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SW3150202_Deed Restrctions_20190826
FILED UNION COUNTY, NC CRYSTAL CRUMP REGISTER OF DEEDS FILED Dec 28, 2015 AT 01:18 pm BOOK 06590 START PAGE 0868 END PAGE 0909 INSTRUMENT # 39163 EXCISE TAX (None) Are Prepared by and return to: Sellers, Ayers, Dortch & Lyons, P.A. 301 S. McDowell Street, Suite 410 Charlotte, NC 28204-2686 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AMBER MEADOW AMBER MEADOW IS AN AGE RESTRICTED COMMUNITY INTENDED TO PROVIDE HOUSING FOR OLDER PERSONS THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS AND OF THE FLAG OF THE UNITED STATES OF A.MERICA OR STATE OF NORTH CAROLINA TABLE OF CONTENTS BackgroundStatement....................................................................................................................5 Statementof Declaration.................................................................................................................5 AgeRestriction...............................................................................................................................6 ArticleI. Definitions.................................................................................-...................................7 Article II. Expansion of project.....................................................................................................9 Section 2.1 Additions by Declarant......... ............................................................................. 9 Section 2.2 Supplemental Declaration ........................................... .... ................................... 9 Section 2.3 Conveyance of Common Area...........................................................................9 ArticleIII. Common Area..............................................................................................................5 Section 3.1 Owners' Easements of Enjoyment.....................................................................9 Section 3.2 Title to Common Area.....................................................................................10 Section 3.3 Maintenance.....................................................................................................IC Section3.4 Reserve Fund(s)..............................................................................................I 1 Section 3.5 Request for State Maintenance of Roadways .................................................. I I ArticleIV. The Association.........................................................................................................11 Section 4.1 Automatic Membership.............................................................. ..................... I 1 Section4.2 Voting Rights...................................................................................................I I Section 4.3 Termination of Class B Lots and Membership and Period of Declarant Control.....................................................................................12 Section 4.4 Directors Appointed by Declarant .................................................... ............... 12 Section 4.5 Association to Maintain Books and Records...................................................12 Section 4.6 Management and Other Agreements...............................................................12 Section 4.7 Liability Limitations........................................................................................12 Article V. Operation of the Property and Assessments...............................................................13 Section 5.1 Adoption of Budget; Creation of Lien and Personal Obligation for Assessments............................................................................................I3 Section 5.2 Purpose of Assessments...................................................................................13 Section 5.3 Payment of Annual Assessments; Due Dates and Maximums ........................14 Section 5.4 Special Assessments...... ............. ....................................................... ............ 15 Section 5.5 Special Individual Assessments.......................................................................15 Section 5.6 Uniform Rate of Assessment...........................................................................16 Section 5.7 Effect of Nonpayment of Assessments; Remedies of theAssociation...............................................................................................................16 Section5.8 Exempt Property..............................................................................................17 Section 5.9 Voluntary Conveyance; Estoppels...................................................................17 Section 5.10 Capital Contribution Payable by Original Transferee....................................17 ArticleVI. Utilities..................................................................................................................17 Section6.1 Utilities.............................................................................................................17 Section6.2 Water System..................................................................................................17 Section 6.3 Sewage Disposal System.................................................................................18 Section6.4 Leased Lighting...............................................................................................18 Article VII. Insurance and Reconstruction.................................................................................. Is Section 7.1 Association Insurance......................................................................................18 (a) Property and Casualty Insurance................................................................................18 (b) Liability Insurance......................................................................................................19 (c) Fidelity Insurance.......................................................................................................19 (d) Other Insurance..........................................................................................................19 (e) Insurance Unavailable ....... ................ ...... —....... ................................... ................ ......I9 2 5ection7.2 Premiums.........................................................................................................20 Section 7.3 General Standards............................................................................................20 Section 7.4 Insurance Proceeds...........................................................................................20 Section 7.5 Owner's Property.............................................................................................20 Article VIII. Maintenance of Property.........................................................................................20 Section 8.1 Maintenance by Association............................................................................20 Section 8.2 Maintenance by Owners; Establishment Of Community -Wide Standard .......21 Section 8.3 Incorporation of Maintenance Plan and Maintenance Agreement ..................22 Section 8.4 Incorporation of Landscape Maintenance Agreement.....................................22 Article IX. Architectural and Landscaping Control.....................................................................23 Section9.1 General.............................................................................................................23 Section 9.2 Composition of Architectural Control Committee..........................................23 Section 9.3 Architectural and Landscape Guidelines.........................................................24 Section 9.4 Definition of "Improvements".............................................................,...........25 Section 9.5 Enforcement/Construction Compliance Deposit.............................................26 Section 9.6 Failure of Architectural Control Committee to Act.........................................27 Section9.7 Variances..........................................................................................................27 Section 9.8 Limitation of Liability......................................................................................28 ArticleX. Easements...................................................................................................................28 Section 10.1 Use of Common Areas...................................................................................28 Section 10.2 Right -of -Way Over Roadways......................................................................29 Section 10.3 Right of the Association and Declarant to Enter Upon theCommon Areas........................................................................................................29 Section 10.4 Easement for Encroachments.........................................................................29 Section 10.5 Easement Appearing on the Plat....................................................................29 Section 10,6 Additional Easements for Utilities and Drainage..........................................30 Section 10.7 Declarant's Right to Assign Easements; Maintenance ofEasement Areas......................................................... ............ ........ ......................... ..30 Section 10.8 Easement for Construction Purposes.............................................................31 Section10.9 Right of Access..............................................................................................31 Section 10.10 Reserved Easements for Declarant................................................................31 Section 10.11 Greenway Easement.......................................................................................31 Section 10.12 Retaining Wall Maintenance Easement.........................................................31 ArticleXI. Use Restrictions.........................................................................................................32 Section 11.1 Residential Use Only.................................................,...................................32 Section11.2 Reserved.........................................................................................................32 Section 11.3 Care and Maintenance....................................................................................32 Section 11.4 HVAC Equipment..........................................................................................32 Section 11.5 Exterior Lighting...........................................................................................32 Section11,6 Fences and WaIls...........................................................................................33 Section 11.7 Mail and Newspaper Boxes; House Numbers.............................................33 Section 11.8 Temporary Structures; Structure Materials..................................................33 Section 119 Sight Line Limitations.................................................................................33 Section 11.10 No Subdivision of Lots................................................................................34 Section. 11.11 Restricted Activities in Common Areas......................................................34 Section 11.12 Recreational and Other Equipment..............................................................34 Section 11.13 Vehicles, Parking and Storage.....................................................................34 Section 11.14 Diligent Construction...................................................................................35 Section 11.15 Restricted Activities in Roadways...............................................................3 6 Section 11.16 Restricted Activities in Easements...... ...... .................................................. 36 Section 11.17 Offensive Activity and Nuisance.................................................................36 Section 11.18 Noise and Disorderly Conduct.....................................................................36 Section11.19 Rubbish........................................................................................................36 Section11.20 Animals........................................................................................................37 Section11.21 Signs and Flags............................................................................................37 Section 11.22 Clotheslines..................................................................................................37 Section11.23 Leases...........................................................................................................37 Section 11.24 Governmental Requirements.......................................................................38 Section 11.25 Occupants Bound.........................................................................................38 Section 11.26 Plat Notes, Restrictions and Requirements..................................................38 Section 11.27 Rules and Regulations..................................................................................38 Section 11.28 Enforcement.................................................................................................38 Section 11.29 Greenway Restrictions., .......... .................................................................... 38 ArticleXII. Amendment of Declaration ............. ......................................................................... 39 Section 12.1 Amendment Generally...................................................................................39 Section 12.2 Amendment of Declaration Without Approval of Owners............................39 Section 12.3 Changes to Plans for the Project....................................................................39 Article XIII. Termination, Duration, Condemnation...................................................................39 Section 13.1 Termination....................................................................................................39 Section13.2 Duration.........................................................................................................39 Section 13.3 Condemnation................................................................................................40 Article XIV. Miscellaneous Provisions.......................................................................................40 Section 14.1 Covenants Running with the Land.................................................................40 Section 14.2 Construction and Enforcement......................................................................40 Section14.3 Waiver............................................................................................................41 Section 14.4 Severability....................................................................................................41 Section14.5 Time Limits....................................................................................................41 Section 14.6 No Liability..................................................................................... ....41 Section14.7 Headings........................................................................................................41 4 STATE OF NORTH CAROLINA COUNTY OF UNION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR AMBER MEADOW THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made as of the 23' day of December, 2015 by PULTE HOME CORPORATION ("Declarant"), a Michigan corporation with offices located in Charlotte, North Carolina. All capitalized terms shall have the meaning set forth in Article I or elsewhere in this Declaration. BACKGROUND STATEMENT The Declarant is the owner of the real property located in Union County, North Carolina, which is more particularly described on the Plat ("Property"). Declarant will construct on the Property a residential community consisting of homes on single-family Lots ("Lots"). This development ("Project") shall be known as Amber Meadow. In creating the Project, Declarant desires to develop a residential community which is age restricted and intended to provide housing for older persons with public roadways and common areas for the benefit of the owners of Lots within the Project. Declarant desires to provide for the maintenance of the common area and of the public roadways until such time as the State of North Carolina assumes maintenance responsibility for roadways and therefore desires to subject the Property to the covenants, restrictions, easements, charges and liens described in this Declaration. Declarant has deemed it desirable to create a nonprofit, incorporated association which will be delegated and assigned powers of maintaining and administering the public roadways and common areas of the Project, of administering and enforcing the covenants and restrictions created in this Declaration, of levying, collecting and disbursing the assessments and charges created in this Declaration, and of taking any steps or performing any acts deemed necessary or appropriate to preserve the values of the Lots and to promote the recreation, health, safety and welfare of the owners of the Lots within the Project. In order to accomplish the foregoing, Declarant is entering into this Declaration. STATEMENT OF DECLARATION NOW, THEREFORE, Declarant hereby declares that (subject to certain rights of amendment as hereinafter described) the Property shall be held, transferred, sold, conveyed, occupied and used subject to the North. Carolina Planned Community Act and to the following easements, restrictions, covenants and conditions, which shall run with the Property and be binding on, and inure to the benefit of, all parties having any right, title or interest in the Property or any. part thereof, and the heirs; successors and assigns of all of the foregoing parties. AGE RESTRICTION AMBER MEADOW IS AN AGE RESTRICTED COMMUNITY INTENDED TO PROVIDE HOUSING FOR OLDER PERSONS Amber Meadow is intended to provide housing primarily for persons 55 years of age or older. The Property shall be operated as an age restricted community in compliance with, all applicable state and federal laws. The Association shall provide, or contract for the provision of those facilities and services designed to meet the physical and social needs of older persons as may be required under such Iaws. No person under 19 years of age shall stay overnight in any Lot for more than ninety (90) days in any consecutive twelve (12) month period. Each Lot, if occupied, shall be occupied by at least one (1) individual 55 years of age or older; provided, however, that once a Lot is occupied by an Age - Qualified Occupant, other Qualified Residents of that Lot may continue to occupy the Lot, regardless of the termination of the Age -Qualified Occupant's occupancy. Notwithstanding the above, at all times, at least eighty percent (80%) of the Lots within the Property shall be occupied by at least one (1) individual 55 years of age or older. The Board shall establish policies and procedures from time to time as necessary to monitor and maintain its status as an age restricted community under state or federal law. Upon request by the Association, all Owners shall comply with age certification requirements and must provide written confirmation and documentation to the Association regarding the ages of each occupant of the Lot. The provisions of this Section may be enforced by the Association administratively as provided in N.C.G.S 47F-3-107.1 and/or by an action in law or in equity, including, without limitation, an injunction requiring specific performance hereunder. Notwithstanding the above restriction, Declarant reserves the right to sell Lots to persons between the ages of 50 and 55, inclusive years of age; provided, such sales shall not affect Amber Meadow's compliance with all applicable state and federal laws under which the Property may be developed and operated as an age -restricted community. For purposes of this Age Restriction: 1. The term "Age Qualified Occupant" shall mean any individual who is 55 years of age or older who occupies a Lot. 2. The terms "occupy", "occupies," "occupancy," or "occupying" shall mean staying overnight on a Lot for at least ninety days (90) days in any consecutive (12) month period. 3. The term "Qualified Resident" shall mean any of the following persons occupying a Lot: a. Any Age -Qualified Occupant; and b. Any person 19 years of age or older occupying a Lot with an Age -Qualified Occupant. ARTICLE I DEFINITIONS The following words, when used in this Declaration or any supplement or amendment hereto, shall have the following meanings (unless the context shall prohibit): Section 1.1 "Act" shall mean the North Carolina Planned Community Act, codified in Chapter 47F of the North Carolina General Statutes, Section 1.2 "Association" shall mean and refer to the Amber Meadow Homeowners Association, Inc., a North Carolina non-profit corporation, organized pursuant to N.C.G.S. § 4717-3- 101 and § 55A-2-02, and its successors and assigns. Section 1.3 "Board" shall mean and refer to the executive board of the Association. Section 1.4 "Bylaws" shall mean the bylaws adopted by the Association pursuant to the North Carolina Non -Profit Corporation Act, as they may be amended from time to time. Section 1.5 "Certificate of Occupancy" shall mean and refer to any required certification issued by the appropriate governmental authorities as a prerequisite to occupancy of any House on the Property. Section 1.6 "Common Area" shall mean and refer to all real and personal property leased or owned by the Association and any easements granted to or reserved for the benefit of the Association for the common use and enjoyment of the Owners. "Common Area" shall constitute "Common elements" as defined in N.C.G.S. § 47F-1-103(4). Section 1.7 "Declarant" shall mean and refer to Pulte Home Corporation. It shall also include any person or entity who takes title to any portion of the Property and who is designated to be the Declarant in a recorded instrument as provided in N.C.G.S. § 47F-3-104. "Declarant" shall also include any person or entity who takes title to all or a portion of the Property by virtue of the foreclosure of the deed of trust which encumbers the Property. Section 1.8 "Declaration" shall mean and refer to this Declaration of Covenants, Conditions and Restrictions, as it may be amended, supplemented or extended from time to time. Section 1.9 "House" shall mean and refer to the primary residential dwelling improvement constructed upon a Lot, which improvement is owned by the Owner of the Lot on which it is constructed, and is subject to the terms and provisions of the Project Documents. Section 1.10 "Landscape Basement" shall mean and refer to the easements reserved by Declarant and/or granted to the Association in Article X hereof over, across and under certain areas of the Property for the installation and maintenance of entrance monuments, landscaping and other related improvements for the Project, all as more particularly described in Article X. Section 1.11 "Lot" shall mean and refer to any numbered plot of land appearing on any Plat of the Property which is the site for construction of a House. Section 1.12 "Member" shall mean and refer to every individual, corporation, partnership, limited liability company, association, trustee or other legal entity that is a member of the Association as provided in Article IV, Section 4.1. Section 1.13 "Mortgage" shall mean and refer to a mortgage or deed of trust constituting a first lien on a Lot. Section 1.14 "Mortgagee" shall mean and refer to an Institutional Lender holding a Mortgage that has notified the Association in writing of its name and address, and that it holds a Mortgage on a Lot. Upon request, each Owner shall provide the name and address of the then current holder of any Mortgage encumbering Owner's Lot. Section 1.15 "Occupant" shall mean and refer to any person occupying all or any portion of a Lot or any portion of the Property for any period of time. Section 1.16 "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot (as defined herein) which is a part of the Property, but excluding Declarant and those parties who have such interest merely as security for the performance of an obligation. Section 1.17 "Plat" shall mean and refer to one or more subdivision maps of the Property recorded in Plat Cabinet M at Page 889-89I in the office of the Register of Deeds for Union County, North Carolina and any other subdivision plats identified in any Supplemental Declaration subjecting additional land to the Declaration. Section 1.18 "Project" shall mean and refer to the single -residential development located on the Property, which shall be known as Ainber Meadow. Section 1.19 "Project Documents" shall mean and refer to this Declaration, the Articles of Incorporation of the Association, the Bylaws, and the rules and regulations governing the use of the Property, as the foregoing may be amended and supplemented from time to time, and all attachments and exhibits thereto. Section 1.20 "Property" shall mean and refer to the land shown on the Plat but excluding any land designated for future development or dedicated as public right-of-way. Section 1.21 "Rear Yard" shall mean and refer to the area within each Lot bounded by the plane established by the rear fagade of the House and the rear and side property lines established on the Plat. Section 1.22 "Roadways" shall mean and refer to the public roads, streets, and cul-de-sacs in the Project as shown on the Plat, all of which shall be maintained by the Association until the State of Noah Carolina elects, In its discretion, to assume responsibility for roadway maintenance. Section 1.23 "Turnover Date" shall have the meaning set forth in Article IV hereof. ARTICLE II EXPANSION OF PROJECT Section 2.1 Additions by Declarant. Declarant reserves an option, until the twenty-fifth (25th) anniversary of the date of recording of this Declaration, to subject additional land to this Declaration in accordance with provisions of this Article II. Any additional land so subjected must be located within one (1) mile of the perimeter of the Property as previously expanded, and must be shown on a recorded subdivision plat. Declarant may exercise this right within the twenty-five (25) year period specified above, without the consent or approval of the Association, or any other Owner or Mortgagee, by executing and recording a Supplemental Declaration in the manner provided in Section 2.2 below. Section 2.2 Supplemental Declaration. In order to exercise any right to subject other land to this Declaration, Declarant shall execute and record a supplement to this Declaration ("Supplemental Declaration"). Any Supplemental Declaration executed and recorded by Declarant shall contain an exhibit legally describing the tract or parcel to be added to the Property and subjected to the Declaration. Section 2.3 Conveyance of Common Area. Following the recording of each Supplemental Declaration, Declarant may convey to the Association any Common'Area located within the additional property being subjected to this Declaration, as provided in Section 3.2. Common Area conveyed may be unimproved or improved. ARTICLE III COMMON AREA Section 3.1 Owners' Easements „ asemen of Enjoyment. Every Owner shall have a perpetual right , , , ... .,..... and easement of enj oyment in and to the Common Area, which shall be appurtenant to and shall pass with the title to every Lot, subject to the terms of this Section 3.1. The foregoing rights shall include, without limitation, a non-exclusive easement over all Roadways for the purpose of vehicular and pedestrian access, ingress and egress to each Lot. All rights and easements created by this Section. 3.1 shall be deemed appurtenant to each Lot, shall inure to the benefit of each Owner and his tenants, family members, guests, invitees and agents, and are granted subject to the provisions of this Declaration including, without limitation, the following conditions and reservations: (a) The right of the Association, to mortgage, pledge, or hypothecate any or all of its real or personal property as security for money borrowed or debts 'incurred as permitted under the Act; (b) The right of the Association to take such steps as is reasonably necessary to protect the Common Area against foreclosure; (c) The rights of the Association, as provided in the Project Documents and the Act, including without limitation, to impose fines and to suspend the voting rights of any Member for any period during which any assessment remains unpaid, or as a result of any infraction or violation of the Project Documents; (d) The right of the Association, in accordance with the provisions of N.C.G.S. § 47F-3- 112, to dedicate or transfer all or any part of the Common Area; (e) The easements described in Article X; (f) The right of the Association to establish reasonable rules and regulations for the use of the Property by Members or their tenants, family members, guests, invitees and agents, as provided in Article XI; and (g) Any and all other provisions of this Declaration and the Project Documents. Section 3.2 Title to Common Area, Declarant covenants for itself, its successors and assigns, that it shall convey fee simple title to the Common Area within the Property to the Association. Each such conveyance shall be subject to the rights, restrictions, and easements set forth in this Declaration, including the easements referenced in Article X, as well as other public and private access, utility and drainage easements, easements and rights -of -way. Section 3.3 Maintenance. Common Area shall be maintained by the Association as more particularly detailed in Section 8.1. Maintenance of the Common Area shall include maintenance, repair and reconstruction, when necessary, of all improvements located thereon. Common Area that is conveyed to the Association in an unimproved and natural state may, be maintained in the same state after it is conveyed to the Association. Although dedicated to be public rights -of -way, the Roadways shall be maintained by the Association until the Roadways are accepted for maintenance by the North Carolina Department of Transportation. Such maintenance shall include repair and reconstruction, when necessary. Maintenance of the Roadways shall conform, at a minimum, to the standard of maintenance (if one is ascertainable) which would be required by the North Carolina Department of Transportation. Notwithstanding the forgoing, each Owner shall maintain that portion of the public right-of-way located between the property line of the Owner's Lot and the improved portion of the Roadway adjacent thereto, including, without limitation, all planting strips, but excluding concrete sidewalks, all as more particularly provided in Article VX1S. The Association shall not be responsible for the maintenance of any House, Lot or any portion of any Lot or the improvements within the boundaries thereof except for Iawns and Iandscaping as specifically provided in Section 8.1. The Owners of such Lots shall be solely responsible for same. 10 Section 3.4 Reserve Fund(s). The Association may establish and maintain reserve fund(s) for the periodic maintenance, repair and replacement of all or a portion of the Common Areas and/or Roadways, in order to fund unanticipated expenses of the Association and/or to acquire equipment or services as may from time to time be deemed reasonable, necessary or desirable by the Board of Directors. Such reserve fund(s) shall be collected and maintained out of the assessments, as hereinafter provided in Article V. Assessments collected as reserves shall not be considered to be advance payments of Annual Assessments. Section 3.5 Request for State Maintenance of Roadways. The Declarant and after the Turnover Period, the Association may (but shall not ..... of b obligated to) request that the Roadways be accepted for maintenance by the North Carolina Department of Transportation or other governmental entity, and should maintenance responsibilities not be accepted by any governmental entity, the Association shall be solely responsible for the maintenance of the Roadways. THE DECLARANT MAKES NO WARRANTIES OR REPRESENTATIONS REGARDING THE ACCEPTABILITY OF THE ROADWAYS OR ANY IMPROVEMENTS OR FACILITIES THEREON OR ADJACENT THERETO TO THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION, THE CITY OF WAXHAW OR ANY OTHER GOVERNMENTAL ENTITY. In the event the Roadways are accepted for maintenance by the North Carolina Department of Transportation or another governmental entity, the Roadways, the Association shall no longer have any obligation for their maintenance, repair or replacement and any Roadway reserves may be used for general Association expenses or reserves. hi the event the Roadways are not accepted for maintenance by Lancaster County or another governmental entity within ninety (90) days after the date on which the Roadways are submitted by the Declarant for acceptance, the Declarant may transfer and convey the Roadways to the Association at any time thereafter. ARTICLE IV Nlop IWTIVI%Isis) i& OkN1 Section 4.1. Automatic Membership. All Owners shall automatically be Members of the Association, and shall enjoy the privileges and be bound by the obligations contained in the Project Documents, including the obligation to pay assessments. Ownership of any fee or undivided interest in any Lot shall be the sole qualification for membership in the Association. Membership shall be appurtenant to and may not be separated from the ownership of any Lot. The Board may make reasonable rules regarding proof of ownership. Section 4.2 __ V©tin-g Rights. There shall be two classes of Lots and Members with respect to voting rights in the Association; (a) Class A Lots shall be all Lots in the Project except for Class B Lots, as defined below. The Owner (or group of Owners) of each Class A Lot shall be entitled to one (1) vote in the Association. If a Lot is owned by more than one person or entity as tenants in common or tenants by the entirety, then each such person or entity shall be deemed an Owner and a Member of the Association, but in no event shall more than one (1) vote in the Association be cast with respect to each Class A Lot. (b) Class B Lots shall be all Lots in the Project owned by Declarant that have not been converted to Class A Lots. The Declarant shall be entitled to Seventy-five (75) votes in the Association for each Class B Lot owned by it. Section 4.3 Termination of Class B Lots and Membership and Period of Declarant Control. Notwithstanding anything contained herein to the contrary, the Class B Lots and Membership shall cease and be converted to Class A Lots and Membership and the Period of Declarant Control shall terminate (N.C.G.S. §§ 47F-3-103(d)) upon the earliest to occur of (a) the date on which the Declarant no longer owns any part of the Property; (b) the date the Declarant shall elect, in its sole discretion, that Class B Memberships cease and be converted to Class A Membership, which election must be made and shall be effective, if at all, upon the execution and delivery of written notice by the Declarant to the Board and the recordation of that notice in the Union County Public Registry; or (c) December 31, 2030. The earliest to occur of (a), (b), or (c) shall be referred to as the "Turnover Date". After the Turnover Date and for so long as Declarant owns any part of the Property, the Declarant shall be a Class A Member. Section 4.4 Directors App inted by Declarant. As more specifically provided in the Bylaws, the initial Board and the members of all subsequent Boards serving prior to the Turnover Date shall consist of not less than three (3) persons, all of whom shall be appointed by Declarant. These persons may or may not be employees of Declarant, and need not be Members. Until these persons are replaced by elected Board members at the first annual meeting of Members after the Turnover Date, they shall constitute the Board of the Association and exercise all powers and duties granted to the Board in the Bylaws. Section 4.5 Association to Maintain Books and Records. The Association shall maintain at all times current copies of all Project Documents, all rules and regulations concerning the Property, as well as its own books, records and financial statements as required by N.C.G.S. § 47F-3-118(a) and the North Carolina Non -Profit Corporations Act. Section 4.6 Management and Other Agreements. The Association may be professionally managed and may enter into such agreements for the management, operation and administration of the Project, with the individual, firm or entity that the Association deems appropriate and in the best interest of the Project from time to time. Should the Association enter into a management agreement for the Property as permitted herein, the manager (hereinafter referred to as "Independent Manager") shall obtain and at all times maintain Fidelity Insurance as provided in Section 7.1(c) of this Declaration. Section 4.7 Liability Limitations. Neither Declarant, nor any Member, nor the Board, nor any officers, directors, agents or employees of any of them shall be personally liable for debts contracted for or otherwise incurred by the Association or for a tort of another Member, whether or not such other Member was acting on behalf of the Association or otherwise. Neither Declarant, nor the Association, nor their directors, officers, agents or employees shall be liable for any incidental or consequential damages for failure to inspect any premises, improvements or portions thereof or for failure to repair or maintain the same. Neither the Declarant, the Association nor any other person, firm or association making such repairs or maintenance shall be liable for any personal injury or other 12 incidental or consequential damages occasioned by any act or omission in the repair or maintenance of any premises, improvements or portions thereof. The Association shall, to the extent permitted by applicable law, indemnify and defend all members of the Board from and against any and all loss, cost, expense, damage, Iiability, claim, action or cause of action resulting from the performance by the Board of its duties and obligations, excepting for any loss, cost, expense, damage, liability, claim, action or cause of action resulting from the gross negligence or willful misconduct of the person(s) to be otherwise indemnified. ARTICLE V OPERATION OF THE PROPERTY AND ASSESSMENTS Section 5.1 Adoption of Budget, Creation of Lien and Personal Obligation for Assessments. The Board shall, from time to time anat _ d least annually, prepare and adopt a proposed budget for the Project, determine the amount of expenditures payable by the Owners to meet the proposed budget ("Common Expenses") and allocate and assess Common Expenses among the Owners as provided in Section 5.6. The Common Expenses shall include such amounts as the Board deems necessary for the operation and maintenance of the Property and shall include, without limitation, amounts for purposes set forth in Section 5.2, amounts for permitted reserves and such amounts as may be necessary to make up any deficit for outstanding Common Expenses for any previous year. No proposed budget shall be effective until ratified as provided in N.C.G.S. § 47F-3- 103(c). Each Owner of any Lot or portion of the Property other than the Declarant, by acceptance of a deed therefor, is deemed to covenant and agree to pay to the Association, (1) Annual Assessments or charges of the Association, (2) Supplemental Annual Assessments, (3) Special Assessments, and (4) Special Individual Assessments, such assessments to be established and collected as hereinafter provided. Each annual and special assessment, together with interest, costs and reasonable attorneys' fees, shall be a continuing lien upon the Lot against which each such assessment is made. Each such assessment, together with interest, costs and reasonable attorneys' fees, shall also be the personal financial obligation of the person who was the Owner of such Lot at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title (other than as a lien on the Lot) unless expressly assumed by them. Declarant shall be exempt from all assessments relating to any portion of the Property owned by Declarant. Section 5.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the Owners and other residents of the Property to the fullest extent authority or responsibility is granted to the Association hereunder including, and without limiting the generality of the foregoing, for; the leasing, improvement, maintenance and operation of the Common Area including, without limitation, that specified in Section 3.3; provision of services and facilities devoted to this purpose and related to the use and enjoyment of the Common Area, including but not limited to maintenance and landscaping; payment of insurance premiums for the insurance policies maintained by the Association in accordance with the Project Documents; payment in connection with the Street Lights (if any) or other utilities serving the Property; payment of management fees to a property manager in accordance with Section 13 4.6; the employment of attorneys, architects, accountants and other professionals to represent or assist the Association deemed necessary or appropriate by the Board; the cost of utilities and fuel used in operating facilities in the Common Area; the maintenance and upkeep of all Roadways in the Property until they are accepted by the State of North Carolina for maintenance, if ever; for reserves as permitted in Section 3.4 and to carry out all other purposes and duties of the Association and/or the Board as provided in the Project Documents. Section 5.3 Payment of Annual Assessments; Due Dates and Maximums. Each Owner of a Lot shall pay to the Association Annual Assessments as hereinafter set forth. (a) Annual Assessments provided for herein shall commence as to any Lot as of the date of the conveyance by Declarant to an Owner (other than Declarant) of such Lot. The Annual Assessment for the first year in which a Lot is subject thereto shall be prorated based upon the number of days remaining in the applicable billing period from the date of such conveyance. The Annual Assessment amount for each and every year shall be an amount set by the Board of Directors, in accordance with the terms of this Article V. Annual Assessments shall be due and payable in full in advance or in installments as determined by the Board. The Board shall fix the amount of the Annual Assessment as to each Lot for any calendar year and shall send written notice of the amount and due date of each . installment of such Annual Assessment to each Owner at least thirty (30) days prior to the due date for payment of the assessment or the first installment thereof; rop vided, however, the failure of the Association to send, or of an Owner to receive, such notice shall not relieve any Owner of the obligation to pay Annual Assessments. Notwithstanding the foregoing, for calendar years beginning prior to the Turnover Date and in lieu of payment of Annual Assessments, Declarant may (but shall not be required to) fund the Annual Expense Shortfall with direct payments to the Association, loans to the Association or any combination of direct payments and loans that the Declarant, in its sole discretion, deems appropriate, For purposes of this Section, "Annual Expense Shortfall" shall mean the amount by which the annual expenses of the Association (excluding any reserves) exceeds the total amount of the Annual Assessments paid by Owners other than the Declarant. (b) For calendar years beginning before the Turnover Date, the Annual Assessment amount for each year shall be the amount set by the Board of Directors, in its discretion, based on the budget approved as provided in Section 5.1. Annual Assessments shall not be subject to any maximum nor shall they require the consent or approval of any Owner or Member other than the Declarant, (c) Forte calendaryears beginningon n or after the Turnover Date, Annual Assessments shall be set as follows: (i) The Maximum Annual Assessment for the first calendar year beginning on or after the Turnover Date shall be equal to the amount of the actual Annual Assessment set and established by the Board as provided in Subsection (a) above for the preceding year laws fifteen percent (15%). In each subsequent calendar year, the Maximum Annual Assessment maybe increased the Board (without any vote of or approval from the Members) by an amount equal to the previous year's Maximum Annual Assessment times the greater of (i) fifteen percent (15%) or (ii) the annual percentage increase in the Consumer Price Index, All Urban Consumers, United States, All Items (1982-84 =100) (hereinafter "CPI") issued by the U.S. Bureau of Labor Statistics for the most recent 14 12-month period for which the CPI is available. Permitted increases shall be cumulative, and any increase not taken in any year may be taken and applied by the Board in any later year. If the CPI is discontinued, then the index most similar to the CPI published by the United States Government indicating changes in the cost of living shall be used. ("Maximum Annual Assessment"). (ii) The Maximum Annual Assessment applicable to each Lot may be increased above the amount set forth in Subparagraph (b) of this Section 5.3 by a vote of a majority of the votes appurtenant to the Lots which are then subject to this Declaration, plus the written consent of Declarant as long as Declarant owns any part of the Property. (iii) The Board may fix the Annual Assessment applicable to each Lot at an amount not in excess of the Maximum Annual Assessment established as provided in and modified pursuant to Subparagraphs (b) and (c) of this Section 5.3. If the Board shall levy less than the Maximum Annual Assessment for any calendar year and shall determine thereafter during that calendar year that any of the responsibilities, duties or functions of the Association cannot be funded by such lesser assessment, the Board may levy a "Supplemental Annual Assessment." In no event shall the sum of the Annual and Supplemental Annual Assessments for any year exceed the applicable Maximum Annual Assessment for such year unless approved as specified in Subparagraph (c). (d) With respect to any Lot conveyed by Declarant, the purchaser of such Lot shall pay to the Association at closing the amount of the Annual Assessment for the installment period in which the closing occurs on such Lot, prorated based upon the number of days remaining in such installment period. With respect to any Lot conveyed by any Owner other than Declarant, the amount of the Annual Assessment applicable to such Lot for the installment period in which such closing occurs shall be prorated between the buyer and seller thereof as of the date of closing of such conveyance. Section 5.4_ Special Assessments. In addition to the Annual Assessments authorized above, the Association may levy a special assessment ("Special Assessment") for the purpose of defraying, in whole or in part, the cost of (i) the construction of any Common Area improvements which are not originally constructed by Declarant or (ii) the reconstruction, repair or replacement of the Common Areas, including any improvements located thereon as hereinafter set forth. (a) Declarant shall not be obligated to pay any Special Assessments on Lots owned by Declarant except with Declarant's prior written approval. (b) Prior to the Turnover Date, any Special Assessment must only be approved by the Declarant and shall not require the consent or approval of the Members. (c) On or after the Turnover Date, any Special Assessment must be approved by Declarant as long as Declarant owns any part of the Property and by a vote of sixty-seven (67%) of the votes appurtenant to the Lots which are then subject to this Declaration. Section 5.5 Special Individual Assessments. In addition to the Annual Assessments and Special Assessments authorized above, the Board shall have the power to levy a special assessment applicable to any particular Owner ("Special Individual Assessment") (i) for the purpose of paying for is the cost of any construction, reconstruction, repair or replacement of any damaged component of the Common Areas, including any improvements located thereon, occasioned by any act or omission of such Owner(s), members of such Owner's family or such Owner's agents, guests, employees, tenants or invitees and not the result of ordinary wear and tear, (ii) for payment of costs incurred by Association to bring any Lot into compliance with the Community Wide Standard provided for in Section 8.2; or (iii) for payment of fines, penalties or other charges imposed against any particular Owner relative to such Owner's failure to comply with the terms and provisions of this Declaration or the Project Documents. Provided, however, Declarant shall not be obligated to pay any Special Individual Assessment except with Declarant's prior written approval. The due date and payment terms (if any) for any Special Individual Assessment levied shall be fixed by the Board. Upon the establishment of a Special Individual Assessment, the Board shall send written notice of the amount and due date of such Special Individual Assessment to the affected Owner(s) at least thirty (30) days prior to the date such Special Individual Assessment is due. Section 5.6 Uniform Rate of Assessment. Annual Assessments, Supplemental Annual Assessments and Special Assessments levied by the Association must be fixed at a uniform rate for each Lot. Section 5.7 Effect of Nonpayment of Assessments: Remedies of the Association. If any assessment, or monthly installment thereof, is not paid within thirty (30) days after its due date, the Board may, at its option and without further notice, declare the entire unpaid assessment, both annual and special, immediately due and payable. Unpaid assessments shall bear interest %om and after the due date at the rate of eighteen percent (18%) per annum, not to exceed, however, the maximum rate permitted by law. In addition, the Association may impose a charge for late payment of any assessments up to but not exceeding $35.00 per month, which late charge may be imposed once in any month during which any assessment, interest, late charge or other previous charge or any portion thereof remains unpaid, The Association shall also be entitled to recover fees and penalties for returned checks as permitted in N.C.G.S. § 6-21.3 and N.C.G.S. § 25-3-506. The Association may enforce assessment obligations as permitted by law, including, without limitation, by filing and foreclosing a claim of lien in accordance with the procedures set forth in N.C.G.S. §47F-3-116, and/or by bringing an action at law against the Owner personally obligated to pay the assessment. Interest, late charges and reasonable attorneys' fees and costs of such action or foreclosure shall be added to the amount of such assessment. Each Owner, by his acceptance of a deed to a Lot, expressly grants to and vests in the Association or its agents the right and power to bring such action or foreclosure. Foreclosure may be accomplished in an action brought in the name of the Association in the manner that a foreclosure of a mortgage or deed of trust would be brought under Chapter 45 of the North Carolina General Statutes, or as otherwise expressly provided by law, and each Owner grants to the Association the right to foreclose any such charge or lien under power of sale. The Association, acting on behalf of the Owners, shall have the power to bid on any Lot and to acquire and hold, lease, mortgage and/or convey the same, NO OWNER MAY WAIVE OR OTHERWISE ESCAPE LIABILITY FOR THE ASSESSMENTS PROVIDED FOR HEREIN BY NON-USE OF THE COMMON AREA, BY REJECTION OF ASSOCIATION SERVICES, OR BY ABANDONMENT OF HIS LOT, R During any period in which an Owner is in default in the payment of any installment of an annual, special or other assessment levied by the Association, the voting rights of the Owner in the Association and the right to the use of the Common Area or any other services or facilities which are provided by the Association (except the right of access to the Owner's Lot and the right of access to utility service for such Lot) may be suspended by the Association until such assessment is paid as provided under N.C.G.S. § 47F-3-102(l 1). During any period in which an Owner is in default in the payment of any installment of an annual, special or other assessment levied by the Association, the Board may also notify the owner and holder of any mortgage or deed of trust of a delinquency relating to the Lot encumbered by that mortgage or deed of trust. Section_5.8 Exempt Property. The following pants of the Property shall be exempt from assessment by the Association: (a) the Roadways; (b) portions of the Property owned by the Declarant or the Association; and (c) any part of the Property dedicated to and accepted by any public or governmental authority (the recording of this Declaration shall in no way be deemed a dedication of, or offer to dedicate, any part of the Property to any such authority). Section 5.olu_ntary Conveyance;Estoppels. Except as provided in Section 5.8, the ,,, ,,.,,..,. lien for assessments of the Association created in this Article V shall not be affected by any conveyance of a Lot, and shall remain a continuing charge on that Lot and a continuing lien which may be foreclosed as provided in Section 5.7. Any grantee in a voluntary conveyance of any Lot shall be entitled to a statement from the Board pursuant to N.C.G.S. § 47F-3-118(b), setting forth the amount of the unpaid assessments due the Association with respect to the Lot and such grantee shall not be liable for, nor shall the Lot conveyed be subject to a lien for, any unpaid assessments made by the Association against the grantor in excess of the amount set forth in that statement. Section 5.10 Capital Contribution „Payable by Original Transferee. In addition to assessments and other charges payable as provided in this Declaration, the buyer/transferee to whom the Declarant transfers any Lot shall pay a capital contribution to the Association at the time of closing in an amount which shall be set by the Declarant, in its sole discretion, and may be changed by the Declarant from time to time. ARTICLE VI UTILITIES Section 6.1 Utilities. All utilities and utility connections may or may not be located underground, including electrical, telephone and cable television lines, Section _6.2_Water System. The Property and each Lot is served by a public water system owned and operated by a public utility selected by Declarant ("Utility"). The water system and all mains, pipes and equipment and other personal property which are part thereof are or shall become the property and responsibility of the Utility. Easements may be granted by the Declarant or the Association to the Utility as may be necessary for the continued operation and maintenance of the water system. The public water system shall be the sole source of water supplies to the Project, and no well may be dug or constructed on any Lot for any purpose. 17 Section 6.3 Sewage „Disposal , System. Each Lot shall be connected to the public sewage disposal system operated by a public utility selected by Declarant ("Utility"). Easements may be granted by the Declarant or the Association to the Utility as may necessary for the continued operation and maintenance of the sewage disposal system. Section 6.4 Leased _Li hg^ tiny. Declarant may install or contract with any street lighting provider to install lighting within the Project and may enter into a lease agreement with that provider or any other person or entity for the ongoing operation and maintenance of some or all of that lighting. Leases executed by and between the Declarant and any person or entity to provide and/or operate street lighting may be assigned by the Declarant to the Association at any time, at which point the Association shall be responsible for all rights, duties and obligations therein provided. ARTICLE VII INSURANCE AND RECONSTRUCTION Section. 7.1 Association Insurance. The Association shall procure and maintain, or cause to be maintained, insurance in accordance with the following provisions: a Property and Casually Insurance. The Association shall obtain and maintain at all times a policy or policies of property insurance covering all Common Areas and all improvements located thereon, if. any, excluding the Roadways, in an amount not less than one hundred percent (100%) of the replacement cost of such improvements at the time such insurance is purchased and at the time of each renewal thereof, exclusive of the costs of land, excavation, paving, foundations and other normally excluded items. The Association shall have no obligation to provide Property and Casualty Insurance on the Roadways. Said insurance may provide for coinsurance by the Association of not greater than twenty (20%) percent and/or may include a commercially reasonable deductible not in excess of $10,000.00; provided, that minimum coverage required by N.C.G.S. §47F-3-113 must be maintained at all times. The Board shall, at least annually, review the insurance coverage required herein and determine the current replacement cost of such improvements and fixtures and personal property and supplies. Such coverage shall provide protection against loss or damage by fire or other hazards covered by a standard extended coverage endorsement, windstorm and water damage, vandalism and malicious damage and all perils covered by a standard "all risk" endorsement and (if reasonably available) shall contain the following provisions: (1) standard "Agreed Amount" and "Inflation Guard" endorsements; (2) construction code endorsements if the Common Area becomes subject to construction code provisions which would require changes to undamaged portions of any building thereby imposing significant costs in the event of partial destruction of such building by an insured peril; (3) a waiver of subrogation by the insurer as to any claims against the Association, any officer, director, agent or employee of the Association, the Owners and their employees, agents tenants and invitees; Is (4) a provision that the coverage will not be prejudiced by act or neglect of one or more Owners when said act or neglect is not within the control of the Association or by any failure of the Association to comply with any warranty or condition regarding any portion of the Property over which the Association has no control; and (5) coverage that cannot be canceled, invalidated or suspended on account of the conduct of any officer or employee of the Board without prior demand in writing that the Board cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured by the Association or any Owner. (b) Liability Insurance. The Association shall obtain and maintain a policy of commercial general liability insurance in such limits as the Association may, from time to time, determine, covering each member of the Board, the property manager, if any, and each Owner with respect to liability arising out of the operation, use, ownership, maintenance, or repair of the Common Area. The liability insurance policy shall include endorsements covering cross liability claims of one insured against another, including the liability of the Owners as a group to a single Owner, and shall provide that it may not be canceled or substantially modified without at least thirty (30) days' prior written notice to the Association and to all additional insureds. The Board shall review such limits annually. (c) Fidelity Insurance. The Association shall procure and maintain, or cause to be maintained, a policy or policies of insurance coverage to protect against dishonest acts on the part of officers, directors, volunteers and employees of the Association and any other persons who handle or are responsible for the handling of funds of the Association. The Association's manager shall also acquire and maintain fidelity insurance as required herein and under Section; 4.6. Any such fidelity insurance policy must name the Association as the named insured and shall be written in an amount as may be determined by the Association, but in no event less than one-half the annual budgeted amount of annual assessments. d Other Insurance. The Board, or its duly authorized. agent, shall have the authority to and shall obtain and maintain in effect such other insurance coverages as the Board shall determine from time to time to be desirable, including, without limitation, directors and officer's liability insurance. (e) Insurance Unavailable. In the event the insurance described in Subsections (a) tluough (c) is not reasonably available, the Association promptly shall cause notice of that fact to be hand -delivered or sent by United States first class mail to all Owners. For purposes of this subsection, insurance will be deemed "not reasonably available" if the cost of that insurance is prohibitive in light of the Association's budget and available resources. In the event the Association determines any such insurance to be "not reasonably available," it shall take reasonable steps to obtain insurance for the benefit of the Association and the Owners which is as closely equivalent to the insurance coverage required in Subsections (a) through (c) that is reasonably available. UN Section 7.2 Premiums, Premiums upon insurance polices purchased by the Association, and any amounts paid as a result of a deductible, shall be paid by the Association as a common expense of the Association, Lop vided, however, that deductibles and/or expenses paid or incurred by the Association as a result of the negligent or intentional act of any Owner, his agents, guests, invitees or family members, shall be charged to and paid by the Owner as a Special Individual Assessment pursuant to Section 5.5. All such premiums shall be paid by the Association at least thirty (30) days prior to the expiration date of such policies. Section 7.3 General Standards. All insurance policies maintained by the Association under this Article VII shall be written with a company or companies licensed to do business in the State of North Carolina. All insurance policies shall be written for the benefit of the Association and shall be issued in the name of and provide that all proceeds thereof shall be payable to the Association, Notwithstanding any of the foregoing provisions and requirements relating to insurance, there may be named as an insured, on behalf of the Association, the Association's authorized representative, who shall have exclusive authority to negotiate losses under any policy providing such insurance. Section 7.4 Insurance Proceeds. Subject to any requirements or limitations imposed by N.C.G.S. § 47F-3-113, the Association shall use the net proceeds of property and casualty insurance to repair and/or replace any damage or destruction of property, real or personal, covered by such insurance. Any balance from the proceeds of property and casualty insurance paid to the Association remaining after satisfactory completion of repair and replacement shall be retained by the Association. If the insurance proceeds received by the Association are insufficient to reimburse, to repair and/or replace any damage or destruction to person or property, the Board may levy a Special Assessment or Special Individual Assessment, as appropriate under the circumstances, to cover the deficiency. Section 7.5 Owner's Property. By virtue of taking title to a Lot within the Project, each Owner acknowledges that neither the Association nor Declarant has any obligation to provide any insurance for any portion of such Lot or any House or other property located thereon. Neither the Association nor Declarant shall be liable in any manner for the safekeeping or condition of any personal property belonging to or used by any Owner or his family, tenants, guests or invitees, located on or used at the Common Area or for any damage or loss to any personal property of any Owner, his family, tenants, guests or invitees located on or used at the Common Area. Each Owner shall be solely responsible for the Lot, the House and all improvements and personal property and for any damage thereto or loss thereof, and shall be responsible for the purchase of, at such Owner's sole cost and expense, any liability or other insurance for damage to or loss of such property. ARTICLE VIII MAINTENANCE OF PROPERTY Section 8.1 Maintenance by Association. The Association shall be responsible for the operation, maintenance and repair of the Common Area, as provided in Section 3.3. In addition, the Association shall be responsible for the maintenance and repair of all Roadways until they are accepted for maintenance by The North Carolina Department of Transportation, the Town of Marvin or other governmental entity. Notwithstanding any references or notations appearing on the Plat, the Rt Association shall only be responsible for the maintenance of easements located on the Common Area. Notwithstanding the foregoing, the Association shall not be responsible for any maintenance or repairs caused by the negligence or intentional misconduct of any Owner, his agents, invitees or family members, which shall be the responsibility of and may be charged to that Owner as a Special Individual Assessment. Notwithstanding any provisions in this Declaration to the contrary, the Association shall also maintain and keep in good repair all lawns and landscaping on the Lots; provided, however, should any Owner be given approval to install a fence or other structure enclosing any portion of the Lot, the lawn and landscaping within the enclosed portion shall be maintained by the Owner in the same way and to the same extent other lawn and landscaping areas are maintained by the Association. In order to facilitate the maintenance of lawns and landscaping by the Association, the Association may adopt rules and regulations requiring Lots to be cleared of personal property and other obstructions on specified days and for specified periods. Section 8.2 Maintenance b Owners• Establishment of Community -Wide Standard. Except to the extent the Association is responsible for lawns and landscaping under Section 8.1 above, the Owner of any Lot shall maintain at such Owner's sole cost and expense, (i) the Lot(s) owned by such Owner, including House and improvements located thereon, (ii) the area between any Lot line and the paved or improved portion of any Roadway or public right of way adjacent to the Lot(s) (excluding the sidewalks) and (iii) all easements located on the Lots in compliance with the covenants, conditions and restrictions contained in this Declaration and in a compliance with the Community — Wide Standard ("CWS"). The CWS shall be established and may be modified and amended by the Board as provided below. At a minimum, the CWS shall require (whether expressly stated in a separate document or not) all Owners to; (a) Promptly remove all litter, trash, refuse and waste; (b) Promptly remove trash, uncut grass and weeds from all lawns, shrub beds, improved natural areas and landscaping; (c) Fully and continuously comply with all governmental health and police requirements; (d) Prune trees and shrubs at least once every six (6) months in order to keep vegetation neatly and evenly trimmed; (e) Mow lawn so that grass does not exceed eight (8) inches in height; (f) Regularly water to beep lawn and vegetation alive; (g) Keep exterior lighting and mechanical facilities in working order at all times; (h) Promptly remove and/or replace any dead plant material; 21 (i) Promptly repair cracked, broken or damaged areas in parking areas and driveways and to promptly remove vegetation from parking areas and driveways; 0) Promptly repaint, refinish and repair any part of the exterior of the House and improvements on the Lot that fades, chips, cracks, peels, discolors or otherwise deteriorates; and (k) Promptly repair or replace any damage to the House and Improvements on the Lot. If any Improvements are damaged or destroyed by fire or other casualty, then the Owner of the Lot on which such Improvements are situated must repair and restore such damage or, in the alternative, remove such damaged Improvements and restore the Lot to its condition existing prior to the construction of such House or Improvements within six (6) months following the date such damage or destruction occurs, In addition to (a) — (k) above, the Board may adopt and establish other standards and requirements in a separate CWS document. The CWS may be modified, expanded or amended by the Board from time to time without any approval from the Members. The CWS need not be recorded but shall be made available to any Member on request. Notwithstanding anything contained herein to the contrary, the CWS shall apply to each Lot only upon and after the conveyance of such Lot by Declarant to an Owner who acquires the House and Lot for residential use. If an Owner of any Lot has failed in any of the duties or responsibilities of such Owner as set forth herein, then the Board and Declarant, either jointly or severally, may give such Owner written notice of such failure and such Owner must perform the care and maintenance required or otherwise perform the duties and responsibilities of such Owner as described in herein within ten (10) days after receiving such notice. Notice shall be deemed to have been received upon deposit in an official depository of the United States mail, addressed to the party to whom it is intended to be delivered, and sent by certified mail, return receipt requested. Provided, however, this cure period may be extended for a time not to exceed sixty (60) days so long as Owner shall have commenced action to cure such nonconformity and shall diligently prosecute the same. All costs and expenses incurred by the Declarant or the Association may be charged to the Owner and against the Lot as a Special Individual Assessment pursuant to Section 5.5. In addition, Owners who fail to timely cure a nonconformity will be subject to administrative fines after notice and an opportunity to be heard as provided in the Act. Section 8.3 Incorporation of Maintenance Plan and Maintenance Agreement. All the terms, provisions, conditions and requirements contained in the Maintenance Plan and Maintenance Agreement recorded in Book 6544 at Page 643 of the Union County Public Registry ("Plan") are incorporated by reference herein. To the extent any provision in this Declaration conflicts with or is inconsistent with any term or provision contained in the Plan, the terms and provisions of the Plan shall control. Section 8.4 Incorporation of Landscape Maintenance Agreement. All the terms, provisions, conditions and requirements contained in the Landscape Maintenance Agreement recorded in Book 6544 at Page 658 of the Union County Public Registry ("Agreement") are incorporated by reference herein. To the extent any provision in this Declaration conflicts with or is inconsistent with 22 any term or provision contained in the Agreement, the terms and provisions of the Agreement shall control. ARTICLE IX ARCHITECTURAL AND LANDSCAPING CONTROL Section 9.1 General. Notwithstanding anything contained in this Declaration to the contrary, no Improvements (see Section 9.4), including, without limitation, site preparation on any Lot, change in grade, drainage, or slope of any Lot, or erection, alteration or addition of or to any building situated upon the Property, erection of, or changes or additions of or to fences, hedges, walls and other structures, any landscaping, or any cutting of trees on any Lot, shall be commenced, erected, installed or maintained on any portion of the Property or changed, modified, altered, enlarged or expanded until: (a) the Architectural Control Committee, appointed as hereinafter provided, has received and reviewed the plans and specifications therefor and the location, materials, size and design of such Improvements and has given its written approval for commencement of construction, all in accordance with the terms, requirements and procedures set forth in the Architectural and Landscape Guidelines. In addition to any standards established pursuant to this Declaration, Declarant may establish or apply other or different architectural and landscaping control standards, guidelines and restrictions in regard to various Phases or sections of the Property. Except as otherwise expressly provided herein, the provisions of this Article IX shall not apply to the construction of any Improvements commenced, erected or maintained by Declarant on any part of the Property, Approval of an Improvement may be conditioned upon commencement and/or completion within specified periods or by specified dates. If no specific period is specified, every Improvement must be commenced within six (6) months of the date approved or a new written approval must be requested and obtained as provided herein. Section 9.2 Composition of Architectural Control Committee. a. Before "Release Date". So long as Declarant owns any Lot or other portion of the Property, the members of the Architectural Control Committee shall'be Declarant and/or persons appointed from time to time by Declarant. Control of architectural and landscaping issues and decisions shall remain vested in Declarant until such time as Declarant no longer owns any Lot or other portion of the Property or at such earlier date as Declarant releases its right to appoint the members of the Architectural Control Committee by recordation of a written instrument in the Lancaster County Public Registry (hereinafter "Release Date"). The Board shall have the power to affirm, modify or reverse the decision of the Architectural Control Committee as it, in its discretion, deems reasonable, appropriate and warranted, and the decision of the Board shall be final, b. After "Release Date", The members of the Architectural Control Committee may be appointed by the Board after the Release Date. After the Release Date and pending such appointment of members by the Board, the Board shall act as the Architectural Control Committee. After the Release Date, the Architectural Control Committee will be composed of at least three (3) and not more 23 than seven (7) individuals, the exact number of members of the Architectural Control Committee to be designated from time to time by the Board. Should any Owner disagree with a decision rendered by the Architectural Control Committee regarding the Owner's Sot, the Owner may deliver a written Notice of Appeal to the Board challenging the decision rendered. Any Notice of Appeal shall be delivered to the Board within fifteen (15) days after the Architectural Control Committee renders its decision. The Board shall have the power and authority to determine whether or not a hearing will be held, whether further information will be received, or whether the matter will be decided based on the record from the Architectural Control Committee. The Board shall have the power to affirm, modify or reverse the decision of the Architectural Control Committee as it, in its discretion, deems reasonable, appropriate and warranted, and the decision of the Board shall be final. c Removal and Replacement of Committee Members. The members of the Architectural Control Committee need not be Owners. In the event of the death or resignation of any member of the Architectural Control Committee, the party or body then having the authority to appoint members to the Architectural Control Committee shall have full authority to designate and appoint a successor. Members of the Architectural Control Committee may be removed and replaced at any time, with or without cause, and without prior notice, by the party or body then having the authority to appoint such members. (d) Professional Services. Professional fees for services rendered may be taxed to the Owner submitting a request and if unpaid shall become a Special Individual Assessment enforceable as provided in Section 5.5. Notwithstanding anything contained herein to the contrary, the Architectural Control Committee shall have the right, power and authority to employ and/or use the services of any architects, engineers, attorneys or other professionals as it deems necessary or advisable, in its sole discretion, to carry out the duties and obligations of the Architectural Control Committee as described in this Article IX; provided that any expenditures for professional services shall be approved in advance by the Board. Section 9.3 Architectural and Landscape Guidelines. a. The Board may, from time to time, publish and promulgate architectural and design guidelines (the "Architectural Guidelines"). The Architectural Guidelines shall be explanatory and illustrative of the general intent of the development of the Property and are intended to be a guide to assist owners in preparing and submitting applications, plans, specifications, and supporting information for proposed Improvements and as a reference to assist the Architectural Control Committee in reviewing applications, plans, specifications, and supporting information for proposed Improvements, excluding only landscape Improvements, which are addressed in Section 9.3(b). The Architectural Guidelines 'may set out, among other things, the procedures for submission, review and approval of plans and specifications for the construction of non -landscape Improvements to the Architectural Control Committee. The Architectural Control Committee is authorized to request the submission of samples of proposed construction materials. To the extent standards, requirements, methods, and procedures are established in the Architectural Guidelines, they shall be binding upon and complied with by all Owners and their contractors and sub -contractors and shall be assumed to be incorporated into any written approval issued pursuant to the provisions of 24 Section 9.1 unless expressly varied in writing by the Architectural Control Committee. The Architectural Guidelines may be revised and amended at any time by the Board, in its sole discretion. b. The Board may, from time to time, publish and promulgate landscape guidelines (the "Landscape Guidelines"). The Landscape Guidelines shall be explanatory and illustrative of the general intent of the landscaping of the Property and are intended as a guide to assist owners in preparing and submitting applications, plans, specifications, and supporting information for proposed Improvements and as a reference to assist the Architectural Control Committee in reviewing applications, plans, specifications, and supporting information for proposed Improvements. The Landscape Guidelines may set out, among other things, the procedures for submission, review and approval of landscape plans and specifications to the Architectural Control Committee. In addition, the Landscape Guidelines may establish approved standards, methods and procedures for landscaping, landscape management and landscape maintenance in the Property, including removal of trees. To the extent standards, requirements, methods, and procedures are established in the Landscape Guidelines, they shall be binding upon and complied with by all Owners and their contractors and sub -contractors and shall be assumed to be incorporated into any written approval issued pursuant to the provisions of Section 9.1 unless expressly varied in writing by the Architectural Control Committee. The Landscape Guidelines may be revised and amended at any time by the Board, in its sole discretion. C. The Board is also hereby authorized to publish and promulgate from time to time, and to revise and amend at any time, in its sole discretion, construction and/or installation rules to be followed by all Owners, contractors and installers performing work or constructing or installing Improvements (including landscape Improvements) on the Property. d. The Architectural Guidelines, the Landscape Guidelines and the construction and installation rules shall herein collectively be referred to as the "Architectural and Landscape Guidelines" or the "Guidelines." The Architectural Control Committee may issue and amend the Architectural and Landscape Guidelines from time to time and may publish and promulgate different Architectural and Landscape Guidelines for different Phases, sections or portions of the Property. Section 9.4 Definition of "Improvements". The term "Improvement" or "Improvements„ shall mean and include the Douse and any and all man-made changes or additions to a Lot or attached or affixed to a Lot, including, but not limited to, all structures and buildings (including any exterior devices attached to or separate from buildings, such as heating and air conditioning equipment, solar heating devices, etc.); storage sheds or areas; roofed structures; parking or paved areas; fences; "invisible" pet fencing; pet "runs," lines and similar tethers or enclosures; walls; irrigation equipment, apparatus and systems; landscaping (including cutting of trees); hedges; mass plantings, poles; driveways; ponds; lakes, changes in grade or slope; site preparation;'swimming pools; loot tubs; j acuzzis; tennis courts; tree houses; basketball goals; skateboard ramps; and other sports or play apparatus; signs, flags, banners, and the poles and structures from which they are hung or flown; exterior lights and illumination; and changes in any exterior color, design or shape. Antennae and satellite dishes are subject to regulation and restriction to the fullest extent permitted under the 25 Telecommunications Act of 1996, as amended. The definition of Improvements includes both original Improvements and all later changes or additions to Improvements. The definition of Improvements, however, does not include the replacement or repair of Improvements previously approved by the Architectural Control Committee, provided such replacement or repair does not change exterior colors, materials, designs or appearances from those which were previously'approved by the Architectural Control Committee. Section 9.5 Enforcement/Construction Compliance Deposit. (a) The architectural control provisions of this Declaration and/or any Supplemental Declarations are to facilitate control of the architectural design, construction, installation and placement of all Improvements and landscaping; to establish quality standards for construction, installation and related activity in the Project; and to help preserve values of properties in the Project. All Owners, by purchasing property subject to this Declaration, acknowledge that a violation of any such provisions could result in irreparable harm and damage to other Owners of property in the Project and to Declarant, and to the values of their respective properties in the Project, a monetary measure of which harm and damage would be difficult to establish. Accordingly, the Association shall have the specific right (but not the obligation) to enforce and/or to prevent any violation of the provisions contained in this Article IX and to enforce rulings and decisions of the Architectural Control Committee by a proceeding at law and/or in equity against the person or persons violating or attempting to violate any such provision, ruling or decision and/or through administrative action as permitted by the Act, including the possible imposition of fines or suspension of rights or privileges. Declarant hereby specifically reserves and grants unto the Architectural Control Committee, the Board and any agent or member thereof, the right of entry and inspection upon any portion of the Property for the purpose of determination by the Architectural Control Committee or the Board whether there exists any Improvement which is not approved or which violates the terms of any approval by the Architectural Control Committee, the terms of the Architectural and Landscape Guidelines or the Project Documents. (b) The Board or the Architectural Control Committee may require Owners to deliver a Construction Compliance Deposit to the Association in an amount up to but not exceeding Two Thousand Five Hundred ($2,500.00) Dollars to secure and insure compliance by Owner with the Project Documents, the conditions and stipulations set forth in the approval given, the Architectural and Landscape Guidelines and all applicable laws, ordinances, regulations and other governmental requirements. In the event of a violation or breach, the Association may apply all or part of the Construction Compliance Deposit to compensate the Association for any loss or damage sustained, to reimburse the Association for any expense incurred (including, without Iimitation, expenses for Roadway repair under Section 11.14), to pay any fine(s) duly levied or to pay assessments levied under Section 5.5. The Owner posting the deposit shall be notified of the Association's application of any portion of the deposit as permitted herein. Any unapplied portion of the deposit remaining at the time construction is fully complete and all requirements have been fully satisfied shall be returned to the person or entity from whom it was received. 26 (c) As to nonconforming or unapproved Improvements, the Association may require any Owner to restore such Owner's Lot and/or Improvements to the condition existing prior to the construction or installation thereof (including, without limitation, the demolition and removal of any unapproved Improvements) if such Improvements were commenced or constructed in violation of this Article. In addition, the Association may, but has no obligation to, cause such restoration, demolition and removal to be performed and to levy the amount of the cost thereof as a Special Individual Assessment against the Lot or portion of the Property upon which. such Improvements were commenced or constructed. In the event that it becomes necessary to file a civil action or to resort to any private dispute resolution process, to determine the propriety of any constructed Improvement, to remove any unapproved Improvement or otherwise to remedy a violation of this Article, the Association shall be entitled to recover court costs, attorneys' fees and expenses incurred by the Association and/or the Architectural Control Committee in connection therewith, which costs, fees and expenses may be levied as a Special Individual Assessment against the Lot or other portion of the Property upon which such Improvement was commenced or constructed. Section 9.6 Failure of the Architectural Control Committee to Act. WRITTEN APPROVAL AS SPECIFIED IN SECTION 9.1 SHALL BE REQUIRED IN EVERY CASE. No failure or delay by the Architectural Control Committee to approve or disapprove any plans and specifications and other submittals or to reject them as being inadequate or unacceptable shall be deemed or construed to be an acceptance or approval thereof No verbal or oral statement or representation by any person shall bind the Board, the Association, or the Architectural Control Committee. further, the Architectural Control Committee has no right or power to waive or grant any variances relating to any mandatory use restrictions or requirements specified in this Declaration or any Supplemental Declaration. If plans and specifications or other submittals are not sufficiently complete or are otherwise inadequate, the Architectural Control Committee may take no action with respect to them or may reject them as being inadequate or may approve or disapprove them in part, conditionally or unconditionally, and reject or approve the balance. Section 9.7 Variances. Subject to the limitations set forth in the preceding section and upon submission of a written request, the Architectural Control Committee may, from time to time and in its sole and unfettered discretion, permit Owners to construct, erect or install Improvements which are at variance with architectural or landscaping requirements or provisions that might be otherwise applicable. In any case, however, such variances shall be in basic conformity with and shall blend effectively with the general architectural style and design of the community and shall not materially change the scheme of standards, restrictions and requirements herein set forth. A written request for a variance shall be deemed to be disapproved until the Architectural Control Committee has expressly approved the request in writing. No member of the Architectural Control Committee shall be liable to any Owner for any claims, causes of action, or damages arising out of the grant or denial of any variance to any Owner. Each request for a variance submitted hereunder shall be reviewed separately and apart from all other such requests. The action or decision by the Architectural Control Committee on any variance request shall not estop or prevent the Architectural Control Committee from taking different action or rendering a different decision on any variance request subsequently received. The grant of a variance to any Owner shall not constitute a waiver of the Architectural Control Committee's right to strictly enforce the covenants, restrictions and standards 27 against any other Owner. Nothing herein shall authorize the Committee to grant a variance with respect to the Use Restrictions set forth in Article XI or any Supplemental Declaration. Section 9.8 Limitation of Liability. No member of the Architectural Control Committee shall be liable for claims, causes of action or damages (except where occasioned by willful misconduct of such Member) arising out of services performed pursuant to this Article IX. Neither the Architectural Control Committee, nor the members thereof, nor the Association, nor Declarant, nor any officers, directors, members, employees, agents or affiliates of any of them, shall be liable for damages or otherwise to anyone submitting plans and specifications and other submittals for approval or to any Owner by reason of mistake of judgment, negligence or nonfeasance arising out of or in connection with the approval or disapproval of, or the failure to approve or disapprove of, any plans and specifications. The approval of plans and specifications by the Architectural Control Committee shall not be deemed or construed as a representation or warranty of the Architectural Control Committee, Declarant, or any officer, director, member, employee, agent or affiliate of any of them, (i) that Improvements constructed in accordance with such plans and specifications will comply with applicable zoning ordinances, building codes, or other governmental or quasi -governmental laws, ordinances, rules and regulations or (ii) as to the structural soundness, quality, durability, suitability, fitness or proper functioning of Improvements constructed in accordance with such plans and specifications; and any responsibility or liability therefor is hereby disclaimed. Every person who submits plans and specifications, and every Owner, agrees that he will not bring any action or suit against Declarant, the Association, the Architectural Control Committee, the Board, or the officers, directors, members, employees, agents or affiliates of any of them, to recover any such damages and hereby releases, waives, and quitclaims all claims, demands and causes of action arising out of or in connection with any judgment, negligence or nonfeasance and hereby waives the provisions of any law which provides that a general release does not extend to claims, demands and causes of action not known at the time the release is given. Declarant shall be the sole party responsible for the performance of Declarant's obligations under this Declaration, and no other person, firm or entity, including, without limitation, any entity affiliated with Declarant, shall have any obligation or liability for Declarant's obligations under this Declaration. ARTICLE X EASEMENTS Section 10.1. Use of Common Areas. Subject to any limitation or restriction set forth in this Declaration (including rules and regulations made or amended under Section 1.1..27), Declarant declares that the Common Areas are subject to a perpetual nonexclusive easement in favor of Declarant, the Association and their designees, the Owners and all their family members, guests, invitees and tenants, and appropriate governmental and quasi -governmental agencies to use the Common Area for all proper and normal purposes including, but not limited to, ingress, egress and access for the furnishing of services and utilities and for such use of the facilities as the same are reasonably intended in accordance with the terms of this Declaration and any Supplemental Declaration. If ingress or egress to any Lot or other portion of the Property is through any Common Area, any conveyance or encumbrance of such area is subject to this. easement, 28 Section 10.2 Right -of Way Over Roadways. Declarant hereby reserves, for the benefit of itself, its agents, employees, lessees, invitees, designees, successors and assigns, and grants to the Association, its agents, employees, tenants, invitees, designees, successors and assigns, and to each Owner of a Lot, their family members, tenants, guests, invitees, successors and assigns, and to each Occupant of a Lot, and to all governmental and quasi -governmental agencies and service entities having jurisdiction over the Property while engaged in their respective functions, a perpetual non- exclusive easement, license, right and privilege of passage and use, both pedestrian and vehicular, over and across the Roadways for the purpose of providing access, ingress and egress to and from, through and between the Property. i Section Right of the Association and „Declarant to Enter Upon the Common Areas. Declarant hereby reserves for the benefit of itself, its successors in interest and assigns, and grants to the Association and all agents, employees or other designees of Declarant or the Association an easement for ingress, egress and access to enter upon or over the Common Areas for the purposes of inspecting any construction, proposed construction, or improvements or fulfilling the rights, duties and responsibilities of ownership, administration, maintenance and repair of Declarant or the Association, as appropriate. Such easement includes an easement in favor of the Association and Declarant to enter upon the Common Areas now or hereafter created to use, repair, maintain and replace the same for the purposes for which they are initially designated or for such purposes as they are hereafter redesignated or as Declarant otherwise determines them to be reasonably suited. Notwithstanding the foregoing, nothing contained herein shall be interpreted as imposing any obligation upon the Association or Declarant to maintain, repair, or construct Improvements which an Owner is required to maintain, construct or repair. Section 10.4 Easement for Encroachments. Declarant hereby reserves, for the benefit of itself, its successors in interest and assigns, and grants to the Association, the Owners, their successors and assigns, and to the occupants of Lots, easements for encroachments, to the extent necessary, in the event any portion of the Improvements located on any portion of the Property now or hereafter encroaches upon any of the remaining portions of the Property as a result of minor inaccuracies in survey, construction or reconstruction, or due to settlement or movement. Any easement(s) for encroachment shall include an easement(s) for the maintenance and use of the encroaching Improvements in favor of Declarant, the Association, the Owners and all their designees. Section 10.5 Easements Appearing on the Plat. Declarant hereby reserves, for the benefit of itself, its successors in interest and assigns, and grants to the Association, its successors and assigns, the following nonexclusive perpetual easements over certain areas of the Property as shown on the Plat: (a) "Sidewalk and Utility Easements" (SUE) for the installation, maintenance, repair and removal of utility, sidewalks and/or street lighting, over, across and under those portions of the Property. 29 (b) "Storm Drainage Easements" (SDE) to provide for the conveyance of water through the storm water control and management system for the Property. (c) "Sanitary Sewer Easements" (SSE) for installation, maintenance of pipes, pumps, equipment or facilities for the conveyance and disposal of sewage and solid waste. (d) "Waterline Easements" for the installation and maintenance of waterlines and related equipment. (e) "Utility and Storm Water Easements" (U/SWE) for the installation of utilities and storm water management and control improvements for the Property. (f) "Access Easement over Lot 4 1 " for the purpose of maintaining and repairing the mailbox cluster located at that location and to allow for the delivery of mail to that location. Section 10.6 Additional Easements for Utilities and Drainage. Declarant, prior to the conveyance of the Common Area to the Association, and the Association, at any time thereafter, may grant easements for utility purposes for the benefit of the Property, including the right to install, lay, maintain, repair and replace water lines; pipes; ducts; sewer lines; and water lines; gas mains; telephone and television or cable television wires, cables and equipment; electrical conduits; and wires over, under, along and on any portion of the Common Area or within the Roadways. Utilities purposes shall include lighting, irrigation, drainage, storm water management and solid waste disposal services and purposes. Further, the Association may grant such permits, licenses and easements over the Common Area for utilities, roads and other purposes reasonably necessary or useful in the discretion of the Board for the purpose of maintenance and operation of the Project, Notwithstanding the foregoing, no sewer lines, electrical lines, water lines or other utilities may be installed or relocated on the Property except as initially approved by Declarant or thereafter approved by Declarant or the Board. Additionally, Declarant hereby reserves, for the benefit of itself, its successors and assigns, and grants to the Association, its successors and assigns, a non-exclusive easement and right-of-way over, under and along (a) a 10-foot strip of land adjacent to the front, side and rear boundary lines of all Lots within the Property and (b) all easements appearing on the Plat and described in Section 10.5 above, for the installation and maintenance of lines, conduits, pipes and other equipment necessary for furnishing electric power, gas, telephone service, cable service, water, irrigation, septic system, sanitary sewer and drainage facilities, storm drainage and/or other utilities. Section 10.7 Declaran_t's Right to Assign Easements; Maintenance of Easement Areas. Declarant shall have the right to assign and convey, in whole or in part, the easements reserved by it hereunder. The areas burdened by the easements and rights -of -way reserved by Declarant on each Lot or other portion of the Property pursuant hereto, including any Improvements in such areas, which are not expressly to be maintained by the Association or a public authority or utility, shall be maintained continuously by each Owner of such Lot or other portion of the Property. 30 Section 10.8 Easement for Construction Purposes. Declarant shall have full rights of ingress and egress to and through, over and about the Property during such period of time as Declarant is engaged in any construction or improvement work on or within the Property. Declarant shall further have an easement for the purpose of the storage of materials, vehicles, tools, and equipment which are being utilized in such construction. No Owner, or his guests or invitees, shall in any way interfere or hamper Declarant, its employees, successors or assigns in connection with such construction. Declarant also reserves an easement over the Property, including all Lots, for purposes of satisfying and/or complying with any directions or requests of the North Carolina Department of Transportation or other governmental entity with respect to any Roadway. Section 10.9 Right of Access. Every Owner grants a right of access to his Lot to the Independent Manager and/or any other person authorized by the Board or the Independent Manager for the purpose of making inspection of or for the purpose of correcting any condition originating in his Lot and threatening another Lot or the Common Area, or for the purpose of performing installations, alterations or repairs to the mechanical or electrical equipment on Common Area adjoining his Lot; provided. however, such requests for entry (except in the case of emergencies where no request shall be required) are made in advance and any such entry is at a time reasonably convenient to the Owner. Section 10.10 Reset-ved Easements for Declarant. Each deed from Declarant to the Association conveying all or any part of the Common Area shall be subject to non-exclusive reserved easements in favor of Declarant for the purpose of pedestrian and vehicular access to and from all Roadways, for the use of the utility facilities (such as sewer and water mains and metering facilities) installed by Declarant in connection with its initial development of the Property, for the installation, operation, repair and replacement of additional utility facilities, and for the creation, installation, maintenance, repair or replacement of signage (whether related to the Project, any other project of Declarant or for any other purpose). Any such easements may be transferred, conveyed or assigned to other persons or entities by the recordation of a written instrument in the Union County Public Registry. Section 10.11 Greenway Easement. The Greenway Easement shown on the Plat is dedicated to the Village of Marvin. The Association is authorized to transfer and convey the area within the Greenway Easement to the Village of Marvin without the further consent or approval of the Members. Section 10.12 Retaininiz Wall Maintenance Easement. The Declarant reserves and grants to the Association an easement 30' in width which extends 15' on either side of each of all retaining walls located on the Property. These Retaining Wall easements are for the purpose of allowing the Declarant and/or the Association to maintain, repair, or replace the retaining walls as necessary. No owner, its guests or invitees, shall in anyway interfere or hamper the Declarant and/or the Association or their employees, contractors, successors or assigns in performing repairs and maintenance on or to the retaining walls. Declarant also reserves and grants to the Association an easement over the Property, including all Lots, for the purpose of providing access to the Retaining Wall Easements reserved and granted herein. 31 ARTICLE XI USE RESTRICTIONS Sectiort11.1 _Residential Use Only. Each Owner shall use his Lot for residential purposes only, and shall not permit his Lot to be used in any unlawful manner: The maximum number of residents for any Lot shall be calculated by multiplying the number of bedrooms contained within the Lot by two. For purposes of this Section, a person shall be presumed to be a "resident" in the Lot if they occupy the Lot overnight for ten (k 0) consecutive days or for fourteen (14) days during any sixty (60) day period. Residency may otherwise be established by the totality of the circumstances. To the extent permitted by law, any Owner may use his Lot as a home office, provided that such home office use (a) is ancillary to the residential use, (b) does not generate any additional pedestrian or vehicular traffic to or from his Lot or the Common Area, and (c) does not cause any disturbance of other Owners, residents or Occupants of the Property. In addition, Declarant shall have the right to use any portion of the Property as a sales office, construction office, storage area, model Lot; or similar facility in connection with its development of the Property until the Turnover Date. Without limiting the foregoing, no Lot or any portion of the Property shall be used for or as a "Residential Institution" except to the extent such are expressly required to be allowed by law. For purposes of this paragraph, a "Residential Institution" shall mean and refer to a nursing home, child care center, boarding house, dependent living facility, adult care center, adult care home, family child care home, group home, residential day care, house of detention, reform school, asylum, or institution of a kindred character, or any structure to house, provide a residence for, or be occupied by three or more persons, unrelated by blood, marriage or adoption on a temporary or permanent basis. Section 11.2 Reserved. Section 11.3 Care and Maintenance. Each Owner shall (a) maintain the Lot, the House and all improvements thereon as required by Section 8.2; (b) permit no unsafe, unsanitary or hazardous conditions in or on his House and Lot; (c) comply with any and all obligations imposed upon Owners by applicable building and housing codes; and (d) not deliberately or negligently destroy, deface, damage or remove any part of any House or Lot or the Common Areas, or knowingly permit any person to do so. If an Owner fails to comply with the standards or requirements of the Association relative to maintenance after written notice to do so, the Association shall have the right to undertake the necessary maintenance or repairs at the expense of the defaulting Owner, as provided in Section 8.2. For purposes of this section, "Lot" shall include all easements granted to or reserved for the Declarant or the Association during any period that neither the Declarant nor the Association are using them or exercising their rights in or over them. Section 11.4 HVAC Equipment. No air conditioning or heating equipment or apparatus shall be installed on the ground in front of or attached to any front wall of any House on a Lot. Section 11.5 Exterior Lighting. Exterior lighting on Lots shall be subject to the applicable requirements and limitations in the Guidelines. Night lighting of recreational facilities on Lots is not 32 permitted except to the extent expressly allowed by the Architectural Control Committee. All exterior lighting that is approved shall be configured, positioned and directed (i) so that bulbs are not visible from any point outside the boundaries of the Lot where the lighting is installed and (ii) so that they do not cast light beyond the boundaries of the Lot where the lighting is installed. Section 11.6 Fences and 'Walls. No fence or wall (including densely planted hedges, rows or similar landscape barriers) shall be erected, placed, or maintained on any Lot except as approved by the Architectural Control Committee. No fence or wall shall be erected, placed or installed in any location or manner that impacts, impedes, or hinders the flow of surface water. Split rail fencing, chain link fencing, shadowbox fencing, picket fencing and privacy fencing are prohibited. All fences and walls shall be maintained in a structurally sound and attractive manner. No fence or wall shall be erected on any Lot until the Architectural Control Committee has given its prior written approval of the color, size, design, materials and location for such fence or wall. Section 11.7 Mail and -Newspaper Boxes; House Numbers. The Declarant, in its sole discretion, may require that mail will be distributed in the community using shared, cluster mailboxes. The design, type, appearance and location of the shared, cluster mailboxes shall be as specified and approved by the Declarant. The design, type, appearance and location of mailboxes and newspaper boxes on Lots adjacent to the Roadway (if approved and allowed by the Declarant) must be approved in writing by the Architectural Control Committee. House numbers may be displayed on the House only as approved by the Architectural Control Committee. Section 11.8 Temporary Structures, Structure Materials. No residence or building of a temporary nature, including a construction trailer, shall be erected or allowed to remain on any Lot, and no metal, fiberglass, plastic or canvas tent, barn, carport, garage, utility building, storage building or other metal, fiberglass, plastic or canvas structure shall be erected on any Lot or attached to any building or structure. Provided, however, nothing herein shall prohibit Declarant from erecting or moving temporary buildings onto Lots owned by Declarant to be used for storage, or for construction or sales offices. Section 11.9 Sijzht Line Limitations. To the extent that governmental requirements shall not impose a stricter standard, no fence, wall, hedge or shrub planting which obstructs sight lines at elevations between two (2) and six (6) feet above Roadways shall be placed or permitted to remain on any corner Lot within the triangular areas shown on the Plat as "Sight Triangles." The same sight line limitations shall apply on any Lot within the triangular area formed by (i) the lines that run from the point of intersection of (a) the edge of a Roadway's pavement and (b) the edge of the pavement of the driveway on such Lot for a distance of ten (10) feet along such Roadway pavement away from such driveway pavement, (ii) the line that runs from said point of intersection for a distance of ten (10) feet along such driveway pavement away from such Roadway pavement, and (iii) the straight line that connects the ending points of the lines described in the foregoing clauses (i) and (ii). No tree shall be permitted to remain within such triangular areas unless the foliage line is maintained at an appropriate height to prevent obstruction of sight lines. 33 Section 11.10 No Subdivision of Lots. No Lot shall be subdivided by sate, lease or otherwise without the prior written consent of Declarant or the Association if after the Turnover Date; provided, however, Declarant reserves the right to combine, subdivide or change the size, boundaries or dimensions of any Lot or Lots owned by Declarant for any reason at any time. Section 11.11 Restricted Activities in Common Area. No cutting of vegetation, dumping, digging, filling, destruction or other waste shall be committed on the Common Area. There shall be no obstruction of the Common Area nor shall anything be kept or stored in the Common Area, nor shall anything be altered, or constructed or planted in, or removed from the Common Area, without the prior written consent of the Declarant if before the Turnover Date or the Association if after the Turnover Date. Portions of the Common Area are subject to tree preservation, conservation and buffer requirements which prohibit or restrict activities within those areas and with which all Owners are obligated to comply. Each Owner shall be liable to the Association and/or Declarant for any damage to any Common Area caused by the negligence or willful misconduct of the Owner or his family, tenants, guests, agents, employees, or invitees. Provided, however, the provisions in this paragraph shall not apply to Declarant in connection with Declarant's development or construction activities on the Property or to the Association in connection with the Association's activities in discharging its duties and responsibilities. Section 11.12 Recreational and Other Equipment. No recreational equipment including, but not limited to, basketball backboards and hoops, trampolines, swing sets, tree houses, children's climbing or play apparatus and other equipment associated with either adult or juveivle leisure or recreation shall be attached to the exterior of any House or otherwise placed or kept on any Lot, except in the Rear Yard and as approved by the Architectural Control Committee. Children's play toys and other moveable equipment of any type (such as lawn mowers, garden tools, etc.) shall be kept in the Rear Yard except when in use. Notwithstanding any of the foregoing, all recreational equipment shall be screened so as not to be visible from any Roadway, and all screening used must be approved by the Architectural Control Committee. Section 11.13 Vehicles, Parking and Storage. (a) No vehicles, trucks, vans, cars, trailers, or equipment of any type may be parked on any Common Area parking area within the Property between 9:00 p.m. and 7:00 a.m, Parking on Roadways is ,prohibited at all times. No vehicle of any size which transports flammable or explosive cargo may be parked or kept within the Property at any time. No vehicle that is not in a condition to be normally operated or that does not have a current registration and inspection sticker may be stored or situated on any Lot for more than thirty (30) days unless stored in an enclosed garage. (b) Commercial -use vehicles and trucks not involved with construction activity on the Property and having a carrying capacity and/or size designation greater than or equal to three -fourths (3/4) of one ton (except 3/4 ton "dually" pick -tip trucks which are expressly exempted from this sentence) shall not be permitted to park anywhere on the Property between 9:00 p.m. and 7:00 a.m. except inside of an enclosed garage. The Board may grant variances or exemptions from this requirement as it, acting in its sole discretion, deems reasonable and appropriate. 34 (c) The Owner of each Lot will be responsible for providing on such Owner's Lot a sufficient paved parking area for all vehicles normally parked and/or situated on or in regard to such Lot. No vehicle, trailer or equipment of any type shall be parked other than on a paved driveway or parking area approved by the Architectural Control Committee. (d) No recreational vehicles or related equipment, including any boat, houseboat, trailer, motor home or "camper" vehicle may be maintained, stored or kept on any portion of the Property, except in enclosed garages. (e) Garage doors shall remain closed at all times except during times of ingress or egress. (f) No construction office trailers may be placed, erected or allowed to remain on any Lots during construction, except as approved in writing by the Architectural Control Committee. Other construction vehicles (trucks, vans, cars, construction equipment, equipment trailers, etc.) may be parked or placed on the Property (including any Lot or Roadway) only in accordance with such rules as may be established by the Architectural Control Committee. (g) Unlicensed, nonelectric equipment or vehicles shall not be operated on the Property; provided, however, lawnmowers, lawn equipment and lawn and garden tractors are permitted. Owner shall provide the Association, upon request, with documentation verifying the licensing of non -electric vehicles or equipment. (h) Association shall have the right to tow, disable, or remove any vehicle, trailer, or equipment of any type parked, stored, or kept in violation of this Section 11.13 without notice or prior warning. (i) The provisions of this Section 11.13 shall not apply to Declarant or to contractors, subcontractors, vendors, suppliers or other persons present on the Property at the request of or to provide services for the benefit of the Declarant or the Association. 11.14 Diligent Construction. All construction, landscaping or other work which has been commenced on any Lot must be continued with reasonable diligence to completion and no partially completed House or other Improvement shall be permitted to exist on any Lot except during such reasonable time period as is necessary for completion. All construction must be completed within six (6) months after the date upon which it is commenced, unless a longer time is approved by the Architectural Control Committee. Any damage to the Roadways, curbs or sidewalks or any part of the Common Area or any utility system caused by an Owner or Owner's contractor or his subcontractors shall be repaired by the Declarant and/or the Association, and the Owner and Owner's builder shall be j ointly and severally responsible for the payment of all costs and expenses incurred. These costs and expenses may also be paid from the Construction Compliance deposit required pursuant to Section 9.5(b). Any builder of Improvements and his subcontractors on any portion of the Property shall keep such portion of the Property free of construction debris, in accordance with the construction rules established by the Architectural Control Committee or, in the absence of such rules, in accordance with M1 standard construction practices. The Board may levy a Special Individual Assessment against an Owner's property in the Project to pay for the cost of repairing any damage to Roadways, curbs or sidewalks or any part of any Roadway; Common Area, or utility system, to pay for the cost of cleaning public and private areas, including the Roadways in the Project, and to pay for the cost of the removal of garbage, trash or other debris, which are occasioned by the activities of an Owner or Owner's builder or his subcontractors during the construction of Improvements. These costs and expenses may also be paid from the Construction Compliance Deposit required pursuant to Section 9.5(b). Section 11.15 Restricted Activities in Roadways. No Owner shall alter any portion of a Roadway or place anything within a Roadway. Any changes made shall be corrected and any items placed, constructed or installed in violation of this section shall be removed immediately at the request of the Declarant or the Association. All costs and expenses incurred by the Declarant or the Association as a result of a violation of this section by any Owner shall be charged to that Owner as a Special Individual Assessment. Section 11.16 Restricted Activities in Easements, No structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation, operation, or maintenance or use of utilities or improvements located thereon, which may change the direction or flow of drainage channels, which may retard, obstruct or reverse the flow of water, which may alter or interfere with a established slope ratios or which may create erosion within any easement shown on the Plat or provided for in Article X. All costs and expenses incurred by the Declarant or the Association as a result of a violation of this section by any Owner shall be charged to that Owner as a Special Individual Assessment. This reservation of easements shall not prohibit the construction of driveways, at locations approved by the Architectural Control Committee, over such easements. ve y and Nuisance. No unlawful noxious or offensive trade or Section I1. 7 Offensive Activity , ,A , activity shall be conducted upon any Lot, or in the Common Area, nor shall anything be done thereon which may be or become an annoyance or nuisance to any other Owner, or which may endanger the health or safety of any Owner or other person on the Property. The Board may more specifically regulate, restrict or prohibit such conduct by and through rules and regulations adapted as provided in ,Section 11.27. Section 11.18 Noise and Disorderly ,Conduct. No Owner shall engage in any disorderly conduct on the Property, or cause or allow any disturbance, including, but not limited to, shouting, singing, or playing any musical instruments, radio, stereo, or television, in a manner that unreasonably disturbs any other Owner. The Board may more specifically regulate, restrict or prohibit such conduct by and through rules and regulations adopted as provided in Section 11.27. Section 11.19 Rubbish. All rubbish, trash, garbage, junk, and other waste shall be kept temporarily in sanitary containers within each Lot and removed at least weekly from the Property. All trash containers or other equipment for storage or disposal of such waste shall be kept in a clean, odor - free and sanitary condition and shall be located so as to be concealed from view from any Roadway or Douse except on the days and during the periods established by the Board from time to time when containers may be moved to the Roadway for pickup. 36 Section 11.20 Animals. No animals shall be kept or maintained in any Lot or House except for domesticated dogs or domesticated cats or household pets that are kept and maintained inside the House at all times. No pets may be kept or bred for any commercial purposes. No savage or dangerous pets, as determined by the Board in its sole discretion, may be kept on the Property. All permitted pets shall be controlled so as not to create noise that is audible on the Property and outside the Lot where the permitted pet is kept between the hours of 9 p.m. and 7 a.m. All pets must be housed inside a Lot, and no pet shall be permitted or found on the Property (other than on the Lot of its owner) unless carried or leashed by a person that can control the pet. Pets shall not be permitted to defecate other than on the Lot of its Owner, or urinate on the shrubbery, and each Owner shall clean up immediately after his pet if an accident occurs, All pets shall be registered, licensed and inoculated as required by law. Each Owner shall indemnify and hold the Association harmless from any claim or costs, including reasonable attorney's fees, resulting from any action of his pet, and shall repair at his expense any damage to the Property caused by his pet. If any Owner violates these rules more than twice in any twelve (12) month period, the Association shall have the right to require the Owner to remove the pet permanently from the Property upon not less than ten (10) days' written notice, which remedy shall be in addition to all other rights or remedies. Section 11.21 Suns and Flags. No signs of any kind, including political signs, shall be placed or displayed in the public view on any Lot or on the Common Area except signs expressly permitted in the Architectural Guidelines or otherwise approved in writing by the Architectural Control Committee. No flags, banners, or pennants of any kind, including the flag of the United States of America or the State of North Carolina, shall be placed, flown, or displayed in the public view on any Lot or on the Common Area except as expressly permitted in the Architectural Guidelines or otherwise approved in writing by the Architectural. Control Committee. The provisions of this Section shall not prevent the placement of signs and/or flags identifying the Project at any entrance to the Project, nor shall it prevent Declarant or its agents from placing signs or flags to advertise the Property during the construction and sale period, including signs or flags on the Common Area and on any Lot or Lot owned by the Declarant, Signs or flags placed or displayed in violation of this Section may be removed and destroyed without notice by Declarant and/or the Association. Section 11.22 Clotheslines. No outdoor clothesline or clothes drying structure or equipment of any type shall be placed, used or allowed to remain on any Lot. Section 11.23 Leases. Any lease of a Lot and House thereon shall be for the entire lot and House and not a portion thereof, shall be in writing, shall identify the lessee and all permitted occupants, shall provide that the lease, the lessee and all occupants of the Lot shall be subject in all respects to the Project Documents, and shall provide that any failure by the lessee, any occupant or anyone present on the Lot with lessee's knowledge or consent, to comply with all of the terms of the Project Documents shall constitute a default under the lease, In the event of a violation of the Project Documents by any lessee or occupant, the Association may require the Owner to terminate the lease and to immediately evict or remove the lessee and all violators. Fines and sanctions imposed for violations of the Project Documents shall be the responsibility of the Owner and all lessees, jointly and severally. No Lot may be leased for a period shorter than one hundred eighty (180) days and no lease 37 may be executed sooner than 180 days after the execution of any prior lease. A copy of every lease shall be provided to the Association. TIME SHARING, INTERVAL OWNERSHIP AND ALL OTHER FORMS OF FRACTIONAL OWNERSHIP ARE HEREBY EXPRESSLY PROHIBITED. Section 11.24 Governmental Requirements. Nothing herein contained shall be deemed to constitute a waiver of any governmental requirements applicable to any Lot and all applicable governmental requirements or restrictions relative to the construction of Improvements on and/or use and utilization of any Lot shall be applicable and complied with in regard to the Lots. Each Owner shall comply with all laws, regulations, ordinances and other governmental rules and restrictions in regard to the Lot(s) or other portions of the Property owned by such Owner (including, without limitation, applicable zoning and watershed laws, rules, regulations and ordinances). Section 11.25 Occupants Bound. All provisions of this Declaration, any Supplemental Declaration. and the Bylaws and any and all rules and regulations, use restrictions or Architectural and Landscape Guidelines promulgated pursuant hereto or thereto which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all occupants even though occupants are not specifically mentioned. Section 11.26 Plat Notes, Restrictions and Requirements. All notes, restrictions, requirements and limitations shown on the Plat are incorporated by reference herein, To the extent anything shown on the Plat is inconsistent with a provision in this Declaration, the provision, in this Declaration shall control. Section 11.27 Rules and Regulations. In addition to the restrictions set forth in this Article XI, reasonable rules and regulations governing the use of the property may be made and amended from time to time by the Board without further approval until the Class B Membership terminates. After the Turnover Date, rules and regulations made by the Board and all amendments thereto shall not be effective unless and until they are approved by a majority vote of.those Members present and voting in person or by proxy at a duly called meeting. Copies of all such rules and regulations and any amendments thereto shall be published prior to their effective date, and shall be furnished by the Association to Members upon request. Section 11.28 Enforcement. The Association or its agent shall have the right to enforce the provisions of this Article XI, including Rules and Regulations adopted pursuant to Section 11.27 in any manner permitted by law, including, without limitation, by seeking injunctive relief and/or the imposition of fines or other sanctions permitted by N.C.G.S. § 47F-3-102(12) and § 4717-3-107.1. Reasonable attorney's fees may be recovered as permitted by N.C.G.S. § 47F-3-120 in actions to enforce the provisions of this Article XI. Section 11.29 Greenway Restrictions. The Greenway Easement is dedicated to the Village of Marvin as provided in Section 10.11. The Greenway Easement shall be open to the public and its use shall be subject to and in accordance with the rules, regulations, terms and restrictions established by 38 the Village or Marvin, with which every Owner, his family, guests, tenants and invitees shall be bound to comply. ARTICLE XII AMENDMENT OF DECLARATION Section 12.1 Amendment,Generally. Except as is otherwise specifically authorized herein, this Declaration may be amended only as provided in N.C.G.S. § 4717-2-117. The Declarant must consent to any amendment in writing as long as the Declarant owns any portion of the Property. No amendment to the Declaration shall be effective unless and until it is executed on behalf of the Association by any officer designated for that purpose and recorded in the Union County Public Registry. Section 12.2 Amendment of Declaration Without A1212roval of Owners. So long as it owns any portion of the Property, the Declarant, without the consent or approval of any other Owner, shall have the right to amend this Declaration unilaterally and for any reason. Section 12.3 Changes to Plans for the Project. Nothing contained herein shall be deemed to incorporate, by reference or otherwise, any plans or proposals promulgated by Declarant with respect to the development of the Project, and Declarant, subject to the covenants, conditions and restrictions contained in this Declaration, reserves the right to change any plans for the Project at any time and from time to time as Declarant may determine is necessary based upon Declarant's continuing research and design program and/or market conditions. Any plans for the Project shall not bind Declarant or its successors and assigns to adhere to such plans in the development of the Property or any part thereof. In addition, Declarant reserves the right to change, from time to time, the uses and densities that exist on any poi-tion(s) of the Property owned by Declarant. Without limiting the generality of the foregoing, the Declarant shall not be required to build, construct or provide any amenity or amenity area. ARTICLE XIII TERMINATION, DURATION, CONDEMNATION Section 13.1 Termination. This Declaration may be terminated only as set forth in N.C.G.S. § 47F-2-118. Section 13.2 Duration. This Declaration and the controls, covenants, restrictions and standards set forth herein shall run with and bind the Property and any Owner, and shall inure to the benefit of every Owner of a Lot in the Property and every Owner of any other portion of the Property, including Declarant, and their respective heirs, successors, and assigns, for a term of thirty (30) years beginning on the date this Declaration is recorded in the Office of the Register of Deeds of Union County, North Carolina. At the end of such thirty (30) year period, all of the easements, controls, covenants, conditions and restrictions set forth herein shall automatically be extended for successive 39 period(s) of ten (10) additional years, unless prior to the expiration of any such period, two-thirds (2/3) of the Members execute and record an instrument terminating these covenants and restrictions. The foregoing shall not limit the right of Declarant to amend and/or supersede, in whole or in part, the terms and provisions hereof, as such right in favor of Declarant is provided for in this Declaration. Section 13.3 Condemnation. Whenever all or part of the Common Area shall be taken or condemned by any authority having the power of eminent domain, all compensation and damages for and on account of such taking shall be paid to the Association. The Association, acting through the Board, shall have the right to negotiate and litigate the issues with respect to the taking and compensation affecting the Common Area, without limiting the right of the Owners to represent their own interests. Each Owner, by his acceptance of a deed to a Lot or other portion of the Property, hereby appoints the Association as his attorney -in -fact to negotiate, litigate or settle on his behalf all claims arising from the condemnation of the Common Area. All compensation and damages paid to the Association on account of such a taking shall be used to restore the Common Area, provided such restoration is possible, with the excess of such compensation or damages, if any, retained by the Association and applied to future operating expenses by the Board, in its sole discretion. Nothing herein contained shall prevent any Owner whose Lot or other property is specifically affected by the taking or condemnation from joining in the condemnation proceedings and petitioning on his own behalf for consequential damages relating to loss of value of the affected Lot, or other property, or improvements, fixtures or personal property thereon, exclusive of damages relating to the Common Area. In the event that the condemnation award does not allocate consequential damages to specific Owners, but by its terms includes an award for reduction in value of Common Area., Lots or other property without such allocation, the award shall be divided between or among affected Owners and the Association by the Board, in its sole discretion. ARTICLE XIV MISCELLANEOUS PROVISIONS Section 14.1 Covenants Running with the Land. Each Owner, by his acceptance of a deed of conveyance for a Lot, accepts title to that Lot subject to all of the restrictions, conditions, covenants, reservations, Iiens, charges, jurisdiction, rights and powers created in and/or reserved by this Declaration. All rights, benefits and privileges of every character hereby granted, created, reserved, or declared, and all responsibilities and obligations hereby imposed, shall be deemed to be covenants running with the land, and shall bind any person having at any time any interest or estate in said land, and shall inure to the benefit of such person in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance. Section 14.2 Construction and Enforcement. The provisions of this Declaration shall be liberally construed to effectuate the purpose of creating, preserving and maintaining the development and operation of a residential community. Declarant, Association and Owner of any Lot, by acceptance of a deed therefor, is deemed to covenant and agree that any controversy, claim or dispute arising out of or relating to the Project, the Association or any provision of the Project Documents, or any breach or violation thereof, shall be enforced by any means allowed under North Carolina law and 40 that each has standing to seek enforcement. Reasonable attorney's fees may be recovered as permitted in N.C.G.S. § 47F-3-120. Section 14.3 Waiver. No covenants, restrictions, conditions, obligations, or provisions contained in this Declaration shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur. There shall be no waiver of strict compliance with the provisions of the Project Documents except expressly and in a writing signed by the waiving party. Section 14.4 Severability. The invalidity of any covenant, restriction, condition, limitation or any other provision of this Declaration, or of any part of the same, shall not impair or affect in any manner the validity or enforceability of the rest of the Declaration. Section 14.5 Time Limits. If any of the privileges, covenants, restrictions or rights created by this Declaration shall be unlawful or void for violation of (a) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing time limits, then such provision shall continue only until the expiration of ninety (90) years from the date of recordation of this Declaration. Section 14.6 No Liability. Neither Declarant, nor any subsidiary of Declarant, nor any employee, agent, successor or assign of Declarant or any such subsidiary, shall be liable for any claim or damage whatsoever arising out of any actions performed pursuant to or in accordance with any authority granted or delegated to them by this Declaration. Section 14.7 Headings. The heading to each Article and Section of this Declaration is inserted only as a matter of convenience for reference and in no way limits or describes the scope or intent of such Article or Section, or this Declaration in general. IN WITNESS WHEREOF, Declarant has executed this Declaration as of the day and year first above written. DECLARANT: PULTE HOME CORPORATION By: =-- ancisco Garcia Its: Vice President 4I STATE OF NORTH CAROLINA COUNTY OF CABARRUS This 23rd day of D cmb , 015, personally came before me Sarah E. Frye who, being by me dilly sworn, says that he is the resident of PULTE HOME CORPORATION, and that said writing was signed by him, in his capacity as President of the corporation, by its authority duly given, and on behalf of the corporation. Notary Public My commission expires: 09/17/2020 [NOTARIAL SEAL] pUB L\G = SXLJENTSIi'ulle Home CorplAmber MeadowslAM Declaration - Final.doex 42 BK 7241 PG 0897 Drawn by and return to: Sellers, Ayers, Dortch & Lyons, EA. Filed Electronically FILED ELECTRONICALLY UNION COUNTY NC CRYSTAL D. GILLIARD FILED Sep 27, 2018 AT 10:13:00 AM BOOK 07241 START PAGE 0897 END PAGE 0899 INSTRUMENT # 27285 EXCISE TAX $0.00 FIRST AMENDMENT TO THE DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR AMBER MEADOW Union County, North Carolina This First Amendment to the Declaration of Covenants, Conditions, and Restrictions for Amber Meadow ("First Amendment") is made and entered into this the 1 I day of Aegast; 43pv? e 2018, by Pulte Home Company, LLC, fWa. Pulte Home Corporation, a Michigan limited liability company ("Declarant"). Statement of Purpose The Declaration of Covenants, Conditions and Restrictions for Amber Meadow was recorded in Book 6590 at Page 868 on December 28, 2015 ("Declaration"). Section 12.2 of the Declaration provides that so long as it owns any portion of the Property, the Declarant, without the consent and approval of any other Owner, shall have the right to amend the Declaration unilaterally and for any reason. The Declarant continues to own portions of the Property at this time, and records this First Amendment to amend and modify the Declaration as provided herein., NOW, THEREFORE, pursuant to the provisions of Section 12.2 of the Declaration, the Declarant amends the Declaration as follows, 1, Section 3.5 of the Declaration is deleted in its entirety and the following is substituted in lieu thereof - submitted electronically by "sellers Ayers Dortch & Lyons, PA" in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the union County Register of Deeds. BK 7241 PG 0898 The Declarant and after the Turnover Period, the Association may (but shall not be obligated to) request that the Roadways be accepted for maintenance by the North Carolina Department of Transportation or other governmental entity, and should maintenance responsibilities not be accepted by any governmental entity, the Association shall be solely responsible for the maintenance of the Roadways, THE DECLARANT MARES NO WARRANTIES OR REPRESENTATIONS REGARDING THE ACCEPTABILITY OF THE ROADWAYS OR ANY IMPROVEMENTS OR FACILITIES THEREON OR ADJACENT THERETO TO THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION, THE CITY OF WAXHAW OR ANY OTHER GOVERNMENTAL ENTITY. In the event the Roadways are accepted for maintenance by the North Carolina Department of Transportation or another governmental entity, the Roadways, the Association shall no longer bave any obligation for their maintenance, repair or replacement and any Roadway reserves may be used for general Association expenses or reserves. In the event the Roadways are not accepted for maintenance by the North Carolina Department of Transportation or another governmental entity within ninety (90) days after the date on which the Roadways are submitted by the Declarant for acceptance, the Declarant may transfer and convey the Roadways to the Association at any time thereafter. 2. Except as herein specifically amended, the provisions of the Declaration as well as all prior amendments and Supplements are ratified and confirmed, and the Declaration and any amendments and Supplements shall continue in fall force and effect in accordance with their terms. IN WITNESS WHEREOF, the undersigned Declarant has executed this First Amendment to the Declaration of Covenants, Conditions, and Restrictions for Amber Meadow, as of the day and year first above written. DECLARANT: PULTE HOME COMPANY, LLC f/k/a Pulte Home Corporation a Michigan lim' ed liability company By, �:-- Francisco Garcia, Vice -President I NOTARY ACKNOWLEDGEMENT ON FOLLOWING PAGE j BK 7241 PG 0899 STATE OF NORTH CAROLINA l COUNTY OF MECKLENBURG I, a notary public for the county and state aforesaid, do hereby certify that Francisco Garcia personally came before me, and being by me duly sworn, said that he is a Vice President of PULTE HOME COMPANY, LLC, f/k/a Pulte Home Corporation and that said writing was signed by him, in his capacity as Vice President of the company, by its authority duly given, and on behalf of the company. This 1day of st, 20y188� [NOTARIAL SEAL] r e u lie y commission expires: February 13, 2019 0%11u1g1�1 -10 SACUFNi'STulte Home Corp\Amber MeadowaTirsf Atnendmcnt to Dcxlamdon.doox s Ot8 t w N "y M -3 n jO0WO BK 7340 PG 0497 Drawn by and return to: Sellers, Ayers, lDortch & Lyons, P.A. (SCS) Filed Electronically FILED ELECTRONICALLY UNION COUNTY NC CRYSTAL D. GILLIARD FILED Mar 29, 2019 AT 03:22:00 PM BOOK 07340 START PAGE 0497 END PAGE 0499 INSTRUMENT # 081.1.1. EXCISE TAX $0.00 SECOND AMENDMENT TO THE DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR AMBER MEADOW Union CountK, North Carolina This Second Amendment to the Declaration of Covenants, Conditions, and Restrictions for Amber Meadow ("Second Amendment") is made and entered into this the +y-% y of nz:C � , 2019, by Pulte Home Company, LLC, fllda Pulte Home Corporation, a Michigan limited liability company ("Declarant"). Statement of Purpose The Declaration of Covenants, Conditions and Restrictions for Amber Meadow was recorded in Book 6590 at Page 868 on December 28, 2015 (as amended and supplemented from time to time, the "Declaration"). Section I2.2 of the Declaration provides that so long as it owns any portion of the Property, the Declarant, without the consent and approval of any other Owner, shall have the right to amend the Declaration unilaterally and for any reason. The Declarant continues to own portions of the Property at this time, and records this Second Amendment to amend and modify the Declaration as provided herein. NOW, THEREFORE, pursuant to the provisions of Section 12.2 of the Declaration, the Declarant amends the Declaration as follows: 1. Article XI of the Declaration is amended to add the following as a new Section 11.30 ("Maximum Built -Upon Area") immediately following existing Section 11,29 ("Greenway Restrictions"): submitted electronically by "Sellers Ayers Dortch & Lyons, PA" in compliance with North carolina statutes governing recordable documents and the terms of the submitter agreement with the union County Register of Deeds. BK 7340 PG 0498 Section 11.30 Maximum Built -Upon Area. The maximum allowable built -upon area per Lot is 5,343 square feet. This allotted amount includes any built -upon area constructed within the Lot property boundaries, and that portion of the right-of-way between the front Lot line and the edge of the pavement. Built - upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, coquina and parking areas, but does not include raised, open wood decking, or the water surface of swimming pools. 2. Except as herein specifically amended, the provisions of the Declaration as well as all prior amendments and Supplements are ratified and confirmed, and the Declaration and any amendments and Supplements shall continue in full force and effect in accordance with their terms. IN WITNESS WHEREOF, the undersigned Declarant has executed this Second Amendment to the Declaration of Covenants, Conditions, and Restrictions for Amber Meadow, as of the day and year first above written. 16 profffit-VAR" PULTE HOME COMPANY, LLC flkla Pulte Home Corporation a Michigan 1' nited liability company By: Francisco Garcia, 'Vice -President [ NOTARY ACKNOWLEDGEMENT ON FOLLOWING PAGE ] BK 7340 PG 0499 STATE OF �� C-,, - COUNTY OF T, a notary public for the county and state aforesaid, do hereby certify that Francisco Garcia personally came before me, and being by me duly sworn, said that he is a Vice President of PULTE HOME COMPANY, LLC, flkla Pulte Horne Corporation and that said writing was signed by him, in his capacity as Vice President of the company, by its authority duly given, and on behalf of the company. This 2fdy of c-r , 2019. My commission expires: SACLiENTSTulte Borne Corp%Ajnber Mndotas\Secoud Antcndment to Peclaration,docx [NOTARIAL SEAL] �•��{ocke •C,otnrniss��;�), ors. BK 7348 PG 0073 FILED ELECTRONICALLY UNION COUNTY NC CRYSTAL D. GILLIARD FILED Apr 12, 2019 AT 11:27:00 AM BOOK 07348 START PAGE 0073 END PAGE 0075 INSTRUMENT # 09409 EXCISE TAX $0.00 Drawn by and return to: Sellers, Ayers, Dortch & Lyons, P,A, (TGS) Filed Electronically THIRD AMENDMENT TO THE DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR AMBER MEADOW Union Copnty,_North Carolina This Third Amendment to the Declaration of Covenants, Conditions, and Restrictions or Amber Meadow ("Third Amendment") is made and entered into this the q ay of , 2019, by Pulte Home Company, LLC, f/k/a Pulte Home Corporation, a Michigan limited liability company ("Declarant"). Statement of Purpose The Declaration of Covenants, Conditions and Restrictions for Amber Meadow was recorded in Book 6590 at Page 868 on December 28, 2015 (as amended and supplemented from time to time, the "Declaration"). Section 12.2 of the Declaration provides that so long as it owns any portion of the Property, the Declarant, without the consent and approval of any other Owner, shall have the right to amend the Declaration unilaterally and for any reason, The Declarant continues to own portions of the Property at this time, and records this Third Amendment to amend and modify the Declaration as provided herein. NOW, THEREFORE, pursuant to the provisions of Section 12.2 of the Declaration, the Declarant amends the Declaration as follows: 1. By adding a new Article IV, Section 4.8 to the Declaration that provides as follows: Section 4.8 Association Acceptance of ResvonsibUity for Contract Leases Infrastructure, Improvements and Facilities; Declarant Power of Attorney. The Association and the Board shall accept (a) assignment of any contracts and/or leases entered into by the Declarant with respect to the Property, (b) responsibility for the operation, repair, maintenance and replacement of infrastructure, improvements and/or facilities constructed and/or installed on the Property and (c) the transfer of any permits issued with respect to infrastructure, submitted electronically by "sellers Ayers Dortch & Lyons, PA" in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the union county Register of Deeds. BK 7348 PG 0074 improvements or facilities when and to the extent the transfer of any permit is requested, required or permitted by the Declarant or by any local, state or federal office, agency, department or authority. Infrastructure, improvements and facilities shall include, but not be limited to, BMPs, retaining walls, amenities, structures, pools, walls, monuments, trails, streets and roads, landscaping, utilities and drainage/stormwater control systems. The officers of the Association will execute documents necessary to facilitate and memorialize (a) the assignment of contracts and leases entered into by the Declarant with respect to the Property to the Association, (b) the Association's acceptance of repair, maintenance and replacement responsibilities and/or (c) the transfer of permits to the Association as provided for herein, and the Association shall be responsible for any costs, expenses or damages incurred or sustained by the Declarant as a result of any delay or failure by the Association or its officers to do so, including, without limitation, any attorneys' fees incurred by the Declarant as a result of any delay or failure. Without limiting the rights of the Declarant or the obligations of the Association under this section, the Declarant shall have the power and authority to execute any such documents in the name of the Association and as its agent and attorney -in -fact should the Association or its officers and directors fail or refuse to do so. The Declarant may also request and require that the officers and directors of the Association (including those appointed by the Declarant pursuant to Section 4.4 above) execute, deliver and/or record powers -of -attorney or other written authorizations confirming the authority of the Declarant to act as the agent and attorney -in -fact of the Association as provided herein. The rights, powers and authority granted to the Declarant under this Section 4.8 may be exercised by the Declarant at any time before or after the Turnover Date. 2. Except as herein specifically amended, the provisions of the Declaration as well as all prior amendments and Supplements are ratified and confirmed, and the Declaration and any amendments and Supplements shall continue in fn11 force and effect in accordance with their terms. IN WITNESS WHEREOF, the undersigned Declarant has executed this Third Amendment to the Declaration of Covenants, Conditions, and Restrictions for Amber Meadow, as of the day and year first above written. DECLARANT: PULTE HOME COMPANY, LLC f/k/a Pulte Home Corporation a Michigan limited liability company By. Fr Cisco Garcia, Vice -President [ NOTARY ACKNOWLEDGEMENT ON FOLLOWING PAGE l BK 7348 PG 0075 STATE OF;��,IF�^l�`�.yb�j�(� COUNTY OF I, a notary public for the county and state aforesaid, do hereby certify that Francisco Garcia personally came before me, and being by me duly sworn, said that he is a Vice President of PULTE HOME COMPANY, LLC, f/k/a Pulte Horne Corporation and that said writing was signed by him, in his capacity as Vice President of the company, by its authority duly given, and on behalf of the company, This day of 2019. [NOTARIAL SEAL] S. Th rr fe, Notgy Public unission expires; February 13, 2024 &MIENTSTulte Home CorplAmbet MeadowsMird Amendment to Declaration.docx