount of the total
annual assessments against members for common expenses. The
premiums on such bonds shall be paid. by the Association,
8. The keeping of records, payment of accounts, etc., may be
delegated to an Agent employed for such purpose.
ARTICLE IX
Parliamentary Rules
Roberts Rules of Order (latest edition) shall govern the conduct
of corporate procee 1ngs when not in conflict with the Articles of

r..
Incorporation and these By -Laws or with the Statutes of North
Carolina.
ARTICLE X
Amendments to By -Laws
Amendments to these By -Laws shall be proposed and adopted in the
following manner:
1. Amendments to these By -Laws may be proposed by the Board of
Directors of the Association acting upon the vote of the
majority of the Directors, or by members of the Association
owning a majority of the total value of the property in the
condominium, whether meeting as members or by instrument in
writing signed by them.
2. Upon any amendment or amendments to these By -Laws being pro-
posed by said Board of Directors or members, such proposed
amendment or amendments shall be transmitted to the President
of the Association, or other officer of the Association in
absence of the President, who shall thereupon call a Special
Joint 'Meeting of the members of the Board of Directors of the
Association and the membership for a date not sooner than
twenty (20) days nor later than sixty (60)-days from receipt
by such officer' of the proposed amendment or amendments, and
it shall be the duty of the Secretary to give'to each member
written or printed notice of such meeting in the same form
and in the same manner as notice of the call of a Special
Meeting of the members, if required, as herein set forth.
3. in order for such amendment or amendments to become ef-ec-
tive, the same must be approved by an affirmative vote of tha
members not having less than two-thirds (2/3) of the total
votes. Thereupon, such amendment or amendments to these
By -Laws shall be transcribed, certified by the President and
the Secretary of the Association, and a copy thereof shall be
recorded in the Public Records of Carteret County, North
Carolina, within ten (10) days from,the date on which any
amendment or amendments have been affirmatively approved by
the Directors and members.
4. At any meeting held to consider such amendment or amendments
to the By -Laws, the written vote of any member of the
Association shall. be. recognized U such member is not in
attendance at such meeting or represented thereat by proxy,
provided such written vote is delivered to the Secretary of
the Association at or prior to such meeting.
The foregoing were adopted as the By -Laws of the Association, a
corporation not for profit under the laws of the State of No th
Carolina, at the first meeting of the Board of Directors on the ,5ay
nf/)„t 1985.
APre ent
;ATTZEST:
retary
_10- '7-k3L ,I L,�3

:L
STATE OF NORTH CAROLINA }
AMENDMENT TO DECLARATION OF
SANDS VILLA RESORT
COUNTY OF CARTERET ) AND
DECLARATION OF RESTRICTIONS
CONCERNING SEWER OF
ISLAND QUAY SUBDIVISION
THIS DECLARATION is made this the 07th day Of November ,
1988, by Island Quay Associates, Inc. and Sands Villa Resort -
Homeowners Association, Inc., (hereinafter IQA and SVR and both
also jointly referred to as Declarant);
KNOW ALL BY THESE PRESENTS:'
THAT WHEREAS, IQA is the record owner of fee simple title to
those tracts or parcels of real property located in Morehead
'Township, Carteret County, North Carolina, same being:
Island Quay Subdivision as shown on that plat recorded
in Plat Book 26, at Page 93, Carteret County Registry.
and;
WHEREAS, SVR is the Association which manages and
administers the condominium project known as Sands Villa Resort
Phase I located in Morehead Township, Carteret County, North
Carolina, being described in,that Declaration recorded in Book
UO-49, at Page 26, Carteret County Registry, along with any
amendments subsequently recorded; and
WHEREAS, IQA desires' to develop and subdivide its property
for residential use in that, IAA's present intentions are that
all of its property shall be developed into a residential
subdivision project, to be known as Island Quay Subdivision and
may contain as many as fifty (50) lots; provided, however, all
such plans may also hereafter change; and
WHEREAS, Declarant has been advised that no public waste
water and sewage treatment and disposal facility or services
exist for said property; provided, however
THAT, Declarant has also been advised by governmental
officials of the municipality of Atlantic Beach, North Carolina,
within whose jurisdiction all said property lies, that Atlantic
Beach intends to construct in the future a public waste water and
sewage treatment and disposal facility, but no firm plans
therefor have been yet made; but, that when such facility is
built all owners within the condominium project and subdivision
will be required to ".tap -on" and use the public facility, thereby
making any private system superfluous; but
WHEREAS, IQA desires to proceed with the development of its
property and desires to insure that all of said property is
provided with adequate waste water and swage treatment and
disposal services, until such time as public services are
available, by IAA's use of a private facility with the capacity
to provide such service to all said property and which shall be
leased by a nonprofit Corporation, which Declarant shall cause to
be formed and of which all present and future owners of said
property as described above (and only such owners) shall be
members through their respective non-profit Homeowners
Association; and
WHEREAS, SVR has negotiated with IQA and has agreed to allow
IQA the use of the sewage treatment facility located upon the
site of Sands Villa Resort condominium project, under certain
terms and conditions, which are contained herein; and
PREPARED BY DARDEN, COYNE, BRUCE & HARRIS, P.A.
P)OCK

WHEREAS, SVR is given the authority to execute such
documents and enter into such agreements with third parties by
the amendment to the Declaration, recorded in Book UO-79 at Page
319, Carteret County Registry, and also pursuant-to.a Resolution
adopted at a special meeting of the homeowners of Sands Villa
Resort condominium project held on July 30, 1988, in accordance
with the above mentioned amendment, which Resolution is on file
and available for review in the Association's.minute book.
NOW, THEREFORE, Declarant does hereby dec1are that all of
': the real property described in Exhibit A, which includes Sands
Villa Resort Condominium Phase I and Island Quay Subdivision, is
held and shall be held, conveyed, hypothecated, encumbered, used,
occupied and improved subject to the following Articles of
Covenants, Conditions, Restrictions, Uses, Limitations and
r: Obligations, which shall be deemed to run with the land and shall
be a burden and a benefit to the Declarant, its -successors and
assigns, and any person or entity acquiring or owning an interest
in the real property and improvements, or any subdivision
thereof, their grantees, successors, devisees, heirs, executors,
administrators and assigns.
ARTICLE I
DEFINITIONS
1. Island Quay Associates Inc (IQA) shall mean and refer
to that corporation which is the owner of fee simple title to
that parcel of property known as "Island Quay Subdivision", a
planned unit development project approved by the Town of Atlantic
Beach, North Carolina, and being the same property on Exhibit A,
described as Island Quay Subdivision.
2. Sands Villa Resort Homeowners Association Inc. (SVR)
shall mean and refer to that not for profit corporation charged
with the management of common areas and facilities of Sands Villa
Resort condominiums, which all owners of condominium units and
unit weeks -of Sands Villa Resort are members, being the same
property on Exhibit A, descsribed as Sands Villa Resort
Condominium.
3. Sands Villa Utilities Inc. (SVU) shall mean and refer
to that not for profit corporation formed by Sands Villa Resort
Homeowners Association, Inc. and Island Quay Homeowners
Association, Inc, to lease, operate, run and otherwise manage
that sewage treatment plant and its facilities located currently
upon the site of Sands Villa Resort condominium project.
4. Island Quay Owners Association, Inc (IQOA) shall mean
and refer to that not profit corporation charged with managing
the common areas and facilities of Island Quay Subdivision, which
all lot owners of Island Quay Subdivision are members.
5. Members shall mean and refer to all of those
individuals, corporations, partnerships or other entitities who
are entitled to membership in Sands Villa Resort Homeowners
Association, Inc. and Island Quay Owners Association, Inc.
6. Declarant. shall mean and refer to Island Quay
Associates, Inc. and Sands Villa Resort Owners Association, Inc.
jointly..
7. Facility shall mean and refer to that sewage treatment
plant and appurtenances which currently exist, or additions made
thereto, as located on the site of Sands Villa Resort condominium
project, and being currently the common property of the
homeowners of Sands Villa Resort Owners Association, Inc. being
located on that property as described in Exhibit B.
ARTICLE II
THE FACILITY

SVR and, more specifically,. the owners of units in SVR
currently own a private tertiary waste water and sewage treatment
and disposal facility (hereinafter "facility") as common
property, which was constructed in accordance with all required
permits therefor issued by the duly constituted public
authorities having jurisdiction of the same. The facility has or
shall have a 43,000 gallons per day capacity to provide waste
water and sewage treatment and disposal service. The facility is
or shall be a private facility and shall not provide or attempt
to provide such service to any property, person or entity except
the property described in the premises above and the owners
thereof.
ARTICLE III
THE CORPORATION
A. Identity. Declarant has caused to be formed Sands Villa
Utilities, Inc. (hereinafter SVU), which is a nonprofit North
Carolina corporation. SVU shall lease, operate and manage the
facility, on behalf of its members, who shall be SVR and IQCA.
The facility has been constructed upon that parcel of the above
described property described in Exhibit B, which shall be leased
by SVR to SVU for a rental of $1.00 per year, allowing for a term
co -extensive with the duration of the need for the facility.
Said property is part of what is common areas of SVR, which
common areas shall be SUBJECT TO SAID LEASE, after which
submission, the annual rental 'shall be paid to SVR, which is the
nonprofit North Carolina corporation charged with the
responsibility for maintaining the condominium project.
The facility itself shall be leased also by SVU; for a
rental of $1.00 a year, subject to the rights reserved herein.
Additionally, SVU is hereby granted an easement upon all of
the property described in Exhibit B, and all improvements now or
hereafter constructed thereon, whether by IQA, SVR or their
successors and/or assigns, for the following purposes:
1. To maintain and repair lines, pipes and drain fields for
the facility, as the same have been constructed upon the
property. SVU is expressly authorized to relocate upon any of
the property described in the premises above any of the pipes,
lines or drain fields as may be necessary or required for the
safe and proper operation of the facility, so long as the same
does not interfere with the integrity or safety of any existing
improvements thereon. SVU, SVR or IQOA, through its Board of
Directors, agree to execute such easement documents in a
recordable form if it deemed necessary.
2. For ingress, egress and regress to and from all pipes,
.lines and drain fields for their maintenance, repair and
reconstruction and for ingress, egress and regress to and from
any and all improvements constructed upon lany of the property
described in the premises for repair and; inspection to make
certain the member/owner thereof complies with all Rules and
Regulations pertaining to the safe and proper use of the
facility.
The easements shall run with the lands which they
burden and benefit and shall be co -extensive in duration with the
Lease for the property upon which the facility is constructed.
The Articles of Incorporation for SVU are or will be
recorded in of the Carteret County Registry, a copy is attached
hereto as Exhibit "C".
B. Membership and Voting Rights. Membership and
voting rights in SVU shall be as provided in Article VI of its
Articles of Incorporation referred to and incorporated herein as
stated hereinabove.

C. Powers. SVU shall have all powers granted to it as
stated in Article V of said Articles of Incorporation.
D. Allocation of Usable Capacity, Sharinq of Common
Expenses and Restrictions.
1. In order to comply with all governmental Rules
and Regulations presently in force, it is necessary Lo allocate
between the properties maximum limitations on use of the capacity
of the facility. Therefore, it is hereby declared that:
(a) All of the property. described in the
premises above which is known as Sands Villa Resort and as
described in Exhibit A is hereby allocated the maximum capacity
of 25,000 gallons per. -day, which is sufficient- to service the
full, square footage of all improvements constructed for SVR; and
(b) All of the property described
in the
premises
above which consists of Island
Quay Subdivision
and as
desribed in Exhibit A, and which IQA
may use for residential
purposes, is hereby allocated the maximum
capacity of
18,000
gallons
per day, which is sufficient to
service the full
square
footage
of all improvements constructed
or to be constructed by
IQA.
Therefore, whether IQA develops or conveys
its property, so long as said propertyis serviced by the
facility, said property's use is hereby restricted as follows:
Said property shall not be permitted to use more than 18,000 per
day capacity from the facility which capacity may be allocated,
by Declarant or its successors and/or assigns, among parcels of
said property should said property be subdivided; provided such
total allocations do not exceed 18,000 gallons per day capacity
for the entire tract.
2. The common expenses of SVU shall be shared by the
members on a prorata basis in the amount, as shown on Exhibit D.
As to Island Quay Subdivision, a lot will be presumed to be using
sewer services January 1, 1989. Whether or not the actual use of
the services begins at the aforementioned date, the owner of said
lot will be charged with his prorates share based upon the above
mentioned percentages. It is not necessary that a structure be
built upon the lot or that use is actually made of the sewer
treatment facilities before common expenses shall accrue. As to
Sands Villa Resort, their share of common expense will begin on
January 1, 1989.
E. Management and Maintenance.
1. SVU, as a common expense, shall be responsible for
the maintenance, operation, repair and replacement of the
facility, all pipes and'lines, pump stations, drainage fields and
the leasehold, subject to the following: Those owners of lots in
Island Quay Subdivision shall be solely responsible for the
initial installation of those pipes, lines, and pump stations
which serve only their. lots. Said expense shall be prorated
between all lot owners in Island Quay Subdivision who are deemed
to use the sewer system as provided above, or shall be paid
entirely by IQA. Whenever the maintenance, repairs, and
replacement of any item for which the SVU is obligated to
maintain, replace or repair at its expense is occasioned by any
act of a member, his immediate family, guests, or invitees, and
such loss or damage may be covered by any insurance maintained in
force by SVU, the proceeds of the insurance received by SVU shall
be used for the purpose of making such maintenance, repair, or
replacement, except that the member who is responsible for the
act causing the damage (whether done by himself or by his family,
guests, or invitees) shall be required to pay such portion of the
cost of such maintenance, repair or replacement as shall, by
reason of the applicability of any deductibility provision of

such insurance, exceed the amount of the insurance proceeds
applicable to such maintenance, repair or replacement.
2. SVU shall have the right to make or cause to be
made such alterations or improvements to the leasehold, the
facility, pipes, lines, pump stations and drainage fields which
do not prejudice the rights of any member in the use and
enjoyment of his property, provided the making of such
alterations and improvements are approved by the Board of
Directors of SVU, and the ,cost of such alterations or
improvements shall be common expenses to be assessed and
collected from all of the members. However, where any
alterations and improvements are exclusively or substantially for
the benefit of any certain_ member either requesting or needing
the same, then the cost of such alterations or improvements shall
be assessed against and collected solely from the member
exclusively or substantially benefitted, the assessment to be
levied in such proportion as may be determined by the Board of
Directors of SVU.
3. SVU may enter into a contract with a management
company or manager for the purposes of providing all elements of
the operation, care, supervision, maintenance, and management of
the facility and property. All the powers and duties of SVU
necessary or convenient for such operation, maintenance and
management may be delegated to and vested in the manager by the
Board of Directors,. except such as are specifically required by
this Declaration or the By -Laws, to have the approval of the
Board of Directors or SVU.' The manager is hereby further
authorized to recommend the annual budget and, upon approval
thereof by the Board of Directors, make assessments for common
expenses, and collect such assessments as provided in this
Declaration and the By -Laws, subject always to the supervision
and right of approval of the Board of Directors.
4. Owners Maintenance. Every owner shall perform
promptly all maintenance and repair work upon his property which,
if omitted, would affect the facility; every owner being
expressly responsible for the damages and liability which his
failure to do so may engender.
5. Limitation of Liability. Notwithstanding the duty
of SVU to maintain and repair parts of the facility and property,
SVU shall not be liable to members for injury or damage caused by
any latent condition of the property to be maintained and
repaired by SVU, or caused by the elements or members.
e
F. Insurance.
1. Acquisition. Insurance policies upon the property
and facility shall be purchased by SVU in the name of the Board
of Directors of SVU, as Trustee for the members as their
interests may appear,
2. Coverage. The facility and all other property of
SVU, if any, shall be insured in an amount equal to the maximum
insurable replacement value, or by such other form of policy as
the Board of Directors annually determines will most reasonably
provide the funds necessary to repair or reconstruct the insured
improvements. Such coverage shall afford protection against (a)
loss or damage by flood, fire and wind or other hazards covered
by standard extended coverage endorsement, and (b) such other
risks as from time to time shall be customarily covered with
respect to facilities and other property similar in construction,
location and use, including, but not limited to, vandalism and
malicious mischief.
3. Public Liability Insurance. General Public
liability insurance shall be secured by SVU in such amount and
with such coverage as shall be deemed necessary by the Board of
Directors, (provided coverage in a minimum amount of
$1,000,000.00 per occurrence shall be acquired and maintained)

including, but not limited to, an endorsement to cover liability
of the members as a group or to a single member. There shall
also be obtained such other insurance coverage as the Board of
Directors or manager shall determine from time to time to be
desirable or necessary.
4. Premiums. Premiums upon insurance policies
purchased by SVU shall be paid by SVU and chargeable to SVU as a
common expense.
5. Proceeds. All insurance policies purchased by SVU
shall be .for the benefit of SVU and the members as their
interests may appear, and shall provide that all proceeds thereof
shall be payable to SVU as insurance trustee under this
-, Declaration. The Board of Directors of SVU is hereby irrevocably
appointed agent for each member as their interests may appear for
the purpose of compromising and settling claims arising under the
insurance policies purchased by the Board of Directors for the
benefit of SVU and the members; said Board of Directors or its
designee is hereby further empowered to execute and deliver
releases to the insurance carrier upon the payment of claims.
The Board of Directors' duty or its designee's duty upon receipt
of such proceeds shall be to hold the same in trust for the
purposes elsewhere stated herein or in the By -Laws for the
benefit of SVU and the members, as their interests may appear.
6. Distribution of Insurance Proceeds. Proceeds of
insurance policies shall be payable to the Board of Directors of
Sands Villa Utilities, Inc., as insurance trustee and shall be
distributed to or for the benefit of the members in the following
manner:
(a) Expense of the Trust. All expenses of the
insurance trustee shall be first paid or provision made therefor,
if any;
(b) Reconstruction or Repair. The damage for
which the proceeds are paid is to be repaired or reconstructed
and the remaining proceeds shall be paid to defray the cost
thereof. Any proceeds remaining after defraying such cost shall
be retained by SVU as a reserve to offset future common expenses..
Repairs shall be begun and completed as soon as is reasonably
possible;
(c) Plans and Specifications. -Any reconstruction
or repair must be substantially in accordance with the plans and
specifications for the original facility; or if not, then
according to plans and specifications approved by the Board of
Directors of SVU, and in accordance with all permits issued by
the appropriate governmental authorities having jurisdiction of
the same.
(d) Assessments. If the proceeds of insurance
are not sufficient to defray the estimated costs of
reconstruction and repair by SVU, or if at any time during
reconstruction and repair, or, upon completion of reconstruction
and repair, the funds for the payment of the costs thereof are
insufficient, assessments shall be made against the members in
equal amounts sufficient to provide funds for the payment of such
costs.
G. Corporation to Maintain Register of Members. SVU shall
at all times maintain a Register setting forth the names of all
members. In the event of the sale or transfer of any members'
property or unit to a third party, the purchaser or transferee
shall notify SVU in writing of his interest in same together with
such recording information as shall be pertinent to identify the
instrument by which such purchaser or transferee has acquired his
interest.
H. Assessments: Liability, Li en 'and Enforcement. SVU has
been given the authority to administer the operation and

management of the facility, it being recognized that the
delegation of such duties to one entity is in the best interest
of the members. To properly administer the operation and
management of the facility, SVU will incur for the mutual benefit
of all of the members, costs and expenses which are sometimes
herein referred to as "common expense". To provide the funds
necessary for such proper operation, management-, and capital
improvement, SVU has heretofore been granted the right to make,
levy and collect assessments against the members and their
property. In furtherance of this grant of authority to SVU to
make, levy and collect assessments to pay the costs and expenses
for the operation, management of and capital improvements to the
facility and all other corporate property, the following
provisions shall be operative and binding upon all the owners or
members:
1. All assessments levied against the members and
their condominium units or property shall be uniform and, unless
specifically otherwise provided for in this Declaration, all
assessments made by SVU shall be in such an amount that any
assessment levied against a member and his unit or property shall
bear the same ratio to the total assessment made against all
members and their units or property as shown in Exhibit D.
Should SVU be the owner of a unit or property serviced by the
facility, the assessment which would otherwise be due and payable
to SVU by the owner of such unit or property, reduced by the
amount of income which may be derived from the leasing of such
unit or property by SVU, shall, be. apportioned and the assessment
therefor levied equally among all members.
2. Assessments provided for herein shall be payable in
annual, quarterly or monthly installments, or in such other
installments and at such times as may be determined by the Board
of Directors of SVU. Such assessments shall commence for each
member's unit or property on the 1st day of January, 1989.
3. The Board of Directors of SVU shall establish an
annual budget in advance for each fiscal year (which shall
correspond to the calendar year, except that in the. initial year
of operation of the facility the fiscal year shall commence with
the date the Lease is effective). Such budget shall project all
expenses for•the forthcoming year which may be required for the
proper operation, managements, and maintenance of the facility,
including a reasonable allowance for contingencies and reserves,
such budget to take into account projected anticipated income
which is to be applied in reduption of the amounts required to be
collected as an assessment each year. The Board of Directors
shall keep separate, in accordance with paragraph 4 hereof, items
relating to operation and maintenance from items relating to
capital improvements. Upon adoption of such annual budget by the
Board of Directors of SVU, copies of said budget shall be
delivered to each member and the .assessment for said year shall
be established based upon such budget, although the delivery of a
copy of said budget to each member shall not affect the liability
of any member for such assessment. Should the Board of Directors
at any time determine, in its sole discretion, that the
assessments levied are, or may prove to be, insufficient to pay
the costs of operation and management of the facility, or in the
event of emergencies, the Board of Directors shall have the
authority to levy such additional assessment or assessments it
may deem to be necessary.
4. The Board of Directors of SVU, in establishing the
annual budget for operation, management, and maintenance of the
facility, must designate therein a sum to be collected and
maintained as a reserve fund for replacement of and capital
improvements to the facility, which capital improvement and
replacement fund (capital improvement fund) shall be for the
purpose of enabling SVU to replace structural elements and
mechanical equipment constituting a part of the facility, as well
as the replacement of property which may constitute corporate
property held for the joint use and benefit of the members. The

amount to be allocated to the capital improvement fund may be
established by said Board of Directors so as to collect and
maintain a sum reasonably necessary to anticipate the need for
replacement of the facility. The amount collected for the
capital account by SVU and such monies shall be used only to make
capital improvements to the facility. Any interest earned on
monies in the capital improvement fund must be expended for
replacement of and capital improvements to the facility.
5. All monies collected by SVU shall be treated as the
` separate property of SVU, and such monies may be applied by SVU
to the payment of any expense of operating and managing the
facility, or to the proper undertaking of all acts and duties
imposed upon it by virtue of this Declaration, the Articles of
Incorporation and the By -Laws of SVU. As monies for any
F.: assessment are paid unto SVU by any member, the same may be co
mingled with monies paid to SVU by the other members. Although
•.all funds and common surplus, including other assets of SVU, and
any increments thereto or profits derived therefrom or from the
leasing or use of corporate property shall be held for the
benefit of the members of SVU, no member of SVU shall have the
right to assign, hypothecate, pledge or in any manner transfer
his membership interest therein, except as an appurtenance to his
unit or property. When a member shall cease to be a owner of
property in Sands Villa Resort condominium project or Island Quay
Subdivision by reason of the divestment of ownership of his unit•
or property, by whatever means, SVU shall not be required t•o
account to such member for any share of the funds or assets of
SVU, or which may have been paid to SVU by such member, as all
monies which any member has paid to SVU shall be and constitute
an asset of SVU which may be used in the operation and management
of the facility.
6. The payment of any assessment or installment
thereof shall be in default if such assessment or installment is
not paid to SVU within thirty (30) days of the due date for such
payment. When in default, the delinquent assessment or
delinquent installment thereof due to SVU shall bear interest at
the highest rate: allowed by law, until such delinquent assessment
or installment thereof, and all interest due thereon, has been
paid in full to SVU. All monies owing to SVU shall be due and
payable at the main office of SVU in the State of North Carolina.
ADDITIONALLY, SHOULD ANY ASSESSMENT OR INSTALLMENT
THEREOF BE IN DEFAULT OR SHOULD ANY MEMBER THROUGH THE USE OF
HIS UNIT OR PROPERTY BE FOUND IN VIOLATION OF ANY PROVISION OF
THIS DECLARATION, THE BY-LAWS OF SVU OR ANY RULES AND REGULATIONS
PERTAINING TO THE SAFE AND PROPER USE OF THE FACILITY THEN SVU
SHALL IMMEDIATELY TERMINATE ALL SERVICES PROVIDED BY THE FACILITY
TO SUCH DEFAULTING MEMBER AND HIS UNIT OR PROPERTY UNTIL SUCH
DEFAULT IS CURED.
7. The members shall be personally liable to SVU for
the payment of all assessments, regular or special, which may be
levied by SVU against such member while lowner of a unit or
property. In the event that any member is in default in payment
of any assessment or installment thereof owed to SVU, such member
shall be personally liable for interest on such delinquent
assessment or installment thereof as above provided, and for all
costs of collecting such assessment or installment thereof and
interest thereon, including 'a reasonable attorney's fee, whether
suit be brought or not.
8. No member may exempt himself from liability for any
assessment levied against him or his unit or property by
abandonment of his unit or property,
9. Recognizing that proper operation and management of
the facility requires the continuing payment of costs and
expenses therefor and that such proper operation and maintenance
results in benefit to all of the members, and that the payment of
such common expenses represented by the assessments levied and

collected by SVU is necessary in order to preserve and protect
the investment of each member, SVU is hereby granted a lien upon
each member's unit or property serviced by the facility, which
lien shall secure and does secure the monies due for all
assessments now or hereafter levied against the member, which
lien shall also secure interest-, if any, which may be due on the
amount of any delinquent assessments owing to SVU, and which lien
shall also .secure all costs and expenses, including a reasonable
attorney's fee, which may be incurred by SVU in enforcing this
lien upon said unit or property.
PROCEDURE OF COLLECTING EXPENSES
In order to effectively administer the collection of
•"_�• the expenses and the assessments of liens, any amounts due under
this Declaration shall be collected and considered a part of the
common expense of either Sands Villa Resort Homeowners
..Association, Inc. or Island Quay Owners Association, Inc.,
depending upon the location of the property being serviced by the
facility. A proposed budget shall be prepared by the Board of
Directors of SVU in accordance with this document and the By -Laws
prior to January 1 of each year. The budget amount shall then be
pro -rated and collected among SVR and IQOA based apon the
percentages shown in Exhibit D. SVHA shall be required to pay
the following percentages:
90 units x .7042% for a total of 63.3780% plus the
percentage of tie commercial unit which is 1.4120
for a total of 64.7900%.
IQOA shall be required to pay the following
percentages:
50 lots x .7042% for a total of 35.2100%.
The above percentages shall be multiplied by the budget
to arrive at a total figure which will be due from the respective
Owners Association. The individual Owners Association shall then
include this amount in their budget when determining their common
expenses and shall collect this expense as provided in the
Declaration of Condominiums of Sands Villa Resort or the
Declaration of Restrictive Covenants of Island Quay Subdivision,
whichever shall apply. The individual Owners Association shall
pay 1/12th of the expenses for the year on or before the first of
each month to SVU whether they have collected an amount from the
individual condo owners or lot owners or not. In the event as
determined by the Board of Directors that the expenses of SVU
shall be paid more frequently than monthly, then the SVR and IQOA
agree to do so if, necessary to meet expenses which may have been
incurred by SVU. The individual Owners Associations shall not be
relieved from payment of the assessments fee on the account of
individual condo owners or unit owners not paying the individual
assessments to the Owners Associations. It shall be the Owner
Association's responsibility to collect expenses of SVU in the
same manner as they collect the other common expenses of their
Association. SVU also grants to SVR and IQOA any and all lien
rights SVU has as provided in this document in order to insure
collection of the expenses of SVU as provided above.
10. Whenever any member's unit or property serviced by
the facility may be leased, sold, or mortgaged by the owner
thereof, SVU, upon written request of the member, shall furnish
to the proposed lessee, purchaser, or mortgagee, a statement
verifying the status of payment of any assessment which shall be
due and payable to SVU by such member. Such statement shall be
executed by any officer of SVU, and any. lessee, purchaser, or
mortgagee may rely upon such statement in concluding the proposed
lease, purchase or mortgage transaction, and SVU shall be bound
by such statement.
In the event that a member's unit or property
serviced by the facility is to be leased, sold or mortgaged at a

time when payment of any assessment against the member due to SVU
shall be in default (whether or not a claim of lien has been
recorded by SVU), then the rent-, proceeds of such purchase or
mortgage proceeds shall be applied by the lessee, purchaser or
mortgagee first to payment of any then delinquent assessment or
installments thereof due to SVU before the payment of any rent,
proceeds of purchase or mortgage proceeds to the owner of any
unit or property who is responsible for payment of such
delinquent assessment.
In any voluntary conveyance of a member's unit or
property, the purchaser thereof shall be jointly and severally
liable with seller for all unpaid assessments against seller
levied prior to the'time of such voluntary conveyance, without
prejudice to the rights of the purchaser to recover from seller
the amounts paid by purchaser therefor.
Institution of a suit at law to attempt to effect
collection of the payment of any delinquent assessment shall not
be an election by SVU. which shall prevent it from thereafter
seeking, by foreclosure action, enforcement of the collection of
any sums remaining owing to it, nor shall proceeding by
foreclosure to attempt such collection be deemed to be an
election precluding the institution of a suit at law to collect
any sum then remaining owing to Corporation.
I. Common Surplus. Common surplus, meaning all funds and
other assets of SVU (including excess of receipts of SVU,
including, but not limited to assessments, rents and revenues
from whatever source over amount of the common expense), shall be
owned by the members in the shares as provided in Exhibit D;
provided, however, that said common surplus shall be held by SVU
in the manner, and subject to the terms, provisions, and.
conditions of this Declaration, imposing certain limitations and
restrictions upon the use and distribution thereof.
ARTICLE IV
TERMINATION OF SANDS VILLA UTILITIES, INC.
A. The Declarant intends that the facility shall be a
permanent facility. However, Declarant has been informed by
governmental authorities that in the event a public facility,.as
envisioned, is constructed, then all property to be serviced by
the facility shall be required to "tap -on" or be connected to the
public facility. In that event;, all members shall incur and bear
the cost of any connection or tap -on fee to the public system as
well as regular charges for the utility service thereafter due to
the oublic authority
B. If such public facility shall be constructed and all
members are required to make use of the same, then the private
facility constructed by the Declarant shall be surplusage.
Therefore, IQA reserves the absolute, exclusive right and option
to purchase from SVR the facility (but not the real property upon
which it is situated) and all of its structures, equipment and
machinery, once all the property and units served by the facility
are being served by the public facility. The purchase price
shall be as agreed upon by the SVR and IQA, and IQA shall bear
the full cost of dismantling and removing the same if purchased.
The Lease for the facility and the real property upon which the
facility is located shall then terminate, and the property shall
remain as common areas of Sands Villa Resort, forever discharged
of any such leasehold, and Declarant shall be responsible, in
dismantling and removing the facility, for restoring said real
property to its natural state. Should IQA fail to notify SVR in
writing of its intention to purchase the facility within sixty
(60) days of the date SVU has notified IQA in writing that all
members' property and units are being serviced by the public
facility, then IQA's right to purchase same shall be deemed to
have been waived and SVR may dispose of the facility as it deems
appropriate. In that event SVR, as a common expense, shall be

responsible for restoring the real property to its natural state,
it if so desires.
C. After termination of said Lease and disposition of the
facility, the Board of Directors of SVU shall immediately proceed
with the dissolution and liquidation of Sands Villa Utilities,
Inc. After payment of all costs, fees and expenses incurred in
such liquidation and dissolution, including a reasonable
attorney's fee, any common surplus remaining shall be distributed
to the members in equal shares. Additionally, the Board of
Directors of SVU shall cause to be filed SVU's Certificate of
Completed Liquidation in the Office of the Register of Deeds of
Carteret County, North Carolina, and the same shall be deemed to
be a revocation by all owners of the properties and units
formerly served by the facility of this Declaration of
r Restrictions, which thereafter shall be of nor force or effect.
D. It is anticipated that if a public sewer system is
available for members, then those improvements including service
lines, lift station and related property will be dedicated to the
Town of Atlantic Beach for use in servicing the property.
ARTICLE V
MISCELLANEOUS
A. Nothing contained herein shall be deemed to be a
prohibition to or restriction upon the Declarant from further
restricting or developing any of the property 'described in the
premises hereof in any manner not inconsistent with the
provisions hereof.
B. This Declaration of Restrictions may be amended only by
a written instrument executed and acknowledged by both SVR and
IQHA and shall become effective only after recordation of the
same in the Carteret County Registry, North Carolina, except that
this document may be amended by the addition of a new phase of
Sands Villa Resort, upon recordation of the appropriate amendment
as provided in the Declaration of Sands Villa Resort Condominium.
Upon the recordation of such an amendment adding a new phase to
Sands Villa Resort Condominium, this document may also be
amended, making such new units subject hereto and changing the
percentage of common expense t•o be paid by each owner. Owners of
units in the new phase shall become members of Sands Villa Resort
Homeowners Association, Inc. and shall be subject to the rights
and restrictions of this Declaration. Said amendment need only
be executed by the Board of Directors of SVU. Said addition to
Sands Villa Resort Condominium shall only be allowed to utilize
the sewage treatment facility if it is determined by the
appropriate state, local and federal authorities that sufficient
capacity exists to service said units. Any amendment, except for
addition of a new phase of Sands Villa Resort as provided above
shall become effective after execution by the president• and
secretary of both SVR and IQHA; and other condominium owners' and
lot owners' consent shall not be necessary
C. Rights Reserved Unto Institutional Lenders.
"Institutional Lender".or "Institutional Lenders", as the terms
are used herein, shall mean and refer to banks, savings and loan
associations, mortgage companies, insurance companies, the
Federal National Mortgage Association (FNMA), the Federal Home
Loan Mortgage Corporation (FHLMC) and/or other entities that in
the normal course of business, make or invest in mortgages. So
long as any institutional lender or institutional lenders shall
hold any mortgage upon any unit or property serviced by the
facility, or shall be the owner of any unit or property serviced
by the facility, such institutional lender or institutional
lenders shall have the following rights:
W To approve the company or companies with whom
casualty insurance is placed, as well as to receive notice of any

lapse, cancellation or material modification of any insurance
policy or fidelity bond maintained by the Owner's Corporation.
(ii) To examine, during reasonable business hours and
upon reasonable notice, the books and records of SVU to be
furnished upon request at lease one copy of the annual financial
statement and report of SVU, prepared by a certified public
accountant designated by SVU, such financial statement and report
to be furnished by April 15 of each calendar year.
( iii ) To be given notice by SVU of the call of any
meeting of the membership to be held for the purpose of
considering any proposed amendment to this Declaration, or the
Articles of Incorporation and By -Laws of SVU, which notice shall
`• state the nature of the amendment being proposed, and to be given
notice by SVU of losses due to casualty or condemnation.
(iv) To be given notice of default by any member
owning a unit or property encumbered by a mortgage held by the
institutional lender or institutional lenders, such notice to be
given in writing and to be sent to the principal- office of such
institutional lender or institutional lenders, or to the place
which it or they may designate in writing. Whenever any institutional lender or institutionallenders desire the
provisions of this Article to be applicable to it, it shall serve
or cause to be served written notice of such fact upon SVU by
registered mail or certified mail addressed to SVU and sent to
its address stated herein, identifying the unit or property upon
which any such institutional lender or institutional lenders hold
any mortgage or mortgages, or identifying any units or property
owned by them, or any of them, together with sufficient pertinent
facts to identify any mortgage or mortgages which may be held by
it or them, and which notice shall designate the place to which
notices are to be given by SVU to such institutional lender or
institutional lenders.
D. Severability. In the event that any of the terms,
provisions, or covenants of this Declaration are held to be
partially or wholly invalid or unInforceable for any reason
whatsoever, such holding shall not affect, alter, modify, or
impair in any manner whatsoever any of the other terms,
provisions, or covenants hereof or the remaining portions of any
terms, provisions, or covenants held to be partially invalid or
unenforceable.
E. Liberal Construe ion. The provisions of this
Declaration shall be liberally construed to effectuate its
purposes.
F. Declaration Binding on Assigns and Subsequent Owners,
The restrictions and burdens imposed by the Articles of this
Declaration are intended to and shall constitute covenants
running with the land, and shall constitute an equitable
servitude upon each unit or parcel subdivided from the property
described in the premises above; this Declaration shall be
binding upon the Declarant, its successors and assigns, and upon
all parties who may subsequently become owners of units in the
condominium project or lots of Island Quay Subdivision, and their
respective heirs, devisees, legal representatives, successors and
assigns. This Declaration and the exhibits attached hereto and
amendments hereof shall be construed and controlled by and under
the laws of the State of North Carolina. This Declaration shall
automatically expire upon the termination of such as provided in
Article IV C. herein.
g. Eminent Domain. In the event of a taking by eminent
domain (or condemnation or conveyance in lieu of condemnation) of
part of all of SVR°s property, the award of such taking shall be
payable to SVR, which shall represent the members named in the
proceedings. Said award shall be utilized to the extent possible
for the repair, restoration, replacement or improvement of the
facility, if only part is taken. Any funds not utilized (in the

-case of a partial taking) shall be applied in payment of common
expenses otherwise assessable.
H. Warranties and Representations. The Declarant.
specifically disclaims any intent to have made any warranty or
representation in connection with the facility, except as
specifically set forth herein, and no personal shall rely upon
any warranty or representation not so specifically made herein.
IN WITNESS WHEREOF, the parties hereto have hereunto set
:their hands and seals, or if corporate, have caused this
instrument to be signed in Its corporate name by its duly
authorized officers and its seal to be hereunto affixed by
."authority of its Board of Directors, the day and year first above
written.
ILLSANDS VIL RESORT HOMEOWNERS
L ASSOCIAT N INC.
BY:
,IT ��
' ISLAND QUAY ASSOCIATES, INC.
1.. BY:
"•A}TT�ST i
STATE OF
COUNTY OF
I, a Notary Public of the aforesaid County and State, do
hereby certify that, , �__� t(t`7�1. (�Ro� n-,�, personally appeared
before me this day and acknowledged thateT,sh&- is the
Secretary of Sands villa Resort Homeowners' Association, Inc., a
non-profit corporation, and that by authority duly given and as
the act of the corporation, the foregoing instrument was signed
in its name by its President, sealed with its corporate
seal, and attested by himselfthe-r-s f- as its
Secretary.'
Witness my hand and official stamp or seal, this '%(-a slay
of �, n „.QR ��.r_� , 1988.
NOTARY PUBLIC YJ_c a
My Commission Expires:
STATE OF
COUNTY OF
I, a Notary Public of the aforesaid County and State, do
hereby certify that `"irec� T). personally appeared
before me this day and &ckn� owled�g'ed that he%he-is the
Secretary of Island Quay Associates, Inc., a North Carolina
corporation, and that by authority duly given and as the act of
the corporation, the foregoing instrument was signed in its name
by its President, sealed with its corporate seal, and
attested by himself/herse-l-€ as its �) Secretary.

„tnes my hand and official stamp or seal, this 0�1 /j1 day
of t.`i 1988.
My Commission Expires:
'R/31sland.Ame
' N07ARY
G KLIIXO 6 R0'q z- -
NOTARY/,PUBLIC
NORTH CAROLifi.�, L'11Q10i-1 C HTY 4—
Tho foregoing m-111 cile(O a
is (arc) certifiad ui i!n c'nunct. This IA”: r i?►e; t was pre-
sented for rrisL-mii a ,--nJ in this office in
This day O'clock —�d.
a,ron finer
L`��iLLrt�r of nd
BY a / J
-Assis#au�f)eputy

EXHIBIT A
DESCRIPTION OF ISLAND QUAY SUBDIVISION
Being all of that property as shown on that plat- entitled,
"Island Quay Subdivision, to Planned Unit Development)", prepared
by Pate, Phillips & Associates, P.A. dated June 20, 1988, with
the final revision on August 29, 1988 and as recorded in Plat -
Book 26 at Page 93, Carteret County Registry.
DESCRIPTION OF SANDS VILLA RESORT CONDOMINIUM
Being those; condominium units and common property described
in that Declaration of Unit Ownership entitled, "Sands Villa
Resort Declaration of Condominiums", as recorded in Book UO-49,
Page 263 and amended in Book UO-79 at Page 319, and the plats
relating thereto recorded in Plat Book 10-1 at Pages 85-104,
Carteret County Register of Deeds Office.
P
Clot

EXHIBIT B
SEWAGE TREATMENT PLAT SITE
Being that property shown as "Wastewater Plant-", "Rotary Dist.
No. 111, "Rotary Dist. No. 2", "Lift Station" and the related
green areas as shown on that plat entitled, "AS - Built Plat of
Sands Villa Resort, Phase I",°prepared by Floyd, Coleman, Askens
& Kellahan, Engineers & Surveyors. July 10, 1985 and revised
July 23, 1985, and as recorded in Plat- Book 10-I, Page 86 of the
Carteret County Registry. .

Exhjbit C
ARTICLES OF INCORPORATION
OF
SANDS VILLA UTILITIES, INC.
In accordance with the requirements of Chapter 55A of the
North Carolina General Statutes, the undersigned, a natural
person of full age, has this day executed these Articles of
Incorporation for the purpose of forming a non-profit corporation
.F
and hereby certifies:
ARTICLE I
The name of the corporation is Sands Villa Utilities, Inc.,
hereinafter called the "Corporation".
ARTICLE II
The initial registered office of the Corporation is located
at 92 Hoop Hole Creels, Atlantic Beach, Carteret County, North
Carolina 28512.
ARTICLE III
J. Tracy Bowling, whose address is 42 Hoop Hole Creek,
At Beach, North Carolina 28512, is hereby appointed the
initial registered agent of this corporation.
ARTICLE IV
This Corporation does not contemplate pecuniary gain or
profit to the members thereof and no part of the Corporation's
income shall inure to the benefit of any of its officers,
directors, or members, or any other individual or entity.
This non-profit corporation is formed for the sole purpose
,:if owning, leasing, operating, maintaining and/or repairing, as
necessary, that certain private Waste Water and Sewage Treatment

and Disposal Facility (hereinafter "facility") built upon that
tract of land described in Exhibit "A", which tract and facility
will be leased to the Corporation, for the provision of waste
water and sewage treatment and disposal services for those
certain tracts of land and only those certain tracts of land
located in Morehead Township, Carteret County, North Carolina,
and described in Exhibit "B" and "B-1" and the owners thereof,
:F..
whose homeowners associations shall be mandatory members of the
ided herein, shall be defined as
corporation. Members, as prov
those individuals who are entitled to be members of Island (quay
Homeowners Association, Inc. and Sands Villa Resort Homeowners
Association, Inc. However, only the two Associations and not the
indi.vi.dual condominium owners and/or lot owners shall have voting
rights as provided in Article VI. The Corporation may own,
operate, lease, sell, trade, and otherwise deal with property,
whether real or personal, as may be necessary or convenient in
the fulfillment of these purposes.
ARTICLE V
The Corporation shall have the following powers:
1. The Corporation shall have all the powers and privileges i
granted to non-profit corporations under the law pursuant to
which this Corporation is chartered and all of the powers and
privileges which may be granted unto said Corporation under any
other applicable laws of the State of North Carolina reasonably
necessary to implement and effectuate the purposes of the
Corporation, including, but not being limited to the following:
y
qO

(a) To maintain, repair, replace, operate and manage
the facility and the property upon which it is built, and all of
the facility's pipes, lines, pumping stations and drain fields,
including the right to reconstruct improvements after casualty
and to make further improvement to the same, as necessary, and to
make and enter into any and all contracts necessary or desirable
to accomplish said purposes. This power shall include the power
to inspect all property, and the improvements thereon, which this
corporation is intended to serve, and to make certain all Rules
and Regulations are observed by members and to insure the safe
and proper operation of the facility.
(b) To levy and collect assessments against members of
the Corporation, as previously defined, to defray the common
expenses of the Corporation as may be provided in the Declaration
of Restrictions for the property described as Exhibit B and B1
below and in the By -Laws of this Corporation which may be
hereafter adopted, including the right to levy and collect
assessments for the purposes of acquiring, operating, leasing,
managing and otherwise trading and dealing with such property,
whether real or personal, including Condominium units and
residential lots, which may be necessary or convenient in the >
operation and management of the facility and in accomplishing the
purposes set forth herein, ,
(c) To contract for the management of.the facility and
to delegate to such contractor all of the powers and duties of
'thP Corporation except those which may be required by the By -Laws
Y

and the Declaration of Restrictions to have approval of the Board
of Directors or membership of the Corporation.
(d) To acquire and enter into, now or at any time
hereafter, leases, and agreements whereby the Corporation
acquires leaseholds, memberships, and other possessory or use
interests in lands or facilities, whether or not contiguous to
the lands of the facility to, facilitate the fulfillment of the
purposes of the corporations.
(e) To enforce the provisions of the Declaration of
Restrictions, these Articles of Incorporation, and the By -Laws of
the Corporation which may be hereafter adopted, and make and/or
enforce all Rules and Regulations required to be adopted or
obsevrved for the safe and proper operation and use of the
facility. The Corporation may terminate the services provided by
the facility to any member and his unit or property for failing
to observe and obey the same.
(f) To exercise, undertake and accomplish all of the
rights, duties and obligations which may be granted to or imposed
upon the Corporation pursuant to the Declaration of Restrictions
for the property described below which pertain to this
corporation.
2. The Corporation shall have no power to levy any
assessment against any member in excess of -that 'member's prorata
share of the actual operation expenses of the facility in
accordance with the provisions of the By -Laws of the Corporation
-o-r-the Declaration of Restrictions which swill be recorded in the
Carteret County Registry.

service provided by Sands Villa Utilities, Inc. and they shall
be, along with the unit owners of Sands Villa Resort condominium
project, bound by the terms of those restrictions recorded
through their respective non-profit homeowners associations.
With respect to any remainder of the Island Quay Subdivision
that is not developed into residential lots, those lots shall
sland Quay Subdivision and shall
still, be considered part of I
g:
bound by those restrictions
still receive the benefits and be
Articles, By -Laws and the Declaration of
contained in these
developed into residential lots
Covenants. That portion not
shall also be considered members of island Quay Homeowners
Association, Inc. However, such membership shall terminate upon
them being divested of such title, voluntarily or involuntarily,
such title shall automatically become a
and the owner acquiring
member of the Island Quay Homeowners Association, Inc.
3. In order to effectively administer the collection of the
expenses and the assessments of liens, if necessary, any amounts
determined to be due under this Declaration shall be considered a
part of the common expense of the respective non-profit
organization in which the. member owns property serviced by the
I❑ other words, if a member is a owner of a
facility. °
condominium or time share in Sands Villa Resort, then his share
facility will be added to his share
of the common expenses of the
of the assessments due otherwise to Sands Villa Resort Homeowners
Association, Inc. to arrive at a new figure Which shall then be
.--the assessments .due. This assessment shall be collected as
allowed by the Declaration and By -Laws of Sands Villa Resort

Homeowners Association, Inc. and shall not be considered separate
and apart.. The assessments shall have the same lien rights as
allowed by the above mentioned Declaration and By -Laws of Sands
Villa Resort for non-payment thereof. Additionally, if a member
is an owner of a lot in Island Quay Subdivision, then his share
of the common expenses of the facility will be'added to his share
of the assessments due otherwise to Island Quay Homeowners
Association, Inc. to arrive at a new figure which shall then be
the assessments due. This assessment shall be collected as
allowed by the Declaration and By -Laws of Island Quay Homeowners
Association, Inc. and shall not be considered separate and apart.
The assessments shall have the same lien rights as allowed by the
above mentioned _ Declaration and By -Laws of Island Quay
Subdivision for non-payment thereof.
Therefore, there shall be a maximum number of users of
the sewer facility serviced by this corporation, which shall
equal the total number of units in Sands Villa Resort
condominiums, all Phases, plus the total number of lot owners in
Island Quay plus the total number of subdivisions of Bowling
property, if any, not developed as part of Island Quay. The i
right to use the facility shall run with title to the units ,
and/or lots or subdivisions of land, and shall automatically
terminate upon the owner being divested of record ownership of
fee simple title thereto.
4. The interest of a member in the funds and assets of the
P-Corporation cannot be assigned, hypothecated or transferred in
any manner, except as an appurtenance tI his title to either his

ARTICLE VI
The qualification of the members, the manner of their
admission to membership and termination of such membership, and
voting by members shall be as follows:
1. Membership in the corporation shall be limited solely to
Sands Villa Resort Homeowners Association, Inc. and Island Quay
Homeowners Association, Inc.
2. As of the date of this document, the members of this
Corporation are Sands Villa Resurt Homeowners Association, Inc.
and Island Quay Homeowners Association, Inc. Sands Villa
Homeowners Association, Inc. consists of the owners of the
condominiums and time-shares of that condominium project known as
Sands Villa Resort who shall receive the benefit of the utility
services provided by Sands Villa Utilities, Inc. Island Quay
Homeowners Association, Inc. currently consists of the lot owners
of Island Quay Subdivision who, at the time of recording of this
document, are Island Quay Associates, Inc. However,_ Island Quay
Associates, Inc. intends to, and may construct upon the portions
of Island Quay Subdivision, which subdivision shall lie west and
north of Sands Villa Resort, and°shall consist of a single family
PUD which may be developed in phases and which may contain as
many as fifty (50) individual homesites. Said subdivision shall
be maintained and admipistered by Island- Quay Homeowners
Association, Inc. which shall be the non-profit corporation for
which all lot owners in Island Quay Subdivision will be mandatory
..-members. Those members of Island Quay Homeowners Association,
Inc. will be those individuals who also benefit from the utility
E

unit or parcel of property. The funds and assets of the
Corporation shall belong solely to the Corporation subject to the
limitation that the same be expended, held or used for the
benefit of membership of the homeowners associations and for the
purposes authorized herein, in the Declaration of Restrictions
and in the By -Laws which may be hereafter adopted.
5. On all matters which the membership -shall be entitled to
vote, each member shall have one vote, the members being Sands
Villa Resort Homeowners Association and Island Quay homeowners
Association. The vote of each member may be cast or exercised by
the member in such manner as may be provided by the By -Laws
hereafter adopted by the Corporation.
ARTICLE VII
The Corporation shall have perpetual existence, unless
terminated as provided in the Declaration of Restrictions, the
By -Laws or by law.
ARTICLE VIII
The affairs of the Corporation shall be managed by the
President of the Corporation, assisted by the Vice President,
Secretary and Treasurer and, if any, the Assistant Vice
Presidents, the Assistant Secretaries, Assistant Treasurers, o
subject to the directions of the Board of Directors. The Board
of Directors, or the President with the approval of the Board of
Directors, may employ a managing agent and/or such other
managerial and supervisory personnel or entities to administer or
,.`a-ss1 st in the administration of the operation and management of
the facility and the affairs of the Corporation, and any such

person or entity may be so employed without regard to whether
such person or entity is a member of the Corporation or a
director or officer of the Corporation, as the case may be.
ARTICLE IX
The number of members of the first Board of Directors of the
Corporation shall be five (5). The number of members of
succeeding Boards of Directors shall be as provided from time to
F time by the By -Laws of the Corporation. The members of the Board
of Directors shall be elected by the members of the Corporation
at the annual meeting of the membership as provided by the By -
Laws of the Corporation, and the Board of Directors shall be
members of the Corporation or shall be authorized
representatives, officers or employees of a corporate or
partnership member of the Corporation.
ARTICLE X
The Board of Directors shall elect a President, Vice
President, Secretary and Treasurer, and as many Assistant Vice -
Presidents, Assistant Secretaries and Assistant Treasurers as the
Board of Directors shall determine. The President shall be
elected from among the membership of the Board of Directors, but
no other officer need be a Director. The same person may hold o
two offices, the duties of which are not incompatible; provided,
however, that the offices pf the President and Vice President or
Assistant Vice President, if any, shall not be held by the same
person, no shall the office of the President and Secretary or
i
Assistant Secretary, if any, be held by the same person.
ARTICLE XI
f

The names and addresses .of the initial Board of Directors
who, subject to the provisions of these Articles of
Incorporation, the By -Laws, and the laws of the State of North
Carolina, shall hold office until the first annual meeting of the
membership (or until their successors are elected and qualified)
are as follows:
J. TRACY BOWLING Atlantic Beach Causeway
P.O. Box 1156
Atlantic Beach, Carteret County
North Carolina 28557
JERRY BLOUNT 105 Rainbow Harbor
Myrtle Beach, Horry County
South Carolina 29577
JOE CARTER 105 Rainbow Harbor
Myrtle Beach, Horry County
South Carolina 29577
JOHN M. HARRIS 1210 Arendell Street
P.O. Drawer 3650
Morehead City, Carteret County
North Carolina 28557
ARCHIE ROSE unit 511, Sands Villa Resort
Fort Macon Road,
Atlantic Beach, Carteret County
North Carolina 28512
The original By -Laws of the Corporation shall be adopted by
a majority vote of the members of the Corporation present at a +
meeting of members at which a majority of the membership is
present, and, thereafter', such By -Laws may be altered or
rescinded in such manner as said By -Laws may provide.
ARTICLE YIII
Every Director -and officer of the Corporation shall be
indemnified by the Corporation agaIinst all expenses and

liabilities, :including attorney fees, reasonably incurred by or
imposed upon him in connection with any proceeding to which he
may be party, or in which he may become involved, by reason of
his being or,having been z Director or officer at the time such
expenses are incurred, except in such cases wherein the Director
or officer is adjudged guilty' of willful misfeasance or
malfeasance in the performance of duties; provided, that, in the
event of any claim for reimbursement or indemnification hereunder
based upon a settlement by the Director or officer seeking such
reimbursement or indemnification, the indemnification herein
shall only apply if the Board of Directors approves such
settlement and reimbursement as being in the best interests of
the Corporation. The foregoing right of indemnification shall be
in addition to and not exclusive of all other rights to which
such Director or officer may be entitled.
ARTICLE XIV
An amendment or amendments to these Articles of
Incorporation shall require the approval of both Sand Villa
Resort Homeowners Association and Island Quay Homeowners
Association.
ARTICLE YV °
The name and address of the incorporator is as follows:
JOHN M. HARRIS 1210 Arendell Street.
P.O. Drawer 3650
Morehead City, Carteret County
North Carolina 28557
IN WITNESS WHEREOF, I, the undersigned incorporator, have
hereunto set my hand and seal, this v( I day of ,
1988. Y

STATE OF NORTH CAROLINA
COUNTY OF CARTERET
This is to c tirs -if tha ,o. th's the �':" �'1 day of
1988, before me, Yl _ 1�. "l,tlf�Y a Notary Public of said
County and State, personally appeared JOHN M. HARRIS, who I am
satisfied is the person named in and who executed the foregoing
Articles of Incorporation of Sands Villa Utilities, Inc., and
having first made known to him the contents thereof, he did
acknowledge that he signed, sealed and delivered the same as his
voluntary act and deed for the uses and purposes therein
expressed.
IN WITNESS WHEREOF, I hav hereunto set my official stamp or
seal this the �' day of k Ix 1988.
iJ NOTARY PUBLIC
My Commission Expires:
a:SVU.AI.r2 I D

EXHIBIT A
Sewer Site
Being that property shown as "Wastewater Plant", "Rotary
Dist. No. 1", "Rotary Dist. No. 2", "Lift Station" and the
related green areas as shown on that plat entitled, "AS - Built
Plat of Sands Villa Resort, Phase I", prepared by Floyd, Coleman,
Askens & Kellahan, Engineers & Surveyors. . July 10, 1985 and
revised July 23, 1985, and as recorded in Plat Book 10-I, Page 86
of the Carteret County Registry.
EXHIBIT B
Description of Island Quay Subdivision
,.Being all of that property as shown on that plat entitled,
"Island Quay Subdivision, (A Planned Unit Development)", prepared
by Pate, Phillips &- Associates, P.A. dated June 20, 1988, with
the final revision on August 29, 1988 and as recorded in Plat
Book 26 at Page 93, Carteret,County Registry.
EXHIBIT B-1
Description of Sands Villa Resort
Being those condominium units and common property described
in that Declaration of Unit Ownership entitled, "Sands Villa
Resort Declaration of Condominiums,, as recorded in Book UO-49,
Page 263 and amended in Book UO-79 at Page 319, and the plats
relating -thereto recorded in Plat Book 10-I at Pages 85-104,
Carteret County Register of Deeds Office. °
i
41)8212�

EXHIBIT D
Percentage of Common Ex2enses of Sands Villa Utilities Inc
The percentage of common expenses of Sands Villa Utilities,
Inc. shall be the following:
1. For condominium units numbered 109 through 126, 209
through 226, 309 through 326, 409 through 426, and 509 through
526, the percentage of common expense shall be .7042%.
2. For lots 1 through 50 of Island Quay Subdivision, the
percentage of common expense shall be .7042%.
3. For commercial unit, C-1, Sands Villa Resort, the
percentage of common expense shall be 1.4120%.
The above percentages will be multiplied by the total common '
expense to arrive at an amount payable by each condominium unit
and lot owner as provided by this Declaration. The individual
Owners's Association will then compute a total Association amount
due to SVU as common expense based upon these percentages. In the
event that additional units are added to Sands Villa Resort, the
above percentages will be decreased, but the percentages will
remain equal for lot owners and condominium units, including
those new units added, with the commercial unit having twice the
percentage of the other units.
(j q q 6
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County,
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Th e i n form atio n d isp layed by this we bsite is prep aced to r t he i nvento ry of rea I prop erty found with i n th is j urisd i cti on an d is on rep i led fro m recorde d d ends, plats,
sources should be consulted forverificaticn of the information contained on this site. Carteret County assumes no legal responsibility for the information contained
an d nth er pu bl is record s an d d ata. U se rs of th i s i nfo on a tion are hereby notified th at the aforemen tione d pub I is pri ma ry i nform atio n
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or error. Furthermore; Carteret Cou my may modify or remove map services and access methods at will.

OCO EC 1 I Cart2015
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the information displayed by this website is prepared for the inventory of real property found within this jurisdiction and is compiled from recorded deeds, plats,
and other public records and data. Users of this information are hereby notified that the aforementioned public primary information sources should be consulted for
erification of the information contained on this site. Carteret County assumes no legal responsibility for the information contained on this site. Carteret County
does not guarantee that the data and map services will be available to users without interruption or error. Furthermore, Carteret County may modify or remove
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