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HomeMy WebLinkAboutSW6140402_Deed Restriction/Protective Covenant Form_20240104 Bx 09577 PG0767 FILED CUMBERLAND COUNTY NC J. LEE WARREN, JR. REGISTER OF DEEDS FILED Jan 15, 2015 AT 01:33:00 pm BOOK 09577 START PAGE 0767 END PAGE 0799 INSTRUMENT# 01298 RECORDING $98.00 EXCISE TAX (None) RA (Top portion for recording purposes) DECLARATION OF COVENANTS,CONDITIONS,AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY THIS DECLARATION is made on the date hereinafter set forth by BELL CLARK HOMES OF FAYETTEVILLE, LLC, a North Carolina limited liability company (hereinafter collectively referred to as "Declarant"): WITNESS TO: WHEREAS, Declarant is the owner of certain real property located in Cumberland County, North Carolina, which is more particularly described on Exhibit "A" attached hereto and made a part hereof by reference (hereinafter sometimes referred to as the"Property"). WHEREAS, Declarant desires to create on such property an exclusive residential community of single-family homes to be known as The Preserve at Lake Upchurch (hereinafter sometimes referred to as "Subdivision"); WHEREAS, Declarant desires to provide for the maintenance and upkeep of the common area within the Subdivision, including, but not limited to the private roadways and streets, and to provide for enforcement of covenants and restrictions applicable to the Subdivision, and, to that end, desires to create a planned community pursuant to the provisions of Chapter 47F of the General Statutes of North Carolina (the "Act"), and to subject all of the property within the Subdivision to the covenants, conditions, restrictions, easements, charges and liens hereinafter set forth, each and all of which is and are for the benefit of said property and each owner thereof; WHEREAS, Declarant has deemed it advisable to create an organization to own, maintain and administer the Common Area (as hereinafter defined), to administer and enforce covenants and restrictions applicable to the Subdivision, and to collect and disburse the assessments and charges hereinafter created, and Declarant has therefore incorporated under North Carolina law as a non-profit corporation, THE PRESERVE AT LAKE UPCHURCH PROPERTY OWNERS ASSOCIATION, INC., for the purpose of exercising the aforesaid functions; 1 4/1/2014 61( 09577 PG0768 NOW, THEREFORE, Declarant declares that the Properties and such additions thereto as may hereafter be made pursuant to Article II hereof, is and shall be owned, held, transferred, sold, conveyed, used and occupied subject to the covenants, conditions, restrictions, easements, charges and liens set forth in this Declaration, all of which shall run with the real property and be binding on all parties owning any right, title or interest in said real property or any part thereof, their heirs, personal representatives, successors and assigns, and shall inure to the benefit of each owner thereof. ARTICLE I DEFINITIONS Section 1. "Act shall mean and refer to Chapter 47F of the General Statutes of North Carolina, designated as the North Carolina Planned Community Act. Section 2. "Association" shall mean and refer to THE PRESERVE AT LAKE UPCHURCH PROPERTY OWNERS ASSOCIATION, INC. a North Carolina non-profit corporation, its successors and assigns. Section 3. "Buffer Area" shall mean any portion of the Properties that is located within thirty(35) feet of any common boundary established by the Mean Water Line. Section 4. "Builder" shall mean and refer to any persons, firms or entities to whom or which Declarant conveys one or more Lots within the Properties for the purpose of constructing a Dwelling thereon. Section 5. "Common Area" shall mean and refer to any and all real property, together with any improvements thereon, shown on any recorded subdivision plat of the Properties, with the exception of any Lots, as said term is defined in this Declaration. Common Area includes any community dock or pier, and all sidewalks, recreation areas,roadways, and streets within the Subdivision. Except as otherwise provided in this Declaration, the Common Area shall be maintained by the Association or its successors in interest unless dedicated to public use as set forth herein. All roads within the development will be maintained by the Association until accepted for dedication by the appropriate governmental authority. Section 6. "Declarant" shall mean and refer to Bill Clark Homes of Fayetteville, LLC, a North Carolina limited liability company. It shall also mean and refer to any person, company or entity to whom or which Declarant shall assign or delegate the rights and obligations of Declarant by an assignment of Declarant's rights recorded in the applicable public registry for Cumberland County, North Carolina. Section 7. Dwelling" shall mean and refer to any building within the Property which is designated and intended for use and occupancy as a single family residence by a single family, whether by the Owner of such Dwelling or by tenants or lessees of such Owner. Section 8. "Lake" shall mean Lake Upchurch. Section 9. "Lot" shall mean and refer to any plot of land, with delineated boundary lines, shown on any recorded subdivision plat of the Properties. In the event that any Lot is increased BK09577 PG0769 or decreased in size by recombination or resubdivision through recordation of new subdivision plats, any newly-platted Lot shall thereafter constitute a Lot. Section 10. "Mean Water Line" shall mean the mean water line (normal pool elevation) of a Lot and the Lake. Section II. "Member" shall mean and refer to every person or entity who or which holds membership in the Association. Section 12. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having an interest in a Lot solely as security for the performance of an obligation. Section 13. "Properties" shall mean and refer to the property described in Exhibit"A" to this Declaration and any additional property annexed pursuant to Article II of this Declaration. ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION AND WITHIN THE JURISDICTION OF THE THE PRESERVE AT LAKE UPCHURCHCOMMUNITY Section 1. Existing Property. The real property which is and shall be held, transferred, sold, conveyed, used and occupied subject to this Declaration as of the date of recording hereof, which is within the jurisdiction of the Association, and which is described on Exhibit "A" attached hereto. Section 2. Annexation of Additional Property. At any time prior to December 31, 2031, additional land may be annexed by the Declarant without the consent of the Members and therefore become subject to this Declaration by the recording by Declarant of a plat showing such property to be annexed and of a supplementary declaration extending the operation and effect of this Declaration to the property to be annexed. Furthermore, at any time Declarant owns any Lot within the Properties, additional land may be annexed by the Declarant without the consent of the Members and therefore become subject to this Declaration by the recording by Declarant of a plat showing such property to be annexed and of a supplementary declaration extending the operation and effect of this Declaration to the property to be annexed. Any property annexed must be contiguous to property already subject to this Declaration. Any property annexed pursuant to this subsection may be annexed and subjected to this Declaration as one parcel or as several parcels at different times. The addition of such property pursuant to this Section may increase the cumulative number of Lots within the Properties and, therefore, may alter the relative maximum voting strength of the various types of Members. A supplementary declaration may contain such complementary additions to and modifications of the covenants and restrictions contained in this Declaration, including, without limitation, different voting rights and different annual and special assessments for the Lots so annexed, as Declarant, in its sole discretion, may deem necessary or appropriate to reflect the different character or use of the property added. In no event, however, shall any supplementary EK09577 PG0770 declaration revoke, modify or add to the covenants and restrictions established by this Declaration so as to materially and adversely affect any portion of the Properties already subject to this Declaration. A supplementary declaration annexing additional property need only be executed by the Declarant and, if applicable, by the owner of the property being annexed, and shall not require the joinder or consent of the Association or any of its Members. Nothing contained in this Article shall be construed to obligate or require Declarant to make any additions to the Properties. Section 4. Conveyance of Common Area in Annexed Property. Promptly upon request of Declarant, the owner of the annexed property shall convey any or all Common Area located within the newly annexed property to the Association or, if requested by the Declarant, to the Declarant. Title to such Common Area shall be conveyed in the same manner as set forth in Section 3 of Article IV of this Declaration. Section 5. Merger. Additional property may also be made subject to this Declaration by merger or consolidation of the Association with another non-profit corporation formed for the same or similar purposes. The surviving or consolidated association shall administer the covenants and restrictions established by this Declaration within the Properties and the covenants and restrictions established upon property owned by the other association as one scheme. No such merger or consolidation shall cause any revocation, change or addition to this Declaration. Section 6. Effect of Addition of Property. Except by amendment of this Declaration as provided in Section 3 of Article XII hereof, no addition of property, whether by annexation, merger or consolidation, shall revoke or modify any provision of this Declaration as to the Properties already subject hereto or diminish the rights of the Owners of Lots within the Properties, except for the dilution of voting strength that occurs as a result of inclusion of additional Members of the Association. Section 7. Withdrawal of Property. Declarant reserves the right to amend this Declaration so long as it has a right to annex Additional Property pursuant to this Article for the purpose of removing any portion of the Properties then owned by Declarant or the Association from the coverage of this Declaration, to the extent originally included in error or as a result of any changes whatsoever in the plans for the Subdivision, provided such withdrawal is not unequivocally contrary to the overall, uniform scheme of development for the Subdivision. Section 8. Good Faith Lender's Clause. Any violation of these covenants, conditions or restrictions shall not affect any lien or deed of trust of record held in good faith, upon any Lot, which liens may be enforced in due course, subject to the terms of this Declaration. ARTICLE III MEMBERSHIP AND VOTING RIGHTS Section 1. Membership. Every Owner of a Lot which is subject to assessment by the Association shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. BK09577 Non I Section 2. Voting Rights. The voting rights of the membership shall be appurtenant to the ownership of the Lots and may not be separated from ownership of any Lot. There shall be two classes of Lots with respect to voting rights: (a) Class A Lots. Class A Lots shall be those Lots upon which single-family dwellings are built, or to be built, to be known as "The Preserve at Lake Upchurch". All Lots in the Subdivision shall be Class A Lots except those Lots which are Class B Lots as the same are hereinafter defined. Ownership of a Class A Lot shall entitle the Owner of such Lot to one (1) vote. When more than one person owns an interest (other than a leasehold or security interest) in any Lot, all such persons shall be Members and the voting rights appurtenant to their Lot shall be exercised as they, among themselves, determine; but fractional voting shall not be allowed, and in no event shall more than one vote be cast with respect to any Class A Lot. (b) Class B Lots. Class B Lots shall be all Lots owned by Declarant and which have not been converted to Class A Lots as set forth below. Declarant shall be entitled to nine (9) votes for each Class B Lot it owns. The Class B Lots shall cease to exist and shall be converted to Class A Lots upon the earlier of the following to occur: (i) when Declarant no longer owns any Lots within the Subdivision; (ii) upon written waiver of Class B membership by Declarant and/or; or (iii) December 31, 2034. When the Class B Lots cease to exist and are converted to Class A Lots, Declarant shall have the same voting rights as other Owners of Class A Lots. Notwithstanding the aforesaid provisions, until written waiver of Class B membership by the Declarant or December 31, 2034, Class B Lots and Class B membership may be reinstated by the Declarant in land being annexed, and upon such annexation, the Class B membership and the Class B Lots automatically shall be reinstated. (c) Declarant's Voting Rights. Until the Class B Lots cease to exist (subject to reinstatement as provided above), Declarant shall be vested with the sole voting rights of the Association on all matters (including election and removal of directors and officers of the Association), except such matters as to which the Declaration, the Articles of Incorporation, or the Bylaws of the Association specifically require a vote of the Class A Members. ARTICLE IV PROPERTY RIGHTS Section 1. Owners' Easements of Enjoyment and Access. Except as limited by the provisions of this Section 1 and by the rules and regulations adopted by the Board of Directors of the Association, every Owner shall have a right and easement of enjoyment in, use of and access to, from, and over the Common Area, which right and easement shall be appurtenant to and shall pass with title to every Lot, subject to: (a) the right of the Association to charge reasonable admission and other fees for the use of any recreational facilities situated or constructed on the Common Area and to limit the use of such facilities to Owners who occupy a residence on the Properties and to their families, tenants and guests, as provided in Section 2 of this Article IV. BX09577 Pg0772 (b) the right of the Association to suspend the voting rights of an Owner for any period during which any assessment against his Lot remains unpaid, or for a period not to exceed sixty (60) days for any infraction of the published rules and regulations of the Association. (c) the right of the Association to dedicate, sell or transfer all or any part of the Common Area to any public or quasi-public agency, authority or utility for such purposes and subject to such conditions as may be agreed upon by the Members. After Class B Lots cease to exist, no such dedication or transfer shall be effective unless the Members entitled to at least 80% of the votes of the entire membership of the Association and at least three-fourths (3/4) of the votes appurtenant to each Class of Lots agree to such dedication, sale or transfer and signify their agreement by a signed document recorded in the applicable public registry for Cumberland County, North Carolina. Nothing herein shall be deemed to prohibit the Board of Directors of the Association, without consent of the Members, from granting easements over and across the Common Area to any public agency, authority or utility for the installation and maintenance of sewerage, utility (including cable television) or drainage facilities when, in the opinion of the Board, such easements are necessary for the convenient use and enjoyment of properties within the Subdivision. Notwithstanding anything herein to the contrary, the Common Area shall be preserved for the perpetual benefit of the owners of Lots within the Subdivision and shall not be conveyed except to a governmental entity or another non-profit corporation organized for similar purposes. (d) the right of the Association, to borrow money and, after Class B Lots cease to exist, with the assent of Members' entitled to at least 80% of the votes of the entire membership of the Association and at least two-thirds (2/3) of the votes appurtenant to each Class of Lots, mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred, provided that the rights of any such lender or mortgagee shall be subordinate to the property rights of the Members and the Association as set forth herein. (e) the right of the Association to exchange all or part of the Common Area for other property and consideration of like value and utility, provided, however, that, after Class B Lots cease to exist, any such dedication shall require the assent of the Members as set forth in subparagraph (c) above, and further provided that, if the Board of Directors of the Association determines, in its sole discretion, that such exchange is necessary to cure an encroachment or setback violation on any Lot, the Board may effect such exchange without the consent of or approval by the Members. (f) the right of the Association to open the Common Area and, in particular, the recreational facilities constructed thereon, for use by non-members of the Association. (g) the right of the Association to expand or add to the Common Area and to improve, maintain and operate the Common Area. (h) the right of the Association to adopt, promulgate and enforce rules and regulations concerning the use of the Common Area. 8K09577 PG0773 (i) the right of the Association to otherwise deal with the Common Area as provided in the Articles of Incorporation and Bylaws of the Association. Section 2. Delegation of Use. (a) Family. The right and easement of enjoyment and access granted to every Owner by Section I of this Article may be exercised by members of the Owner's family who occupy the residence of the Owner within the Properties as their principal residence. (b) Tenants: Contract Purchasers. The right and easement of enjoyment and access granted to every Owner by Section 1 of this Article may be delegated by such Owner to his tenants or contract purchasers who occupy a residence within the Properties, or a portion of said residence, as their principal residence. (c) Guests. The right and easement of enjoyment and access granted to every Owner by Section 1 of this Article may be delegated to guests of such Owners, tenants or contract purchasers, subject to such rules and regulations as may be established by the Board of Directors. (d) Suspension of Rights. The rights of any delegate of an Owner shall be suspended by, upon and during suspension of such Owner's rights as provided in Section 7 of Article XIII of this Declaration. Section 3. Conveyance of Common Area To The Association. No later than the time Declarant no longer exercises voting control over the Association (subject to reinstatement) as provided in Article III hereof, Declarant shall convey, and the Association shall accept, fee simple title to all Common Area (except Common Area easements)within the Properties, and shall reserve for or grant to the Association all Common Area easements, all subject to such easements, reservations, conditions and restrictions as then may be of record, and the Association shall accept all such conveyances, grants and reservations, provided, however, that so long as Declarant owns any Lots within the Properties, Declarant reserves and shall have an easement over and across any Common Area deeded to the Association for the purpose of constructing and maintaining any improvements on the Common Area as it deems necessary or advisable, provided that any such improvements must comply with the requirements of the appropriate governmental authority. Any permanent improvements placed on the Common Area by Declarant shall become the property of the Association upon completion of such improvements. Section 4. Regulation and Maintenance of Common Area and Common Area Easements. It is the intent of the Declarant that the Common Area be preserved for the perpetual benefit of the Owners. (a) Regulation of Common Area. The Association may adopt and promulgate rules and regulations governing the use of the Common Area by Owners and their family, guests and invitees, No Owner or other permitted user shall use the Common Area or any portion thereof in violation of the rules and regulations contained in this Declaration or subsequently adopted by the Association. Without limiting the generality of the foregoing, except as specifically provided herein, no Owner or tenant, guest or invitee of an Owner shall, without the specific prior written consent BX09517 PG0174 of the Association: (i) damage or waste the Common Area or improvements thereon or remove any trees or vegetation therefrom; (ii) erect any gate, fence, structure or other improvement or thing on the Common Area; (iii) place any garbage receptacle,trash or debris on Common Area; (iv) fill or excavate any part of the Common Area; (v) landscape or plant vegetation on Common Area; or (vi) use the Common Area or any part thereof in a manner inconsistent with or in any way interfering with the rights of other Owners. (b) Rights and Responsibilities of the Lot Owners as to Common Area Easements. Each Owner of a Lot upon which a Common Area easement lies shall pay all property taxes and other assessments levied against his Lot, including that portion of such tax or assessment as is attributable to such Common Area easement. (c) Rights and Responsibilities of the Association as to Common Area. The Association shall have the right and obligation to ensure that the Common Area is preserved for the perpetual benefit of the Owners, and, to that end, shall: (i) maintain the Common Area in its natural or improved state, as appropriate, and keep it free of impediments to its use by the Owners, subject to the provisions of this Declaration; (ii) procure and maintain adequate liability insurance covering the Association and its Members, Directors and officers, against any loss or damage suffered by any person, including the Owner of the Lot upon which Common Area lies, resulting from use of the Common Area, and adequate hazard insurance covering the real and personal property owned in fee by the Association; and (iii) pay all property taxes and other assessments levied against all Common Area owned in fee by the Association. (d) Declarant's and Association's Right of Entry. The Declarant and the Association and the employees, agents, contractors and subcontractors of each, shall have a non-exclusive right and easement at all times to enter upon any portion of a Lot reserved or designated as a Common Area easement for the purposes of: (i) installing and maintaining Subdivision entrance signs, features, fencing and landscaping; and (ii) making such improvements to the Common Area; and (iii) maintaining the Common Area easement in its natural or improved state. ARTICLE IV-A DOCK AND SLIP PERMITS; USE OF DOCKS AND SLIPS; Section 1. Dock and Slip Permits. The Declarant, or the ARC, as the case may be, reserves the right to assign all boat dock permits. Individual Lot Owners shall not have the right to apply for or obtain a boat dock permit or usage agreement from any other person or entity. No more than one boat dock or pier is permitted on any one Lot, other than a Lot owned by Declarant or the Association. No boat dock permit or usage agreement may be retained, sold, leased or otherwise conveyed by any person or entity that does not own a Lot or Lots within the Properties subject to this Declaration. In no event shall any boat dock or pier, other than one maintained by the Declarant or the Association, extend more than twelve (12) feet from the Mean Water Line. Section 2. Registration of Watercraft: Use of Docks and Slips. All boats, vessels and other watercraft must be registered with the Association in the manner and pursuant to the terms delineated in the rules and regulations adopted by the Association prior to be parked on a Lot or launched, docked or anchored on the Lake. Lot owners, by acceptance of deeds to Lots or 09577 [Jo 0175 portions of the real property subject to this Declaration agree, and the Declarant hereby prohibits, the launching, docking, anchoring, and parking of any boat, vessel or other watercraft from and on property owned and controlled by any person who is not the Owner of a Lot, or such Owner's immediate family member residing on the Lot, tenant or registered guest (to the extent specifically permitted by the rules and regulations adopted by the Association), as may be further delineated in the rules and regulations adopted by the Association. This provision shall not limit the Declarants' right to convey or assign the use of individual or community boat docks and piers. ARTICLE V COVENANT FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of a Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association annual assessments and special assessments, such assessments to be established and collected as hereinafter provided. All assessments which are unpaid when due, together with interest and late charges set forth in Section 9 of this Article V and all costs of collection, including reasonable attorney's fees, shall be a charge against and, a continuing lien upon the Lot against which such assessment is made. Each such assessment or charge, together with interest and costs of collection, including reasonable attorneys' fees, shall also be the personal or corporate obligation of the person(s), firm(s) or corporation(s) owning such Lot at the time when the assessment fell due, but such personal obligation shall not be imposed upon such Owner's successors in title unless expressly assumed by them. Although unpaid assessments and charges are not the personal obligation of such Owner's successors in title unless expressly assumed by them, the unpaid assessments and charges shall continue to be a lien upon the Lot against which the assessment or charge was made. It is the intent of the Declarant that any monetary fines imposed against an Owner pursuant to the Bylaws of the Association or Section 8 of Article XIII of this Declaration shall constitute a lien against the Lot of such Owner to the same extent as if such fine were an assessment against such Lot. Section 2. Purposes of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Subdivision and, in particular, for: (i) acquisition, improvement and maintenance of properties, services and facilities related to the use and enjoyment of the Common Area; (ii) repair and reconstruction of improvements on, the Common Area, including, without limitation, the cost of repair, replacement and additions thereto and the cost of labor, equipment, materials, management and supervision thereof; (iii) payment of taxes and public assessments levied against the Common Area owned by the Association in fee; (iv)procurement and maintenance of insurance in accordance with the Section 4(c) of Article IV of this Declaration; (v) employment of attorneys, accountants and other persons or firms to represent the Association when necessary; (vi) payment of principal and interest on funds borrowed for Association purposes; (vii) such other needs as may arise; and (viii) payment for the maintenance and operation of stormwater facilities and street lights. The Declarant reserves the right to subject the real property in this subdivision to a contract with Duke Energy Progress, Inc. for the installation of street lighting, H o 9 5 7 7 PGo776 which requires a continuing monthly payment to Duke Energy Progress, Inc. by each residential customer. Said monthly payment may be included in the assessments charged to each Owner. Section 3. Annual Assessments. (a) Maximum Annual Assessment. Declarant shall establish the Maximum Annual Assessment and initial annual assessment for Class A Lots; thereafter, the terms "Maximum Annual Assessment", annual assessment, and special assessment shall mean the Maximum, annual and special assessments applicable to Class A Lots. Until December 31, 2014, the Maximum Annual Assessment shall be$250.00 for each Class A Lot. From and after January 1, 2015. Once Class B Lots cease to exist, the Maximum Annual Assessment may be increased by the Board of Directors effective January 1 of each year without a vote of the Members, but subject to the limitation that the percentage of any such increase shall not exceed 10% of the Maximum Annual Assessment for the previous year unless such increase is approved as set forth in Section 3(b), below. Notwithstanding the foregoing, from and after January 1, 2015, the Maximum Annual Assessment for Class A Lots may be increased without limitation if such increase is approved by the Board of Directors and a majority of the votes cast, in person or by proxy,at a meeting duly called for that purpose. (b) Annual Assessments: Ratification of Budgets. For so long as a Class B Lot exists (including any reinstatement), the Board of Directors, in its sole discretion, shall have the authority to adopt an annual budget. After Class B Lots cease to exist (subject to reinstatement), the Board of Directors shall adopt a proposed budget (including the proposed annual assessment for each Class of Lots) at least annually. Within 30 days after adoption of the proposed budget, the Board of Directors shall send a copy of the proposed budget and shall give written notice to the Members of a meeting of the Members to consider ratification of the budget, such meeting to be held not sooner than 10 days nor more than 60 days after the mailing of such notice. Such meeting may, but need not be, combined with the annual meeting of the Members. Except as required by Section 7 below, there shall be no requirement that a quorum be present in order to vote on ratification of the budget (although a quorum must be present to vote on other matters). The budget shall be deemed ratified unless at that meeting Members having a majority of the votes of the entire membership vote to reject the budget. Notwithstanding the foregoing, if the budget provides for annual assessments not greater than 10% larger than the assessment in effect for the immediately preceding year, such budget shall be deemed ratified unless Members having at least 80% of the votes of the entire membership vote to reject the budget. If the proposed budget is rejected, the budget last ratified by the Members shall be continued until such time as the Members ratify a subsequent budget proposed by the Board. Any annual assessment ratified by the Members shall continue thereafter from year to year as the annual assessment until changed by the Board and ratified by the Members as set forth herein. Section 4. Special Assessments. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, special assessments for the purpose of defraying, in whole or in part, the cost of any construction, repair or replacement of a capital improvement on the Common Area, including fixtures and personal property related thereto, for gic09577 pG0777 repayment of indebtedness and interest thereon, or for any other purpose, provided that any such assessment shall have the same assent of the Members as provided in Section 3(b)of this Article. Section 5. Assessment Rate: Collection Period. Except as provided in Section 6 of this Article V, the annual and special assessments shall be fixed at a uniform rate for all Lots within each subclass of Lots and may be collected on a yearly, semi-annually, quarterly or monthly basis, as determined by the Board of Directors. Section 6. Declarant's Assessments. Notwithstanding any other provision of this Declaration or the Bylaws of the Association, the Articles of Incorporation the Declarant shall not be obligated for, nor subject to, any annual or special assessment for any Lot or other property that it owns within the Properties, provided, however, that the Declarant shall be responsible for paying the difference between: (i) the operating expenses of the Association; and (ii) the total operating revenues of the Association from all sources including, without limitation, annual and special assessments,revenues generated from fees charged by the Association for use of the Common Area, and investment income (said difference being hereinafter referred to as the "Operating Deficit"). For purposes of this Section, the term "operating expenses" shall not include contributions to any reserves for replacement, operating reserves, depreciation reserves, capital expenditures, or special assessments. Declarant may, by written notice given by the Declarant to the Association on or before November 30 of any year, to be effective as of January 1, terminate its obligation to pay the Operating Deficit and waive its right to exclusion from assessments. In such event, each Lot owned by the Declarant which contains a Dwelling for which a certificate of occupancy has been issued shall be assessed at the rate of twenty-five percent (25%) of the annual assessment in effect for Class A Lots, as the same may change from time to time. Upon sale of such Lot by Declarant to any other person or entity, such Lot shall be assessed at Class A rate, commencing on the day on which title to such Lot is transferred to such third party. Notwithstanding any other provision of this Declaration, a Lot owned by the Declarant which contains a Dwelling occupied as a residence(but not as a model or sales center) shall be assessed at the rate applicable to Class A Lots. Section 7. Notice and Quorum for any Action Authorized Under Sections 3(a) and 4. After Class B lots cease to exist, written notice of any meeting called for the purpose of taking any action authorized under Section 3(a) or 4 shall be sent to all Members not less than ten (10) days nor more than sixty (60) days prior to the meeting. At such meeting, the presence of Members, in person or by proxy, entitled to cast twenty five (25%) percent of the votes of the entire membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirements, and if called for a date not later than sixty (60) days after the date of the first meeting, the required quorum at the subsequent meeting shall be one-half('/) of the required quorum at the preceding meeting. Section 8. Date of Commencement of Annual Assessments: Amount of Initial and Subsequent Annual Assessments: Certificate of Payment. Unless a different commencement date is set by the Board of Directors, the annual assessments provided for herein shall commence as to all Lots in any phase on the first day of the month following the conveyance of a Lot or Unit within that phase to an Owner other than the Declarant or a Builder. Unless a lower amount is set aK09577 PG0718 by the Board of Directors and ratified by the Members, the first annual assessment shall be the "Maximum Annual Assessment" set forth in Section 3 of this Article and shall be prorated according to the number of days remaining in the calendar year. At least thirty(30) days before January 1 of each year, the Board of Directors shall fix the amount of the annual assessment against each Lot. At least fifteen (15) days before January 1 of each year, the Board of Directors shall send written notice of such assessment to every Owner subject thereto. The due dates for the payment of annual and special assessments shall be established by the Board of Directors. The Association shall, upon demand, and for such reasonable charge as the Board of Directors may determine, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. If such certificate states that an assessment has been paid, such certificate shall be conclusive evidence of payment. Section 9. Effect of Nonpayment of Assessments: Remedies. An assessment not paid within ten (10) days after the due date shall incur such late charge as the Board of Directors may from time to time establish, and, if not paid within thirty (30) days after the due date, shall also bear interest from the due date at the rate of eighteen percent (18%)per annum or the highest rate allowed by law, whichever is less. The Association may bring an action at law or in equity against the Owner personally obligated to pay the same and/or foreclose the lien against the Lot for which such assessment is due subject to § 47F-3-116 of the Act, as amended. Interest, late payment charges, reasonable attorneys' fees, and the costs of such action or foreclosure shall be added to the amount of such assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or by abandonment of his Lot. Section 10. Subordination of the Lien to Mortgages. The liens provided for herein shall be subordinate to the lien of any first mortgage on a Lot. Sale or transfer of a Lot shall not affect any assessment lien; however, the sale or transfer of a Lot pursuant to foreclosure of a first mortgage, or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of any assessment which became due prior to the date of such conveyance. No such sale or transfer shall relieve such Lot from liability for any assessment thereafter becoming due or from the lien thereof; but the liens provided for herein shall continue to be subordinate to the lien of any first mortgage. Section 11. Initial Capital Contribution. At the time of closing of the initial sale of a Dwelling, a sum equal to One Hundred and 00//100 Dollars for Class A Lots in effect at the time of such sale shall be collected from the purchaser of such Dwelling and transferred to the Association as part of its working capital. The purpose of such working capital contributions is to ensure that the Association will have adequate cash available to defray operating costs, meet unforeseen expenditures or to acquire additional equipment or services deemed by the Board of Directors to be necessary or desirable. Amounts paid pursuant to this Section shall not be considered as an advance payment of any regular or special assessment. Section 12. Exempt Property. All property dedicated to and accepted by a public authority and all property owned by the Association shall be exempt from the assessments GK09577 PG0779 created herein. Notwithstanding the foregoing, no land or improvements devoted to dwelling use shall be exempt from said assessments. Section 13. Default By The Association. Upon default by the Association in the payment of any ad valorem taxes levied against the Common Area, any assessment for public improvements, or any charge for utilities for streetlights within the Common Area, which continues for a period of six (6) months, each Owner shall become personally obligated to pay the tax assessing governmental authority an amount equal to such Owner's portion of such taxes or assessments, which amount shall be determined by dividing the total of the taxes and/or assessments due by the number of Lots. If not paid within thirty (30) days of the date due, said sum shall become a continuing lien on such Owner's Lot and the taxing or assessing governmental authority may either bring an action at law against the Owner personally obligated to pay the same, or elect to foreclose the lien. ARTICLE VI RIGHTS OF LENDERS Section 1. Books and Records, Any owner or holder of a first mortgage on any Lot, or its agent, shall have the right, during normal business hours, to examine copies of this Declaration, the Articles of Incorporation, Bylaws, and the books and records of the Association and, upon written request to the Association, and payment of copying and mailing costs, to receive a copy of the financial statement for the immediately preceding fiscal year. Section 2. Notice to Lenders. After Class B Lots cease to exist and upon written request to the Association, the owner or holder of a first mortgage on any Lot shall be entitled to timely written notice of: (a) Any 60-day delinquency in the payment of assessments or charges owed by the Owner of the Lot securing its loan. (b) A lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association. (c) Any proposed action that requires the consent of a specified percentage of owners or holders of first mortgages on the Lots. Section 3. Approval of Owners and Holders of First Mortgage. After Class B Lots cease to exist, unless at least seventy-five percent (75%) of the owners and holders of the first mortgages on Lots located within the Properties have given their prior written approval, the Association shall not: (a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer any real estate or improvements thereon which are owned, directly or indirectly, by the Association. The granting of easements for utilities or other purposes shall not be deemed a transfer within the meaning of this subsection. Nothing herein shall be deemed to prohibit the Association from exchanging Common Area for other real property of like utility and value as [Di 09511 pB0180 provided in Section 1(c) of Article IV of this Declaration, or to require the approval of such exchange by the holders of first mortgages on the Lots; (b) Change the method of determining the obligations, assessments, dues or other charges which may be levied against a Lot; (c) Fail to maintain hazard insurance on insurable improvements on the Common Area on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value;or (d) Use the proceeds of any hazard insurance policy covering losses to any part of the Common Area for other than the repair, replacement or reconstruction of the damaged improvements. Section 4. Payment of Taxes and Insurance Premiums. The owners or holders of first mortgages on Lots, jointly or singly, may pay taxes or other charges which are in default and which have or may become a charge or lien against any of the Common Area and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon the lapse of a policy covering property owned by the Association. The persons, firms or corporations making such payments shall be owed immediate reimbursement therefor by the Association. ARTICLE VII EASEMENTS Section 1. Access and Utility Easements. Easements for the installation and maintenance of roadways, driveways, walkways, water, gas, telephone, cable television and electric power transmission lines, sanitary sewer and storm water drainage facilities, and for other public and private utility installations are reserved and/or granted to each Declarant and/or a third party as shown on the recorded plats of the Properties. The Association may reserve or grant easements over the Common Area as provided in Article IV, Section 1(c), of this Declaration. Within any such easement herein provided, no structure, planting or other material shall be placed or permitted to remain which may interfere with the installation or maintenance of the utilities installed thereon, or which may change the direction of flow or drainage of water through drainage pipes or channels constructed in such easements. For a period of thirty(30) years from the date hereof, Declarant reserves, for itself and its employees, agents, successors and assigns, an easement upon and a right of ingress, egress and regress on, over and under the Properties for the purposes of constructing and maintaining roadways, water, sewer, gas, storm water drainage and retention, telephone. cable television, and electric, and other utility facilities to the extent required by any applicable governmental entity or deemed by the Declarant to be necessary or convenient for the development, use and enjoyment of the Properties and the Common Area and for the conduct of construction, sales and marketing activities. Such right expressly includes the right to cut any trees, bushes or shrubbery, make any gradings of the soil, relocate utility facilities within said easement and take any other similar action that it deems reasonably necessary or appropriate. After such action has been completed, Declarant shall grade and seed the affected property and otherwise restore the affected property u09577 PG078I to its original condition to the extent practicable, but shall not be required to replace any trees, bushes or shrubbery necessarily removed. Declarant shall give reasonable notice of its intent to take such action to each Owner whose Lot is affected. Section 2. Easements for Governmental Access. An easement is hereby established over the Common Area and every Lot within the Properties for the benefit of applicable governmental agencies for installing, removing, and reading water meters, maintaining and replacing water and sewer facilities, and acting for other purposes consistent with public safety and welfare, including, without limitation, law enforcement, fire protection, garbage collection and the delivery of mail. Section 3. Owner's Easement and Right of Entry for Repair, Maintenance and Reconstruction. If any Dwelling is located closer than five (5) feet from its Lot line, the Owner thereof shall have a perpetual access easement over the adjoining Lot to the extent reasonably necessary to perform repair, maintenance or reconstruction of such Dwelling. Such work shall be done expeditiously and, upon completion of the work, the Owner shall restore the adjoining Lot to as nearly the same condition as that which existed prior to the commencement of the work as is reasonably practicable. No fence shall be erected within such area adjoining a Dwelling. Section 4. Association's Easement and Right of Entry. The Association, for itself and its employees, agents, contractors, subcontractors and invitees, shall have a perpetual access easement over the each Lot to the extent reasonably necessary to perform the maintenance to be performed by the Association Section 5. Easement Over Common Area. A perpetual, non-exclusive easement over the Common Area is hereby granted to each Lot and its Owners, family members and tenants of such Owners, the occupants of such Lot, and guests and invitees of such Owners, tenants or occupants, for the purpose of providing access, ingress and egress to and from streets, parking areas and walkways serving the Properties. Section 6. Easements for Roadway Access. An easement is hereby established for the benefit of the public over that portion of the Common Area designated as streets, roadways or other right-of-ways on the plats of the subdivision, for the purpose of providing access, ingress and egress to and from to and from adjacent public roads. ARTICLE VIII ARCHITECTURAL CONTROL Section I. Architectural Approval. Since the establishment of inflexible building setback lines for location of houses on lots tends to force construction of houses directly to the side of other homes with detrimental effects on privacy, view, preservation of important trees and other vegetation, ecological and related considerations, no specific setback lines are established by this Declaration. In order to assure, however, that the foregoing considerations are given maximum effect, the site and location of any house or dwelling or other structure upon any Lot shall be controlled by and must be approved absolutely by the Declarant or the ARC (as hereinafter defined), as the case may be. GK09577 PG0782 The Declarant or the ARC, as the case may be, shall have the sole and absolute right to determine which builders may construct houses on Lots within the Subdivision, the style and appearance of the Dwellings, including, but not limited to, flag staffs, fences, walls, buildings, outbuildings, garages, storage sheds, mailboxes, lawn decorations, structures of any type or color thereof, grading, landscaping, patio covers and trellises, plans for off-street parking of vehicles and utility layout, and any other improvements to be built or constructed on any Lot (hereinafter individually and collectively referred to as "Improvements"). Refusal or approval of a proposed builder, plans, specifications and plot plans, or any of them, may be based on any grounds, including purely aesthetic grounds, which, in the sole and uncontrolled discretion the Declarant, or the ARC, as the case may be,may deem sufficient. No Lot owner may remove any tree from any Lot, or make any material changes to the landscaping in areas of Lots maintained, or to be maintained by the Association without the approval of the Declarant or the ARC, as the case may be. Except with respect to work by the Declarant, after occupancy of a Dwelling as a residence pursuant to a certificate of occupancy or other similar certificate issued by the appropriate governmental authority, no Improvements (including, without limitation, replacement of any previously existing Improvements) shall be commenced, erected or maintained upon the Properties, nor shall any exterior addition to or change or alteration thereof be made (including, without limitation, changing materials or color of any exterior portion of any such Improvements), nor shall a building permit for such Improvements or change be applied for or obtained, until plans and specifications showing the nature, kind, shape, heights, materials, color and location of same shall have been submitted to and approved in writing by the Declaration or by an Architectural Review Committee ("ARC") composed of three or more persons appointed by the Board of Directors of the Association. If the Declaration or the ARC, as the case may be, fails to approve or disapprove such proposed Improvements within 60 days after complete plans and specifications have been received by it, approval will not be required, and this Article shall be deemed to have been complied with. The Association shall have the right to charge a reasonable fee for receiving and processing each application. The Declarant or the ARC, as the case may be, and, after the Declarant no longer owns any Lot or Unit within the Properties, the Association, shall have the right to promulgate and from time to time amend written architectural standards and construction specifications (hereinafter the "Architectural Guidelines") which may establish, define and expressly limit the standards and specifications which will be approved, including, but not limited to, architectural style, exterior color or finish, roofing material, siding material, driveway material, driveway culvert height, landscape design and construction technique, Neither the Declaration nor the ARC, as the case may be, shall approve any Improvements which it determines, in its sole discretion, not to be in harmony of external design, construction and/or location in relation to the surrounding structures, topography or the general plan of development of the Subdivision. Neither the Declarant, the Association, the Board of Directors, the ARC, nor any member or employee of any of them, shall have any liability to any person or entity by reason of any acts taken or omitted by them, or any of them, in good faith pursuant to this Article. BK05577 PGo783 Section 2. Rules and Regulations. The ARC may from time to time recommend to the Board, and the Board may, in its sole discretion, adopt, promulgate, amend and repeal rules and regulations interpreting and implementing the provisions of this Article VlII, including adoption of detailed architectural guidelines and the imposition of a fee or charge for review of proposed improvements or modifications. Notwithstanding the foregoing, or anything to the contrary in this Article VIII, (i) no mailbox contained in or supported by brick, cement, concrete, steel or any other immovable or non-break away material or of a design unacceptable to the North Carolina Department of Transportation shall be erected or allowed to remain within the right of way of any street in the Subdivision; (ii) all trash, garbage and debris shall be properly containerized and disposed of properly; (iii) no household items awaiting disposal as trash(i.e. furniture, mattresses or appliances) shall be placed in front of a Dwelling or in open carports awaiting disposal; and (iv) at such time as any initial landscaping of a Lot is installed, and in any event prior to the issuance of a certificate of occupancy, all road-side ditches shall be constructed by the Builder to North Carolina Department of Transportation standards. Section 3. Variances. The ARC may recommend to the Board, and the Board may, by the vote or written consent of a majority of the members thereof, allow reasonable variances as to the covenants, conditions or restrictions contained in this Declaration, on such terms and conditions as it shall require; provided, however, that all such variances shall be in keeping with the general plan for the improvement and development of the Property. Variances contained in plans that are inadvertently approved by the ARC as part of the proposed improvements shall not be considered as having been approved unless specifically approved by the Board in accordance with the provisions of this Section. ARTICLE IX INTENTIONALLY DELETED ARTICLE X RIGHTS AND RESPONSIBILITIES OF THE ASSOCIATION Section 1. Responsibilities. The Association, subject to the rights of the Owner set forth in this Declaration, shall be responsible for the exclusive management and control of the Common Area, including the streets and roadways, and shall keep the Common Area, including the streets and roadways, in good, clean and proper condition, order and repair. The Association shall be responsible for the payment of all costs, charges and expenses incurred in connection with the operation, administration and management of the Common Area and the performance of its other obligations hereunder. The Association shall operate and maintain areas designated by the Declarant as Common Areas, whether or not title to such areas has been formally conveyed to the Association or dedicated to the appropriate governmental authority, as applicable. The Association shall also be responsible for enforcement of the covenants and restrictions contained in this Declaration. The Association at its expense shall be responsible for maintaining, repairing and replacing all utility and drainage lines and pipes which are located in the Subdivision, except those located within individual Lots or the responsibility of the applicable utility company. The Association shall have the right to go onto the Lots at reasonable times for the purpose of maintaining, repairing and replacing all utility and drainage lines and pipes which might be BK09577 PG0784 located on such Lots; and each Owner hereby grants permission to the Association to enter his Lot for such purposes. In the event that the need for maintenance, repair or replacement (other than said being caused by fire, lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircrafts, vehicles, and smoke, as the foregoing are defined and explained in North Carolina Standard Fire and Extended Coverage Insurance Policies) is caused through the willful, or negligent act of the Owner, his family, guests or invitees, the cost of such maintenance, replacement, or repairs shall be added to and become a part of the assessment to which such Lot is subject. Section 2. Manager. The Association may employ and pay for the services of a person or entity, including the Declarant (the "Manager"), to assist the Association in managing its affairs and carrying out its responsibilities hereunder and such other persons or entities, including attorneys and accountants, as the Association deems necessary or advisable, whether such persons or entities are engaged, furnished or employed by the Manager or directly by the Association. The Association may enter into a Management Agreement for such management services upon such terms as the Board of Directors may deem appropriate. The payment of management fees due to the Declarant may, at Declarant's option, be deferred until such later date as Declarant, in its sole discretion, deems appropriate. Furthermore, any management fees due to Declarant may, at Declarant's option, be credited against any assessments due or to be coming due from the Declarant. Section 3. Personal Property for Common Use. The Association may acquire and hold tangible and intangible personal property and may dispose of the same by sale or otherwise, subject to such restrictions, if any, as may from time to time be provided in the Articles of Incorporation or Bylaws of the Association. Section 4. Insurance: Bonds. The Association shall procure and maintain adequate liability insurance covering the Association. The Association shall also procure and maintain full replacement value hazard insurance on real and personal property owned by the Association,and shall procure and maintain officers', directors' and employees' liability insurance, and such other insurance as it deems necessary or advisable. The premiums for such insurance shall be a common expense paid from the annual assessments provided in Article V of this Declaration. The Association may cause any or all persons responsible for collecting and disbursing monies of the Association to be bonded. Section 5. Implied Rights. The Association may exercise any other right or privilege and take any action authorized by this Declaration, the Association's Articles or Bylaws, or_the North Carolina Nonprofit Corporation Act, as from time to time amended, and every other right or privilege reasonably necessary to effectuate the exercise of any right or privilege or the taking of any action authorized herein or therein. Section 6. Declarant's Reserved Rights., Association's Obligation of Cooperation. The Association shall accept conveyance of any Common Area conveyed to it, in fee or by easement, by Declarant or, at the request of Declarant, by an owner of any property within or to be annexed BK09577 PG0785 into the Properties and, upon request of Declarant and without further consideration, shall execute any document necessary to evidence such acceptance. Until such time as Declarant and Builders have completed all of the contemplated improvements and have sold all of the Lots within the Subdivision: (a) Declarant shall have the right to alter the boundaries of the Common Area, whether or not it has been previously deeded to the Association, and provided that such alteration does not substantially, materially and adversely affect the function and use of the Common Area. The Association and each Owner hereby irrevocably appoints the Declarant as his attorney-in-fact to execute and/or deliver any documents, plats, deeds, or other written matters necessary or convenient to accomplish the addition of Common Area or Properties, or both, to create easements as deemed necessary by Declarant, and to adjust the boundary or boundaries of the Common Area. (b) Neither the Association nor its Members, nor the use of the Common Area by the Association and its Members, shall interfere with or impede the completion of the improvements or the marketing and sale by the Declarant and a Builder of Lots and homes. (c) Declarant and each Builder shall have the right to make such use of Lots and the Common Area as may facilitate completion of development and sale of Lots by the Declarant and Builder. Without limiting the foregoing, Declarant shall have the right to maintain or permit Builder or others to maintain sales offices, model Dwellings, administrative offices, and construction offices (which may be trailers or temporary or permanent buildings), or any or all of same, on Lots or the Common Area. Declarant and the Builder, with the Declarant's approval, shall also have the right to erect and maintain signs on Lots and/or the Common Area, to bring prospective purchasers upon the Common Area, to-use the Common Area for sales and marketing activities for the Subdivision, to grant the right to use the Common Area to a prospective purchasers or any other individual or group, in Declarant's sole discretion and to conduct any and all other marketing activities deemed appropriate by the Declarant, and to permit a Builder and others to exercise such rights in conjunction with or separate from the Declarant. (d) Subject to the provisions of Section 1(d) of Article IV of this Declaration, Declarant shall have the right, but not the obligation, to loan money to the Association in such amounts and upon such terms and conditions as to which the Declarant may agree. Payments due to the Declarant under any such loans may, at Declarant's option, be credited against any assessments coming due at any time from the Declarant. (e) In addition to all other rights of the Declarant, no amendment shall be made to this Declaration, and no rule or regulation shall be adopted, interpreted or enforced by the Association, so as to modify the assessments or other charges applicable to the Declarant or a Builder or assessed against the Lots owned by either, or which shall restrict, impair, or, in Declarant's sole judgment, materially adversely affect the activities of Declarant or the Builder with regard to construction, use of Common Area and delegation of the right to use the Common Area, or the marketing and sale of Lots by the Declarant and Builder, whether or not such 09517 PG0186 activities are enumerated in the preceding paragraphs, without the express prior written consent of Declarant, In exercising any of the rights provided or granted under this Article X, neither Declarant, nor the Association shall revoke, modify or amend this Declaration in a manner that reduces the size of the Common Area to less than, the area required by the appropriate governmental authority as of the date of this Declaration. ARTICLE XI USE RESTRICTIONS Section 1, Business Use Prohibited. No trade, business, profession or other type of commercial activity shall be carried on upon a Lot, except that Declarant a Builder, real estate brokers, Owners and their agents may show lots for sale or lease. Notwithstanding the foregoing, the Declarant, each Builder and the agents and employees of each shall have the right to: (i) use Lots and improvements erected thereon for sales offices, field construction offices, storage facilities, and its own general business offices; (ii) maintain fluorescent-lighted or spot-lighted model homes which may be open to the public for inspection 7 days per week for such hours as the Declarant or Builder deems appropriate or necessary; (iii) conduct any other activities on Lots to benefit sales efforts; and (iv) use the parking facilities on the Common Area for parking for its employees and invitees. Section 2. Use of Accessory Structures. No tent, shack, barn, car port, metal awnings, metal utility sheds or other building, other than a Dwelling and its garage, shall be erected on a Lot, and used temporarily or permanently as a residence. Notwithstanding the foregoing, the Declarant and, with the approval of the Declarant, a Builder, may use temporary buildings, offices or facilities in connection with the marketing, sale and construction of Dwellings. Section 3. Maintenance of Improvements. Each Owner shall maintain all improvements constructed upon such Owner's Lot to the standards of their original construction. Each Owner shall maintain in good condition and repair all improvements constructed upon such Owner's Lot, including, without limitation, the Dwelling. Such maintenance obligations include keeping the exterior of all such improvements free of mold and mildew. No Owner shall change the exterior design or color of the Dwelling on such Owner's Lot, including the roof thereof, except in compliance with Article VIII hereof. Section 4. Storage: Clothes Hanging. No Lot or Common Area shall be used for the storage of rubbish. Outside clothes hanging devices shall not be permitted. Section 5. Nuisances. No noxious or offensive trade or activity shall be carried on upon any Lot or the Common Area, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood. No automobile or other vehicle mechanical repairs or like activity shall be conducted within the Properties other than in a garage and concealed from public view. BK09577 pG0787 Section 6. Lawns. Each Lot shall be maintained in a neat condition by the Owner thereof. In this context, the word "Lot" shall include that portion of the property from the outside of the structure on the applicable Lot to the adjacent paved road surface. All Lots upon which a Unit or Dwelling has been constructed ("Improved Lots") must have grass lawns; no gravel or similar type lawns are permitted. For Improved Lots, "Neat" shall require, at a minimum, that the front yard of each Lot be sodded, and in the case of corner lots, the side of each Lot along the side abutting roadways, that the lawn be regularly cut and fertilized and that mulched or pinestrawed areas be regularly re-mulched or re-pinestrawed and kept weeded so that its appearance is in harmony with the neighborhood. No Owner shall allow the grass on an Improved Lot to grow to a height in excess of six (6) inches, measured from the surface of the ground. For unimproved Lots, "Neat" shall require that the Lot is maintained in a sightly condition, free of debris, rubbish, weeds and high grass and in a prudent and reasonable manner harmonious with that of other Lots within the Subdivision. Section 7. Building Type. No structure shall be erected,altered, placed or permitted to remain on any Lot other than one detached single-family dwelling not to exceed three stories in height and a private garage for not more than three cars and other outbuildings incidental to the residential use of the Lot. Such outbuilding erected, altered, placed or permitted shall be of the same quality, workmanship and material as the principal Dwelling structure and will be erected and placed to the rear of the Dwelling structure on the Lot. No outbuilding shall be located wholly or partially within any Buffer Area. No condominium, townhouse, duplex, apartment or other multi-family residential uses are permitted on the Properties. Further, no camper, trailer, motor home, boat (including, without limitation, any boat docked adjacent to the Properties), recreational vehicle, or similar habitable or transportable unit or structure shall be allowed to remain on or adjacent to the Properties as a place of residence. Section 8. Use of Brick/Block Materials. No improvements, wall, walk, edgings or other construction of any sort using brick, block or similar material used separately or in combination, may be placed or allowed to remain on any Lot unless laid with mortared joints by a professional bricklayer engaged in the business of laying brick or doing masonry construction work, except with the prior written approval of Declarant or the ARC, as the case may be. All outside foundations shall be of brick or stone, with the exception of what may be underground. No dwelling house or other structure using exposed or parged cement block wall shall be placed upon a Lot. Notwithstanding the foregoing, monolithic slabs are expressly prohibited. Section 9. Failure to Maintain. If an Owner fails to maintain the Lot or the improvements thereon, the Association, after giving such Owner at least ten (10) days' written notice, shall be authorized to undertake such maintenance at the Owner's expense. By accepting title to his Lot, each Owner shall be deemed to grant access upon the Owner's Lot and Dwelling for such purpose and such entry shall not constitute a trespass. If such maintenance is undertaken by the Association or Declarant, the charge therefor and all costs of enforcement and collection shall be secured by a lien against the Lot as provided in Article V hereof. Section 10. Animals. Animals. No animals, livestock or poultry of any kind shall be raised, bred, or kept on any Lot, except that a reasonable number of cats, dogs, and other household pets may be kept provided they are kept within the residence and are not kept, bred, or maintained for any commercial purposes or become a nuisance to the neighborhood. No person GI( 09577 PGo788 owning or having custody of an animal shall allow the animal to stray or go upon another Owner's Lot without the consent of such other Owner. All animals shall be on a leash when outside the Owner's dwelling, and the Owner shall be responsible for cleaning up all droppings from their animals. Section 11. Signs. No signs shall be displayed on any Lot with the exception of one "For Sale" or "For Rent" sign not exceeding 36" x 24" in size. The Association may develop uniform sign standards and specifications to which all Owners must adhere. No sign of any kind shall be displayed in or on the Common Area without the prior written consent of the Association. Notwithstanding the foregoing, Declarant and, with the consent of and upon such conditions as Declarant, in its sole discretion, might impose, a Builder shall have the right to erect and maintain signs of any type and size on any Lot which it owns and on the Common Area, in connection with the development and sale of the Properties. Section 12. Water Retention Areas. The Association shall be responsible for maintaining the portions of the storm water drainage system which are within the Common Area, including the water quality and quantity standards of the approved plans, to the extent required by law. A drainage easement is hereby dedicated to the Association for the purpose of maintaining the storm water system to meet water quality and quantity design standards of the approved plans and any future governmental laws,rules or regulations. Each Owner of a Lot which borders a water retention area shall maintain any portion of that Owner's Lot lying within a retention area free of debris but shall not remove any wetlands species or do anything that would affect adversely water quality within the water retention area. Swimming and bathing in water retention areas are prohibited. Docks or other structures shall not be erected in water retention areas without the prior written consent of the Association. All other uses of water retention areas shall be subject to the prior written approval of the Association and such rules and regulations as the Association may adopt from time to time. Section 13. Vehicles. Boats and Trailers. No truck or vehicle used primarily for commercial purposes (other than those temporarily present on business), no vehicle in inoperable condition, no unlicensed vehicle, no recreational vehicle, no camper, no golf cart, no boat,jet ski or other watercraft, and no trailer may be parked on any street or on any Lot, unless kept inside a garage or behind an approved fence or otherwise concealed from public view. No parked vehicle shall be covered by a "car cover" or other similar covering unless kept inside a garage and concealed from public view. No truck or vehicle used primarily for commercial purposes (other than those temporarily present on business), no vehicle in inoperable condition, no unlicensed vehicle, no recreational vehicle, no camper, no golf cart, no boat,jet ski or other watercraft, and no trailer may be kept within the Common Area. For the purpose of the preceding sentences, the term "kept" shall mean present for either a period of more than ten (10) hours or overnight, whichever is less. In order to preserve the aesthetics of the development, whether or not, a boat, trailer, or vehicle of any type is adequately concealed from public view shall be determined by the Association in its sole discretion. The Association shall have the right to tow or remove any boat, trailer, recreation vehicle, camper,jet ski, watercraft, golf cart or vehicle of any type which is parked within the Common Area or kept on any Lot in violation of this section, at the owner's expense, and the owner of each Lot, by acceptance of their deed, does grant to the Association 8K09577 PG0789 such an easement on, across, and upon their Lot as may be necessary to enforce the provisions set out in this section. Section 14. Walls, Fences, and Hedges. All walls, fences, planters and hedges shall be controlled strictly for compliance with this Declaration and architectural standards established by the Declarant or the ARC. No wall or fence shall be erected or maintained line forward of the rear exterior corners of the main residential structure located on a Lot. For the purpose of this provision the rear exterior corner of the main residential structure excludes bay or box windows, chimney structures or any other similar appendage. No perimeter wall, fence, or hedge in excess of six (6) feet in height shall be erected and maintained on a side lot line from a point located at the rear exterior corner of the main residential structure, backward to the rear property line on a Lot and along the rear property line of the Lot. On corner lots, side yard fences must be set back from the side property line a minimum of one-half (1/2) of the side building line setback shown on the plat, but in no event shall the fence be located forward of the rear exterior corner of the main residential structure. Any fence constructed within the Buffer Zone shall be erected fifteen feet (15') from the Mean Water Line, except as may otherwise be set forth in the Architectural Guidelines or pursuant to Article VIII, Section 3 hereof. The design and materials of all fences shall be approved by the ARC prior to construction pursuant to the approval requirements of Article VIII, Section 1, of this Declaration. Any fence constructed within the Buffer Zone shall be constructed of wrought iron or black aluminum. Section 15. Antennae and Roof Structures. No radio or other electrical towers, aerials, antennae, or other devices of'any type for the reception or transmission of radio broadcasts or other means of communication shall be erected, constructed, placed or permitted to remain on any Lot or upon any improvements thereon, except that this prohibition shall not apply to those antennae specifically covered by 37 C.F.R. Part 1, Subpart S, Section 1.4000 (or any successor provision) promulgated under the Telecommunications Act of 1996, as amended from time to time. The Association shall be empowered to adopt rules governing the types of antennae that are permissible hereunder and establishing reasonable, non-discriminatory restrictions relating to safety, location and maintenance of antennae. An antenna permissible pursuant to rules adopted by the Association may be installed only if it is approved by the Association pursuant to Article VIII hereof. Section 16. Visual Obstructions at the Intersections of Public Streets. No object or thing which obstructs sight lines at elevations between two (2) and six (6) feet above the roadways within the triangular area formed by the junction of street curb lines and a line connecting them at points twenty-five (25) feet from the junction of the street curb lines (or extensions thereof) shall be placed, planted or permitted to remain on any corner lots. Section 17. Minimum Size of Dwellings. All Dwellings constructed on any Lot shall have a minimum of 2,000 square feet of enclosed dwelling area. The term "enclosed dwelling BK09577 p00790 area" as used in the minimum requirements shall be the total enclosed area within a dwelling, provided, however, that such term does not include garages, terraces, decks, open porches, and like areas; provided, further, that shed type porches, even though attached to the house are specifically excluded from the definition of the aforesaid term "enclosed dwelling area". Section 18. Garages. All Dwellings constructed within the Properties shall contain an enclosed garage that is either detached from the Dwelling or permanently attached to and part of the Dwelling and such garage shall be large enough to accommodate at least one automobile. Garage doors shall remain closed at all times except when necessary for ingress and egress. Section 19. Seasonal or Holiday Decorations. Holiday decorations (e.g., Christmas trees and lights, pumpkins, Easter decorations) shall be removed from each Lot or residential dwelling within a reasonable period of time after such holiday passes. The ARC has the sole discretion to determine what is a reasonable period of time for seasonal or holiday decorations to exist after the holiday passes and its determination shall be final. Section 20. Service Utilities, Fuel Tanks, Wood Piles, Trash. All service utilities, fuel tanks, wood piles and trash and garbage containers are to be enclosed within a fence, wall or plant screen of a type and size approved by the Declarant or the ARC, 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. Section 21. Curbside Maintenance, Each Owner shall have a duty and obligation to maintain the roadside curbing, swales and driveway culverts along the front of their Lot, and in the case of corner lots, along the side abutting roadways, in the same condition as originally installed by the Declarant. In the event any Owner shall fail to do so, the Association after giving such Owner at least ten (10) days' written notice, shall be authorized to undertake such maintenance at the Owner's expense. Provided, however, that if the Declarant still owns property in the Subdivision, whether a developed lot or lots, or a tract or tracts of land for future development, the Declarant shall have the option of repairing or replacing damaged curbing, swales or driveway culverts to their original condition, and the cost of such repairs or replacement shall constitute a lien in favor of the Declarant against the lot adjacent to where the repairs or replacements were effected. If such maintenance is undertaken by the Association or Declarant, the charge therefore and all costs of enforcement and collection shall be secured by a lien against the Lot as provided in Article V hereof. Section 22. Right of ways. If any Owner places any improvement or structure in the right-of-way, then if requested by the North Carolina Department of Transportation or the Declarant or the Association or any governmental regulatory agency, the Declarant or the Association shall have the right to remove such improvement or structure even if ARC had approved installation of such improvement or structure. Section 23. Above Ground Swimming Pools. No above ground swimming pool shall be erected, constructed, placed or permitted to remain on any Lot. Section 24. Items Visual from the Lake. No flags, banners or other displays shall be visual from the Lake side of any Lot or structure. BX09577 P6079I Section 25. Buffer Area Restrictions. The Declarant reserves the right, but shall have no obligation,to maintain and control all Buffer Areas. Section 26. Deviations. Declarant at its sole discretion, is hereby permitted to approve deviations to restrictions in Article XI in instances where in its judgment, such deviation will not adversely affect the development of the Property as a whole. Such approvals must be granted in writing and when given will automatically amend these restrictions for that certain Lot only. ARTICLE XII STORMWATER RESPONSIBILITIES AND COVENANTS The following covenants are intended to ensure ongoing compliance with State Stonnwater Management Permit Number SW6140402, as issued by the Division of Energy, Mineral and Land Resources, Land Quality Section under applicable stormwater rules. The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the Stormwater Management Permit. These covenants are to run with the land and be binding on all persons and parties claiming under them. The covenants pertaining to stormwater may not be altered or rescinded without the express written consent of the State of North Carolina, Division of Energy, Mineral and Land Resources, Land Quality Section. Alteration of the drainage as shown on the approved plans may not take place without the concurrence of the Division of Energy, Mineral and Land Resources, Land Quality Section. The project for which said Permit is issued is for a maximum of 1,447,234 square feet of built-upon area. Construction of additional built-upon area in excess of said amount will require a Permit modification. The project may not be sold or subdivided, in whole or in part, without first receiving a permit modification from the Division of Energy, Mineral and Land Resources, Land Quality Section. Construction of additional impervious areas such that low-density requirements are no longer met will require a Permit modification prior to construction. An engineered system will be required to collect and treat the runoff from all built-upon area associated with the project, including that area permitted under the low density option. Filling in or piping of any vegetative conveyances (ditches, swales, etc.) associated with the development, except for average driveway crossings, is strictly prohibited by any persons. Built-upon areas shall be located a minimum of 30 feet landward of all perennial and intermittent surface waters. ARTICLE XIII GENERAL PROVISIONS Section 1. Enforcement. The Association or any Owner shall have the right to enforce, by proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Association or 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. Further, the Board of Directors shall have the right to record in the appropriate land records a notice of violation of this Declaration or the Bylaws of the Association, or any rules, regulations, use restrictions, or design guidelines promulgated by the Association and to assess the cost of recording and removing such notice against the Owner in violation of the Declaration. BK09577 pG0192 Section 2. Severability. Invalidation of anyone of these covenants or restrictions by judgment or court order shall in no way affect any other provision, which shall remain in full force and effect. Section 3. Amendment. For so long as Declarant owns any Lot within the Subdivision, this Declaration may be amended by the Declarant, without the consent or joinder of any other Owner or the Association. Any such amendment shall be effective upon recording of same in the applicable public registry for Cumberland County, North Carolina. No amendment shall be binding upon any Lot or Owner until fifteen (15) days after a copy of such amendment has been provided to such Owner. The covenants and restrictions of this Declaration, and any amendments thereto, are appurtenant to and shall run with and be binding upon the Properties and the Owners thereof for a term of twenty-five (25) 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 or amended by a vote of the Owners as set forth below. Subject to the provisions of Section 8(e)hereof and after Class B Lots cease to exist, this Declaration may be amended during the first twenty-five year period by an instrument signed by the Owners of not less than seventy-five percent (75%) of the Lots and terminated during the first twenty-five year period by an instrument signed by the Owners of not less than eighty percent (80%) of the Lots, and thereafter amended by an instrument signed by the Owners of not less than sixty-seven percent (67%) of the Lots or terminated by an instrument signed by the Owners of not less than eighty percent (80%) of the Lots, provided, however, that so long as there is Class B membership, no amendment or termination adopted by the Owners shall be effective unless and until such amendment or termination is approved in writing by the Declarant. Amendment or termination shall be by written instrument signed by the appropriate persons or entities and recorded in the applicable public registry for Cumberland County, North Carolina, and upon recordation, shall be binding on all Lots within the Properties and the Owners thereof, without regard to whether the Owner of such Lot voted for or against or signed or did not sign the amendment or termination. Section 4. Interpretation. Headings used herein are for indexing purposes only and shall not be used as a means of interpreting or construing any provision hereof. Unless the context otherwise requires, the use herein of the singular shall include the plural and vice versa: the use of one gender shall include all genders: and the use of the word "including" shall mean "including, without limitation". This Declaration and the provisions thereof shall be construed and enforced in accordance with the laws of the State of North Carolina. Section 5. Subdivision of Lots.No Lot within the Subdivision may be subdivided by sale or otherwise so as to reduce the total Lot area shown on the recorded plat, except by or with the consent of the Declarant and, if required,by the appropriate governmental authority. Section 6. Declarant's Right To Change Development. With the approval of the appropriate governmental authority, and subject only to such terms and conditions as said authority may impose, Declarant shall have the right, without consent or approval of the Owners, to create and add Lots, add Common Area, and reallocate Lots within the Properties(including 8x09577 PG0793 any land annexed into the Subdivision). Additionally, Declarant may convert any Lot or Lots or any other property subject to these restrictions to use as a roadway and/or road right-of-way. Section 7. Right to Dedicate Streets. In the event that the streets and roadways providing access to The Preserve at Lake Upchurch Subdivision have satisfied all requirements necessary to be accepted as public roads by the North Carolina Department of Transportation, then and in that event, the Declarant and/or the Association shall petition the North Carolina Department of Transportation to accept the streets and roadways within The Preserve at Lake Upchurch Subdivision as public roads. Section 8. Rules and Regulations; Enforcement. The Board of Directors shall have the authority to adopt additional rules and regulations governing the use of the Common Area and the Lots within the Subdivision and shall furnish a written copy of said rules and regulations to the Owners) of each Lot at least fifteen (15) days before such rules and regulations become effective. In addition to any other rights and remedies that the Association may have under the Bylaws and this Declaration, the Association may impose sanctions for a violation of this Declaration, the Bylaws of the Association, the rules and regulations adopted by the Association, and any restrictive covenants applicable to the Properties, in accordance with procedures set forth in the Bylaws, which sanctions may include, without limitation, reasonable monetary fines, which shall constitute a lien upon the Lot of the violator, and suspension of the right to vote and the right to use the Common Area any facilities thereon. In addition, the Association may exercise self-help to cure violations (specifically including, but not limited to, the towing of Owner and tenant vehicles that are in violation of parking rules) and may suspend the right of an Owner to use any Common Area and recreational facility within the Properties if the Owner is more than 30 days delinquent in paying any assessment or other charge due to the Association. The Association shall at all times have the right and easement to go upon any Lot for the purposes of exercising its rights hereunder, including, but not limited to, enforcement of the architectural guidelines applicable to the Properties. Any entry onto any Lot for purposes of exercising this power of self-help shall not be deemed as trespass. All remedies set forth in this Declaration and the Bylaws shall be cumulative of any remedies available at law or in equity. In any action to enforce its rights and remedies, if the Association prevails, it shall be entitled to recover all costs, including, without limitation, attorneys' fees and court costs, incurred in such action. The Association shall not be obligated to take action to enforce any covenant, restriction or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent with applicable law, or in any case in which the Board reasonably determines that the Association's position is not strong enough to justify taking enforcement actions. Any such determination shall not be construed as a waiver of the right to enforce such provisions under other circumstances or to estop the Association from enforcing any other covenant, restriction or rule. N(09511 PG0194 Section 9. Dispute Resolution. (a) Consensus for Association Action. (1) Except as provided in this Section, the Association may not commence a legal proceeding or an action under this Article without the approval of at least two-thirds of the Members. The foregoing shall not apply to: (i) actions brought by the Association to enforce the provisions of this Declaration, the Bylaws, or rules and regulations adopted by the Association (hereinafter collectively referred to as the ("Governing Documents"); (ii) the imposition and collection of assessments; (iii) proceedings involving challenges to ad valorem taxation: or (iv) counterclaims brought by the Association in proceedings against it. (2) Prior to the Association or any Member commencing any proceeding to which Declarant is a party, including, without limitation, a proceeding based on an alleged defect in any improvement, Declarant shall have the right to be heard by the Members, or the particular Member, and to have access to inspect and correct the condition of or redesign any portion of any improvement as to which a defect is alleged or to otherwise correct or resolve the dispute. (b) Alternative Method for Resolving Disputes. Declarant, its officers, directors, employees and agents, the Association, its officers, directors and committee members, all Owners, Members, any Builder, its officers, directors, employees and agents, and any other person or entity not otherwise subject to this Declaration who agrees to submit to this Section 8 (each such person or entity being herein referred to as a "Bound Party" or, in groups, as the "Bound Parties") each agrees to encourage the amicable resolution of disputes, without the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees to submit those claims, grievances and disputes described in Subsection (c) hereof (herein referred to as the "Claims")to the procedures set forth in Subsection (d) hereof. (c) Claims. Unless specifically exempted below, all Claims between any of the Bound Parties, regardless of how such Claims might have arisen or on what they might be based, including, but not limited to, Claims: (i) arising out of or relating to the interpretation, application or enforcement of the Governing Documents or the rights, obligations and duties of any Bound Party under the Governing Documents; (ii) relating to the design and construction of improvements; or (iii) based on any statements, representation, promises, warranties, or other communications alleged to have been made by or on behalf of any Bound Party, shall be subject to the provisions of Subsection (d) hereof. Notwithstanding the foregoing, unless all parties to any such dispute otherwise agree in writing, the following shall not be deemed to be Claims covered by this Subsection (c) and shall not be subject to the provisions of Subsection (d): (l) any proceeding by the Association against any Bound Party to enforce the provisions of Article V of this Declaration: (2) any proceeding by the Association or the Declarant to obtain a temporary restraining order or injunction (or equivalent equitable relief) and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's or the B 09577 P60795 Declarant's ability to act under and enforce the provisions of Articles VIII and XI of this Declaration; (3) any proceeding between or among Owners, which does not include the Declarant, a Builder, or the Association as a party, if such proceeding asserts a Claim which would constitute a cause of action independent of the Governing Documents; or (4) any proceeding in which no Bound Party is an indispensable party. With the consent of all parties thereto, any dispute involving any of the foregoing excepted actions may be submitted to the alternative dispute resolution procedures set forth in Subsection (d). (d) Mandatory Procedures. (1) Notice. Any Bound Party having a Claim (the "Claimant") against any other Bound Party(the "Respondent") (the Claimant and the Respondent being herein individually referred to as a "Party" and collectively as the "Parties") shall notify each Respondent in writing (the "Notice"), stating plainly and concisely: (i) the nature of the Claim, including the persons or entities involved and the Respondent's role in the Claim: (ii) the legal basis of the Claim (i.e., the specific provisions of the Governing Documents or other authority out of which the Claim arises); (iii) the proposed remedy; and (iv) the fact that Claimant will meet with Respondent to discuss in good faith ways to resolve the Claim. (2) Negotiation and Mediation. (i) The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. if requested in writing, accompanied by a copy of the Notice, the Board of Directors of the Association may appoint a representative to assist the Parties in their negotiations. (ii) If the Parties do not resolve the Claim within 30 days after the date of the Notice (or within such other time period as may be agreed upon by the Parties), Claimant shall have an additional 30 days in which to submit the Claim to mediation under the auspices of the American Arbitration Association ("AAA") in accordance with the AAA's Commercial or Construction Industry Mediation Rules, as appropriate. (iii) If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation without a reasonable reason for failing to appear for the mediation, the, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing 8K09577 [Jo 0796 herein shall release or discharge the Respondent from any liability to any person or entity other than the Claimant. (iv) Any settlement of the Claim through negotiation or mediation shall be documented in writing and signed by the Parties. If the Parties do not settle the Claim within 30 days after submission of the matter to AAA mediation, or within such other time as may be determined by the mediator or agreed to by the Parties, the mediator shall issue a written notice of termination of the mediation process, which notice shall state that the Parties are at an impasse and set forth the date that mediation was terminated (hereinafter"Termination of Mediation"). (v) Each Party shall bear its own costs of the mediation, including attorneys' fees, and each Party shall share equally all fees and expenses of the mediator and the administrative fees of mediation. If the Parties agree to a resolution of a Claim through negotiation or mediation as set forth in this Subsection (d), and any Party thereafter fails to abide by the terms of the settlement agreement, any other Party may file suit or initiate arbitration proceedings to enforce the agreement without the need to again comply with the procedures set forth in this Subsection (d). In such event, the Party taking action to enforce the agreement shall be entitled to recover from the non-complying Party (or, if more than one Party is in noncompliance, from all non- complying Parties pro rata) all costs incurred by such Party in enforcing the agreement, including, without limitation, attorneys' fees and court costs. (3) Binding Arbitration. (i) After Termination of Mediation, Claimant shall be entitled to submit the Claim to final, binding arbitration under the auspices of the AAA in accordance with the AAA's Commercial or Construction Industry Arbitration Rules, as appropriate. No Claim subject to this Subsection (d), whether by the provisions thereof or by agreement of the Parties, shall be submitted to or decided by or in a court of law. Any judgment upon the award entered by the arbitrator may be entered in and enforced by a court of competent jurisdiction. If the amount claimed by the Complainant or, by the Respondent in a counterclaim, exceeds $250,000, the Claim shall be heard and determined by three arbitrators. Otherwise, unless the Parties otherwise agree, the Claim shall be heard and determined by an arbitrator. An arbitrator shall have expertise in the areas) of the Claim, which may include legal expertise if legal issues are involved. (ii) Each Party shall bear its own costs of the arbitration, including attorneys' fees, and each Party shall share equally all fees and expenses of the arbitrator and the administrative fees of arbitration. Notwithstanding the foregoing, if a Party unsuccessfully contests the validity or scope of arbitration in a court of law, the non-contesting Party shall be awarded reasonable attorneys' fees and expenses incurred in defending such contest. All decisions regarding the arbitrability of any Claim shall be decided by the arbitrator(s). (iii) The award of the arbitrators shall be accompanied by detailed written findings of fact and conclusions of law. Except as required by law or for confirmation of an u09511 PG0791 award, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all Parties involved in the arbitration. (e) Amendment of Subsection. Notwithstanding any other provision of this Declaration, this Subsection 8 may not be amended prior to the expiration of 20 years from the date of recording of this Declaration without the prior written consent of the Declarant. [SIGNATURE PAGE FOLLOWS] BK09577 P60798 IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has hereunto set its hand and seal this 12`h day of January, 2015. DECLARANT: BILL CLARK HOMES OF FAYETTEVILLE, LLC By: Name: Brian Walker, Manager Date Executed: l- 12 - -Lb►s State of North Carolina County of Cumberland I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: Brian Walker, Manager. Dated:�}t-v`'fi I Z t I Printed Name: V Notary Public +� (Official Seal) My commission expires: _\J(2 l J RICHARD A GALT Non�n ru�uc *1110 Cares amaimilim WIN MUM RICHARD A GAIT WWI ROM ry Convidedin lbOres t3r1 D 5 tN.P.SEA►-') g09577 PG0199 EXHIBIT"A" Legal Description of Property BEING all of the real property which is the subject of the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE ONE, SECTION ONE"duly recorded in Book of Plats 135, Page 105 thru 106, Cumberland County,North Carolina Registry. 33 APPOINTMENT OF DIRECTOR OF THE PRESERVE AT LAKE UPCHURCH PROPERTY OWNERS ASSOCIATION,INC. a North Carolina Non-Profit Corporation I, the undersigned, being a member of The Preserve At Lake Upchurch Property Owners Association, Inc., do hereby appoint Brian Walker as an initial director of said corporation. This the (ej d y of January, 2015. BRAXTON VILLAGE DEVELOPERS,LLC (SEAL) Brian Walker,Manager UNANIMOUS WRITTEN CONSENT IN LIEU OF A MEETING OF THE BOARD OF DIRECTORS OF THE PRESERVE AT LAKE UPCHURCH PROPERTY OWNERS ASSOCIATION,INC. The undersigned, being all of the directors of The Preserve At Lake Upchurch Property Owners Association, Inc., do hereby consent to the following actions in lieu of a meeting of the Board of Directors,to adoption of the following resolutions, and that such action be taken without a meeting of the Board of Directors. RESOLVED, that the following are elected officers of the Corporation to serve for one year and until their successors are elected and qualify: President: Brian Walker; Treasurer: Dan Koch; Secretary: Beth Birch; and it is further RESOLVED, that The Preserve At Lake Upchurch Rules and Regulations attached hereto as Exhibit"A"be and hereby are approved; and it is further RESOLVED, that The Preserve At Lake Upchurch Architectural Guidelines attached hereto as Exhibit`B"be and hereby are approved;and it is further RESOLVED, that all actions heretofore taken by the Directors,the officers and the incorporator of the Corporation be,and hereby are,ratified and approved; and it is further RESOLVED, that the officers of the Corporation, and each of them, are hereby authorized, directed and empowered to take all actions necessary or appropriate, and to make, execute and deliver, either jointly or severally, for and on behalf of and in the name of the Corporation, any and all agreements, documents or instruments to implement the intent of the foregoing resolutions and any and all amendments,replacements or additions thereto as they may deem in their discretion to be necessary or appropriate; and it is further RESOLVED, that the execution of this Consent by all of the directors of the Corporation shall constitute an approval of this Consent as well as a ratification of all Resolutions set forth in this Consent. Dated: January t l/, 2015 By: Name: Brian Walker Title: Director BYLAWS OF THE PRESERVE AT LAKE UPCHURCH PROPERTY OWNERS ASSOCIATION,INC. ARTICLE I NAME AND LOCATION The name of the corporation is The Preserve At Lake Upchurch Property Owners Association, Inc. (hereinafter, the "Association"). The principal office of the Association shall be located at 2533 Raeford Road, Fayetteville, Cumberland County, North Carolina 28305. The location of the principal office of the Association may be changed by the Board of Directors. Meetings of Members and directors may be held in such places as may be designated by the Board of Directors. ARTICLE II DEFINITIONS All terms defined in the Declaration Of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Subdivision,to be recorded in the applicable public registry for Cumberland County,North Carolina(the"Declaration"), shall have the same meanings when used herein. ARTICLE III MEMBERSHIP AND VOTING RIGHTS Membership and voting rights shall be as provided for in Article III of the Declaration. ARTICLE IV MEETINGS OF MEMBERS Section I. Annual Meetings. The first annual meeting of the Members shall be held within six (6) months after Class B Lots cease to exist (as provided in Article III of the Declaration), at the time and place specified by the Board of Directors in the notice to Members of the meeting. Each subsequent regular annual meeting of the Members shall be held in the same month of each year thereafter on the day, at the hour,and at the place specified in the notice to the Members of the meeting. Section 2. Special Meetings. Special meetings of the Members may be called at any time by the President or a majority of the members of the Board of Directors. After Class B Lots cease to exist, special meetings of the Members shall be called upon the written request of the Members entitled to at least ten percent(10%)of the votes of the entire membership. Section 3.Place of Meetings.Meetings of the Members shall be held at such place within Moore County,North Carolina, as may be determined by the Board of Directors. Section 4. Notice of Meetings.Except as otherwise provided in the Articles of Incorporation,the Declaration or these Bylaws, written notice of each meeting of the Members shall be given by, or at the direction of the Secretary or person authorized to call the meeting, to each Member entitled to vote at such meeting, by hand delivery or by mailing a copy of such notice, postage prepaid, addressed to the Member's address last appearing on the books of the Association or supplied by such Member to the Association for the purpose of notice, Notice shall be sent by first class mail or hand delivered not less than 30 days nor more than 60 days before the date of the meeting. Such notice shall specify the place, day and hour of the meeting, and, in case of a special meeting, the exact purpose of the meeting, including the text of any proposals to be voted on at such special meeting. Waiver by a Member in writing of the notice required herein, signed by him before or after such meeting, shall be equivalent to the giving of such notice. Section 5. Quorum. Except as otherwise provided in the Articles of Incorporation, the Declaration (including, specifically, Section 7 of Article V thereof) or these Bylaws, the presence at a meeting of Members or their proxies entitled to cast one-third (1/3) of the votes of the entire membership shall constitute a quorum for any action. If, however, a quorum is not present or represented at any meeting, the Members or their proxies present and entitled to vote thereat shall have power to adjourn the meeting from time to time,without notice other than announcement at the meeting, until a quorum shall be present or be represented, as provided in NCGS 47F-3-109. Section 6. Proxies. At all meetings of Members, each Member may vote in person or by proxy. All proxies shall be in writing and filed with the Secretary. Every proxy shall be revocable and shall automatically cease upon conveyance by the Member of his Lot. Section 7. Informal Action by Members. Any action which may be taken at a meeting of the Members may be taken without a meeting if a consent in writing, setting forth the action so taken, is signed by Members holding at least 80% of the voting power of the Association and filed with the Secretary of the Association to be kept in the minute book of the Association. Section 8. Ratification of the Budget by the Members. The Board of Directors shall adopt a proposed budget for the Association at least annually. Within 30 days after adoption of the proposed budget, the Board of Directors shall send a copy of the proposed budget to the Members and shall give written notice to the Members of a meeting of the Members to consider ratification of the budget, such meeting to be held not sooner than 30 days nor more than 60 days after the mailing of such notice. Such meeting may, but need not be, combined with the annual meeting of the Members. There shall be no requirement that a quorum be present in order to vote on ratification of the budget (although a quorum must be present to vote on other matters). The budget shall be deemed ratified unless at that meeting Members having a majority of the votes of the entire membership vote to reject the budget. If the proposed budget is rejected, the budget last ratified by the Members shall be continued until such time as the Members ratify a subsequent budget proposed by the Board of Directors. ARTICLE V BOARD OF DIRECTORS Section 1. General Powers. The business and affairs of the Association shall be managed by a Board of Directors. Section 2. Developer's Right to Appoint and Remove Directors. Until Class B Lots cease to exist,Developer shall have the right to appoint and remove all directors of the Association. Section 3. Number. Term and Qualification. Until Class B Lots cease to exist, the number of directors of the Association shall be two (2); provided, however, that not later than the termination of such period of Declarant control,Developer shall take such action as is necessary to comply with NCGS 47F-3-103(e). At the first annual meeting of the Association, the number of directors shall be increased to not less than five(5). At the first annual meeting, the Members shall elect one director to serve for a term of one year, two directors to serve for a term of two years, and two directors to serve for a term of three years. At each annual meeting thereafter,the Members shall elect the number of directors needed to fill the vacancy or vacancies created by the director or directors whose tenn(s) is (are)expiring, to serve for a term of three years(except in the case of the initial election of a director,in which case the term of that director may be shortened to provide for the staggering set forth in this Section, or in the case of the filling of a vacancy, in which case the director elected to fill the vacancy shall be elected for the unexpired term of the director whose vacancy is being filled). The term of office of the directors shall be staggered so that, except for an election to fill a vacancy or to fill a newly-created directorship, the terms of not less than one (1) nor more than three(3) directors shall expire at each annual meeting. Each director shall hold office until his death, resignation, retirement, removal, disqualification, or his successor is elected and qualified. Directors need not be members of the Association. After Class B Lots cease to exist, the Members of the Association may, by a majority of the votes cast at any duly called annual or special meeting of the Members at which a quorum is present, increase or decrease the number of directors of the Association, provided, however, that the number of directors may not be increased to more than nine (9) nor decreased to less than five (5) without amendment of these Bylaws. Section 4. Nomination. Nomination for election to the Board of Directors may be made by a Nominating Committee, Nominations may also be made from the floor at the annual meeting of the Members. The Nominating Committee shall consist of a Chairman, who shall be a member of the Board of Directors, and two or more Members of the Association. The Nominating Committee shall be appointed by the Board of Directors prior to each annual meeting of the Members, to serve from the close of such annual meeting until the close of the next annual meeting, and such appointment shall be announced at each annual meeting. The Nominating Committee shall make as many nominations for election to the Board of Directors as it shall in its discretion determine, but not less than the number of vacancies that are to be filled. Such nominations may he made from among Members or non-members, provided, however, that after Class B Lots cease to exist,at least 51% of the directors shall he Members of the Association. Section 5. Election.Except as provided in Section 7 of this Article, the directors shall be elected at the annual meeting of the Members by secret written ballot. In such election, the Members or their proxies may cast, with respect to each vacancy, as many votes as they are entitled under the provisions of Article III of these Bylaws. The person(s) receiving the highest number of votes shall be elected. Neither cumulative voting nor fractional voting is permitted. Section 6.Removal. Any director may be removed from the Board of Directors, with or without cause,by a majority vote of the Members present and entitled to vote at any meeting of the Members at which a quorum exists, provided, however, that the Members may not remove a director appointed by the Owner or Developer as provided in Section 2 this Article V. Section 7. Vacancies. A vacancy occurring in the Board of Directors may be filled by the selection by the remaining directors of a successor, who shall serve for the unexpired term of his predecessor.The Members may elect a director at any time to fill any vacancy not filled by the directors. Section 8. Comnensation.No director shall receive compensation for any service he may render to the Association in the capacity of director. However, any director may be reimbursed for his actual expenses incurred in the performance of his duties. ARTICLE VI MEETINGS OF DIRECTORS Section 1. Regular Meetings. Regular meetings of the Board of Directors shall be held at least annually, without notice, and at such place and hour as may be fixed from time to time by resolution of the Board of Directors. Should the date of such meeting fall on a legal holiday, then that meeting shall be held at the same time on the next day which is not a legal holiday. Section 2. Special Meetings. Special meetings of the Board of Directors shall be held when called by the President of the Association or by any two directors, after not less than three (3) days' notice to each director. Section 3.Quorum. A majority of the number of directors shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the directors present at a duly-held meeting at which a quorum is present shall be regarded as the act of the Board of Directors. Section 4. Informal Action by Directors. Any action which may be taken at a meeting of the Board of Directors may be taken without a meeting if written consent to the action so taken is signed by all the directors and filed with the minutes of the proceedings of the Board of Directors, whether done before or after the action so taken. Section 5. Chairman. A Chairman of the Board of Directors of Directors shall be elected by the directors and shall preside over all Board of Directors meetings until the President of the Association is elected. Thereafter, the President shall serve as Chairman. In the event there is a vacancy in the office of the President, a Chairman shall be elected by the Board of Directors to serve until a new President is elected. ARTICLE VII POWERS AND DUTIES OF THE BOARD OF DIRECTORS Section 1. Powers. The Board of Directors shall have power to: (a) adopt and publish rules and regulations governing the use of the Common Area and the personal conduct of the Members and their guests thereon and establishing penalties for infractions thereof, and adopt and publish rules and regulations interpreting and/or supplementing the restrictions and covenants applicable to the Properties, and take any and all actions deemed by the Board of Directors to be necessary or appropriate to enforce such rules and regulations; (b) suspend a Member's voting rights during any period in which he shall be in default in the payment of any assessment levied by the Association pursuant to Article V of the Declaration. Such rights may also be suspended after such notice and hearing as the Board of Directors, in its sole discretion, shall establish, for a period not to exceed 60 days, for infraction of the published rules and regulations of the Association; (c)exercise for the Association all powers,duties and authority vested in or delegated to the Association by the Articles of Incorporation, these Bylaws, the Declaration, the North Carolina Nonprofit Corporation Act; (d) declare the office of a member of the Board of Directors to be vacant in the event such member shall be absent from three (3) consecutive regular meetings of the Board of Directors without good cause; (e) employ a manager (including the Developer, as provided in the Declaration) and such other employees or independent contractors as it deems necessary and prescribe their duties,and contract with a management company to manage the operation of the Association. In the event that a contract is entered into with a management company, such contract must be terminable by the Board of Directors without cause or penalty on not more than ninety (90) days'notice and any management contract made with the Developer shall be for a period not to exceed three years; (f) employ attorneys, accountants and other persons or firms to represent the Association when deemed necessary; (g) grant easements for the installation and maintenance of sewage, utility or drainage facilities upon, over,under and across the property owned by the Association without the assent of the Members when such easements are necessary for the convenient use and enjoyment of the Properties; and (h) appoint and remove at pleasure all officers, agents and employees of the Association, prescribe their duties, fix their compensation, and require of them such security or fidelity bond as it may deem expedient. The Board of Directors may, in its discretion, delegate any of its powers to a subcommittee of the Board of Directors, an officer of the Association,or a manager, agent or attorney employed by the Association, provided, however, that such delegation shalt not relieve the Board of Directors of its obligation to ensure that the duties set forth in this Article VII are faithfully carried out or that the powers so delegated are appropriately exercised by such delegate. Section 2.Duties. It shall be the duty of the Board of Directors to: (a) cause to be kept a complete record of all its acts and corporate affairs and to present a statement thereof to the Members at the annual meeting of the Members, or at any special meeting when such statement is requested in writing at least five (5) working days before such meeting by Members entitled to at least one-fourth(1/4) of the votes appurtenant to the Class A Lots; (b) supervise all officers, agents and employees of the Association and see that their duties are properly performed; (c)as provided in Section 8 of Article IV of these Bylaws and in Section 3 of Article V of the Declaration, adopt annual budgets and obtain Member ratification thereof, and establish and enforce procedures for collection of assessments and for filing and enforcement of liens for unpaid dues as provided in the North Carolina Nonprofit Corporation Act; (d) issue, or cause an appropriate officer of the Association to issue, upon demand by any person,a certificate setting forth whether or not any assessment has been paid. A reasonable charge may be established by the Board of Directors for the issuance of such certificate. If a certificate states that an assessment has been paid, such certificate shall be conclusive evidence of payment; (e) procure and maintain: (i) adequate liability insurance covering the Association; (ii) officers' and directors' errors and omissions insurance; and (iii) full replacement value hazard insurance on the real and personal property owned by the Association; (f) cause the Common Area and all facilities erected thereon and any portions of any Lot or Unit for which the Association has maintenance responsibility to be maintained; (g) establish and maintain an adequate reserve fund for the periodic maintenance,repair and replacement of the improvements constructed on the Common Area; (h) provide such notices to and obtain such consents from the owners and holders of first mortgages on Lots within the Properties as is required by the Declaration or these Bylaws; (i) pay all ad valorem taxes and public assessments levied against the real and personal property owned in fee by the Association; and (j)hold annual and special meetings and elections for the Board of Directors. Section 3. Enforcement. In addition to such other rights as are specifically granted in the Articles of Incorporation, the Declaration or these Bylaws, the Board of Directors shall have the power, pursuant to the procedures set forth in this Section, to impose sanctions for violations by a Owner, a member of his family, or any occupant, tenant, employee, guest or invitee of the Owner, of the Declaration, these Bylaws, rules and regulations adopted Association or the Restrictive Covenants applicable to the Properties (hereinafter individually and collectively referred to as the "Rules"), which sanctions may include, but are not limited to, reasonable monetary fines,not to exceed the greater of the costs actually incurred by the Association in abating such violation including, without limitation, attorney's fees, or $10.00 per day, or part thereof, in which the violation continues to exist for a first violation,$25.00 per day for a second violation of the same rules or regulations,and S 100.00 per day for a third or subsequent violation, and which fines shall constitute a lien upon the Lot of the Owner, and suspension of the right to vote and the right to use any recreational amenities within the Common Area. In addition, the Board of Directors may suspend any services provided by the Association to an Owner or the Owner's Lot if the Owner is delinquent in paying any assessment or other charges owed to the Association. The failure of the Board of Directors to enforce any of the Rules shall not be deemed a waiver of the right to do so thereafter. (a) Notice. Before imposition of any sanction; the Board of Directors or its delegate shall give the Owner written notice describing: (i)the nature of the alleged violation; (ii) the proposed sanction to be imposed; (iii) a period of not less than 15 days within which the Owner may present a written request for a hearing; and (iv) a statement that the proposed sanction shall be imposed as contained in the notice unless a request for a hearing is received by the Board of Directors before the end of the period set forth in such notice (the "Notice Period"). Such notice may be hand delivered by any person or sent by certified mail, return receipt requested. Any notice hand delivered shall be deemed received when received by the Owner or by any person more than 18-years old who is present at the address of the Owner as shown on the records of the Association. Notice sent by certified mail shall be deemed received on the third business day after same is deposited in the United States Mail. The Board of Directors shall include in its minutes evidence of the giving of such notice, including a copy of the notice and a statement of the date and manner of delivery signed by the officer, director or agent who delivered such notice. The notice requirement shall be deemed satisfied if the alleged violator or its representative appears at the meeting,unless the appearance is made to protest the lack of notice. If a request for a hearing is not received before the end of the Notice Period, the sanction stated in the notice shall be imposed; provided, however, that the Board of Directors may waive any proposed sanction if the violation is cured before the end of the Notice Period. Such waiver shall not constitute a waiver of the right to sanction future violations of the same or other provisions and rules by any person. (b) Hearing. If a hearing is timely requested, the hearing shall be held by the Board of Directors in executive session or by a committee of not less than three(3)Members (who may not be Directors of the Association) appointed by the Board of Directors for the purpose of hearing such appeals. The Owner shall be afforded a reasonable opportunity to be heard. A written statement of the results of the hearing and the sanction, if any, imposed, shall be placed in the minutes of the Board of Directors. If the hearing was held before a subcommittee of the Board of Directors, the Owner shall have the right to appeal the decision to the Board of Directors by giving a written notice of appeal to the President or Secretary of the Association within ten(10)days after the initial hearing date. If such notice of appeal is given, the Board of Directors shall schedule and notify the Owner of the date of the appeal hearing, which must be attended by not less than 75% of the members of the Board of Directors. The Owner shall be afforded a reasonable opportunity to be heard. The Board of Directors may, by majority vote of the Directors present at such appeal hearing, affirm,modify or reverse the decision of the subcommittee. A written statement of the results of the hearing and the sanction, if any, imposed, shall be placed in the minutes of the Board of Directors. (c) Additional Enforcement Rights. Notwithstanding anything to the contrary in this Article,the Board of Directors may elect to enforce any provision of the Rules, without the necessity of compliance with the notice and hearing procedures set forth herein,by self-help methods(specifically including,but not limited to,the towing of Owner and tenant vehicles parked in violation of parking rules) or by action at law or in equity to enjoin any violation or to recover monetary damages or both.In any such action,to the maximum extent permissible, the Association shall be entitled to recover all costs or such action, including reasonable attorney's fees incurred. Any entry onto any Lot for purposes of exercising this power of self-help shall not be deemed as trespass. ARTICLE VIII OFFICERS.AND THEIR DUTIES Section 1. Enumeration of Offices. The officers of the Association shall be a President, who shall at all times be a member of the Board of Directors, a Secretary, a Treasurer, and such Vice President(s) and other officers as the Board of Directors may from time to time by resolution appoint. Section 2. Election of Officers. The election of officers shall take place at the first meeting of the Board of Directors following each annual meeting of the Members. Notwithstanding any other provision of these Bylaws, until Class B Lots cease to exist, Developer shall have the right to appoint and remove all officers of the Association. Section 3. Term. The officers of the Association shall be elected annually by the Board of Directors and each shall hold office for one (1) year unless they shall sooner resign, be removed, or be otherwise disqualified to serve. Section 4. Special Appointments. The Board of Directors may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board of Directors may from time to time determine. Section 5. Resignation and Removal. Any officer(except an officer appointed by the Developer as set forth in Section 2 of this Article) may be removed from office, with or without cause, by the Board of Directors. Any officer may resign at any time by giving written notice to the Board of Directors,the President or the Secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Section 6. Vacancies. A vacancy in any office may be filled by the Board of Directors. The person appointed to such vacancy shall serve for the remainder of the term of the officer he replaces. Section 7. Multiple Offices. No person shall simultaneously hold more than one of any of the other offices, except in the case of special offices created pursuant to Section 4 of this Article. Notwithstanding the foregoing,the offices of Secretary and Treasurer may be held by the same person. Section 8. Duties.The duties of the officers are as follows: (a) President. The President shall: preside at all meetings of the Board of Directors and of the Members; see that orders and resolutions of the Board of Directors are carried out; sign all leases, promissory notes,mortgages, deeds and other written instruments; and, in the absence of the Treasurer, sign all checks. (b)Vice President.The Vice President shall act in the place and stead of the President in the event of his absence, inability or refusal to act, and shall exercise and discharge such other duties as may be required of him by the Board of Directors. (c) Secretary.The Secretary shall: record the votes and keep the minutes of all meetings and proceedings of the Board of Directors and of the Members; keep the corporate seal of the Association and affix it on all papers requiring a seal; serve notice of meetings of the Board of Directors and of the Members; keep appropriate current records showing the Members of the Association and their addresses; and perform such other duties as required by the Board of Directors. (d) Treasurer. The Treasurer shall: receive and deposit in appropriate bank accounts all funds of the Association and disburse such funds as directed by resolution of the Board of Directors; keep proper books of account; issue, or cause to be issued, all requested certificates setting forth whether the assessments applicable to a specific Lot have been paid; cause an annual audit of the Association books to be made by an independent public accountant at the completion of each fiscal year; prepare an annual budget and a statement of income and expenditures to be represented to the membership at its regular annual meeting, and deliver a copy of each to the Members; and, if directed by resolution of the Board of Directors, sign all checks of the Association. ARTICLE IX COMM ITTEES The Board of Directors of the Association shall appoint a Nominating Committee as provided in Section 3 of Article V of these Bylaws. The Board of Directors may appoint an architectural committee and such other committees as it deems necessary to carry out the affairs of the Association. ARTICLE X BOOKS AND RECORDS Section 1. Inspection by Members. The membership register (including names, mailing addresses, telephone numbers and voting rights), books of account and minutes of meetings of the Members, of the Board of Directors (including drafts and summaries), and of committees shall be made available for inspection and copying by any Member of the Association, or by his duly appointed representative, at any reasonable time and for a purpose reasonably related to his interest as a Member, at the principal office of the Association. The Board of Directors minutes shall be available to Members within thirty days of the meeting, and shall be distributed to any Member upon request and upon reimbursement of the costs in making that distribution. Section 2. Rules for Inspection, The Board of Directors shall establish reasonable rules with respect to: (a) Notice to be given to the custodian of the records by the Member desiring to make the inspection; (b) Hours and days of the week when such an inspection may be made; and (c) Payment of the cost of reproducing copies of documents requested by a Member. Section 3. Inspection by Directors. Every director shall have the absolute right at any reasonable time to inspect all books, records and documents of the Association and the physical properties owned or controlled by the Association.The right of inspection by a director includes the right to make extracts and copies of documents,at the expense of the Association. ARTICLE XI MISCELLANEOUS Section 1. Amendments. So long as Class B Lots continue to exist, these Bylaws may be amended by a majority of the directors then holding office, provided, however, that such amendment may not be in contravention of any provision of the North Carolina Nonprofit Corporation Act or the Declaration. After Class B Lots cease to exist, subject to the provisions of North Carolina Nonprofit Corporation Act, these Bylaws may be amended if such amendment is approved by: (i) the Board of Directors; (ii) Members entitled to cast at least fifty-one percent (51%) of the votes of the Association; and (iii) so long as Declarant owns any Lots within the Subdivision, by the Declarant, provided, however, that such amendment may not be in contravention of any provision of the North Carolina Nonprofit Corporation Act or the Declaration. Section 2. Conflicts. In the case of any conflict between the Articles of Incorporation and these Bylaws, the Articles shall control. In the case of any conflict between the Declaration and these Bylaws, the Declaration shall control. Section 3. Fiscal Year. The fiscal year of the Association shall begin on the first day of January and end on the 31st day of December of every year, except that the first fiscal year shall begin on the date of incorporation. Section 4. Gender. Any use of the masculine gender in these Bylaws shall be construed to include the feminine gender. Any use of the singular shall be construed, as appropriate, to include the plural, and vice versa. Section 5. Severability.If any provision of these Bylaws or the application thereof to any person or circumstances shall be held invalid or unenforceable to any extent by a court of competent jurisdiction, such provision shall be complied with or enforced to the greatest extent permitted by law as determined by such court, and the remainder of these Bylaws and the application of such provision to other persons or circumstances shall not be affected thereby and shall continue to be complied with and enforced to the greatest extent permitted by law. BK 10738 PG 0425 FILED ELECTRONICALLY CUMBERLAND COUNTY NC J. LEE WARREN, JR. FILED Apr 13, 2020 AT 02:33,46 PM BOOK 10738 START PAGE 0425 END PAGE 0426 INSTRUMENT 6 12520 RECORDING $26.00 EXCISE TAX $0.00 SUPPLEMENTAL DECLARATION OF RESTRICTIVE COVENANTS AND EASEMENTS FOR STONEGATE,SECTION FOUR Prepared by/return to:Richard A.Galt,Esq.,2533 Raeford Road,Fayetteville,NC 28305 THIS SUPPLEMENTAL DECLARATION OF COVENANTS AND EASEMENTS ("Supplemental Declaration")is made and entered into this l day of April;2020 by BILL CLARK HOMES OF FAYETTEVILLE,LLC,a North Carolina limited liability company(hereinafter referred to as"Declarant"). WITNESSETH: WHEREAS,CRA Home Builders,Inc.executed and caused to be recorded a certain"Declaration of Covenants and Easements applicable to Stonegate subdivision,Section Three,in Book 9666,Page 65 of the Cumberland County, North Carolina Registry (the "Declaration"), the terms of which arc incorporated herein by this reference;and WHEREAS,by that certain"Assignment and Transfer of Declarant Rights"recorded in Book 9926,Page 444,Cumberland County,North Carolina Registry(the"Assignment"),CRA Home Builders, Inc.assigned,transferred and conveyed to Declarant any and all of its right,title and interest in and to its status as Declarant under the Declaration and all of the rights and easements associated therewith,and delegated,transferred and conveyed to Declaration all of its obligations as Declarant under the Declaration first arising from and after the effective date of the Assignment;and WHEREAS,said Declaration,by its terms, applied to and covered that portion of Stonegate, subdivision as is shown on the plat recorded in Plat Book 135,Pages 190 of the Cumberland County, North Carolina Registry;and WHEREAS, said Declaration provided that future sections of Stonegate subdivision would become subject to the Declaration after recording of the plat for said new section(s)and recording of a Supplemental Declaration which expressly makes the new section(s)subject to the Declaration;and WHEREAS, Declarant is the owner of said new section(s) and has caused a plat entitled "STONEGATE SECTION FOUR—PHASE TWO"to be recorded in Plat Book 143,Page 192,of the Cumberland County,North Carolina Registry;and WHEREAS, Declarant desires that the portion of Stonegate subdivision as shown on the plat entitled"STONEGATE SECTION FOUR—PHASE TWO"recorded in Plat Book 143,Page 192,of the Cumberland County,North Carolina Registry be subject to bound by the Declaration and the covenants Submitted electronically by "single Source Real Estate Services" in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the Cumberland County Register of Deeds. BK 10738 PG 0426 and restrictions contained therein,and further desires that the said real property as shown on said plat be held,transferred,sold,conveyed,given,donated,leased,occupied and used subject to the Declaration; and NOW,THEREFORE,in consideration of the premises,Declarant hereby expressly declares that the portion of Stonegate subdivision shown on the plat entitled"STONEGATE SECTION FOUR — PHASE TWO"recorded in Plat Book 143,Page 192,of the Cumberland County,North Carolina Registry, be and hereby is subject to that certain Declaration of Covenants and Easements recorded in Book 9666, Page 65 of the Cumberland County,North Carolina Registry. Except as modified by this Supplemental Declaration,all other terms and conditions contained in the Declaration remain in full force and effect. Defined terms not defined herein shall have the meanings ascribed to them in the Declaration. IN WITNESS WHERE,Declarant has set its hand and seal the day and year first above written. BILL CLARK HOMES OF FAYETTEVILLE,LLC, a North Carolina limited liability company By: u '(SEAL) Daniel Koch,Manager STATE OF NORTH CAROLINA ) COUNTY OF-CIB4cMERNEQD I, rin(�I7/1nfl.K'�-"" , a Notary Public for County,North Carolina, do hereby certify Mit Daniel Koch,Manager of Bill Clark Homes of Fayetteville,LLC,a North Carolina limited liability company,personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company.t t I I I I i ess my hand and s this day of April,2020. `.`•.t P'NN P1.)<<q • ry p _a uTARY Nota cP,e.fli J13nn /Qkc PUBLiG My comm.expires: &J. (of�l(}�?� lltr, COukAv���\ flK 0 9 8 13 PO 0 8 3 3 CUMBERLFILED AND COUNTY NC J. LEE WARREN, JR. REGISTER OF DEEDS FILED Mar 01, 2016 AT 03:21:29 pm BOOK 09813 START PAGE 0833 END PAGE 0834 INSTRUMENT# 05996 RECORDING $26.00 EXCISE TAX (None) RA FIRST AMENDMENT TO DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY Prepared by and return to: Richard A.Galt,PLLC 2533 Raeford Road,Fayetteville,NC 28305 WITHOUT TITLE EXAMINATION CUMBERLAND COUNTY NORTH CAROLINA This First Amendment to the Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community (the "First Amendment") is made this 22nd day of February, 2016 by BILL CLARK HOMES OF FAYETTEVILLE, LLC, a North Carolina limited liability company, a North Carolina limited liability company(hereinafter referred to as "BCH"). BCH states and declares as follows: A. BCH, as"Declarant", previously made that certain Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community recorded January 15, 2015 at Book 9577, Page 767 of the Cumberland County,North Carolina Registry, as supplemented by that certain Supplemental Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community, Phase One, Section Two ,recorded February 9, 2015 at Book 9590, Page 597 of the Cumberland County,North Carolina Registry(the"Declaration"). B. Section 3 of Article XIII of the Declaration provides that for so long as Declarant owns any Lot within the Subdivision, this Declaration may be amended by the Declarant, without the consent or joinder of any other Owner or the Association. C. BCH is an Owner of Lots in the Subdivision. D. BCH now desires to amend the Declaration pursuant to Section 3 of Article XIII of the Declaration. BK09590 PG0597 CLJMBERLAND COUNTY NC J. LEE WARREN, JR. REGISTER OF DEEDS FILED Feb 09, 2015 AT 01:22:00 pm BOOK 09590 START PAGE 0597 END PAGE 0598 INSTRUMENT# 03856 RECORDING $26.00 EXCISE TAX (None) RA SUPPLEMENTAL DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY, PHASE ONE,SECTION TWO Prepared by/return to: Richard A.Galt, Esq.,2533 Raeford Road,Fayetteville, NC 28305 THIS SUPPLEMENTAL DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS("Supplemental Declaration")is made and entered into this COVENANTS., day of February,2015 by Bill Clark Homes of Fayetteville,LLC,a North Carolina limited liability company(hereinafter referred to as "BCH"). WITNESSETH: WHEREAS, BCH executed and caused to be recorded a certain "Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community" in Book 9577,Page 767, of the Cumberland County,North Carolina Registry(hereinafter, the "Declaration"),the terms of which are incorporated herein by this reference; and WHEREAS, said Declaration, by its terms, applied to and covered that portion of The Preserve At Lake Upchurch subdivision as is shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE ONE,SECTION ONE"recorded in Plat Book 135,Pages 105 through 106 of the Cumberland County, North Carolina Registry; and WHEREAS, said Declaration provided that future sections of The Preserve At Lake Upchurch subdivision would become subject to the Declaration after recording of the plat for said new section(s) and recording of a Supplemental Declaration which expressly makes the new section(s) subject to the Declaration; and WHEREAS, BCH is the owner of said new section(s) and has caused a plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE ONE, SECTION TWO" recorded in Plat Book 135, Pages 119 through 120 of the Cumberland County, North Carolina Registry; and WHEREAS, BCH desires that the portion of The Preserve At Lake Upchurch subdivision as is shown on plat on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE ONE, SECTION TWO"recorded in Plat Book 135, Pages 119 through 120,of the Cumberland County, North Carolina Registry be subject to bound by the Declaration and the covenants and restrictions contained therein, and further desires that the said real property as shown on said plat be held,transferred, sold,conveyed, given,donated, leased, occupied and used subject to the Declaration: BK09590 P60598 NOW, THEREFORE, in consideration of the premises, BCH hereby expressly declares that the portion of The Preserve At Lake Upchurch subdivision shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE ONE, SECTION TWO" recorded in Plat Book 135,Pages 119 through 120,of the Cumberland County,North Carolina Registry,be and hereby is subject to that certain Declaration of Covenants,Conditions And Restrictions recorded Book 9577,Page 767,of the Cumberland County,North Carolina Registry. Defined terms not defined herein shall have the meanings ascribed to them in the Declaration. IN WITNESS WHERE, BCH has set its hand and seal the day and year first above written. BILL CLARK HOMES OF FAYETTEVILLE, LLC, A North Carolina limited liability company By `-� . -.. (SEAL) Brian Walker, Manager STATE OF NORTH CAROLINA COUNTY OF CUMBERLAND L` -tAA-5 k 6-41U— ,a Notary Public forL4444r411Ti N do hereby certify that Brian Walker, Manager of Bill Clark Homes of Fayetteville,LLC, a NC limited liability company,personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company. Witnes y rid seal this al-day of .0-4"1 ,2015. Notary P is RICHARD A GALT NOTARY PUBLIC My comm. expires: f)c,..N`f2c7c(c— Cumtadend County,Waugh„p utt q°i0 (N.P. SEAL) BK 11063 PG 0278 FILED ELECTRONICALLY CUMBERLAND COUNTY NC J. LEE WARREN, JR. FILED Mar 19, 2021 AT 12:28:07 PM BOOK 11063 START PAGE 0278 END PAGE 0279 INSTRUMENT # 12720 RECORDING $26.00 EXCISE TAX $0.00 SUPPLEMENTAL DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY, PHASE TWO,SECTION ONE Prepared by/return to: Richard A. Galt,Esq.,2533 Raeford Road, Fayetteville,NC 28305 THIS SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Supplemental Declaration") is made and entered into this WI day of March, 2021 by Bill Clark Homes of Fayetteville,LLC,a North Carolina limited liability company(hereinafter referred to as"BCH"). WITNESSETH: WHEREAS, BCH executed and caused to be recorded a certain "Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community" in Book 9577,Page 767, of the Cumberland County, North Carolina Registry (as the same may have been amended or supplemented,the"Declaration"),the terms of which are incorporated herein by this reference; and WHEREAS, said Declaration, by its terms, applied to and covered that portion of The Preserve At Lake Upchurch subdivision as is shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH,PHASE ONE,SECTION ONE"recorded in Plat Book 135,Pages 105 through 106 of the Cumberland County,North Carolina Registry; and WHEREAS, said Declaration provided that future sections of The Preserve At Lake Upchurch subdivision would become subject to the Declaration after recording of the plat for said new section(s) and recording of a Supplemental Declaration which expressly makes the new section(s) subject to the Declaration; and WHEREAS, BCH is the owner of said new section(s) and has caused a plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO, SECTION ONE"recorded in Plat Book 146,Page 70 of the Cumberland County,North Carolina Registry;and WHEREAS, BCH desires that the portion of The Preserve At Lake Upchurch subdivision as is shown on plat on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO, SECTION ONE" recorded in Plat Book 146, Page 70 of the Cumberland County,North Carolina Registry be subject to bound by the Declaration and the covenants and restrictions contained therein,and further desires that the said real property as shown on said plat be held,transferred, sold,conveyed, given, donated,leased,occupied and used subject to the Declaration; Submitted electronically by Richard A.Galt,PLLC in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement witli the Cumberland County Register of Deeds. BK 11063 PG 0279 NOW, THEREFORE, in consideration of the premises, BCH hereby expressly declares that the portion of The Preserve At Lake Upchurch subdivision shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO, SECTION ONE"recorded in Plat Book 146, Page 70 of the Cumberland County,North Carolina Registry, be and hereby is subject to that certain Declaration of Covenants,Conditions And Restrictions recorded Book 9577,Page 767,of the Cumberland County,North Carolina Registry. Defined terms not defined herein shall have the meanings ascribed to them in the Declaration. N WITNESS WHERE,BCH has set its hand and seal the day and year first above written. BILL CLARK HOMES OF FAYETTEVILLE,LLC, A North Carolina limited liability company By: .V"°'.--„..., 1 C.._(SEAL) Daniel Koch,Manager STATE OF NORTH CAROLINA ) COUNTY OF CUMBERLAND ) i7.I, 'I >tf j A-Riklyni ,a Notary Public fore �l?�do hereby certify that Daniel Koch,M. ger of Bill Clark Homes of Fayetteville,LLC,a NC limittid liability company,personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company. VOA ess my hand and seal this 10 day of Oki— , 2021. 0. 0 r . � � �C.clld \1111II11// otary Pub r -Rain() tmPd iaird �\\\\NM PO4�/is�� • My comet.expires: 3 W AR Y O PUB\-\G �v� /!lIII11` BK 11523 PG 0634 FILED ELECTRONICALLY CUMBERLAND COUNTY NC J. LEE WARREN, JR. FILED Jul 15, 2022 AT 03:29:32 PM BOOK 11523 START PAGE 0634 END PAGE 0635 INSTRUMENT # 28797 RECORDING $26.00 EXCISE TAX $0.00 SUPPLEMENTAL DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY, PHASE TWO,SECTION TWO Prepared by/return to:Richard A.Gait,Esq., 2533 Raeford Road,Fayetteville,NC 28305 THIS SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS("Supplemental Declaration") is made and entered into this ism day of July,2022 by Bill Clark Homes of Fayetteville, LLC, a North Carolina limited liability company (hereinafter referred to as"BCH"). WITNESSETH: WHEREAS, BCH executed and caused to be recorded a certain "Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community" in Book 9577,Page 767, of the Cumberland County, North Carolina Registry (as the same may have been amended or supplemented,the"Declaration"), the terms of which are incorporated herein by this reference; and WHEREAS, said Declaration, by its terms, applied to and covered that portion of The Preserve Al Lake Upchurch subdivision as is shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH,PHASE ONE,SECTION ONE"recorded in Plat Book 135,Pages 105 through 106 of the Cumberland County,North Carolina Registry;and WHEREAS, said Declaration provided that future sections of The Preserve At Lake Upchurch subdivision would become subject to the Declaration after recording of the plat for said new section(s) and recording of a Supplemental Declaration which expressly makes the new section(s) subject to the Declaration;and WHEREAS, BCH is the owner of said new section(s) and has caused a plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO, SECTION TWO"recorded in Plat Book 148,Page 86 of the Cumberland County,North Carolina Registry; and WHEREAS, BCH desires that the portion of The Preserve At Lake Upchurch subdivision as is shown on plat on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO,SECTION TWO"recorded in Plat Book 148, Page 86 of the Cumberland County,North Carolina Registry be subject to bound by the Declaration and the covenants and restrictions contained therein,and further desires that the said real property as shown on said plat be held,transferred, sold,conveyed,given,donated,leased,occupied and used subject to the Declaration; Submitted electronically by "Costner Law Office, PLLC" in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the Cumberland County Register of Deeds. BK 11523 PG 0635 NOW, THEREFORE, in consideration of the premises, BCH hereby expressly declares that the portion of The Preserve At Lake Upchurch subdivision shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE TWO, SECTION TWO"recorded in Flat Book 148,Page 86 of the Cumberland County,North Carolina Registry,be and hereby is subject to that certain Declaration of Covenants, Conditions And Restrictions recorded Book 9577, Page 767,of the Cumberland County,North Carolina Registry;as the same may have been amended or supplemented. Defined terms not defined herein shall have the meanings ascribed to them in the Declaration. IN WITNESS WHERE,BCH has set its hand and seal the day and year first above written. BILL CLARK HOMES OF FAYETTEVILLE,LLC, A North Carolina limited liability company By: c{iVtN�� t ti (A___ ,(SEAL) Daniel Koch,Manager STATE OF NORTH CAROLINA ) } COUNTY OF C ERL— ND } I, 11/ 70 PO 4 i� '�l a Notary Public for ( �,. P r`, do hereby certify that ' j e fi 16er'•l� , Manager of Bill Clark Homes of Fayetteville, LLC, a NC limited liability company, personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company. Wi ess my hand and seal this + l day of ,)b. I. ,2022. cL'1 1l ��CJ� lio \\\ ,P0L'C iii otary ub[tAo `�� f�l f%1Y .••N.. RRO/.,% —z 4,1 • My comm. expires: 73 41/.4l 44 ;z _w CI- \_G 0` A i//',/p,j7l C01,,\\ BK 11723 PG 0446 FILED ELECTRONICALLY CUMBERLAND COUNTY NC J. LEE WARREN, JR. FILED May 01, 2023 AT 09:20:27 AM BOOK 11723 START PAGE 0446 END PAGE 0447 INSTRUMENT # 12929 RECORDING $26.00 EXCISE TAX $0.00 SUPPLEMENTAL DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY, PHASE TWO,SECTION TWO Prepared by/return to: Richard A. Galt,Esq.,2533 Raeford Road, Fayetteville,NC 28305 TIIIS SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Supplemental Declaration") is made and entered into this tor day of May, 2023 by Bill Clark Homes of Fayetteville, LLC,a North Carolina limited liability company(hereinafter referred to as "BCH"). WITNESSETH: WHEREAS, BCH executed and caused to be recorded a certain "Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community"in Book 9577.Page 767, of the Cumberland County, North Carolina Registry (as the same may have been amended or supplemented,the"Declaration"),the terms of which are incorporated herein by this reference;and WHEREAS, said Declaration, by its terms, applied to and covered that portion of The Preserve At Lake Upchurch subdivision as is shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH,PHASE ONE,SECTION ONE"recorded in Plat Book 135,Pages 105 through 106 of the Cumberland County,North Carolina Registry;and WHEREAS, said Declaration provided that future sections of The Preserve At Lake Upchurch subdivision would become subject to the Declaration after recording of the plat for said new sections) and recording of a Supplemental Declaration which expressly makes the new section(s) subject to the Declaration; and WHEREAS, BCH is the owner of said new section(s) and has caused a plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH, PHASE 2, SECTION 3" recorded in Plat Book 149,Pages 139 thru 140 of the Cumberland County,North Carolina Registry; and WHEREAS, BCH desires that the portion of The Preserve At Lake Upchurch subdivision as is shown on plat on the plat entitled ""SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH,PHASE 2,SECTION 3"recorded in Plat Book 149,Pages 139 thru 140 of the Cumberland County,North Carolina Registry be subject to bound by the Declaration and the covenants and restrictions contained therein,and further desires that the said real property as shown on said plat be held,transferred, sold,conveyed, given, donated, leased,occupied and used subject to the Declaration; Submitted electronically by Richard A.Galt,PLLC in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the Cumberland County Register of Deeds. BK 11723 PG 0447 NOW, THEREFORE, in consideration of the premises, BCH hereby expressly declares that the portion of The Preserve At Lake Upchurch subdivision shown on the plat entitled "SUBDIVISION SURVEY OF THE PRESERVE AT LAKE UPCHURCH,PHASE 2,SECTION 3"recorded in Plat Book (49, Pages 139 thru 140of the Cumberland County,North Carolina Registry, be and hereby is subject to that certain Declaration of Covenants,Conditions And Restrictions recorded Book 9577,Page 767,of the Cumberland County,North Carolina Registry,as the same may have been amended or supplemented. Defined terms not defined herein shall have the meanings ascribed to them in the Declaration. IN WITNESS WHERE,BCH has set its hand and seal the day and year first above written. BILL CLARK HOMES OF FAYETTEVILLE,LLC, A North Carolina limited liability company By: 7' 21C.-tik (SEAL) 4321214e4-Kean,Manager STATE OF NORTH p OLINA ) /AWN ) COUNTY OF C-U ,fu'D {s,p , a Notary Public for ati. , do hereby certify that 44^4 S °fUt , Manager of Bill Clark Homes of Fayetteville, LLC, a NC limite liability company,personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company. Witness my hand and seal this e?4'day of / , 2023. Notary Public `011111///,e ,�, ¢ `� � IA0 Ak4r,,, My comm. expires: r' 02Y o�ot 3 �� Q� �tS� Qogp= RY V 0 PUO> Z` �i CO'- '' BK 11803 PG 0670 FILED ELECTRONICALLY CUMBERLAND COUNTY NC J. LEE WARREN, JR. FILED Aug 18, 2023 AT 03:31:46 PM BOOK 11803 START PAGE 0670 END PAGE 0671 INSTRUMENT # 26235 RECORDING $26.00 EXCISE TAX $0.00 AMENDMENT TO DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS FOR THE PRESERVE AT LAKE UPCHURCH COMMUNITY Prepared by and return to: Richard A.Galt,PLLC 2517 Raeford Road,Fayetteville,NC 28305 WITHOUT TITLE EXAMINATION CUMBERLAND COUNTY NORTH CAROLINA This Amendment to the Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community (the "Amendment") is made the iday of August, 2023 by BILL CLARK HOMES OF FAYETTEVILLE,LLC, a North Carolina limited liability company(hereinafter referred to as "BCH"). BCH states and declares as follows: A. BCH, as "Declarant", previously made that certain Declaration of Covenants, Conditions And Restrictions For The Preserve At Lake Upchurch Community recorded January 15, 2015 at Book 9577, Page 767 of the Cumberland County, North Carolina Registry (as the same may have been supplemented and amended,the"Declaration"). B. Section 3 of Article XIII of the Declaration provides that for so long as Declarant owns any Lot within the Subdivision,this Declaration may be amended by the Declarant, without the consent or joinder of any other Owner or the Association. C. BCH is an Owner of Lots in the Subdivision. D. BCH now desires to amend the Declaration pursuant to Section 3 of Article XIII of the Declaration. THEREFORE,BCH hereby amends the Declaration as follows: 1. A new paragraph is added to the Declaration which reads as follows: "Alteration of the drainage as shown on the approved plans may not take place without the concurrence of the Division of Energy, Mineral and Land Resources Land Quality Section." Submitted electronically by Richard A.Galt,Pl.LC in compliance with Kurth Carolina statutes governins recordable documents and the terms of the sabmitter aerceinent with time Cumberland County Resister of Deeds. BK 11803 PG 0671 2. All defined terms not defined herein shall have the meanings ascribed to them in the Declaration. Except as amended herein, all terms and provisions of the Declaration remain unmodified. As amended herein,the Declaration remains in full force and effect. IN WITNESS WHEREOF, the BCH has caused this Amendment to be executed as of the date first stated above. BILL CLARK HOMES OF FAYETTEVILLE,LLC, A North Carolina limited liability company By: L) La C ,rk,Manager STATE OF NORTH CAROLINA ) COUNTY OF PLit. ) I,1444A, W. l n...) , a Notary Public for PJi_ , do hereby certify that Lance Clark, Manager of BiL Clark Homes of Fayetteville, LLC, a NC limited liability company, personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of said limited liability company. Witness my hand and seal this i 1 day of ,2023. `,o111ttltio. o Notary Public t ,crpy Z My commission expires: ...* a g I cad to_3 = R .v Z