SW8070664_HISTORICAL FILE_20110121

STORMWATER DIVISION CODING SHEET
POST -CONSTRUCTION PERMITS
PERMIT NO.
SW8 0-1 U U 64
DOC TYPE
❑ CURRENT PERMIT
❑ APPROVED PLANS
HISTORICAL FILE
❑ COMPLIANCE EVALUATION INSPECTION
DOC DATE
20 ll Ol 21
YYYYMMDD

NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
January 21, 2011
Mr. Rick Rogge, Manager
Island Palms, LLC
PO Box 306
Carolina Beach, NC 28428
Division of Water Quality
Coleen H. Sullins
Director
Subject: Approved Plan Revision
Island Palms
Stormwater Project No. SW8 070664
New Hanover County
Dear Mr. Rogge:
Dee Freeman
Secretary
On January 12, 2011, the Wilmington Regional Office received a Designer Certification
for the subject project showing several small deviations from the permitted plan, but
also showing that the wet pond can hold more than twice the required volume. The
permitted plans required baffles to be installed. This plan revision removes the baffles
as a requirement. The pond is in substantial compliance with its permit.
Please be aware that all terms and conditions of the permit issued on September 11,
2007, remain in full force and effect. Please also understand that the approval of this
revision to the approved plans for the subject State Stormwater Permit is done on a
case -by -case basis. Any other changes to this project must be approved through
this Office prior to construction. The issuance of this plan revision does not preclude.
the permittee from complying with all other applicable statutes, rules, regulations or
ordinances which may have jurisdiction over the proposed activity, and obtaining a
permit or approval prior to construction..
If you have any questions concerning this matter, please do not hesitate to call
Georgette Scott or me at [phone].
Sin erely,
Kelly Johnson
Environmental Engineer
S:\WQS\StormWater\Permits & Projects\2007\070664 HD\2011 01 permit_pr 070664
cc: Jeff Malpass, PE
Inspector, New Hanover County Building Inspections
Wilminqton Regional Office
Wilmington Regional Office
127 Cardinal Drive Extension, Wilmington. North Carolina 28405
Phone: [phone] FAX: [phone] Customer Service: 1-877 623-6748
Internet:v .ncxaterquality.org
North Cauoli na
An Equal Opportunity 1 Affirmative Aclinn rmployer

Cox, David
From:
Justin Bishop ([e-mail]]
Sent:
Tuesday, January 04, 2011 11:23 AM
To:
Cox, David
Subject:
Island Palms (SW8 070664)
Attachments:
Island Palms -pond asbuilt.PDF
Mr. Cox,
A PDF of the pond asbuilt for the Island Palms project is attached. Is the pond okay to certify with the following listed
deviations from the approved plan?
Deviations:
-Vegetated shelf is not 10' wide at a 6:1 slope; shelf average is approximately 5.9' wide at a 3.53:1 slope.
-No aquatic vegetation is planted.
-Pond 1 B has an average slope of 2.59:1 above the permanent pool elevation, but it appears to be stable.
-Not sure what type of grass is on the pond above the permanent pool elevation (may not be type specified on
plan),
but it appears stable.
Thanks,
Justin Bishop, P.E.
Malpass Engineering, P.C.

LEGEND.
ELP, M ELR. MITI PW NR OF XO
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FRO 1.1 Uw AENF. AN .C.1 MJMRl THAT IPEErs OR EACEEOS
THE REDURENENTS CE A sOR,cr IN ACCORDANCE AM ME
sruNDAROs OF vRAcnCE FOR LAvO suRAEnxD INARMI NORTH cNA.
cOPTROIT• Cu FEAR GUIuRMCES, Au RIGHTS REC RL D.
REPRODUCTION OR USE OF ME CONTENTS OF THIS DONMENE OR ACCOSTS
OR DELETIONS TO THIS DOWUENT, IN MIME OR PART, WTNWr ENE ANITTION
CONSENT OF THE LAND CURATOR IS PROHIBITED, MESS YY ORIGINAL
9GYANRE LICENSE NO... PRO SEAT -
MART Y, fiLH50N PROFESSIONAL LAND SLRVEYOR NO.L-2675
CAPE FEAR SURVEYING SERVICES
ONE NORTH BUT ST.. WILMINGTON. NC 20401
(STD) >.2-9.9R FAX: [phone]
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REVISION NOTE:
12/9/10
POND SOUNDING ELEVATIONS
CORRECTED RESULTING IN CONTOUR
CORRECTIONS.
POND 18
REVISED
RETENTION POND SURVEY
EXCLUSIVELY FOR
RICHARD WALLACE
PONDS IA AND 18
ISLAND PALMS SUBDIVISION
TOWN OF CAROLINA BEACH
NEW HANOVER COUNTT, NORTH CAROLINA
NOVEMBER 29, 2010
MAP BOOK 52 PAGE 330
GRAPHIC SCALE
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K:\ANtoCAD\2005\66\WALtACE ISLANDPALMS RETENTIONPONDS 1 rL ..ctwg

SOS I D: 1177899
Date Filed: 12/1/2010 1:14:00 PM
Elaine F. Marshall
North Carolina Secretary of Stale
C201033400421
ARTICLES OF INCORPORATION
OF
ISLAND PALMS HOMEOWNERS' ASSOCIATION, INC.
In compliance with the requirements of Chapter 55A of General Statutes of North Carolina, the
undersigned, all of whom are residents of the State of North Carolina and all of whom are of full age, have
this day voluntarily associated themselves together for the purpose of forming a association not for profit
and do hereby certify:
ARTICLE 1.
NAME
The name of the association is(Is1and'Pa1ms Homeowners' Association,.Ine. (the
"Association").
ARTICLE 11.
DURATION
The period of duration of the association is perpetual.
ARTICLE Ill.
PRINCIPAL AND REGISTERED OFFICE
The principal and registered office of the Association is located at 425 Seawatch Way, Kure
Beach, New Hanover County, NC 28449.
ARTICLE IV.
REGISTERED AGENT
The name and address of its registered agent is ,Richard_P. Wallace; 425_Seawatch Way, Kure
�each,_New Hanover County,. NC 28449.
ARTICLE V.
PURPOSE
The purposes for which the Association is formed are to provide for architectural control of the
lots and maintenance of the common area, if any, (as defined in the Declaration of Covenants,
Conditions and Restrictions for Island Palms Subdivision - the "Declaration", which is incorporated herein)
located within that property generally described as Island Palms and more specifically, the Property (as
defined in the Declaration - the "Property"). The Association is also intended to promote the health, safety,
and welfare of the residents within the Property.
The Association does not contemplated pecuniary gain or profit to its members. The Association is
organized and shall be governed exclusively as a homeowners association and not for profit. No part of the
earnings of this Association or the funds contributed by any person or association shall inure to the benefit
of any director, officer, or member of the Association, or any private individual (other than by acquiring,

C201033400421
constructing, or providing management, maintenance, and care of Association property, and other than by
a rebate of excess membership dues, fees; or assessments), except that reasonable compensation may be
paid for services rendered to or for the Association affecting one or more of its purposes. In the event of
the liquidation or dissolution of the Association, either voluntary or involuntary, no director or officer of
the Association or any private individual shall be entitled to any distribution or division of its remaining
property or its proceeds, and the balance of all money and other property received by the Association from
any source, after the payment of all debts and obligations of the association, shall be used or distributed
exclusively to an entity or entities whose purposes are substantially similar to those set forth in this Article
1V and within the intendment of Section 528 of the Internal Revenue Code of 1986 and the regulations
thereunder as the same now exist or as they may be hereafter amended from time to time or to an
appropriate public agency to be or used for purposes similar to those stated in this Article IV or to an
organization which would then qualify under the provisions of Section 501(c)(3) of the Internal Revenue
Code and its regulations as they now exist or as they may hereafter be amended.
ARTICLE VI.
POWERS
The Association shall have the following general powers, to be exercised in conformity with
applicable laws, the Declaration, the Association By -Laws, and these Articles:
(a) To exercise all of the powers and privileges and to perform all of the duties and obligations of
the Association as set forth in the Declaration;
(b) To fix, levy, collect and enforce payment by any lawful means, all charges or assessments
pursuant to the terms of the Declaration;
(c) To pay all expenses incident to the conduct of the business of the Association, including all
licenses, taxes or governmental charges levied or imposed against the property of the Association;
(d) Subject to the ordinances of the Town of Carolina Reach, North Carolina, to acquire (by gift,
purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer,
dedicate for public use or otherwise dispose of real property in connection with affairs of the Association;
(e) To borrow money, mortgage, pledge, deed in trust, or hypothecate any or all of its real or
personal property as security for money borrowed or debts incurred, the rights of any mortgagee to be
subordinate to the rights of the members established under the Declaration;
(1) To participate in mergers and consolidations and with other non-profit associations organized
for the same purpose or annex additional residential property; provided that any such merger, consolidation
or annexation shall have the assent of two-thirds (2/3) of each class of members;
(g) Have and to exercise any and all powers, rights, and privileges which a corporation organized
under the Non -Profit Association law of the State of North Carolina by law may now or hereafter have or
exercise.
Anything to the contrary notwithstanding the Association shall not possess or exercise any power
or authority either, by implication, or by operation of law that will prevent it at any time from qualifying as
a "Residential Real Estate Management Association" as defined in Section 528 of the Internal Revenue
Code of 1996 as amended and the regulations thereunder, or shall it engage directly or indirectly in any

C201033400421
activity which would cause the loss of such qualification or deny it such election under such section of the
Internal Revenue Code.
ARTICLE VIL
MEMBERSHIP
Every person or entity which is a record owner of a fee or undivided fee interest in any lot, which
is subject by covenants of record to assessment by the Association, including contract sellers, shall be a
member of the Association. The foregoing is not intended to include persons or entities who hold an
interest merely as security for the performance of an obligation. Membership shall be appurtenant to and
may not be separated from ownership of any lot which is subject to assessment by the Association.
Ownership of such lot shall be the sole qualification for membership.
ARTICLE Vill.
VOTING RIGHTS
8.1. Members shall be all owners and shall be entitled to vote as set out in the Declaration. When
more than one person holds an interest in any lot, all such persons shall be members. The vote for such lot
shall be exercised as they, among themselves, determine, but in no event shall more than one vote be cast
with respect to any lot. Fractional voting shall be prohibited.
8.2. The right of any member to vote may be suspended by the Board of Directors for just cause
pursuant to its rules and regulations.
ARTICLE X
BOARD OF DIRECTORS
The affairs of this Association shall be managed by a Board of two (2) directors, who need not be
members of the Association. The number of directors may be changed as provided in the By -Laws of the
Association. The present Board shall consist of two (2) directors, the names and addresses of such persons
who are to act in the capacity of directors until the selection of their successors are:
Name
Address
Richard P. Wallace 425 Seawatch Way, Kure Beach, NC 28449
Cynthia J. Wallace 425 Seawatch Way, Kure Beach, NC 28449
ThereaRer, the members and size of the Board shall be fixed in the manner prescribed in the By -Laws.
ARTICLE X.
DISSOLUTION
10.I.The Association may be dissolved with the assent given in writing and signed by not less than
three -fourths (3/4) of the entire membership. Upon dissolution of the Association, other than incident to a
merger or consolidation, the assets of the Association shall be dedicated to an appropriate public agency to
be used for purposes similar to those for which this Association was created, as more specifically provided
in Article IV. In the event that such dedication is refused acceptance, such assets shall be granted,
conveyed and assigned to any non-profit association, association, trust, or other organization to be devoted

C201033400421
instrument has been signed by members entitled to cast two-thirds (213) of the entire membership agreeing
to such dedication, sale or transfer.
As to lenders and purchasers for value, the certification by the Secretary of the Association that the
required number of members have executed instruments in conformity with this Article, shall be
conclusive as to the fact recited by such certification and shall be binding upon the Association and all of
its members.
ARTICLE XVI.
INCORPORATOR
The incorporator is Greg L. Hinshaw, whose address is Suite 560, 2626 Glenwood Avenue,
Raleigh, NC 27608,
Date:
&n'L
4it 6
ror razor- reg L. Hinshaw
60,2626 Glenwood Avenue
Raleigh, NC 27608
ATTACHMENT TO ARTICLES
OF ISLAND PALMS HOMEOWNERS' ASSOCIATION, INC.
ADDITIONAL PROVISIONS
To the extent permitted by G.S. Sec. 55-2-02(b)(3) no director shall have any personal
liability arising out of any action whether by or in the right of the corporation or otherwise for
monetary damages for breach of any duty, as a director.
The corporation shall indemnify its directors, officers, and employees to the full extent
permitted by C.S. Sec. 55-8-51,52. & 57.

Lewis,Linda
From:
Lewis,Linda
Sent:
Monday, June 01, 2009 12:41 PM
To:
'Jeff Malpass'
Subject:
RE: Island Palms (SW8 070664)
Justin
My email went down for about 10 days, and I was not able to answer your question, and when I got my email back, I
simply forgot to check on it.
The currently permitted plans show some of the runoff going directly into Pond A and some going back to Pond B. If you
direct ALL of that runoff, including what goes directly into Pond A, such that it all drains to Pond B first, then Pond B
could be considered your Forebay, which would eliminate the extra forebay shown on Pond A. The piped system
connecting Pond A to Pond B would be relatively flat, to act as an equalization pipe.
Linda Lewis
NC Division of Water Quality
127 Cardinal Drive Ext.
Wilmington, NC 28405
910-796-7215
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may
be disclosed to third parties.
From: Jeff Malpass [mailto:[e-mail]]
Sent: Monday, June 01, 2009 9:17 AM
To: Lewis,Linda
Subject: Island Palms (SW8 070664)
Linda,
Just checking to find out whether you received the following email, since I haven't received an answer.
Thanks,
Justin
From: Jeff Malpass [mailto:[e-mail]]
Sent: Thursday, May 07, 2009 10:02 AM
To: '[e-mail]'
Subject: Island Palms (SW8 070664)
Linda,
The project has been permitted with NCDENR-DWQ, but the developer would like for us to add a lot next to lot 15 if
possible.
I tried to send this email with a PDF of the site plan, but it came back as undeliverable.
Currently the pond labeled 1A is the only one used in our calculations.
If we add a lot next to lot 15, pond 1A would be reduced. If the stormwater collection system is adjusted to direct all the
runoff to pond 1 B, would we be allowed to count pond 1A & 1 B as one pond in our calculations (surface area at

permanent pool, temporary pool volume, permanent pool volume, basin length to width ratio, travel path length to width
ratio, etc.)?
Thanks,
Justin

oNTY.
HIS ��EI�CS
�A�NED LrYIMUM 11z� �C1
r
C�w
G:
I c1iti0
REBECCA P. SMITH
REGISTER OF DEEDS, NEW HANOVER
216 NORTH SECOND STREET
WILMINGTON, NC 28401
Filed For Registration: 04/0412008 04:27:19 PM
Book: RE 5298 Page: 2581.2594
Document No.: 2008014777
DECL 14 PGS $50.00
Recorder: JOHNSON, CAROLYN
State of North Carolina, County of New Hanover
0
YELLOW PROBATE SHEET IS A VITAL PART OF YOUR RECORDED DOCUMENT.
PLEASE RETAIN WITH ORIGINAL DOCUMENT AND SUBMIT FOR RE-RECORDING.
*2008014777*
zooemam

SECTION 6. Amendment of Declaration by Membershlp. Except as provided elsewhere
herein, the covenants and restrictions of this Declaration may be amended only by an instrument duly
recorded in the Office of the Register of Deeds of New Hanover County, executed by the duly authorized
officers of the Association upon the vote of not less than two -thuds (2/3) of the Lot Owners; provided
that no amendment shall alter any obligation to pay ad valorem taxes or assessments for public
improvements, as herein provided, or affect any lien for the payment thereof established herein. In no
event may the Dmiaration be amended so as to deprive the Declarant of any rights herein granted or
reserved unto Declarant.
SECTION 7. FHANA Approval. So long as there is Class B membership, annexation of
Additional Properties, dedication of Common Area and amendments to this Declaration must be approved
by the Federal Housing Administration and/or the Veterans Administration, as the case may be, if either
of those agencies has approved the making, insuring or guaranteeing of mortgage loans within the
Development.
IN WITNESS WHEREOF, the Declarant hereto has caused this Declaration to be executed in the
name of Island Palms, LLC, by its duly authorized manager and the Thompsons have executed this
Declaration as of the day and year first above written.
Island Palms, LLC, Declarant
(SEAL)
agar
BY: (SEAL)
JO W. THOMPSON
BY: \�y�xC. _ _a-X11 13AL)
JVfE R. THOMPSON
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
1, Sharon L. Waddell , a Notary Public in and for said County and State, do hereby
certify that Steven H. HacCurry personally came before me this day and acknowledged that he is
a manager of Island Palms, LLC, a limited liability company which is a the limited liability company
described in and which executed the foregoing instrument; that he executed said instrument in the limited
liability company name by subscribing his name thereto.
WITNESS my hand and notarial seal, his the 3rdd, of ell , 2008.
Nt,11ablic, f
F
� rpf ARy �(
My commission expires: 05/04/2011 = _
2
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
1, Sharon L. Waddell a Notary Public in and for said County and State, do hereby
certify that JOHN W. THOMPPON and wife, JULIE R. THOMPSON personally came before me this
day and acknowledged that, executed the foregoing instrument; that he executed said instrument in the
limited liability company name by subscribing his name thereto.
WITNESS my hand and notarial 1, this th 3 daJ%f April , 2008. vvvoN LltWAD4
yi! �Ot AR/, �f
otary Public
=z z
My commission expires: OS/O4/2011 pU0�t4 �-
��i�y�'I'OVEH GOJ�v�p�
13

B. Built -upon area in excess of the permitted amount requires state stormwater management
permit modification prior to construction.
C. No Lot nor that portion of the street right of way between the edge of the pavement and the
front Lot line, shall be covered by impervious structures, including asphalt, gravel, concrete, brick, stone,
slate or similar material (but excluding wood decking and the water surface of swimming pools), in
excess of the square footages permitted by applicable governmental rules and regulations. Roadside or lot
line swales may not be filled, piped or altered except as necessary to provide a minimum driveway
crossing. These covenants are intended to insure continued compliance with the stormwater permit for the
Property issued by the State of North Carolina and, therefore, may not be changed or deleted without the
consent of the State.
D. Transfer of permit. The Associaattion and each of its members agree that at anytime after (i)
all work required under the Stormwater Permit has been completed (other than operation and maintenance
activities), and (ii) the Declarant is not prohibited under DENR regulations from transferring the
Stormwater Permit to the Association, the Association Manager shall, without any vote or approval of Lot
Owners, and within 10 days after being requested to do so , sign all documents required by DENR for the
Stormwater Permit to be transferred to the Association. If the Association fails to sign the documents
required by this papragmph, the Declarant shall be entitled to specific performance in the courts of North
Carolina requiring that the Association Manager signs all documents necessary for the Stormwater Permit
to be transferred to the Association. Failure of the Manager to sign as provided herein shall not relieve the
Association of its obligation to operate and maintain the storrnwater facilities covered by the Stormwater
Permit.
E. Hold Harmless. The stormwaterretention/detention pond(s) and related facilities constitute
Common Area elements, and the association is responsible for operation and maintenance of such. The
Association shall indemnify and hold harmless the Declarant, its successors and assigns, from any
obligation and costs for operation and maintenance under the Stormwater Permit after thepermit is
transferred to the association, as provided for above.
SECTION 2. Rlahts of Institutional Note Holders. Any institutional holder of a first lien on a
Lot will, upon request, be entitled to (a) inspect the books and records of the Association during normal
business hours, (b) receive an annual audited financial statement of the Association within ninety (90)
days following the end of its fiscal year, (c) receive written notice of all meetings of the Association and
right to designated representative to attend all such meetings, (d) receive written notice of any
condemnation or casualty loss that affects either a material portion of the Development or the Property
securing its loan, (e) receive written notice of any sixty-day (60) delinquency in the payment of
assessments or charges owed by any Owner of any property which is security for the loan, (f) receive
written notice of a lapse, cancellation, or material modification of any insurance policy or fidelity bond
maintained by the Association, (g) receive written notice of any proposed action that requires the consent
of a specified percentage of mortgage holders, and (h) be famished with a copy of any master insurance
policy.
SECTION J. Utility Servic . Declarant reserves the right to subject the Property to contracts for
the installation of utilities, cable TV and street lighting, which may require an initial payment and/or a
continuing monthly payment by the Owner of each Lot. Each Lot Owner will be required to pay for any
water connections, sewer connections, impact fees or any other charges imposed by any entity furnishing
water, sewer or other utility service to the Lots. In the alternative, the Developer may collect such
connection, impact and other fees and charges directly from the Lot Owners. All Lot Owners shall be
required, for household purposes, to use water and sewer supplied by the companies/govemmemal units
servicing the Development.
SECTION 4. Severnbllity. Invalidation of any one of these covenants or restrictions by
judgment or court order shall in no way affect any other provisions which shall remain in full force and
effect.
SECTION 5. lots Subled to Declaradon/Enforcement. All present and future Owners, tenants
and occupants of Lots and their guests or invitees, shall be subject to, and shall comply with the
provisions of the Declaration, and as the Declaration may be amended from time to time. The acceptance
of a deed of conveyance or the entering into of a lease or the entering into occupancy of any Lot shall
constitute an agreement that the provisions of the Declaration are accepted and ratified by such Owner,
tenant or occupant. The covenants and restrictions of this Declaration shall inure to the benefit of and be
enforceable (by proceedings at law or in equity) by the Declarant, by the Association, or the Owner of
any Lot, their respective legal representatives, heirs, successors and assigns, and shall run with and bind
the land and shall bind any person having at any time any interest or estate in any Lot, as though such
provisions were made a part of each and every deed of conveyance or lease, for a term of twenty (20)
years from the date this Declaration is recorded, after which time they shall be automatically extended for
successive periods of ten (10) years, unless terminated by the Lot Owners. Failure by the Declarant, the
Association or by an Owner to enforce any covenant or restriction herein contained shall in no event be
deemed a waiver of the right to do so thereafter.
12

(k) Trash Cans. All trash cans must be kept from view from the street except on trash pickup
days. Trash cans must be removed from the street within 8 hours of trash pickup.
(1) Christmas Decorations. Christmas decorations may only be exhibited between November
20 and January 7 of the following year.
(m) Leases, Rental contracts for residences shall not be for a term shorter than three
consecutive months.
(n) Fences and Hedges. No person shall construct or install a fence, hedge or similar
structure on any Lot in such location or manner as to interfere with or obstruct access to utility meters,
sewer cleanouts or utility pedestals on the Lot by any utility company or public works employees or
agents. In the event of a violation of this provision, the Declarant, the Association, New Hanover County,
or the affected utility company shall be entitled to enter upon the Lot and remove the fence, hedge, or
other obstruction and recover all costs incurred from the owner of the Lot.
(o) Street Lighting. The Association may enter into a contract with a public or private utility
company to lease the street lights in Island Palms Subdivision for a monthly fee which shall be paid by
the Association and included in the monthly assessments pursuant to Article VII.
(p) Sidewalks. The sidewalks in Island Palms Subdivision may be located within the rights
of way as shown on the Recorded Map. The Association shall be responsible for the removal, repair
and/or replacement of sidewalks necessary in order to facilitate access to utility systems buried under or
near these sidewalks to facilitate the maintenance, repair, servicing or replacement of those systems. The
Association's costs shall be recovered through assessments pursuant to Article VII herein.
(r) No mobile home shall be placed on any lot.
SECTION 3. Maintenance. Each Owner shall keep his Lot free from weeds, underbrush or
refuse piles, or unsightly growth or objects. In the event the Owner fails to do so, then, after thirty days
notice from the Architectural Control Committee, the Association or its designee may enter upon the Lot
and remove the same at the expense of the Owner, and such entry shall not be deemed a trespass, and in
such event a lien shall arise and be created in favor of the Association for the full amount of the cost
thereof chargeable to the Owner's Lot, including collection costs and such amounts shall be due and
payable within thirty (30) days after the Owner is billed therefor. Such lien shall be enforceable by Court
proceedings as provided by law for enforcement of liens. In the event that any maintenance activities are
necessitated to any Common Areas by the willful act or active or passive negligence of any Owner, his
family, guests, invitees or tenants, and the cost of such maintenance, repair or other activity is not fully
covered by insurance, then, at the sole discretion of the Board of Directors of the Association, the cost of
the same shall be the personal obligation of the Owner and if not paid to the Association upon demand,
may be added to the annual assessment levied against said Owner's Lot and shall become a lien against
the Lot.
Section 4. Maintenance and Repair of Real Property. Each Owner shall also be responsible
for maintaining the structures on such Owner's Lot in a clean and attractive condition and in good order
and repair. In the event a structure sustains damage clearly visible from the exterior, its Owner shall
repair or reconstruct the structure in accordance with its appearance prior to damage unless the
Association agrees to the contrary. The repair or reconstruction shall be accomplished within 90 days of
the damage unless the Association grants a waiver based upon a finding of hardship. Should an Owner
not conform to these provisions, the Association may accomplish necessary repairs or reconstruction
according to its best judgment, and levy an assessment upon the Owner for the costs involved.
ARTICLE IX
GENERAL PROVISIONS
SECTION 1. Enforcement Of Storm Water Runoff Reordatlnns. There shall be a limitation
in the square footage on each lot which can be covered by structures and/or paved surfaces, including
walkways or patios of brick, stone, slate or similar materials (the "Built Upon Area"). Exhibit A which is
attached and incorporated herein sets forth the built upon area for each of the fifteen (15) lots in Island
Palms Subdivision. The covenants contained in this section are intended to insure continued compliance
with storm water runoff rules adopted by the State of North Carolina and, therefore, may be enforced by
the State of North Carolina. The Declarant may in accordance with applicable governmental regulations
borrow from another Lot any Built Upon Arcs which is not being utilized by the other Lot. Such
transaction need not be approved by any other Owners or by the Association, but must be approved by the
State Division of Water Quality.
A. Swales shall not be filled in, piped, or altered except as necessary to provide driveway
crossings.
11

(c) All service utilities, fuel tanks, and wood piles are to be enclosed within a wall or plant
screen of a type and size approved by the Declarant, the Board or the Architectural Control Committee, so
as to preclude the same from causing an unsightly view from any highway, street or way within the
subdivision, or from any other residence within the subdivision. All mail and newspaper boxes shall be
uniform in design. Design for mail and newspaper boxes shall be furnished by Declarant. Fences shall be
permitted; provided, however, that the design, placement, and materials of any £cote are approved by the
Declarant, the Board or the Architectural Control Committee, as the case may be.
(d) All light bulbs or other lights installed in any fixture located on the exterior of any
building for the purpose of illumination shall be clear, white or non -frost lights or bulbs. Exterior
spot/flood lights must be approved by the Association. Any such approved spot/flood lights shall he
aimed to the greatest extent possible to direct light away from adjoining property.
SECTION 2. Use Restrictions.
(a) Land Use And Building Type. No Lot shall be used for any purpose except for residential
purposes. All numbered Lots are restricted for construction of one single family dwelling or a duplex.
(b) Nuisances. No noxious or offensive activity shall be carried on upon any Lot nor shall
anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood.
There shall not be maintained any plants or animals, nor device or thing of any sort whose normal
activities or existence are in any way noxious, dangerous, unsightly, unpleasant or other nature as may
diminish or destroy the enjoyment of other Lots by the Owners thereof It shall be the responsibility of
each Owner to prevent the development of any unclean, unsightly or unkept condition of buildings or
grounds on the Owner's Lot which would -tend to decrease the beauty of the neighborhood as a whole or
the specific area.
(c) Tempos Structures. No structure of a temporary character, trailer, basement, tent,
shack, barn or other outbuilding shall be used on any Lot at any time as a residence, either temporarily or
permanently, provided, however, that this shall not prevent the Declarant from maintaining a construction
r trailer or office on any part of the Development until the construction of dwellings on all Lots and
• Common Area improvements are completed.
(d) VehiclesBoats. Boats, recreational vehicles, and other similar vehicles shall only be
parked on driveways or on pads. No inoperable vehicle or vehicle without current registration and
insurance, will be permitted on any Lot, street or Common Area. The Association shall have the right to
have all such vehicles towed away at the owner's expense. No repairs to any vehicle may be made on
streets or in driveways but only in garages or other areas not visible from the street.
(e) Vehicles. Except for temporary guests and visitors, only standard private passenger
vehicles, including passenger vans and pick-up trucks, are permitted to be parked within Island Palms
Subdivision. Such vehicles must bear current licenses, be in operating condition and bear no signs.
(f) Animal . No animals, livestock or poultry of any kind shall be kept or maintained on any
Lot, or in any dwelling except that dogs. cats or other household pets may be kept or maintained provided
that they are not kept or maintained for commercial purposes and provided further that they are not
allowed to run free, are at all times kept property leashed or under the control of their owner and do not
become a nuisance or cause a disturbance to owners and occupants of other lots in Island Palms
Subdivision. Each owner shall be responsible for 'immediately collecting and properly disposing of
wastes of his pet.
(g) Statuary. TV Satellite Dishes and Outside Antenmas. No yard statuary, yard art, or TV
satellite signal receiving dishes are permitted on any Lot and no outside radio or television antennas shall
be erected on any Lot, or dwelling unit unless and until permission for the same has been granted by the
Board of Directors of the Association or its Architectural Control Committee provided, however, satellite
dishes not over eighteen inches (18") in diameter which cannot be seen from the street are permitted.
(h) Construction in Common Area. No person shall undertake, cause, or allow any alteration
or construction in or upon any portion of the Common Areas except at the direction or with the express
written consent of the Association or as permitted by this Declaration.
(i) Signs and Brochure Distribution Devices. There shall be no advertising or marketing
on any lot and no signs (including for sale or for rent signs) or brochure distribution devices shall be
permitted on any Lot, or in the Common Areas without permission of the Board of Directors, except that
each Lot may have posted, prior to initial occupancy, one sign setting forth the names of the Owner,
builder and architect, and, in the case of a Lot owned by Declarant, such other signs as the Declarant may
choose.
0) S bdivi in . Subject to any rights reserved to the Deciainum herein, no Lot shall be
subdivided, or its boundary lines changed except with the prior written consent of the Declarant during
the Declarant Control Period and thereafter by the Board of Directors of the Association.
10

interest from the due date at the highest rate allowable by law. The Association may bring an action at law
against the Owner personally obligated to pay the same, or foreclose the lien against the Owner's Lot No
Owner may waive or otherwise escape liability for the Assessments provided for herein by non-use of the
Common Area or abandonment of his Lot. All unpaid installment payments of Assessments shall become
immediately due and payable if an Owner fails to pay any installment within the time permitted. The
Association may also establish and collect late fees for delinquent installments.
SECTION 11. Lien for Assessments. The Association may file a lien against a Lot when any
Assessment levied against said Lot remains unpaid for a period of 30 days or longer.
(a) The lien shall constitute a lien against the Lot when and after a claim of lien is filed of record
in the office of the Clerk of Superior Court of the county in which the Lot is located. The Association
may foreclose the claim of lien in like manner as a mortgage on real estate under power of sale under
Article 2A of Chapter 45 of the General Statutes. Fees, charges, late charges, fines, interest, and other
charges 'unposed pursuant to Sections 47E-3-102, 47F-3-107, 47F-3-107A and 4717-3-115 of the Act are
enforceable as Assessments.
(b) The lien under this section shall be prior to all liens and encumbrances on a Lot except (i)
liens and encumbrances (specifically including, but not limited to, a mortgage or deed of trust on the Lot)
recorded before the docketing of the claim of lien in the office of the Clak of Superior Court, and (ii)
liens for real estate taxes and other governmental assessments and charges against the Lot.
(c) The lien for unpaid assessments is extinguished unless proceedings to enforce the lien we
instituted within three years after the docketing of the claim of lien in the office of the Clerk of Superior
Court.
(d) Any judgment, decree, or order in any action brought under this section shall include costs
and reasonable attorneys' fees for the prevailing party.
(e) Where the holder of a first mortgage or deed of trust of record, or other purchaser of a Lot
obtains title to the Lot as a result of foreclosure of a first mortgage or first deed of trust, such purchaser
and its hews, successors and assigns shall not be liable for the Assessments against the Lot which became
due prior to the acquisition of title to the Lot by such purchaser. The unpaid Assessments shall be deemed
to be Common Expenses collectible from all of the Lot Owners including such purchaser, its heirs,
successors and assigns.
(t) A claim of lien shall set forth the name and address of the Association, the name of the record
Owner of the Lot at the time the claim of lien is filed, a description of the Lot, and the amount of the lien
claimed.
ARTICLE V1II
MINIMUM STANDARDS FOR SITE IMPROVEMENTS, USE RESTRICTIONS AND MAINTENANCE
SECTION 1. Minimum Standards for the Site Improvements.
(a) Each single family dwelling shall have a minimum of 1200 square feet of "enclosed,
heated dwelling area." Each duplex dwelling unit shall have a minimum of 800 square feet of "enclosed,
heated dwelling area." The term "enclosed, healed dwelling area" as used in the minimum requirements
shall be the total enclosed area within a dwelling which is heated by a common heating system: provided,
however, that such term does not include garages, terraces, decks, open porches, and like areas.
(b) Since the establishment of standard inflexible building setback lines for location of
houses on lots tends to force construction of house both directly behind and directly to the side of other
homes with detrimental effects on privacy, view of the water and surrounding areas, preservation of
important trees, etc.. no specific setback lines are established by these covenants, except as may be set out
on any recorded plats of any areas in the development. In order to assure, however, that location of
houses will be arranged where practical and appropriate so that the maximum amount of view and tree
preservation will be considered for each house; that the structures will be located with regard to the
ecological constraints and topography of each individual lot, the location of large trees and similar
considerations, the Declarant or its designee reserves unto itself, its successors and assigns, the right to
control absolutely the precise site and location of any house or dwelling or other structure upon all lots,
including its relationship to streets, the height of all buildings, setting of all buildings, and their location
on to another. Provided, however, that no structure shall be located in violation of any set back lines
which may. appear on any recorded plats, that such location shall be determined only after reasonable
opportunity is afforded to the lot owner to recommend a specific site and location of buildings and
driveway, etc., and provided further, that in the event an agreed location is stipulated in writing in the
contract of purchase, or subsequent agreement, the Declarant shall approve automatically such location
for a residence. Declarant shalt distribute to each lot owner a list of suggested building standards which
will be intended as a guideline for compliance with the Declaration,

SECTION 2. Purpose of Annual Assessments. The Annual Assessments levied by the
Association shall be used exclusively to promote the recreation, health, safety and welfare of the Owners
and residents of the Property and Additional Property and for the improvement and maintenance of the
Common Areas. The funds arising from said assessments or charges may be used for any or all of the
following purposes: Operations, maintenance and improvement of the Common Areas, including payment
of utilities; enforcing this Declaration; paying taxes, insurance premiums, legal and accounting fees and
govemmental charges; establishing working capital; and in addition, doing any other things necessary or
desirable in the opinion of the Association to keep the Common Areas in good operating order and repair.
SECTION 3. Annual Assessments. The Board of Directors shall adopt a proposed annual
budget at least 90 days before the beginning of web fiscal year. Within 30 days after adoption of the
proposed budget for the Development, the Board of Directors shall provide to all of the Lot Owners a
summary of the budget and notice of a meeting to consider its ratification, including a statement that the
budget may be ratified without a quorum. The budget is ratified unless at the meeting a majority of all of
the Lot Owners in the Association rejects the budget. In the event the proposed budget is rejected, the
periodic budget last ratified by the Lot Owners shall be continued until such time as the Lot Owners ratify
a subsequent budget proposed by the Board of Directors. The Annual Assessment for each Lot shall be
established based on the annual budget thus adopted; provided, however, that the first Annual Assessment
shall be set by the Declarant prior to the conveyance of the fast Lot to an Owner. The due date for
payment shall be established by the Board of Directors. The Board of Directors shall have the authority to
require the assessments to be paid in periodic installments.
The Association shall, upon demand, and for a reasonable charge famish a certificate signed by
an officer of the Association setting forth whether the assessments on a specified Lot have been paid.
SECTION 4. Special Assessments for Capital Improvements. In addition to the Annual
Assessments authorized above, the Association may levy, in any assessment year, a Special Assessment
applicable to the year only for the purpose of defraying, in whole or in part, the cost of any -construction,
reconstruction, repair or replacement of a capital improvement upon the Common Areas; including
fixtures and personal property related thereto, provided that any such assessment shaall have the assent of
amajority of the Members of each class who are voting in person or by proxy at a meeting duly called for
this purpose.
SECTION S. Insurance Assessments. All premiums on insurance policies purchased by the
Board of Directors or its Architectural Committee and any deductibles payable by the Association upon
loss shall be a common expense, and the Association may in any assessment year levy against the Owners
equally an "Insurance Assessment", in addition to the Annual Assessments, which shall be in an amount
sufficient to pay the annual cost of all such deductibles and insurance premiums not included as a
component of the Annual Assessment.
SECTION 6. Ad Valorem Tax Assessments. All ad valorem taxes levied against the Common
Areas, if any, shall be a common expense, and the Association may in any assessment year levy against
the Owners equally an "Ad Valorem Tax Assessment', in addition to the Annual Assessments, which
shall be in an amount sufficient to pay such ad valorem taxes in such year not included as a component of
the Annual Assessment.
SECTION 7. Working Capital Assessments. At the time title to a Lot is conveyed to an Owner
by Declarant, the Owner shall pay the sum of $100.00 each month to the Association as working capital
to be used for initial operating and capital expenses of the Association. Amounts paid into the working
capital fund are not to be considered as advance payment of the Annual or any other assessments. Any
working capital funds remaining after the last lot has been sold by Declarant shall be transferred to and
become part of the general funds of the Association, in the discretion of the Board of Directors.
SECTION 8. Rate of Assessment. The Association may differentiate in the amount of
Assessments charged when a reasonable basis for distinction exists, such as between vacant Lots of
record and Lots of record with completed dwellings for which certificates of occupancy have been issued
by the appropriate governmental authority, or when any other substantial difference as a ground of
distinction exists between Lots. However, Assessments must be fixed at a uniform rate for all Lots
similarly situated. Notwithstanding the foregoing, the Declarant shall not be required to pay assessments
with regard to Lots which it owns.
SECTION 9. Commencement of Assessments. Assessments for each Lot shall commence upon
the date of acceptance by an Owner of a deed from Declarant.
SECTION 10. Effect Of Nonpayment of Assessments And Remedies Of The Association.
Any Assessment or installment thereof not paid within thirty (30) days after the due date shall bear

The period during which there is Class B Membership is sometimes referred to herein as the
Declarant Control Period. During this period, the Declarant shall be entitled to exercise all of the Special
Declarant Rights set out in Section 47F-1-I03(28) of the PCA including the right to appoint or remove
any officer or executive board member of the Association.Declarant shall be entitled to transfer all of the
rights of Developer set out in Article III above and all of the Special Declarant Rights set out in Section
F-1-103(28) of the PCA so long as it owns any lots in Island Palms Subdivision. A Class B
Membership shall only be voluntarily surrendered at the election of the Declarant when the
Declarant conveys a lot to a third party not deemed to be a Successor Declarant, in which case
the Class B Membership appurtenant to that lot shall be deemed to be voluntarily surrendered
and converted to a Class A Membership. Class B Memberships shall not be deemed to be
voluntarily surrendered upon the conveyance of a lot or lots together with the transfer of the
rights of Developer and Special Declarant Rights to another developer.
SECTION 4. Government Permits. All duties, obligations, rights and privileges of the
Declarant under any water, sewer, stormwater and utility agreements, easements and permits for the
Development with municipal or governmental agencies or public or private utility companies are at all
times the responsibility of the Association.
ARTICLE VI
INSURANCE AND BONDS
SECTION 1. Insurance . The Board of Directors on behalf of the Association, as a common
expense, may at all times keep the Common Areas and other property of the Association, if any, insured
against loss or damage by fire or other hazards and other such risks, including, but not limited to
directors' liability and public liability insurance, upon such terms and for such amounts as may be
reasonably necessary from time to time to protect such property, which insurance shall be payable in case
of loss to the Association for all Members. The Association shall have the sole authority to deal with the
insurer in the settlement of claims. Such insurance shall be obtained without prejudice to the right of each
Member to insure his personal property for his own benefit at his own expense. In no event shall the
insurance coverage obtained by the Association be brought into contribution with insurance purchased by
Members or their mortgagees.
SECTION 2. Fidelity Bond. The Association may maintain blanket fidelity bonds for all
officers, directors, employees and all other persons handling or responsible for funds of the Association
(provided, however, that if the Association shall delegate some or all of the responsibility for the handling
of its funds to a management agent, such fidelity bonds shall be maintained by such management agent
for its officers, employees and agents handling or responsible for funds of or administered on behalf of
the Association).
ARTICLE VII
COVENANTS FOR ASSESSMENTS
SECTION 1. Creation of the Lien and Personal Obligation of Asse smeots. Each Owner of
any Lot, by acceptance of a deed for the Owner's Lot, whether or not it shall be so expressed in such
deed, covenants and agrees to pay to the Association the following assessments (collectively the
"Assessments":
(a) Annual Assessments;
(b) Special Assessments for Capital Improvements;
(c) Insurance Assessments;
(d) Ad Valorem Tax Assessments;
(e) Working Capital Assessments; and
The Assessments, together with interest, costs and reasonable attorney's fees, shall be a charge on
the land and shall be a continuing lien upon the respective Lot against which the Assessments are made.
Each such Assessment, together with interest, costs and reasonable attorney's fees, shall also be the
personal obligation of the person who was the Owner of such Lot at the time when the Assessment fell
due. The personal obligation for delinquent Assessments shall not pass to the Owner's successors in title
unless expressly assumed by them.

determinations as to such matters are subjective and opinions may vary as to the desirability or
attractiveness of particular improvements.
The architectural standards and procedures established pursuant to this Article are intended as a
mechanism for maintaining and enhancing the overall aesthetics of Island Palms Subdivision and shall
not create any duty to any person. The Committee shall not bear any responsibility for ensuring the
structural integrity or soundness of approved construction or modifications, nor for ensuring compliance
with building codes and other governmental requirements, nor for ensuring that all dwellings are of
comparable quality, value or size or of similar Architectural Control.
Neither the Declarant, the Association, nor the Architectural Control Committee shall be held
liable for soil conditions, drainage or other general site work; any defects in plans revised or approved
hereunder, or any injury, damages, or loss arising out of the manner or quality of approved construction
or modifications. In all such matters, the Association shall defend and indemnify the Architectural
Control Committee and its members.
SECTION 4. Schedule for Review. The Architectural Control Committee shall notify the
applicant of its determination on an application within sixty (60) days after receipt of the completed
application and all required information. The Committee may (i) approve the application, with or without
conditions; (ii) approve a portion of the application and disapprove other portions; or (iii) disapprove the
application. In the case of disapproval, the Committee may, but shall not be obligated to, specify the
reasons for any objections and/or offer suggestions for curing any objections. Notice shall be deemed to
have been given at the time the envelope containing the response is deposited with the U.S. Postal
Service. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to have
been given at the time of delivery to the applicant.
In the event that the Committee fails to respond in a timely manner, approval shall be deemed to
have been denied.
. After termination of the Declarant's right to appoint the Committee, any denial of an application
by the Committee may be appealed to the Board of Directors in accordance with such procedures as the
Boaid of Directors may establish.
SECTION 5. Commencement and Completion of Construction. If construction, has not
commenced on a project for which an application has been approved within six months after the date of
approval, such approval shall be deemed withdrawn. Once construction is commenced, it shall be
diligently pursued to completion. Unless otherwise agreed in writing by the Architectural Control
Committee, all elements of proposed Improvements for which plans are approved hereunder shall be
completed within one year after the date of approval, or such shorter period m may be specified in any
agreement for the purchase of the Lot from the Declarant.
ARTICLE V
HOMEOWNERS' ASSOCIATION
SECTION 1. Formation of Association. The Association is a nonprofit corporation organized
pursuant to the Nonprofit Corporation Act of the State of North Carolina for the purpose of establishing
an association for the Owners of Lots and to own, operate and maintain the Common Areas in accordance
with this Declaration, the Association's Articles of Incorporation and By -Laws.
SECTION 2. Membershlo. Every Lot Owner shall be a Member of the Association.
Membership shall be appurtenant to and may not be separated from Lot ownership.
SECTION 3. Vodne Walt . The Association shall have two classes of voting Membership.
Class.4 Members shall be all Owners, with the exception of the Declarant, and shall be entitled to
one vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons
shall be Members. The vote for such Lot shall be exercised as they determine but in no event shall more
than one vote be cast with respect to any Lot Fractional voting with respect to any Lot is hereby
prohibited.
Class B. The Declarant shall be a Class B Member and shall be entitled to four (4) votes for each
Lot owned. The Class B Membership shall cease and be converted to Class A Membership on the
happening of any of the following events, whichever occurs earlier:
(a) on December 31, 2025; or
(b) upon the voluntary surrender of all Class B Memberships by the holder thereof;

States Government or the Stale of North Carolina, regarding purchase or sale of such Lots and
improvements, or mortgage interests therein, as well as any other law or regulation relating to the control
of property, including, without limitation, ecological controls, construction standards, aesthetics, and
matters affecting the public health, safety and general welfare. A letter from an official of any such
corporation or agency, including, without limitation, the Veterans Administration, U. S. Department of
Housing and Urban Development, the Federal Home Loan Mortgage Corporation, Government National
Mortgage Corporation, or the Federal National Mortgage Association, requesting or suggesting an
amendment necessary to comply with the requirements of such corporation or agency shall be sufficient
evidence of the approval of such corporation or agency, provided that the changes made substantially
conform to such request or suggestion. Notwithstanding anything else herein to the contrary, only the
Declarant, during the Developer Control Period, shall be entitled to amend this Declaration pursuant to
this Section.
SECTION 5. Annexation of Additional Property. Declarant may annex to and make a pan of
the Development any other real property which Declarant now owns or which Declarant may hereafter
acquire (the Additional Property). Annexation of Additional Property to the Development shall require
the assent of two-thirds of the Class A Members who are voting in person or by proxy at a meeting called
for this purpose; provided, however, Additional Property may be annexed to the Development without the
assent of the Members so long as the Additional Property is developed as a single family residential
subdivision. Nothing herein shall require the Declarant to develop any other lands now owned or
hereafter acquired by the Declarant in accordance with the same general scheme as the Development.
SECTION 6. Alleys and Parkine. Notwithstanding that such may not be shown on any recorded
plats for the Development, the Declarant may establish on and over any Common Area such service
alleyways and parking areas as Declarant in its sole discretion deems necessary or appropriate.
ARTICLE IV
ARCHITECTURAL STANDARDS
SECTION 1. Approval Reruired.
No improvements shall be made, placed, constructed or installed on any Lot and no exterior
modifications to existing Improvements shall be undertaken without prior approval of the Architectural
Control Committee in accordance with this Article except that the Declarant activities shall be exempt
from this requirement so long as it is engaged in development or construction in Island Palms
Subdivision.
SECTION 2. Architectural Control Committee.
(a) Composition. The Architectural Control Committee shall be comprised of three persons who
shall be appointed, and may be removed and replaced, in the discretion of the Declarant, so long as the
Declarant owns any unimproved Lots, and thereafter in the discretion of the Association. The members of
the Architectural Control Committee may, but need not be, Owners, and may include architects, engineers
or similar professionals who may receive such compensation for their service as the Association may
determine appropriate.
(b) Fees. The Architectural Control Committee may establish and charge reasonable fees to
defray costs of administering applications for approval under this Article.
(c) Powers and Duties. The Architectural Control Committee shall receive and act on all
applications of Owners seeking approval of proposed Improvements or proposed changes to existing
improvements to Lots in Island Palms Subdivision. The Architectural Control Committee shall establish
and make available to all Owners guidelines and procedures for applications and required submissions.
The Owner of a vacant lot shall make application for the construction of a residential structure on said lot
within sixty (60) days after taking title to said lot unless that time limitation is waived in writing by the
Declarant or the Association.
The Architectural Control Committee may, by resolution, exempt certain activities from the
application and approval requirements of this Article, provided such activities are undertaken in strict
compliance with the requirements of such resolution.
SECTION 3. Scope of Review. The Architectural Control Committee may consider any factors
it deems relevant, including harmony with surrounding structures and environment and consistency with
the visual themes established for Island Palms. Its decisions may be based on purely aesthetic
considerations. Each Owner, by accepting a deed to a Lot in Island Palms Subdivision, acknowledges that

ARTICLE III
RIGHTS OF DEVELOPER
The Declarant shall have, and there is hereby reserved to the Declarant, the following rights,
powers and privileges which shall be in addition to any other rights. powers and privileges reserved to the
Declarant herein:
SECTION 1. For the duration of the Declaram's rights and obligations, Declarant shall have the
right to conduct development, construction, marketing and customer service operations within Island
Pahns in a customary and reasonable fashion. This includes the right to maintain construction and sales
offices and model homes on lots which Declarant owns and to park vehicles thereon, the right of access
over the streets and rights of way within Island Palms Subdivision by construction and supply vehicles
and the right to store materials and equipment related to such land development and construction on
property owned by Declarant, and the right to make and reproduce photographs of the common area and
of private homes in marketing, advertising, and public relations efforts. However, it shall be incumbent
upon those exercising these reserve rights to conduct thew activities in ways respectful of the comfort and
safety of the occupants of lots in Island Palms. _
SECTION 2. The Architectural Control Committee. All duties and responsibilities -conferred
upon the Architectural Control Committee by this Declaration or the Bylaws of the Association shall be
exercised and performed by the Declarant or its designee, so long as Declarant shall own any Cot within
the Property or any Additional Property.
SECTION 3. Plan of Development. The right to change, alter or redesignate the,allocated
planned, platted, or recorded use or designation of any of the lands constituting the Development
including, but not limited to, the right to change, alter or redesignate road, utility and drainage facilities
and easements and to change, alter or redesignate such other present and proposed amenities or facilities
as may in the sole judgment and discretion of Declarant be necessary or desirable. The Declarant hereby
expressly reserves unto itself, its successors and assigns, the right to m-plat any one (1) or more Lots
shown on the plat of any subdivision of the Property or Additional Property in order to create one or more
modified Lots; to further subdivide tracts shown on any such subdivision plat into two or more Lots; to
recombine one or more tracts or Lots or a tract and Lots to create a larger tract: to eliminate from this
Declaration Lots that are not otherwise buildable or are needed for access or are needed for use as public
or,private roads or access areas, whether serving the Development or other property or are needed for
Common Areas, Designated Common Areas, or amenities, and to take such steps as are reasonably
necessary to make such m-plattcd Lots or tracts suitable and in as a building site, access area, roadway or
Common Area. Declarant shall be entitled to transfer all of the rights of Develops set out in Article III
above and all of the Special Declarant Rights set out in Section F-1-103(28) of the PCA so long as it
owns any lots in Island Palms Subdivision. Class B Membership shall only be voluntarily surrendered
when the Declarant conveys a lot to a general contractor or consumer purchaser, in which case the Class
B Membership appurtenant to that lot shall be deemed to be voluntarily surrendered and converted to a
Class A Membership. Class B Memberships shall not be deemed to be voluntarily surrendered upon the
conveyance of a lot or lots together with the transfer of the rights of Developer and Special Declarant
Rights to another developer. -
SECTION 4. Amendment of Declaration by Declarant or Board without Membership
Approval. This Declaration may be amended or supplemented without member approval by the
Declarant, or the Board of the Association, as the case may be, as follows:
(a) in any respect, prior to the sale of the first Lot to any person other than Island Palms
Building Company, LLC;
(b) to the extent this Declaration applies to Additional Property;
(c) to correct any obvious error or inconsistency in drafting, typing or reproduction;
(d) to qualify the Association or the Property and Additional Property, or any portion
thereat; for tax-exempt status;
(a) to include any platting change as permitted herein;
(Q to conform this Declaration to the requirements of any law or governmental agency
having legal jurisdiction over the Property or any Additional Property or to qualify the Property or any
Additional Property or any Lots and improvements thereon for mortgage or improvement loans made,
insured or guaranteed by a governmental agency or to comply with the requirements of law or regulations
of any corporation or agency belonging to, sponsored by, or under the substantial control of the United

SECTION 2. Easements in Favor of Declarant and the Association. The following easements
are reserved to Declarant and the Association, their successors and assigns:
(a) Easements as necessary in the lands constituting the Common Areas and that portion of
each Lot not occupied by a structure for the installation and maintenance of utilities and drainage
facilities: incuding the right of Declarant and the Association to go upon the ground with men and
equipment to erect, maintain, inspect, repair and use electric and telephone lines, wires, cables, conduits,
sewers, water mains and other suitable equipment for the conveyance and use of electricity, telephone
equipment, gas, sewer, water or other public conveniences or utilities on, in or over each Lot and such
other areas as are shown on the plat of the Property or any Additional Property recorded or to be recorded
in the office of the Register of Deeds of New Hanover County; the right to cut drain ways, swales and
ditches for surface water whenever such action may appear to the Developer or the Association to be
necessary in order to maintain reasonable standards of health, safety and appearance; the right to cut any
trees, bushes or shrubbery; the right to make any grading of the soil, or to take any other similar action
reasonably necessary to provide economical and safe utility installation and to maintain reasonable
standards of health, safety and appearance; and the right to locate wells, pumping stations, and tanks
within residential areas, or upon any Lot with the permission of the owner of such Lot. No structures or
plantings or other material shall be placed or permitted to remain upon such easement areas or other
activities undertaken thereon which may damage or interfere with the installation or maintenance of
utilities or other services, or which may retard, obstruct or reverse the flow of water or which may
damage or interfere with established slope ratios or create erosion problems;
(b) Easements over all private streets and access alley easements, and Common Areas within
the Development as necessary to provide access, ingress and egress, to any Additional Property.
(c) Some Lots may be subjected to a non -disturbance easements or similar easements for
conservation or wet lands buffering purposes. Further, some Lots may be subjected to landscape
easements for the purpose of maintaining specified plantings, levels of maintenance, signs, walls, fences,
and other decorative structures. The operation of such easements shall be governed by provisions in this
Declaration, other recorded instruments and by policies duly enacted by the Association and pursuant to
its authority set forth in this Declaration.
SECTION 3. Other Easements. The following easements are granted by Declarant to others:
(a) An easement is hereby granted to all police, fire protection, ambulance and all similar
persons, companies or agencies performing emergency services, to enter upon all Lots and Common Area
in the performance of their duties;
(b) In case of any emergency originating in or threatening any Lot or Common Areas,
regardless of whether any Lot Owner is present at the time of such emergency, the Association or any
other person authorized by it shall have the right to enter any Lot for the purpose of remedying or abating
the causes of such emergency and making any other necessary repairs not performed by the Lot Owners,
and such right of entry shall be immediate;
(c) The Association is granted an easement over each Lot for the purposes of providing Lot
maintenance.
SECTION 4. Nature of Easements. All easements and rights described herein are perpetual
easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the
Declarant and the Association, their successors and assigns, and any Owner, purchaser, mortgagee and
other person having an interest in the Property or any Additional Property, or any part or portion thereof,
regardless of whether or not reference is made in the respective deeds of conveyance, or in any mortgage
or trust deed or other evidence of obligation, to the easements and rights described in this Declaration.
SECTION 5. Prohibition Of Permanent Structures Within Easements. No permanent
structure may be built within the casements described in this Article or those easements shown on the
Recorded Map. Owners may plant trees, shrubs, flowers and grass in those easements. Owners shall be
responsible for the cost of removal, repair and/or replacement of any non -permanent structures which the
Association deems necessary to remove to allow for maintenance, servicing, repair or replacement within
those easements. Owner shall also be responsible for the cost of the removal of any permanent structure
constructed within those easements. Any costs incurred by the Association for removal, repair and/or
replacement of structures or vegetation in the easement areas shall be assessed to the Owner of the related
lot.

SECTION S. Common Expenses shall mean expenditures made by or financial liabilities of
the Association, together with any allocations to reserves.
SECTION 6. Declarant shall be used interchangeably with Developer (which designations
shall include singular, plural, masculine, feminine, and neuter as required by the context) and shall mean
and refer to ISLAND PALMS, LLC, its successors and assigns.
SECTION 7. Declantion shall mean this instrument as it may be from time to time be
amended or supplemented.
SECTION 8. Development shall mean the Property plus any Additional Property...
SECTION 9. House or Home shall mean the dwelling located on a Lot.
SECTION 10. Improvements shall mean any change or addition to a Lot by or on behalf of
an Owner other than the Declarant.
SECTION IL t s shall mean and refer to any numbered lot within the Development,
together with the dwelling and other improvements situated thereon.
SECTION 12. Memberfs) shall mean and refer to every person or entity :who has a
Membership in the Association.
SECTION 13. Membership shall mean and refer to the rights, privileges, benefits, duties and
obligations, which shall inure to the benefit of and burden each Member of the Association. Although the
Declarant shall be a member of the Association so long as Declarant owns any property shown on the
Recorded Map, the Declarant shall not be required to pay Assessments. ..
SECTION 14. Owner shall mean and refer to the record owner, whether one or more persons
or entities, of a fee simple title to any Lot, including contract sellers, but excluding those having such
interest merely as security for the performance of an obligation.
SECTION 15. Pro a shall mean the Property as defined in the preamble to this Declaration.
ARTICLE II
PROPERTY RIGHTS AND EASEMENTS
SECTION 1. Owners' Property Riahts and Easement of Enloyment In the Common Ares.
Every Owner shall have and is hereby granted a right and easement of enjoyment in and to the Common
Arcs which shall be appurtenant to and shall pass with the title to every Lot, subject to the -following
provisions:
(a) The Association may make and amend reasonable rules and regulations governing use of
the Common Areas by the Owners;
(b) The Association may suspend the voting rights and privileges of an Owner for any period
during which any Assessments against the Owner's lot remain unpaid. The Association may also suspend
the voting rights and privileges of an Owner for an infraction of the Declaration, bylaws or other
published rules and regulations of the Association for the period during which the infraction is pending
and not to exceed 60 days following the cessation of the infraction.
(c) The Association may mortgage or convey the Common Areas, or dedicate or transfer all
or part of the Common Areas, to any public agency, authority or utility for such purposes and subject to
such conditions as may be agreed to by at least two-thirds of the Members, excluding the Developer,
provided, however, the Association may without the consent of the Owners grant easements over the
Common Area for drainage systems and public and private utilities servicing the Development and
provided, further, that any conveyance or encumbrance of Common Area shall be subject to any rights of
ingress and egress to any Lot over private streets.
(d) The Association, acting through the Board of Directors, shall have the right to grant
easements, rights of way, licenses and similar interests over any part of the Common Areas for any lawful
purpose which it determines, in its own discretion, to be consistent with the interests of the Association.
(e) The Association may levy fines in accordance with the North Carolina Planned
Community Act (Chapter 47F of the North Carolina General Statutes).

STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
2008014777
FU REG15 RgII0N REe10 r ER OF pE.EDO
REBECLR R SaI TM
IrtY Ht t.c. E0. N
ME APR 04 04:27:19 PM
BK:529E P0581-2594 FEE:90,00
1N81RU V � 20080I
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
ISLAND PALMS SUBDIVISION
THIS DECLARATION, made the 3rdday of Argil , 2008, by ISLAND PALMS, LLC, a
North Carolina limited liability company, (hereinafter referred to as "Declarant" or Developer") and
JOHN THOMPSON and wife, JULIE THOMPSON, residents of New Hanover County, North Carolina
(hereinafter referred to as "Thompsons") for the purposes hereinafter stated;
WITNESSETH:
WHEREAS, Declarant and Thompsons are the owners of certain real property in New Hanover
County, North Carolina. known as Island Palms Subdivision which is shown on a plat recorded in the
Office of the Register of Deeds of New Hanover County, North Carolina, in Map Book,-r-Pagc3$QW I
(the "Recorded Map" to which reference is made for a more particular description (the "Property'; and
WHEREAS, a portion of the Property is owned by Island Palms which was acquired by that deed
recorded in Book 5163, Page 1693, of the New Hanover County Registry; and
WHEREAS, the remainder of the Property is owned by the Thompsons which they acquired by a
deed recorded in Book 2754, Page 605, of the New Hanover County Registry; and
WHEREAS, Island Palms, LLC, and the Thompson have formed a joint venture for the purposes
of developing Island Palms Subdivision.
NOW, THEREFORE, Declarant and the Thompsons declare that the Property shall be held, sold
and conveyed subject to the North Carolina Planned Community Act (the "PCA" in Chapter 47F of the
North Carolina General Statutes and also subject to the following casements, restrictions, covenants, and
conditions, which are for the purpose of protecting the value and desirability of, and which shall run with
the land and be binding on and shall inure to the benefit of all parties having any right, title or interest in
the Property or any part thereof, their hews, successors and assigns.
ARTICLE I
DEFINITIONS
SECTION 1. Additional Property shall mean and refer to any lands which are now owned or
may be hereafter acquired or developed by Declarant, in addition to the above described Property within a
mile thereof, and annexed to and made a part of the Development (as hereinafter defined) pursuant to the
provisions of this Declaration.
SECTION 2. Association shall mean and refer to the Island Palms Homeowners' Association,
Inc., a North Carolina non-profit corporation, its successors and assigns, the owners' association
organized for the purposes set forth herein.
SECTION 3. Assessments shalt mean the Annual, Special, Insurance, Ad Valorem Tax and
Working Capital Assessments provided for in this Declaration.
SECTION 4. Common Areats) shall mean and refer to all lands and easements within or
appurtenant to the Development intended for the common use and enjoyment of the Owners, including,
without limitation, any private roads, areas designated as "common" areas on the Recorded Map and
storm water retention ponds within the Development.