WQ0031396_Renewal (Application)_20240126

Initial Review
Reviewer nathaniel.thorn burg
Is this submittal an application? (Excluding additional information.) *
Yes No
Permit Number (IR) * WQ0031396
Applicant/Permittee Lake Point Properties on Santeetlah, LLC
Applicant/Permittee Address 21500 Biscayne Blvd, Suite 600, Aventura, FL 33180
Is the owner in BIMS? Yes No Is the facility in BIMS? Yes No
Owner Type
Facility Name
County
Fee Category Minor
Is this a complete application?*
Yes No
Signature Authority
Signature Authority Title
Signature Authority Email
Document Type (if non -application)
Email Notifications
Organization
Santeetlah Lakeside WWTP
Graham
Does this need review by the hydrogeologist? * Yes No
Regional Office
CO Reviewer
Admin Reviewer
Fee Amount
Complete App Date
01 /26/2024
$0
Below list any additional email address that need notification about a new project.
Email Address
Comments to be added to email notfication
Comments for Admin
Comments for RO

Comments for Reviewer
Comments for Applicant

Submittal Form
Project Contact Information
Please provide information on the person to be contacted by NDB Staff regarding electronic submittal, confirmation of receipt, and other correspondence.
Name* Jack Minski
Email Address*
[e-mail]
Project Information
.........................
Application/Document Type*
New (Fee Required)
Modification - Major (Fee Required)
Renewal with Major Modification (Fee
Required)
Annual Report
Additional Information
Other
Phone Number*
7862713850
Modification - Minor
Renewal
GW-59, NDMR, NDMLR, NDAR-1,
N DAR-2
Residual Annual Report
Change of Ownership
We no longer accept these monitoring reports through this portal. Please click on the link below and it will take you to the correct form.
https://edoes.deq.nc.gov/Forms/NonDischarge_Monitoring_Report
Permit Type:*
Wastewater Irrigation
High -Rate Infiltration
Other Wastewater
Reclaimed Water
Closed -Loop Recycle
Residuals
Single -Family Residence Wastewater
Other
Irrigation
Permit Number:*
WQ0031396
Has Current Existing permit number
Applicant/Permittee *
Lake Point Properties on Santeetlah, LLC
Applicant/Permittee Address*
21500 Biscayne Blvd, Suite 600, Aventura, FL 33180
Facility Name*
Santeetlah Lakeside WWTP
Please provide comments/notes on your current submittal below.
Please see attached permit renewal with corresponding attachments in a single PDF. Please contact us if any questions or comments. Thank you.
At this time, paper copies are no longer required. If you have any questions about what is required, please contact Nathaniel Thornburg
at [e-mail].
Please attach all information required or requested for this submittal to be reviewed here.
(Application Form, Engineering Plans, Specifications, Calculations, Etc.)
RWS-R-02-21 JFR Additions to El App..pdf 42.89MB
Upload only 1 PDF document (less than 250 MB). Multiple documents must be combined into one PDF file unless file is larger
than upload limit.
* By checking this box, I acknowledge that I understand the application will not be accepted for pre -review until the fee (if required) has
been received by the Non -Discharge Branch. Application fees must be submitted by check or money order and made payable to the
North Carolina Department of Environmental Quality (NCDEQ). I also confirm that the uploaded document is a single PDF with all parts
of the application in correct order (as specified by the application).
Mail payment to:
NCDEQ — Division of Water Resources
Attn: Non -Discharge Branch
1617 Mail Service Center
Raleigh, NC 27699-1617
Signature
Submission Date
1 /26/2024

DWR
State of North Carolina
Department of Environmental Quality
Division of Water Resources
Division of Water Resources
15A NCAC 02U — RECLAIMED WATER SYSTEM — RENEWAL
FORM: RWS-R 02-21
Pursuant to 15A NCAC 02T .0107(b), if the application does not include all required information and the necessary supporting
documentation, the application shall be returned. The application and attachments shall be prepared in accordance with 15A
NCAC 02T .0100, 15A NCAC 02U, and Division Policies. For more information, visit the Water Quality Permitting Section's
Non -Discharge Branch website. The Applicant shall submit an electronic copy of the application and attachments uploaded as
a single Portable Document Format (PDF) file to httns://edocs.deu.nc.2ov/Forms/NonDischar2e-Branch-Submittal-Form-Ver2,
or emailed to Non-Discharge.Renortsna ncdenr.2ov if less than 20 megabytes (MB).
SECTION I — APPLICANT INFORMATION
1.
Applicant: Lake Point Properties on Santeetlah, LLC
2.
Pemut No.: WQ0031396
3.
Signature authority: Jack Minski
Phone number: [phone] Office
Title: Managing Member
Email: [e-mail]
4.
Mailing address: 21500 Biscayne Boulevard -Suite 600
City: Aventura
State: Florida Zip: 33180-
5.
Contact person: Jack Minski
Primary phone number: [phone] Cell
Email: [e-mail]
Secondary phone number: [phone] Office
SECTION II — FACILITY INFORMATION
1. Physical address: 90 Old Lodge Rd
City: Lake Santeetlah
2. Treatment facility coordinates to the sixth decimal degree:
Latitude: 35.2157'
County: Graham
State: NC
Parcel No.:
Zip: 28771-
Longitude:-83.5132' Method: Aerial photography with ground control
SECTION III — FLOW INFORMATION
1.
Permitted flow: 4120 GPD (The maximum allowable flow based on what has been permitted)
2.
As -built flow: 4120 GPD (The maximum allowable flow based on what has been constructed)
3.
Average flow: 0 GPD (The average of all reported flows on the previous calendar year's NDMRs)
4.
Hydraulic capacity: % (Divide the average flow in Item 3 by the As -built flow in Item 2)
5.
Wastewater composition: Domestic: 100 % Industrial: % Stormwater: %
SECTION IV — BILLING INFORMATION
1. Billing address: 21500 Biscayne Boulevard -Suite 600
City: Aventura State: Florida Zip: 33180-
2. Verify the Applicant does not have any overdue annual fees:
https:Hdeg .nc. gov/about/divisions/water-resources/water-resources-permits/wq-epUments
Pursuant to 15A NCAC 02T .0120(c), permits for renewing facilities shall not be granted if the Applicant or any affiliation has
an unpaid annual fee.
FORM: RWS-R 02-21 Page 1 of 6

SECTION V — OPERATOR IN RESPONSIBLE CHARGE (ORC) INFORMATION
(NOT APPLICABLE FOR CONJUNCTIVE SYSTEMS)
1. ORC: Mark Teague Grade: SI Certification No.: 989074
Mailing address: PO BOX 954
City: Cullowhee State: NC Zip: 28723-
Phone number: [phone] Office Email: [e-mail]
2. Back -Up ORC: Dale Wike Grade: SI Certification No.: 1000267
Mailing address: PO BOX 954
City: Cullowhee State: NC Zip: 28723-
Phone number: [phone] Office Email: [e-mail]
SECTION VI — OPEN -ATMOSPHERE STRUCTURES
1. List all open -atmosphere treatment and storage structures associated with the renewing permit. Attach additional sheets if
necessary.
Type
Parcel No.
Volume (gal)
Liner Type
Freeboard (ft)
Latitude
Longitude
Select
NA
Select
0-
°
Select
NA
Select
0-
°
Select
NA
Select
0-
°
Select
NA
Select
0-
°
SECTION VH — RELATED PERMITS
1. List all wastewater permits (i.e., sewer, collection system, NPDES, residuals) that have interactions with the renewing permit.
Attach additional sheets if necessary.
Permit Type
Permit No.
Relationship Type
Select
NA
Select
Select
NA
Select
Select
NA
Select
Select
NA
Select
SECTION VIII — MONITORING WELLS
1. List all groundwater monitoring wells associated with the renewing permit. Attach additional sheets if necessary.
Well Name
Parcel No.
Status
Gradient
Location
Latitude
Longitude
MWI
Select
Select
Select
35.3652320
-83.8585840
MW2
Select
Select
Select
35.3656300
-83.8591140
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
- °
Select
Select
Select
°
FORM: RWS-R 02-21 Page 2 of 6

SECTION IX — UTILIZATION FIELDS
1. List all utilization fields associated with the renewing permit. Attach additional sheets if necessary.
Field
County
Parcel No.
Deeded Owner
Area
Cover Crop
Latitude
Longitude
1
Graham
0.11
Wooded
0
- 0
2
Graham
0.11
Wooded
0
- 0
3
Graham
0.12
Wooded
0
- 0
4
Graham
0.12
Wooded
0
- 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Acreage:
FORM: RWS-R 02-21 Page 3 of 6

ATTACHMENT A — SITE MAP
Was the facility originally permitted or had a major modification issued after September 1, 2006?
® Yes — Pursuant to 15A NCAC 02T .0105(d), submit a site map pursuant to the requirements in 15A NCAC 02U .0201(d). These
requirements are:
® A scaled map of the site with topographic contour intervals not exceeding 10 feet or 25 percent of total site relief and showing
all facility -related structures and fences within 500 feet of the treatment, storage, and utilization areas.
® Soil mapping units shown on all utilization sites.
® Delineation of the compliance and review boundaries per 15A NCAC 02U .0501(a)(6).
® Setbacks as required by 15A NCAC 02U .0701.
® Site property boundaries within 500 feet of all treatment, storage, and utilization sites.
❑ No — Skip Attachment A.
ATTACHMENT B — SIGNATURE AUTHORITY DELEGATION
Does the signature authority in Section I, Item 3 meet the requirements pursuant to 15A NCAC 02T .0106(b)?
® Yes — Skip Attachment B.
❑ No — Submit a delegation letter pursuant to 15A NCAC 02T .0106(c) authorizing the signature authority to sign.
—ATTACHMENT C — FLOW REDUCTION
Does the existing permit include an approved flow reduction?
® Yes — Submit a copy of the flow reduction approval letter, as well as the measured monthly average amount of wastewater flow
contributed per unit for the 12 months prior to permit renewal. If any of these monthly averages are within 20% of the approved
flow reduction value, the Permittee shall provide a reevaluation of the reduced flow value pursuant to the requirements in 15A
NCAC 02T .0114(f).
❑ No — Skip Attachment C.
E ATTACHMENT D — CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
Is the Applicant a Privately -Owned Public Utility?
❑ Yes — Pursuant to 15A NCAC 02T .0115(a)(1), submit the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise.
® No — Skip Attachment D.
I ATTACHMENT E — OPERATIONAL AGREEMENT
Is the Applicant a Home/Property Owners' Association or Developer of Lots to be Sold?
❑ Yes (Home/Property Owners' Association) — Pursuant to 15A NCAC 02T .0115(a)(2), submit an executed Operational Agreement
(FORM: HOA). Pursuant to 15A NCAC 02T .0115(c), if the applicant is a legally formed Homeowners' or Property Owner's
Association, submit a copy of the Articles of Incorporation, Declarations, and By-laws.
® Yes (Developer of Lots to be Sold) — Pursuant to 15A NCAC 02T .0115(a)(2), submit an executed Operational Agreement
(FORM: DEW Pursuant to 15A NCAC 02T .0115(b), if the applicant is a developer of lots to be sold, submit a copy of the
Articles of Incorporation, Declarations, and By-laws.
❑ No — Skip Attachment E.
FORM: RWS-R 02-21 Page 4 of 6

ATTACHMENT F — DEMONSTRATION OF FUTURE WASTEWATER TREATMENT CAPACITIES
7sthe applicant a municipality, county, sanitary district, or public utility?
Yes —Proceed to the next question.
No —Skip Attachment F.
Does the hydraulic capacity in Section III, Item 4 exceed 70%?
❑ Yes (the hydraulic capacity is greater than 70%, but less than 80%) — Pursuant to 15A NCAC 02T .01180), prior to exceeding
80 percent of the system's permitted hydraulic capacity (based on the average flow during the last calendar year), the permittee
shall submit an engineering evaluation of their future wastewater treatment, utilization, and disposal needs. This evaluation shall
outline plans for meeting future wastewater treatment, utilization, or disposal needs by either expansion of the existing system,
elimination or reduction of extraneous flows, or water conservation and shall include the source of funding for the improvements.
If expansion is not proposed or is proposed for a later date, a justification shall be made that wastewater treatment needs will be
met based on past growth records and future growth projections, and as appropriate, shall include conservation plans or other
measures to achieve waste flow reductions.
❑ Yes (the hydraulic capacity greater than 80%) — Proceed to the next question.
❑ No — Skip Attachment F.
If answered Yes above, does the hydraulic capacity in Section III, Item 4 exceed 80%?
❑ Yes (the hydraulic capacity is greater than 80%) — Pursuant to 15A NCAC 02T .0118(2), prior to exceeding 90 percent of the
system's permitted hydraulic capacity (based on the average flow during the last calendar year), the permittee shall obtain all
permits needed for the expansion of the wastewater treatment, utilization, or disposal system and, if construction is needed,
submit final plans and specifications for expansion, including a construction schedule. If expansion is not proposed or is proposed
for a later date, a justification shall be made that wastewater treatment needs will be met based on past growth records and future
growth projections, and as appropriate, shall include conservation plans or other specific measures to achieve waste flow
reductions.
❑ No — Skip Attachment F.
ATTACHMENT G — EASEMENT, ENCROACHMENT, AND LEASE AGREEMENTS
Does the Permittee own all of the land associated with the wastewater collection, treatment, conveyance, and utilization system?
® Yes — Skip Attachment G.
❑ No — Pursuant to 15A NCAC 02T .0116(c), provide a copy of all easements, lease agreements, and encroachment agreements
allowing the Permittee to operate and maintain the wastewater collection, treatment, conveyance, and utilization system on
property not owned by the Permittee.
ATTACHMENT H — AFFILIATIONS
Are the Penuittee's affiliations of record correct? Check affiliations.
® Yes — Skip Attachment H.
❑ No — Provide the corrected affiliations and their contact information.
ATTACHMENT I — COMPLIANCE SCHEDULES
Does the existing permit include any Compliance Schedules? (See Section I of the most recently issued permit)
❑ Yes — Submit documentation that the compliance schedules have been met.
® No — Skip Attachment I.
M ATTACHMENT J — CIVIL PENALTIES AND OUTSTANDING VIOLATIONS
Does the Permittee have any existing civil penalties or outstanding violations?
❑ Yes (civil penalties) — Submit payment for the civil penalty, or proof of remission request.
❑ Yes (violations) — Submit a copy of your response to the Notice of Violation.
® No — Skip Attachment J.
FORM: RWS-R 02-21 Page 5 of 6

ATTACHMENT K— INDUSTRIAL WASTEWATER
Does the wastewater composition in Section III, Item 5 include any industrial wastewater?
❑ Yes — Proceed to the next question.
® No — Skip Attachment K.
Has the nature of the industrial wastewater changed since the last permit issuance (i.e., changes in industrial process, introduction of
new materials or chemicals, etc.)?
❑ Yes — Provide a chemical analysis of the wastewater pursuant to the requirements in 15A NCAC 02U .0201(g). Provide an
overview of the manufacturing process; an inventory of all chemical and biological materials used in the manufacturing process;
and an overview of the cleaning and treatment methodology.
❑ No — Provide an overview of the manufacturing process; an inventory of all chemical and biological materials used in the
manufacturing process; and an overview of the cleaning and treatment methodology.
ATTACHMENT L — SETBACK WAIVERS
Does the existing permit include setback waivers?
❑ Yes — Pursuant to 15A NCAC 02T .0701W, provide setbacks waivers that have been written, notarized, signed by all parties
involved, and recorded with the county Register of Deeds. Waivers involving the compliance boundary shall be in accordance
with 15A NCAC 02L .0107.
® No — Skip Attachment L.
APPLICANT'S CERTIFICATION
I Jack Mlnskl attest that this application
(Signature authority's name as noted in Section I, Item 3)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that if all required parts of this
application package are not completed, and that if all required supporting information and attachments are not included, this
application package will be returned as incomplete. I further certify pursuant to 15A NCAC 02T .0120(b), that the applicant, or any
parent, subsidiary, or other affiliate of the applicant has: not been convicted of environmental crimes under; not previously abandoned
a wastewater treatment facility without properly closing the facility; not paid a civil penalty; not been compliant with any compliance
schedule in a permit, settlement agreement, or order; not paid an annual fee.
Note: The Applicant's Certification shall be signed pursuant to 15A NCAC 02T .0106(b). An alternate person may be delegated as
the signing official if a letter is provided pursuant to 15A NCAC 02T .0106(c). Pursuant to § 143-215.6A and § 143-215.6B, any
person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class
2 misdemeanor, which may include a fine not to exceed $10,000 as well as civil penalties up to $25,000 per violation.
Signature: Date: 1 /23/24
THE COMPLETED APPLICATION AND ATTACHMENTS SHALL BE SUBMITTED AS A SINGLE PDF FILE VIA:
Email:
Non-Discharge.Renoits(d ncdenr.gov
Laserfiche Upload:
httn s:Hedocs.deu.nc.gov/Form s/NonDischar2e-Branch-
Submittal-Form-Ver2
FORM: RWS-R 02-21 Page 6 of 6

ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
March 13, 2023
JACK MINSKI — MANAGING MEMBER
LAKE POINT PROPERTIES ON SANTEETLAH, LLC
21500 BISCAYNE BOULEVARD — SUITE 600
AVENTURA, FLORIDA 33180
Subject: Permit No. WQ0031396
Santeetlah Lakeside WWTP
Reclaimed Water Generation and
Dedicated Utilization System
Graham County
Dear Mr. Minski:
In accordance with your permit minor modification request received October 25, 2022, and
subsequent additional information received February 6, 2023, and March 2, 2023, we are forwarding
herewith Permit No. WQ0031396 dated March 13, 2023, to Lake Point Properties on Santeetlah, LLC for
the operation of the subject reclaimed water generation and dedicated utilization facilities.
The following modifications to the subject permit are as follows:
• The facility has been constructed and certified, and the status has been changed to operational.
The facility is permitted to serve 58 bedrooms associated with 10 condominiums and 18
residential lots within the Santeetlah Lakeside development in accordance with the Flow
Reduction Approval issued December 31, 2019.
This permit shall be effective from the date of issuance through July 31, 2024, shall replace Permit
No. WQ0031396 issued March 28, 2019, and shall be subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than February 2, 2024.
Please pay attention to the monitoring requirements listed Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
The Division has removed the following permit conditions since the last permit issuance
dated March 28, 2019:
➢ Old Condition L1 —This condition has been met.
➢ Old Condition L2 — This condition has been met.
➢ Old Condition L3 - This condition has been met.
➢ Old Condition L5 — This condition has been met.
D � North Carolina Department of Environmental Quality i Division of Water Resources
512 North Salisbury Street 11617 Mail Service Center I Raleigh, North Carolina 27699-1617
NOR�HCAROLINA
'.'roMMm 0­; /I 919,707,9000

Mr. Jack Minski
March 13, 2023
Page 2 of 2
➢ Old Condition L6 — This condition has been met.
➢ Old Condition L7 — This condition has been met.
➢ Old Condition II1.8 —This condition has been replaced by New Condition I1.7.
➢ Old Condition IV.10 —This condition has been replaced by New Condition IV.10.
The following permit conditions are new since the last permit issuance dated March 28, 2019:
➢ Condition IL7 — The Permittee is required to connect the reclaimed water utilization system to
a rain or moisture sensor to prevent irrigation during precipitation events or wet conditions.
➢ Condition IV.10 — Monitoring wells MW-1 and MW-2 shall be sampled at the frequencies and
for the parameters specified in Attachment C.
➢ Condition VI.I I — The facility's flow reduction approval is described in this condition.
➢ Condition VL12 — The Permittee is required to retain the Division -issued flow reduction
approval for the life of the facility and to transfer the approval to any future Permittee.
➢ Attachment A — The sample types for parameters with "3 x Year" and "4 x Year" monitoring
frequencies have been revised from "composite" to "grab" in accordance with the Non -
Discharge Effluent Monitoring Policy.
If any parts, requirements, or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Otherwise, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Lauren Raup-Plummer at
[phone] or Lauren.Plummerkncdenr.gov.
Sincerely,
DocuSigned by:
Na&Awt t 'Iuvu Wo
D104 0 6 483
Richar . ogers, Jr., Director
Division of Water Resources
cc: Graham County Health Department (Electronic Copy)
Asheville Regional Office, Water Quality Regional Operations Section (Electronic Copy)
William E. Fenner, Jr., PE (Electronic Copy)
Patrick Beggs — Operator Certification Program (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
RECLAIMED WATER GENERATION AND DEDICATED UTILIZATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Lake Point Properties on Santeetlah, LLC
Graham County
FOR THE
operation of a 4,120 gallon per day (GPD) reclaimed water generation and dedicated utilization facility
consisting of:
an influent flow measuring device; a 5,000 gallon baffled septic tank with an effluent filter; a 3,750 gallon
flow equalization tank with two submersible pumps rated at 30 gallons per minute (GPM), and
audible/visual high-water alarms; a Bioclere Unit Model # 24/20 with a 1,847 gallon Is' stage and 2,377
gallon 2nd stage trickling filter, and four submersible dosing pumps rated at 10 GPM; a Bioclere unit Model
# 24/24 with a 1,600 gallon clarifier, and two submersible sludge return pumps rated at 35 GPM; a sand
filter feed tank with two centrifugal self -priming feed pumps rated at 15.7 GPM and audible/visual high-
water alarms; two automatic backwash sand filters; a filter backwash tank with two centrifugal self -priming
backwash pumps rated at 48 GPM; a chemical feed tank with a pump for pH adjustment and '/4 horsepower
(hp) mixer; four ultraviolet (UV) disinfection banks each with two lamps and rated for 40 GPM; a
turbidimeter; a standby generator; an effluent flow measuring device; four 15,000 gallon interconnected
storage tanks; a 3,490 gallon dosing tank with two submersible turbine pumps and audible/visual high-
water alarms; two 10,300 gallon interconnected tanks providing five day upset storage with a submersible
20 GPM return pump; a 0.46 acre drip irrigation area with four fields; and all associated piping, valves,
controls, and appurtenances
to serve the Santeetlah Lakeside WWTP consisting of no more than 58 total bedrooms associated with 10
condominium units and 18 residential lots, with no discharge of wastes to surface waters, pursuant to the
application received October 25, 2022, subsequent additional information received February 6, 2023, and
March 2, 2023, and in conformity with the Division -approved plans and specifications considered a part of
this permit.
This permit shall be effective from the date of issuance through July 31, 2024, shall replace Permit No.
WQ0031396 issued March 28, 2019, and shall be subject to the following conditions and limitations:
WQ0031396 Version 1.2 Shell Version 200201 Page 1 of 11

I. SCHEDULES
1. The Permittee shall notify the Asheville Regional Office, telephone number [phone], at least
two business days in advance of initial operation of the constructed facilities so that the Division can
conduct a start-up inspection. [15A NCAC 02T .0108(b)(1)(B)]
2. The Permittee shall request renewal of this permit on Division -approved forms no later than February
2, 2024. [15A NCAC 02T .0105(b), 02T .0109]
II. PERFORMANCE STANDARDS
The Permittee shall maintain and operate the subject reclaimed water facilities so there is no discharge
to surface waters, nor any contravention of groundwater or surface water standards. In the event the
facilities fail to perform satisfactorily, including the creation of nuisance conditions due to improper
operation and maintenance, the Permittee shall take immediate corrective actions, including Division
required actions, such as the construction of additional or replacement reclaimed water generation and
utilization facilities. [15A NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [15A NCAC 02T .0108(b)(1)(A)]
Groundwater monitoring wells shall be constructed in accordance with 15A NCAC 02C .0108
(Standards of Construction for Wells Other than Water Supply), and any other jurisdictional laws and
regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent limitations for generated reclaimed water shall not exceed those specified in Attachment A.
[15A NCAC 02U .0301]
5. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02U .0401(g)]
6. The attached Operational Agreement shall be a condition of this permit. Noncompliance with the terms
of the Operational Agreement shall subject the Permittee to all sanctions under G.S. 143-215.6A, G.S.
143-215.613, and G.S. 143-215.6C for violation of or failure to act in accordance with the terms and
conditions of this permit. [15A NCAC 02T .0115]
7. The Permittee shall connect the irrigation system to a rain or moisture sensor designed to prevent
irrigation during precipitation events or wet conditions. [15A NCAC 02U .0401(k)]
8. All reclaimed water valves, storage facilities, and outlets shall be tagged or labeled to warn the public
or employees that the water is not intended for drinking. [15A NCAC 02U .0403(b)]
WQ0031396 Version 1.2 Shell Version 200201 Page 2 of 11

9. All reclaimed water piping, valves, outlets, and other appurtenances shall be color -coded, taped, or
otherwise marked to identify the source of the water as being reclaimed water as follows:
a. All reclaimed water piping and appurtenances shall be either colored purple (Pantone 522 or
equivalent) and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER -
DO NOT DRINK" or be installed with a purple (Pantone 522 or equivalent) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and repeated
every three feet or less;
b. Identification tape shall be at least three inches wide and have white or black lettering on purple
(Pantone 522 or equivalent) field stating "CAUTION: RECLAIMED WATER - DO NOT
DRINK". Identification tape shall be installed on top of reclaimed water pipelines, fastened at least
every 10 feet to each pipe length and run continuously the entire length of the pipe; and
c. Existing underground distribution systems retrofitted for the purpose of convey reclaimed water
shall be taped or otherwise identified as noted in IL9.a. and IL9.b. This identification need not
extend the entire length of the distribution system but shall be incorporated within 10 feet of
crossing any potable water supply line or sanitary sewer line.
[15A NCAC 02U .0403(c)]
10. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits operation
by personnel authorized by the entity that operates the reclaimed water system. [15A NCAC 02U
.0403(d)]
11. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -potable
quality. As an alternative to the use of locked vaults with standard hose bib services, other locking
mechanisms such as hose bibs that can only be operated by a tool may be placed above ground and
labeled as non -potable water. [15A NCAC 02U .0403(e)]
12. There shall be no direct cross -connections between the reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
13. Reclaimed water distribution lines shall be located at least 5 feet horizontally from and 18 inches below
any water line if practicable. If these separation distances cannot be met, the piping and integrity testing
procedures shall meet water main standards in accordance with 15A NCAC 18C. [15A NCAC 02U
.0403(g), 02U .0403(h)]
14. Reclaimed water distribution lines shall not be less than 50 feet from a well unless the piping and
integrity testing procedures meet water main standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well. [15A NCAC 02U .0403(g), 02U .0403(i)]
15. Reclaimed water distribution lines shall meet the separation distances to sewer lines in accordance with
15A NCAC 02T .0305. [15A NCAC 02U .0403(g), 02U .04030)]
16. Reclaimed water irrigation fields permitted on or after September 1, 2006 have compliance and review
boundaries established at the irrigation area boundaries. Any exceedance of groundwater standards at
or beyond the compliance boundary shall require corrective action. Division -approved relocation of
the compliance boundary shall be noted in Attachment B. Multiple contiguous properties under
common ownership and permitted for use as a disposal system shall be treated as a single property with
regard to determination of a compliance boundary. [15A NCAC 02L .0106, 02T .0105(h), 02U
.0501(a)(6), G.S. 143-215.1(1), G.S. 143-215.1(k)]
17. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
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18. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107]
19. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the Graham
County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[15A NCAC 02L .0107(f)]
20. The facilities herein were permitted per the following setbacks:
a. The reclaimed water irrigation sites were originally permitted May 15, 2007. The setbacks for drip
irrigation sites originally permitted or modified from September 1, 2006 to June 17, 2011 are as
follows (all distances in feet):
i. Surface waters classified SA: 100
ii. Surface waters not classified SA: 25
iii. Each well with exception of monitoring wells: 100
[ 15A NCAC 02T .0912(b)]
b. The storage and treatment units were originally permitted May 15, 2007. The setbacks for storage
and treatment units originally permitted or modified from September 1, 2006 to June 17, 2011 are
as follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 100,
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02T .0912(a)]
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III. OPERATION AND MAINTENANCE REQUIREMENTS
1. The Permittee shall operate and maintain the subject facilities as a non -discharge system. [15A NCAC
02U .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in detail to show what operations are necessary for the
system to function and by whom the operations are to be conducted;
b. A description of anticipated maintenance of the system;
c. Provisions for safety measures, including restriction of access to the site and equipment; and
d. Spill control provisions that include response to upsets and bypasses, including control,
containment, and remediation, and contact information for personnel, emergency responders, and
regulatory agencies;
[15A NCAC 02U .0801(a)]
3. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, the Permittee shall designate and employ a certified
operator in responsible charge (ORC), and one or more certified operators as back-up ORCs. The ORC
or their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [15A NCAC 02U .0401(e)]
5. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal,
allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02U
.0801(b)]
6. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation sites
listed in Attachment B. [15A NCAC 02U .0801(c)]
7. The Permittee shall not irrigate treated effluent during inclement weather, or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02U .0401(k)]
8. Irrigation equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02U .0801(d)]
9. Only reclaimed water generated from the Santeetlah Lakeside WWTP shall be irrigated on the sites
listed in Attachment B. [15A NCAC 02U .0101]
10. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [15A NCAC 02U .0801(e)]
11. The Permittee shall prohibit public access to the wastewater treatment and storage facilities. [15A
NCAC 02U .0402(e)]
12. Public access to reclaimed water utilization sites shall be controlled during active site use. Such
controls may include the posting of signs showing the activities being conducted at each site. [15A
NCAC 02U .0501(a)(2)]
13. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [ 15A NCAC
02T .1100, 02U .0802].
14. The Permittee shall not divert or bypass untreated or partially treated reclaimed water from the subject
facilities. [15A NCAC 02U .0402(g)]
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15. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02U .0801(g)]
16. Metering equipment shall be tested and calibrated annually. [15A NCAC 02U .0801(d)]
17. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02U .0401(d)]
18. Continuous online monitoring and recording for turbidity or particle count and flow shall be provided
prior to storage, distribution, or utilization of reclaimed water. [15A NCAC 02U .0401(b)]
19. If turbidity exceeds 10 NTUs or if the permitted pathogen levels cannot be met, all effluent shall be
routed to the five day upset storage tanks until the problems associated with the reclaimed water
generation system have been corrected. The water in the five day upset storage tanks shall be pumped
back to the treatment plant headworks for re -treatment or treated in the five day upset storage tanks
prior to utilization. [ 15A NCAC 02U .0402(d)]
20. The Permittee shall provide notification to the public and its employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501(a)(2)]
21. The Permittee shall develop and implement an education program to inform users and its employees
about the proper use of reclaimed water. Educational material shall be provided to all residents and/or
other facilities provided with reclaimed water, and these materials shall be maintained consistent with
the reclaimed water uses. All educational materials shall be made available to the Division upon
request. [15A NCAC 02U .0501(a)(4)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. The Permittee shall conduct and report any Division required monitoring necessary to evaluate this
facility's impact on groundwater and surface water. [15A NCAC 02T .0108(c)]
2. A Division -certified laboratory shall conduct all analyses for the required effluent, groundwater, and
surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
4. The Permittee shall monitor the generated reclaimed water at the frequencies and locations for the
parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
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5. The Permittee shall maintain records tracking the amount of reclaimed water irrigated. These records
shall include the following information for each irrigation site listed in Attachment B:
a. Date of irrigation;
b. Volume of reclaimed water irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B;
g. Weather conditions; and
h. Maintenance of cover crops.
[I5A NCAC 02T .0108(c)]
6. Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Condition IV.5.) on
Form NDAR-1 for every site in Attachment B shall be submitted on or before the last day of the
following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[I5A NCAC 02T .0105(1)]
7. The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. This record shall
include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02U .0802(b)]
8. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of irrigation equipment calibration;
c. Date of turbidimeter calibration;
d. Date and results of power interruption testing on alternate power supply;
e. Visual observations of the plant and plant site; and
f Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.); and
g. Record of all discharges of reclaimed water to surface waters or the land surface, including the date
of occurrence, estimated volume, and corrective action taken.
[15A NCAC 02U .0801(h)]
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9. Monitoring wells MW-1 and MW-2 shall be sampled within three months prior to initiating reclaimed
water utilization operations. Monitoring wells MW-1 and MW-2 shall be sampled thereafter at the
frequencies and for the parameters specified in Attachment C. All mapping, well construction forms,
well abandonment forms, and monitoring data shall refer to the permit number and the well
nomenclature as provided in Attachment C and Figure 3. [15A NCAC 02T .0105(m)]
10. Monitoring wells MW-1 and MW-2 shall be sampled at the frequencies and for the parameters specified
in Attachment C. All mapping, well construction forms, well abandonment forms and monitoring data
shall refer to the permit number and the well nomenclature as provided in Attachment C and Figure 3.
[15A NCAC 02T .0105(m)]
11. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[I5A NCAC 02T .0105(m)]
12. Noncompliance Notification:
The Permittee shall report to the Asheville Regional Office, telephone number [phone], within
24 hours of first knowledge of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.) rendering the facility incapable of
adequate wastewater treatment.
c. Any failure resulting in a discharge untreated or partially treated wastewater to surface waters.
d. Any failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases less than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.8.g. but do not require Regional Office notification.
e. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
f Ponding in or runoff from the irrigation sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Asheville Regional Office within five days
of first knowledge of the occurrence, and this report shall outline the actions proposed or taken to ensure
the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)]
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V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the reclaimed
water generation and utilization facilities. [15A NCAC 02U .0801(i)]
2. The Permittee shall inspect the reclaimed water generation and utilization facilities to prevent
malfunctions, facility deterioration, and operator errors that may result in discharges of wastes to the
environment, threats to human health, or public nuisances. The Permittee shall maintain an inspection
log that includes the date and time of inspection, observations made, and maintenance, repairs, or
corrective actions taken. The Permittee shall maintain this inspection log for a period of five years
from the date of the inspection, and this log shall be made available to the Division upon request. [15A
NCAC 02U .0801(h), 02U .0801(i)]
Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the reclaimed water generation and utilization facilities permitted
herein at any reasonable time for determining compliance with this permit. Division authorized
representatives may inspect or copy records maintained under the terms and conditions of this permit,
and may collect groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)]
VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of this permit does not exempt the Permittee from complying with all statutes, rules,
regulations, or ordinances that other jurisdictional government agencies (e.g., local, state, and federal)
may require. [15A NCAC 02T .0105(c)(6)]
5. If the permitted facilities change ownership, or the Permittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(d3)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
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8. This permit is subject to revocation or modification upon 60-day notice from the Division Director, in
whole or part for:
a. violation of any terms or conditions of this permit or Administrative Code Title 15A Subchapter
02U;
b. obtaining a permit by misrepresentation or failure to disclose all relevant facts;
c. the Permittee's refusal to allow authorized Department employees upon presentation of credentials:
I. to enter the Permittee's premises where a system is located or where any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
9. Unless the Division Director grants a variance, expansion of the facilities permitted herein shall not
occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.613, or under Federal law that would otherwise be
prosecuted under G.S. 143-215.613, and all appeals of this conviction have been abandoned or
exhausted.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee.
[15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[15A NCAC 02T .0120(c)]
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11. Pursuant to the flow reduction request received September 4, 2019, and approved December 31, 2019,
the Division accepts the data -based design flow rate of 70 gallons per day per bedroom (GPDBR) for
the users served by this facility. At no time shall wastewater flows exceed the limits defined in this
permit, or exceed the sewer capacity downstream of any new sewer extension or service connection.
The Permittee shall report the measured monthly average amount of wastewater flow contributed per
unit (GPD/BR) for the 12 months prior to permit renewal. If any of these monthly averages are within
20% of the approved value, the Permittee shall reevaluate the approved value using the methodology
applied to determine the approved flow rate of 70 GPDBR, and submit this information with the
renewal application for reevaluation of the approve flow rate. [15A NCAC 02T .0114(f)]
12. The Permittee shall retain the Division's written approval of the authorized adjusted daily design flow
rate for the life of this facility, and shall transfer this approval to any future Permittee. [15A NCAC
02T .0114(f)]
Permit issued this the 13t1i day of March 2023
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
DocuSigned by:
N as V,avin. W,
Ric TYogers, Jr., Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0031396
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ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001— Reclaimed Water Generation System Effluent
Permit Number: WQ0031396 Version: 1.2
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly Monthly
Average Geometric Mean Daily Minimum Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
10 15
4 x Year'
Grab
00940
Chloride (as Cl)
mg/L
3 x Year 2
Grab
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
14 25
4 x Year'
Grab
50050
Flow, in Conduit or thin Treatment Plant
GPD
4,120 s
2,7404
1,3605
Continuous
Recording
00610
Nitrogen, Ammonia Total (as N)
mg/L
4 6
4 x Year 1
Grab
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
4 x Year
Grab
00620
Nitrogen, Nitrate Total (as N)
mg/L
4 x Year'
Grab
00600
Nitrogen, Total (as N)
mg/L
4 x Year'
Grab
00400
pH
su
Weekly
Grab
00665
Phosphorus, Total (as P)
mg/L
4 x Year'
Grab
70300
Solids, Total Dissolved — 180 °C
mg/L
3 x Year 2
Grab
00530
Solids, Total Suspended
mg/L
5 10
4 x Year'
Grab
00076
Turbidity, HCH Turbidimeter
NTU
10
Continuous
Recording
1. 4 x Year sampling shall be conducted in March, May, July, and November.
2. 3 x Year sampling shall be conducted in March, July, and November.
3. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 4,120 GPD from May 1 st through October 31 st
4. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 2,750 GPD in April and November.
5. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 1,360 GPD from December V through March 31St
WQ0031396 Version 1.2 Attachment A Page 1 of 1

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ATTACHMENT B — APPROVED DEDICATED LAND APPLICATION SITES
Lake Point Properties on Santeetlah, LLC — Santeetlah Lakeside WWTP
Permit Number: WQ0031396 Version: 1.2
IRRIGATION AREA INFORMATION
APPLICATION LIMITATIONS
Field
Owner
County
Latitude
Longitude
Net
Dominant
Parameter
Hourly
Yearly
Units
Acreage
Soil Series
Rate
Max
1
Lake Point Properties on
Graham
35.365400°
-83.859117°
0.11
Junaluska-Brasstown
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
Complex - JbE
Plant Available Nitrogen — Loading — WQ09
--
152
lbs/acre
2
Lake Point Properties on
Graham
35.365272°
-83.858944°
0.11
Junaluska-Brasstown
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
Complex - JbE
Plant Available Nitrogen — Loading — WQ09
--
152
lbs/acre
3
Lake Point Properties on
Graham
35.365158°
-83.858819°
0.12
Junaluska-Brasstown
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
Complex - JbE
Plant Available Nitrogen — Loading — WQ09
--
152
lbs/acre
4
Lake Point Properties on
Graham
35.365036°
-83.858681°
0.12
Junaluska-Brasstown
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
Complex - JbE
Plant Available Nitrogen — Loading — WQ09
--
152
lbs/acre
Totals
0.46
WQ0031396 Version 1.2 Attachment B Page 1 of 1

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ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS Permit Number: WQ0031396 Version: 1.2
Monitoring Wells: MW-1 and MW-2
GROUNDWATER CHARACTERISTICS
GROUNDWATER STANDARDS
MONITORING REQUIREMENTS
PCS Code
Parameter Description
Daily Maximum
Frequency Measurement
Sample Type
Footnotes
00680
Carbon, Tot Organic (TOC)
mg/L
3 x Year
Grab
1,6
00940
Chloride (as Cl)
250
mg/L
3 x Year
Grab
1
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
3 x Year
Grab
1
00610
Nitrogen, Ammonia Total (as N)
1.5
mg/L
3 x Year
Grab
1
00620
Nitrogen, Nitrate Total (as N)
10
mg/L
3 x Year
Grab
1
00400
pH
6.5-8.5
su
3 x Year
Grab
1,2
00665
Phosphorus, Total (as P)
mg/L
3 x Year
Grab
1
70300
Solids, Total Dissolved - 180 °C
500
mg/L
3 x Year
Grab
1
GWVOC
Volatile Compounds (GW)
Present: Yes/No
Annually
Grab
1, 4, 5
82546
Water Level, Distance from measuring point
feet
3 x Year
Calculated
1, 2, 3
1. 3 x Year monitoring shall be conducted in March, July, and November; Annual monitoring shall be conducted in November.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pH shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. Volatile Organic Compounds (VOC) - In November only, analyze by one of the following methods:
a. Standard Method 6230D, PQL at 0.5 gg/L or less
b. Standard Method 6210D, PQL at 0.5 �tg/L or less
c. EPA Method 8021, Low Concentration, PQL at 0.5 gg/L or less
d. EPA Method 8260, Low Concentration, PQL at 0.5 gg/L or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
Any method used shall meet the following qualifications:
a. A laboratory shall be DWR certified to run any method used.
b. The method used shall include all the constituents listed in Table VIII of Standard Method 6230D.
c. The method used shall provide a PQL of 0.5 �tg/L or less that shall be supported by laboratory proficiency studies as required by the DWR Laboratory Certification Unit. Any constituents
detected above the MDL but below the PQL of 0.5 gg/L shall be qualified (estimated) and reported.
5. If any volatile organic compounds (VOC) are detected as a result of monitoring as provided in Attachment C, then the Asheville Regional Office supervisor, telephone number [phone],
shall be contacted immediately for further instructions regarding any additional follow-up analyses required.
6. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis shall be conducted to identify the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
7. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure 3 and this attachment.
WQ0031396 Version 1.2 Attachment C Page 1 of 1

STATE OF NORTH CAROLINA
COUNTY OF fL-w �-k Permit No. W3l3 9s;
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this Z day
of
N ? o ig , by and between the North Carolina Environmental Management
Commission, an agency of the Swt4 of North Carolina, hereinafter known as the COMMISSION; and
a corporation!general partnership registeredlUcensed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
W ITNESSETI L
I . The DEVELOPFR is the owner of the certain lands lying in (,- County, upon
which it is erecting and A ill erect dwelling units and other improvements, said development to be known
as ` _ - 'A ;c� ,-k-54k k-AtCc-" (hereinafler the Development).
2. The DEVELOPER desires, to construct a wasteNvater collection system with pumps, wastewater treatment
works, and/or disposal facilities (hereinafter Disposal System) to provide sanitary sewage disposal to
serve the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and operate the Disposal System.
4. The DEVELOPER has created or shall create unit ownership in said dwellings units, other improvements
and lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C of the North Carolina General Statutes.
5. The DEVELOPER has caused to be formed or will cause to be formed at the time of filing of the
Declaration, the (Unit Owners' Association) txs s�4, nti,o� �� _ ` (hereinafter
Association), a non-profit corporation organized and existing under and by the virtue of the laws of the
State of North Carolina, for the purpose, among others, of handling the property, affairs and business of
the Development; of operating, maintaining, re -constructing and repairing the common elements of the
lands and improvements subject to unit ownership, including the Disposal System; and of collecting dues
and assessments to provide funds for such operation, maintenance, re -construction and repair.
6. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW. THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVEWPERz shall construct the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the COMMISSION, and shall thereafter properly operate
and maintain such systems and facilities in accordance with applicable permit provisions and law.
2. The DEVELOPER shall not transfer ownership and/or control of the Disposal System to the Association
until construction has been completed in accordance with the permit and approved plans, and the staff of
the Division of Water Resources has inspected and approved of the facilities. In order to change the name
of the permit holder, the DEVELOPER must request that the permit be reissued to the Association. The
request must include a copy of the Association Bylaws and Declar ,
The DEVELOPER shall not transfer, convey, assign or other
for the operation and maintenance of its Disposal System
DEVELOPER's successor.
FORM: DEV 1 1-17
Div
reli (lilt t e eVtEDonsibil
I a perr*0WJ FDWksued to i
2 7 MAR 2019 page 1 112
Nets -Discharge
Unit

4. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System and
appurtenances thereto are part of the common elements and shall thereafter be properly maintained and
operated in conformity with law and the provisions of the permit for construction, operation, repair, and
maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater
treatment, collection and disposal system as a common element, which will receive the highest priority for
expenditures by the Association except for Federal, State, and local taxes and insurance_
5. The .DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System will
be maintained out of the common expenses. In order to assure that there shall be funds readily available
to repair, maintain or construct the Disposal System, beyond the routine operation and maintenance
expenses, the Declaration and Association Bylaws shall provide that a fund be created out of the common
expenses. Such fund shall be separate from the routine maintenance funds allocated for the facility and
shall be part of the yearly budget.
6. In the event the common expense allocation and separate fund are not adequate for the construction.
repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for
special assessments to cover such necessary costs. There shall be no limit on the amount of such
assessments, and the Declaration and Bylaws shall provide that such special assessments can be made as
necessary at any time.
7. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the DEVELOPER shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted. and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary casements as the
governmental unit may require as condition of accepting the Development's wastewater.
8. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the Association to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System, the DEVELOPER shall
provide in the Association Bylaws that the Association shall not enter into voluntary dissolution without
first having transferred its said system and facilities to some person, corporation or other entity acceptable
to and approved by the COMMISSION by the issuance of a permit.
9. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System,
10. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration
is filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of
the Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized.
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR THE ENVIRONMENTAL
MANAGEMENT COMMISSION
12Lmda Culpepper, interim Director
Division of Water Resources
(Date)
Name of DEVELOPER
B•
(Signature)
�3rUt. eA N sx-a 44 A k1KLX-- (L—
Print Name and Title
(Date)
FORM: DEV l 1-17 Page 2.of 2

Figure 1- Site Map
Santeetlah Lakeside WWTP (WQ0031396) SANTEETLAH LAKESIDE LAND USE PLAT
LAKESIDE LODGE CONDO / SEWER EXHIBIT
TSw 2.04.21
(NOTE: SEE SURVEY FOR LEGAL DESCRIPTION)
NATIONAL FC E TRACT 10
4 -K OUTPARCEL FOR FUTURE DEVELOPMENT
Sewer Calculations- Santeetlah Lakeside NOT CONNECTED TO WASTEWATER
s DEATMENT EtANT'"
#Br „ ._L2�1 '� -
#Units@ Hooked
System Capacity Approved Gal/Br # Brs 211r/Unit up Excess Br
. /BK liae K Psc 4ot
Re -Use 4120 IRecreational Amenity F"
29 i�
Assigme°` consists of wooded area y, 14
15-21 14
2425 6 with two walking trails.
Coodos20 10 / o� p�p< 5e
°ndolD e2 _ Area will be kept in a
TotAAssigned/Ertcess
Motel natural state and the I 'BEST \ ore a"pp
�oNrA
",1" i K1O' PC.39T oRf/ ®N >er.Od�(tf) TFlNCF
Assigment 1920 n trails kept clean. The-'"�I�=; PLAT6K2PST „
11
9
sewer irrigation lines i 3
will be off the trails and ' ��_ GRIEF
23 l J `�`zT�"'�� 6K."I p�Cb,4 - I�
Total Assigned/Ewcas 5 1] 10 I -'i�• Nq�i� PL K. G.fi9 0.12 AC.
will not be disturbed. �.c R�
s...EEy We have enough capaciryfor the restofthe proiectbasedon the gallonage on the R�Use System, plus theones The area will be have 1
Basendyconnectedmthe Morel Sy— and theoneswithon ste septic. t ' Ro"Pne�_yroo �"�K'
ed on the ex<ess<apa<ity"a, lablefmmthe Mael Sys rem indicated by the GCH D a n d<alculated on 10 GP D, we would appropriate warning
hav otal of 22 addtional bed ro ms, of which 12 realreadyhooked up, giving us an e.<ess of l0 addl nonal bedmomx The IAPE �d°�®—°N�f�omton*uu5srtn e„o„
above sforcal<Jation puryoses and doesnotind<ate the spe<ih<assi gments of fu[ureunits tothe spe<ifi<system, rl
signs, as required.
Recommend thatwehold B!.reserveassignedforanadoioonalbedmomforea<hoflots 5,and24--Thatwouldstil
leave 2<onnec1ons In reservz j l ekrvu\\
Thisi aworse<asescenano(assumingthe GCHDallowswhatthey promssed), since we onglnally gotall of the units hooked =I r,owro R y \`o�\
uptothe Motel System desig,mtedas 2-3runits. n wry g,lj yq�j '4
r, TRACT 'I 047—H M •� �`oL
SANTEETLAH LAKESIDE
�E E
PO NT ;,WAnSTWiER TREATMENT PLANT RECREATIONAL \ \o �m R�'/T AMENITYNr ,a
_ 99, . (WALKING
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4.26 ACcaHT�TnPoCo DantiElETlnn o
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a J (TAPOCO INC Ins
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J� a INDIVIDUAL RESIDENTIAL (LT0NS' CO
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Figure 2 - Survey Map
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tfl, C y o f;rataa
Filed for tagilkoffi.......
2122 at _ oclae;k �kt and ,.raided n Plat Cabinet .--.....
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_ _ _ - 13rt>p dy rs subfaet fa at1 epplicabo, easements and rights of way of record
- Ttrrs a lrooy was srcparad wall a t bA,,ohI RI SbstraW title; att rnaflons of rift, .--"" ,y
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ROY COOPER
Governor
MICHAEL S. REGAN
secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
March 28, 2019
JACK MINSKI — MANAGING MEMBER
LAKE POINT PROPERTIES ON SANTEETLAH, LLC
1815 GRIFFIN ROAD — SUITE 404
DANIA, FLORIDA 33004
Subject: Permit No. WQ0031396
Santeetlah Lakeside WWTP
Reclaimed Water Generation and
Dedicated Utilization System
Graham County
Dear Mr. Minski:
In accordance with your permit change of ownership request received December 19, 2018, and
subsequent additional information received March 27, 2019, we are forwarding herewith Permit No.
WQ0031396 dated March 28, 2019, to Lake Point Properties on Santeetlah, LLC for the construction only
of the subject reclaimed water generation and dedicated utilization facilities.
The following modifications to the subject permit are as follows: the permittee has changed from
Ibex Thunderbird, LLC to Lake Point Properties on Santeetlah, LLC.
This permit shall be effective from the date of issuance through July 31, 2024, shall void Permit
No. WQ0031396 issued May 15, 2007, and shall be subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than February 2, 2024.
Please pay attention to the monitoring requirements listed Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
If any parts, requirements, or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Otherwise, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Tessa Monday at (919)
707-3660 or
Sincerely,
;Inda Culpepper, Director
Division of Water Resources
,,_ North Carolina Department of Environmental Quality I Division of Water Resources
D E Q��/n 512 North Salisbury Street 6 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
NQRTH WOW
N� 919.707.9000

Mr. Jack Minski
March 28, 2019
Page 2 of 2
cc: Graham County Health Department (Electronic Copy)
Asheville Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RECLAIMED WATER GENERATION AND DEDICATED UTILIZATION SYSTEM PERMIT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as
amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Lake Point Properties on Santeetlah, LLC
Graham County
FOR THE
construction only of a 4,120 gallon per day (GPD) reclaimed water generation and dedicated utilization
facility consisting of:
an influent flow measuring device; a 5,000 gallon baffled. septic tank with an effluent filter; a 3,750 gallon
flow equalization tank with two submersible pumps rated at 30 gallons per minute (GPM), and
audible/visual high-water alarms; a Bioclere Unit Model # 24/20 with a 1,847 gallon lst stage and 2,377
gallon 2nd stage trickling filter, and four submersible dosing pumps rated at 10 GPM; a Bioclere unit Model
# 24/24 with a 1,600 gallon clarifier, and two submersible sludge return pumps rated at 35 GPM; a sand
filter feed tank with two centrifugal self -priming feed pumps rated at 15.7 GPM and audible/visual high-
water alarms; two automatic backwash sand filters; a filter backwash tank with two centrifugal self -priming
backwash pumps rated at 48 GPM; a chemical feed tank with a pump for pH adjustment and'/4 horsepower
(hp) mixer; four ultraviolet (UV) disinfection banks each with two lamps and rated for 40 GPM; a
turbidimeter; a standby generator; an effluent flow measuring device; four 15,000 gallon interconnected
storage tanks; a 3,490 gallon dosing tank with two submersible turbine pumps and audible/visual high-
water alarms; two 10,300 gallon interconnected tanks providing five day upset storage with a submersible
20 GPM return pump; a 0.46 acre drip irrigation area with four fields; and all associated piping, valves,
controls, and appurtenances
to serve the Santeetlah Lakeside WWTP consisting of 26 bedrooms on 13 residential lots, a private
bathhouse restroom, and a 1,500 square foot (ft2) food stand, with no discharge of wastes to surface waters,
pursuant to the application received December 19, 2018, subsequent additional information received March
27, 2019, and in conformity with the Division -approved plans and specifications considered a part of this
permit.
This permit shall be effective from the date of issuance through July 31, 2024, shall void Permit No.
WQ0031396 issued May 15, 2007, and shall be subject to the following conditions and limitations:
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I. SCHEDULES
1. Prior to the Division permitting operation of the subject facilities, the Permittee shall submit a plat map
that has been recorded in the Graham County Register of Deeds. The plat map shall delineate the exact
location of the recreational amenity, and note the recreational amenity as the responsibility of the
Homeowners Association (HOA). [15A NCAC 02T .0108(b)(1)(B)]
2. Prior to the Division permitting operation of the subject facilities, the Declaration of Covenants,
Bylaws, etc. shall be amended to include information about the proposed recreational amenity. This
information shall include the residential owners financial responsibilities to upkeep and maintain the
recreational amenity through the contracted landscaping company. In addition, a budget shall be
provided showing how much each residential owner must annually pay to maintain the recreational
amenity. The aforementioned documents shall be submitted to the Division along with a minor permit
modification application requesting to operate the subject reclaimed water generation and dedicated
utilization facility. These documents shall also be in compliance with Condition H.6. and the attached
Operational Agreement. [15A NCAC 02T .0 1 08(b)(1)(B)]
Upon completion of construction and prior to operation of the permitted facility, the Permittee shall
submit an engineering certification from a North Carolina licensed Professional Engineer certifying
that the permitted facility has been constructed in accordance with G.S. 143-215.1, Administrative
Code Title 15A Subchapter 02U, this permit, and the Division -approved plans and specifications. For
phased and partially certified facilities, the Permittee shall retain the responsibility to track further
construction approved under this _permit and shall provide a final engineering certification upon project
completion. Mail the Engineering Certification to the Division of Water Resources, Non -Discharge
Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617, or Non-Discharge.Reports(a�ncdenr.gov.
[15A NCAC 02T .0116(a)]
4. The Permittee shall notify the Asheville Regional Office, telephone number [phone], at least
two business days in advance of initial operation of the constructed facilities so that the Division can
conduct a startup inspection. [15A NCAC 02T .4108(b)(1)(B)]
5. The Asheville Regional Office, telephone number [phone], shall approve monitoring wells
MW-1 and MW-2 prior to installation, and the monitoring wells shall be installed prior to beginning
waste disposal operations. The Asheville Regional Office shall be notified at least two business days
in advance of construction of any monitoring well. The monitoring wells shall be constructed such
that the water level in the well is never above or below the screened portion of the well, and in
accordance with 15A NCAC 02C .0108. The general location and Division -approved name for each
monitoring well is on Figure 1. [15A NCAC 02C .0108, 02T .0108(b)(1)(B)]
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6. Within 90 days of completing installation of monitoring wells MW-1 and MW-2, the Permittee shall
submit two original copies and one digital copy of a site map with a scale no greater than 1-inch equals
100 feet; however, special provisions may be granted upon prior approval for large properties. The
map shall include the following information:
a. Legend, north arrow, scale, and legible in black and white.
b. Topographic contour intervals not exceeding 10 feet or 25 percent of total site relief.
c. All habitable residences or places of assembly within 500 feet of the irrigation area.
d. 'Location of all wells, streams (ephemeral, intermittent, and perennial), springs, lakes, ponds,
ditches, and other surface drainage features within 500 feet of the irrigation area.
e. Location and identification of each monitoring well (identify any background/upgradient wells).
f. Latitude and longitude coordinates of each monitoring wells (decimal degrees to the sixth decimal
degree and in NAD83).
g. Location and identification of major components of the waste disposal system.
h. The perimeter of all irrigation areas with field names (named according to the approved permit)
i. Location and ownership of property boundaries within 500 feet of the irrigation area (including
road/rail right-of-ways and easements).
j. Latitude and longitude ofthe established horizontal control monument (decimal degrees to the sixth
decimal degree).
k. Elevation of the top of the well casing (i.e., measuring point) relative to a common datum.
1. Depth of water below the measuring point at the time the measuring point is established.
m. Delineation of the compliance and review boundaries.
n. Distance measurements verifying all setbacks are being met.
o. Stormwater drainage controls.
p. 100-year floodplain.
q. The date the map is prepared and/or revised.
Boundaries and physical features not under purview of other licensed professions shall be provided by
a Professional Surveyor. Control monuments shall be installed in such a manner and made of such
materials that the monument will not be destroyed due to activities taking place on the property. The
map and any supporting documentation shall be sent to the Division of Water Resources, Non -
Discharge Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617, or
DischarLze.Rehorts �lincdenr.L,,ov. [15A NCAC 02C .0105(f), 02T .0108(b)(1)(B)]
7. Within 30 days of construction, a Well Construction Record (Form GW-I) listing this permit number
and the appropriate monitoring well identification number shall be completed for each well constructed,
and mailed to the Division of Water Resources, Non -Discharge Branch, 1617 Mail Service Center,
Raleigh, NC 27699-1617, or Non-DischarLe.Reports_�incdenr._,,ov. A North Carolina Certified Well
Contractor shall construct the monitoring wells according to the North Carolina Well Construction
Standards (15A NCAC 02C .0113) and local county rules. [15A NCAC 02C .0113, 02T
.0108(b)(1)(B)]
8. The Permittee shall request renewal of this permit on Division -approved forms no later than February
2, 2024. [15A NCAC 02T .0105(b), 02T .0109]
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H. PERFORMANCE STANDARDS
1. The Permittee shall maintain and operate the subject reclaimed water facilities so there is no discharge
to surface waters, nor any contravention of groundwater or surface water standards. In the event the
facilities fail to perform satisfactorily, including the creation of nuisance conditions due to improper
operation and maintenance, the Permittee shall take immediate corrective actions, including Division
required actions, such as the construction of additional or replacement reclaimed water generation and
utilization facilities. [15A NCAC 02T .0108(b)(1)(A)]
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [ 15A NCAC 02T .0108(b)(1)(A)]
3. Groundwater monitoring wells shall be constructed in accordance with 15A NCAC 02C .0108
(Standards of Construction for Wells Other than Water Supply), and any other jurisdictional laws and
regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent limitations for generated reclaimed water shall not exceed those specified in Attachment A.
[15A NCAC 02U .0301]
5. Application rates shall not exceed those specified in Attachment B. [15A NCAC 02U .0401(g)]
6. The attached Operational Agreement shall be a condition of this permit. Noncompliance with the terms
of the Operational Agreement shall subject the Permittee to all sanctions under G.S. 143-215.6A, G.S.
143-215.613, and G.S. 143-215.6C for violation of or failure to act in accordance with the terms and
conditions of this permit. [15A NCAC 02T .0115]
7. All reclaimed water valves, storage facilities, and outlets shall be tagged or labeled to warn the public
or employees that the water is not intended for drinking. [15A NCAC 02U .0403(b)]
8. All reclaimed water piping, valves, outlets, and other appurtenances shall be color -coded, taped, or
otherwise marked to identify the source of the water as being reclaimed water as follows:
a. All reclaimed water piping and appurtenances shall be either colored purple (Pantone 522 or
equivalent) and embossed or integrally stamped or marked "CAUTION: RECLAIMED WATER -
DO NOT DRINK" or be installed with a purple (Pantone 522 or equivalent) identification tape or
polyethylene vinyl wrap. The warning shall be stamped on opposite sides of the pipe and repeated
every three feet or less;
b. Identification tape shall be at least three inches wide and have white or black lettering on purple
(Pantone 522 or equivalent) field stating "CAUTION: RECLAIMED WATER - DO NOT
DRINK". Identification tape shall be installed on top of reclaimed water pipelines, fastened at least
every 10 feet to each pipe length and run continuously the entire length of the pipe; and
c. Existing underground distribution systems retrofitted for the purpose of conveying reclaimed water
shall be taped or otherwise identified as noted IV.5.a. and IV.5.b. This identification need not
extend the entire length of the distribution system but shall be incorporated within 10 feet of
crossing any potable water supply line or sanitary sewer line.
[ 15A NCAC 02U .0403 (c)]
9. All reclaimed water valves and outlets shall be of a type, or secured in a manner, that permits operation
by personnel authorized by the entity that operates the reclaimed water system. [15A NCAC 02U
.0403(d)]
10. Hose bibs shall be located in locked, below grade vaults that shall be labeled as being of non -potable
quality. As an alternative to the use of locked vaults with standard hose bib services, other locking
mechanisms such as hose bibs that can only be operated by a tool may be placed above ground and
labeled as non -potable water. [15A NCAC 02U .0403(e)]
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11. There shall be no direct cross -connections between the reclaimed water and potable water systems,
unless such connection has been approved by the Department pursuant to 15A NCAC 18C .0406. [15A
NCAC 02U .0403(f)]
12. Reclaimed water distribution lines shall be located at least 5 feet horizontally from and 18 inches below
any water line if practicable. If these separation distances cannot be met, the piping and integrity testing
procedures shall meet water main standards in accordance with 15A NCAC 18C. [15A NCAC 02U
.0403 (g), 02U .0403 (h)]
13. Reclaimed water distribution lines shall not be less than 50 feet from a well unless the piping and
integrity testing procedures meet water main standards in accordance with 15A NCAC 18C, but in no
case shall they be less than 25 feet from a private well. [15A NCAC 02U .0403(g), 02U .0403(i)]
14. Reclaimed water distribution lines shall meet the separation distances to sewer lines in accordance with
15A NCAC 02T .0305. [15A NCAC 02U .0403(g), 02U .04030)]
15. Reclaimed water irrigation fields permitted on or after September 1, 2006 have compliance and review
boundaries established at the irrigation area boundaries. Any exceedance of groundwater standards at
or beyond the compliance boundary shall require corrective action. Division -approved relocation of
the compliance boundary shall be noted in Attachment B. Multiple contiguous properties under
common ownership and permitted for use as a disposal system shall be treated as a single property with
regard to determination of a compliance boundary. [15A NCAC 02L .0106, 02T .0105(h), 02U
.0501(a)(6), G.S. 143-215.1(i), G.S. 143-215.1(k)]
16. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
17. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107]
18. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the Graham
County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[ 15A NCAC 02L .0107(f)]
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19. The facilities herein were permitted per the following setbacks:
a. The reclaimed water irrigation sites were originally permitted May 15, 2007. The setbacks for drip
irrigation sites originally permitted or modified from September 1, 2006 to June 17, 2011 are as
follows (all distances in feet):
i. Surface waters classified SA: 100
ii. Surface waters not classified SA: 25
iii. Each well with exception of monitoring wells: 100
[15A NCAC 02T .0912(b)]
b. The storage and treatment units were originally permitted May 15, 2007. The setbacks for storage
and treatment units originally permitted or modified from September 1, 2006 to June 17, 2011 are
as follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 100,
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50 2
1 Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[I 5A NCAC 02T .0912(a)]
M. OPERATION AND MAINTENANCE REUUIREM ENTS
1. The Permittee shall operate and maintain the subject facilities as a non -discharge system. [15A NCAC
02U .0101]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include:
a. A description of the operation of the system in detail to show what operations are necessary for the
system to function and by whom the operations are to be conducted;
b. A description of anticipated maintenance of the system;
c. Provisions for safety measures, including restriction of access to the site and equipment; and
d. Spill control provisions that include response to upsets and bypasses, including control,
containment, and remediation, and contact information for personnel, emergency responders, and
regulatory agencies;
[15A NCAC 02U .0801(a)]
3. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, the Permittee shall designate and employ a certified
operator in responsible charge (ORC), and one or more certified operators as back-up ORCs. The ORC
or their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
4. An operator certified by the Water Pollution Control System Operators Certification Commission
(WPCSOCC) of a grade equivalent or greater than the facility classification shall be on call 24 hours
per day. [15A NCAC 02U .0401(e)]
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5. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal,
allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02U
.0801(b)]
6. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation sites
listed in Attachment B. [15A NCAC 02U .0801(c)]
7. The Permittee shall not irrigate treated effluent during inclement weather, or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02U .0401(k)]
8. The reclaimed water utilization system shall be connected to a rain or moisture sensor that shall indicate
when reclaimed water application is not appropriate in accordance with Conditions II1.6. and 111.7.
9. Irrigation equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02U .0801(d)]
10. Only reclaimed water generated from the Santeetlah Lakeside WWTP shall be irrigated on the sites
listed in Attachment B. [15A NCAC 02U .0101]
11. The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [ 15A NCAC 02U .0801(e)]
12. The Permittee shall prohibit public access to the wastewater treatment and storage facilities. [15A
NCAC 02U .0402(e)]
13. Public access to reclaimed water utilization sites shall be controlled during active site use. Such
controls may include the posting of signs showing the activities being conducted at each site. [15A
NCAC 02U .0501(a)(2)]
14. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [15A NCAC
02T .1100, 02U .0802].
15. The Permittee shall not divert or bypass untreated or partially treated reclaimed water from the subject
facilities. [15A NCAC 02U .0402(g)]
16. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [ 15A NCAC 02U .0801(g)]
17. Metering equipment shall be tested and calibrated annually. [15A NCAC 02U .0801(d)]
18. An automatically activated standby power source capable of powering all essential treatment units shall
be on site and operational at all times. If a generator is employed as an alternate power supply, it shall
be tested weekly by interrupting the primary power source. [15A NCAC 02U .0401(d)]
19. If turbidity exceeds 10 NTUs or if the permitted pathogen levels cannot be met, all effluent shall be
routed to the five day upset storage tanks until the problems associated with the reclaimed water
generation system have been corrected. The water in the five day upset storage tanks shall be pumped
back to the treatment plant headworks for re -treatment or treated in the five day upset storage tanks
prior to utilization. [15A NCAC 02U .0402(d)]
20. The Permittee shall provide notification to the public and its employees about the use of reclaimed
water, and that reclaimed water is not intended for drinking. Such notification shall be provided to
employees in a language they can understand. [15A NCAC 02U .0501(a)(2)]
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21. The Permittee shall develop and implement an education program to inform users and its employees
about the proper use of reclaimed water. Educational material shall be provided to all residents and/or
other facilities provided with reclaimed water, and these materials shall be maintained consistent with
the reclaimed water uses. All educational materials shall be made available to the Division upon
request. [15A NCAC 02U .0541(a)(4)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. The Permittee shall conduct and report any Division required monitoring necessary to evaluate this
facility's impact on groundwater and surface water. [15A NCAC 02T .0108(c)]
2. A Division -certified laboratory shall conduct all analyses for the required effluent, groundwater, and
surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
4. The Permittee shall monitor the generated reclaimed water at the frequencies and locations for the
parameters specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain records tracking the amount of reclaimed water irrigated. These records
shall include the following information for each irrigation site listed in Attachment B:
a. Date of irrigation;
b. Volume of reclaimed water irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B;
g. Weather conditions; and
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. Three copies of all monitoring data (as specified in Conditions IV.3. and IVA.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Condition IV.5.) on
Form NDAR-1 for every site in Attachment B shall be submitted on or before the last day of the
following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(1)]
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7. The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. This record shall
include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02U .0802(b)]
8. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of irrigation equipment calibration;
c. Date of turbidimeter calibration;
d. Date and results of power interruption testing on alternate power supply;
e. Visual observations of the plant and plant site; and
f. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.); and
g. Record of all discharges of reclaimed water to surface waters or the land surface, including the date
of occurrence, estimated volume, and corrective action taken.
[15A NCAC 02U .0801(h)]
9. Monitoring wells MW-1 and MW-2 shall be sampled after construction, and within three months prior
to initiating reclaimed water utilization operations. Monitoring wells MW-1 and MW-2 shall be
sampled thereafter at the frequencies and for the parameters specified in Attachment C. All manning,
well construction forms, well abandonment forms, and monitoring data shall refer to the permit number
and the well nomenclature as provided in Attachment C and Figure 1. [15A NCAC 02T .0105(m)]
10. For initial sampling of monitoring wells MW-1 and MW-2, the Permittee shall submit a Compliance
Monitoring Form (GW-59) and a Well Construction Record Form (GW-1) listing this permit number
and the appropriate monitoring well identification number. Initial Compliance Monitoring Forms
(GW-59) without copies of the Well Construction Record Forms (GW-1) are deemed incomplete, and
maybe returned to the Permittee without being processed. [15A NCAC 02T .0105(m)]
11. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[ 15A NCAC 02T .0105(m)]
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12. Noncompliance Notification:
The Permittee shall report to the Asheville Regional Office, telephone number [phone], within
24 hours of first knowledge of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.) rendering the facility incapable of
adequate wastewater treatment.
c. Any failure resulting in a discharge untreated or partially treated wastewater to surface waters.
d. Any failure resulting in a discharge of reclaimed water directly to surface waters or any unpermitted
release of reclaimed water to land surface greater than or equal to 5,000 gallons. Unpermitted
releases less than 5,000 gallons to land surface shall be documented by the Permittee in accordance
with Condition IV.8.g. but do not require Regional Office notification.
e. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
f. Ponding in or runoff from the irrigation sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Asheville Regional Office within five days
of first knowledge of the occurrence, and this report shall outline the actions proposed or taken to ensure
the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the reclaimed
water generation and utilization facilities. [15A NCAC 02U .0801(i)] .
2. The Permittee shall inspect the reclaimed water generation and utilization facilities to prevent
malfunctions, facility deterioration, and operator errors that may result in discharges of wastes to the
environment, threats to human health, or public nuisances. The Permittee shall maintain an inspection
log that includes the date and time of inspection, observations made, and maintenance, repairs, or
corrective actions taken. The Permittee shall maintain this inspection log for a period of five years
from the date of the inspection, and this log shall be made available to the Division upon request. [ 15A
NCAC 02U .0801(h), 02U .0801(i)]
Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the reclaimed water generation and utilization facilities permitted
herein at any reasonable time for determining compliance with this permit. Division authorized
representatives may inspect or copy records maintained under the terms and conditions of this permit,
and may collect groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)]
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VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of this permit does not exempt the Permittee from complying with all statutes, rules,
regulations, or ordinances that other jurisdictional government agencies (e.g., local, state, and federal)
may require. [15A NCAC 02T .0105(c)(6)]
5. If the permitted facilities change ownership, or the Permittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(0)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
8. This permit is subject to revocation or modification upon 60-day notice from the Division Director, in
whole or part for:
a. violation of any terms or conditions of this permit or Administrative Code Title 15A Subchapter
02U;
b. obtaining a permit by misrepresentation or failure to disclose all relevant facts;
c. the Permittee's refusal to allow authorized Department employees upon presentation of credentials:
i. to enter the Permittee's premises where a system is located or where any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
WQ0031396 Version 1.1 Shell Version 190313 Page 11 of 13

9. Unless the Division Director grants a variance, expansion of the facilities permitted herein shall not
occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.613, or under Federal law that would otherwise be
prosecuted under G.S. 143-215.6B, and all appeals of this conviction have been abandoned or
exhausted.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee.
[15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[ 15A NCAC 02T .0120(c)]
Permit issued this the 28'h day of March 2019
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
;Linda Culpepper, Director
0 Division of Water Resources (3
By Authority of the Environmental Management Commission
Permit Number WQ0031396
WQ0031396 Version 1.1 Shell Version 190313 Page 12 of 13

Permit No. WQ0031396 Reclaimed Water Generation and Dedicated Utilization System
Lake Point Properties on Santeetlah, LLC March 28, 2019
Santeetlah Lakeside WWTP Graham County
ENGINEERING CERTIFICATION
❑ Partial ❑ Final
I, , as a duly licensed North Carolina Professional
Engineer, having ❑ periodically / ❑ fully observed the construction of the permitted facilities, do hereby
state to the best of my abilities that the facility was constructed in compliance with G.S. 143-215.1,
Administrative Code Title 15A Subchapter 02U, this permit, and the Division -approved plans and
specifications.
Documentation of any variation to this permit, and the Division -approved plans and specifications, is in the
attached as -built drawings.
Description of variations:
Professional Engineer's Name
Firm Name I Firm No.
Address
City I State I Zip Code
Telephone
Email
Seal, Signature, and Date
THE COMPLETED ENGINEERING CERTIFICATION, INCLUDING ALL SUPPORTING
DOCUMENTATION, SHALL BE SENT TO THE FOLLOWING ADDRESS:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER RESOURCES
NON -DISCHARGE BRANCH
BN- U.S. Postal Service By Courier/Special Deliver.
1617 MAIL SERVICE CENTER 512 N. SALISBURY ST.
RALEIGH, NORTH CAROLINA 27699-1617 RALEIGH, NORTH CAROLINA 27604
WQ0031396 Version 1.1 Shell Version 190313 Page 13 of 13

THIS PAGE BLANK

ATTACHMENT A — LIMITATIONS AND MONITORING REQUIREMENTS
PPI 001— Reclaimed Water Generation System Effluent
Permit Number: WQ0031396 Version: 1.1
EFFLUENT CHARACTERISTICS
EFFLUENT LIMITS
MONITORING REQUIREMENTS
PCS
Code
Parameter Description
Units of
Measure
Monthly
Average
Monthly
Geometric Mean
Daily Minimum
Daily Maximum
Measurement
Frequency
Sample
Type
00310
BOD, 5-Day (20 °C)
mg/L
10
15
4 x Year'
Composite
00940
Chloride (as Cl)
mg/L
3 x Year 2
Composite
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
#/100 mL
14
25
4 x Year'
Continuous
4 x Year
Composite
50050
Flow, in Conduit or thru Treatment Plant
GPD
4,1203
2,7404
1,3605
Recording
00610
Nitrogen, Ammonia Total (as N)
mg/L
4
6
Composite
Composite
00625
Nitrogen, Kjeldahl, Total (as N)
mg/L
4 x Year
00620
Nitrogen, Nitrate Total (as N)
mg/L
4 x Year
Composite
00600
Nitrogen, Total (as N)
mg/L
4 x Year
Composite
00400
pH
su
Weekly 3
Grab
00665
Phosphorus, Total (as P)
mg/L
4 x Year
Composite
70300
Solids, Total Dissolved —180 °C
mg/L
3 x Year
Composite
00530
Solids, Total Suspended
mg/L
5
10
4 x Year
Composite
00076
Turbidity, HCH Turbidimeter
NTU
10
Continuous
Recording
1. 4 x Year sampling shall be conducted in March, May, July, and November.
2. 3 x Year sampling shall be conducted in March, July, and November.
3. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 4,120 GPD from May 151 through October 31 It.
4. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 2,750 GPD in April and November
5. Due to the seasonal nutrient uptake variation of the irrigation field vegetation, the monthly average flow limitation is 1,360 GPD from December 1 It through March 3131.
WQ0031396 Version 1.1 Attachment A Page 1 of 1

THIS PAGE BLANK

ATTACHMENT B — APPROVED DEDICATED LAND APPLICATION SITES
Lake Point Properties on Santeetlah, LLC — Santeetlah Lakeside WWTP
Permit Number: WQ0031396 Version: 1.1
IRRIGATION AREA INFORMATION APPLICATION LIMITATIONS
Field
Owner
County
Latitude
Longitude
Net
Dominant
Parameter
Hourly
Yearly
Units
Acreage
Soil Series
Rate
Max
1
Lake Point Properties on
Graham
35.3650
-83.85890
0.11
JbE
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
WQ09 — Plant Available Nitrogen
152
lbs/ac
2
Lake Point Properties on
Graham
35.365°
-83.8589°
0.11
JbE
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
WQ09 — Plant Available Nitrogen
152
lbs/ac
3
Lake Point Properties on
Graham
35.3650
-83.85890
0.12
JbE
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
WQ09 — Plant Available Nitrogen
152
lbs/ac
4
Lake Point Properties on
Graham
35.3650
-83.85890
0.12
JbE
01284 — Non -Discharge Application Rate
0.12
88.57
inches
Santeetlah, LLC
WQ09 — Plant Available Nitrogen
152
lbs/ac
Totals
0.46
WQ0031396 Version 1.1 Attachment B Page 1 of 1

THIS PAGE BLANK

ATTACHMENT C — GROUNDWATER MONITORING AND LIMITATIONS Permit Number: WQ0031396 Version: 1.1
Monitoring Wells: MW-1 and MW-2
GROUNDWATER CHARACTERISTICS
PCS Code
Parameter Description
00680
Carbon, Tot Organic (TOC)
00940
Chloride (as Cl)
31616
Coliform, Fecal MF, M-FC Broth, 44.5 °C
00610
Nitrogen, Ammonia Total (as N)
00620
Nitrogen, Nitrate Total (as N)
00400
pH
00665
Phosphorus, Total (as P)
70300
Solids, Total Dissolved - 180 °C
GWVOC
Volatile Compounds (GW)
82546
Water Level, Distance from measuring point
GROUNDWATER STANDARDS
Daily Maximum
MONITORING REQUIREMENTS
Frequency Measurement
mg/L
3 x Year
250
mg/L
3 x Year
#/100 mL
3 x Year
1.5
mg/L
3 x Year
10
mg/L
3 x Year
6.5-8.5
su
3 x Year
mg/L
3 x Year
500
mg/L
3 x Year
Present: Yes/No
Annually
feet
3 x Year
Sample Type
Grab
Grab
Grab
Grab
Grab
Grab
Grab
Grab
Grab
Calculated
Footnotes
1,6
1
1
1
1
1,2
1
1
1,4,5
1,2,3
1. 3 x Year monitoring shall be conducted in March, July, and November; Annual monitoring shall be conducted in November.
2. The measurement of water levels shall be made prior to purging the wells. The depth to water in each well shall be measured from the surveyed point on the top of the casing. The measurement of
pH shall be made after purging and prior to sampling for the remaining parameters.
3. The measuring points (top of well casing) of all monitoring wells shall be surveyed to provide the relative elevation of the measuring point for each monitoring well. The measuring points (top of
casing) of all monitoring wells shall be surveyed relative to a common datum.
4. Volatile Organic Compounds (VOC) - In November only, analyze by one of the following methods:
a. Standard Method 6230D, PQL at 0.5 µg/L or less
b. Standard Method 621 OD, PQL at 0.5 µg/L or less
c. EPA Method 8021, Low Concentration, PQL at 0.5 µg/L or less
d. EPA Method 8260, Low Concentration, PQL at 0.5 µg/L or less
e. Another method with prior approval by the Water Quality Permitting Section Chief
Any method used shall meet the following qualifications:
a. A laboratory shall be DWR certified to run any method used.
b. The method used shall include all the constituents listed in Table VIII of Standard Method 6230D.
c. The method used shall provide a PQL of 0.5 µg/L or less that shall be supported by laboratory proficiency studies as required by the DWR Laboratory Certification Unit. Any constituents
detected above the MDL but below the PQL of 0.5 µg/L shall be qualified (estimated) and reported.
5. If any volatile organic compounds (VOC) are detected as a result of monitoring as provided in Attachment C, then the Asheville Regional Office supervisor, telephone number (828) 2964500,
shall be contacted immediately for further instructions regarding any additional follow-up analyses required.
6. If TOC concentrations greater than 10 mg/L are detected in any downgradient monitoring well, additional sampling and analysis shall be conducted to identify the individual constituents comprising
this TOC concentration. If the TOC concentration as measured in the background monitor well exceeds 10 mg/L, this concentration will be taken to represent the naturally occurring TOC
concentration. Any exceedances of this naturally occurring TOC concentration in the downgradient wells shall be subject to the additional sampling and analysis as described above.
7. Monitoring wells shall be reported consistent with the nomenclature and location information provided in Figure I and this attachment.
WQ0031396 Version 1.1 Attachment C Page 1 of 1

Fj4 my I
WQ0031396 Version 1.1 Figure 1 Page 1 of 1

STATE OF NORTH C.AROLINA
COUNTY OF — _.._._
of
Permit No. 4 -) a 003/3 96
OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dl) and entered into this Z I``-1 day
N r�x-c-k-k
Z o 1Q+ , by and between the North Carolina Environmental Management
Commission, an agency of the Stet of North Carolina, hereinafter known as the COMMISSION; and
Z. ?r) _ . a corporatio.n!gcncrdl partnershili registered'Hccnsed to do
business in the State of North Carolina, hereinafter known as the DEVELOPER.
W 1TNESSETI L
I . The DEVELOPER is the owner of the certain lands lying in (,, County, upon
which it is erecting and a ill erect dwelling units and other improvements, said development to be known
as ` _ ra+� ; t , �-�►�� �-Av Es.r (hereinafler the Development).
2. 'rhe DEVELOPER desires, to construct a wastewater collection system with pumps, wastewater treatment
works, and/or disposal facilities (hereinafter Disposal System) to provide sanitary sewage disposal to
serve the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and operate the Disposal System.
4. The DEVELOPER has created or shall create unit ownership in said dwellings units, other improvements
and lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter
47C of the North Carolina General Statutes.
5. The DEVELOPER has caused to be formed or will cause to be formed at the time of filing of the
Declaration, the S Unit Owners' Associations (hereinafter
Association), a non-profit corporation organized and existing under and by the virtue of the laws of the
State of North Carolina, for the purpose, among others, of handling the property, affairs and business of
the Development; of operating, maintaining, re -constructing and repairing the common elements of the
lands and improvements subject to unit ownership, including the Disposal System; and of collecting dues
and assessments to provide funds for such operation, maintenance, re -construction and repair.
6. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW. THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVELOPER shall construct the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the COMMISSION, and shall thereafter properly operate
and maintain such systems and facilities in accordance with applicable permit provisions and law.
2. The DEVELOPER shall not transfer ownership and/or control of the Disposal System to the Association
until construction has been completed in accordance with the permit and approved plans, and the staff of
the Division of Water Resources has inspected and approved of the facilities. In order to change the name
of the permit holder, the DEVELOPER must request that the permit be reissued to the Association. The
request must include a copy of the Association Bylaws and Declar
3. The DEVELOPER shall not transfer. convey, assign or othemrise relingtf e e JeVt.Fye�,onsibil ty
for the operation and maintenance of its Disposal System un I a pertxigo W ued to ie
DEVELOPER's successor.
FORM: DEV 11-17 1 2 7 MAR 2019 Page t 42
Non -Discharge
Unit

4. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System and
appurtenances thereto are part of the common elements and shall thereafter be properly maintained and
operated in conformity with law and the provisions of the permit for construction, operation, repair, and
maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater
treatment, collection and disposal system as a common element, which will receive the highest priority for
expenditures by the Association except for Federal, State, and local taxes and insuranc-,_
5. The DEVELOPER shall provide in the Declaration and Association Bylaws that the Disposal System will
be maintained out of the common expenses. In order to assure that there shall be funds readily available
to repair, maintain or construct the Disposal System, beyond the routine operation and maintenance
expenses, the Declaration and Association Bylaws shall provide that a fund be created out of the common
expenses. Such fund shall be separate from the routine maintenance funds allocated for the facility and
shall be part of the yearly budget.
f. In the event the common expense allocation and separate fund are not adequate for the construction,
repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for
special assessments to cover such necessary costs. There shall be no limit on the amount of such
assessments, and the Declaration and Bylaws shall provide that such special assessments can be made as
necessary at any time.
7. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the DEVELOPER shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted. and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary casements as the
governmental unit may require as condition of accepting the Development's wastewater.
8. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the Association to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System, the DEVELOPER shall
provide in the Association Bylaws that the Association shall not enter into voluntary dissolution without
first having transferred its said system and facilities to some person, corporation or other entity acceptable
to and approved by the COMMISSION by the issuance of a permit.
9. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System,
10. A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration
is filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of
the Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by each of the parties named below:
FOR THE ENVIRONMENTAL
MANAGEMENT COMMISSION
12Lmda Culpepper, interim Director
Division of Water Resources
; � 4:1117
(Date)
Name of DEVELOPER
BY-L
(Signature)
Print Name and Title
(Date)
�3I21�r5
FORM: DEV 11-17 No 2.ef2

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
Jack Minski, Managing Member
Lake Point Properties on Santeetlah LLC
1815 Griffin Road, Suite 404
Dania, FL 33004
NORTH CAROLINA
Environmental Quality
December 31, 2019
Subject: Santeetlah Lakeside WWTP (WQ0031396)
Residential Flow Reduction Approval
Graham County
Dear Mr. Minski:
On September 4, 2019, the Division of Water Resources (Division) received a request for an adjusted
daily sewage flow rate (flow reduction) that would apply to all permitted but not yet tributary
residential connections and all future residential connections within the Santeetlah Lakeside WWTP
(WQ0031396) service area.
In accordance with 15A NCAC 02T .0114(f)(2), the Division has evaluated the request, and based on the
data submitted and the Division of Water and Infrastructure (DWI) guidance, the Division hereby
approves for use by Lake Point Properties on Santeetlah LLC an adjusted daily sewage design flow rate
for residential connections tributary to the Santeetlah Lakeside WWTP with the following conditions:
• The flow reduction is applicable to residential single family dwellings only.
• The minimum flow for 1 and 2 bedroom dwellings shall be 140 gallons per day.
• Each additional bedroom above two bedrooms shall increase the volume by 70 gallons per day
per bedroom.
• This flow reduction shall not apply to sewer extension applications and/or permits for any other
public or private organizations whose wastewater flows are or might become tributary to the
Santeetlah Lakeside WWTP collection system.
Future sewer extension applications should be made using the flow reduction amount stated above. All
other aspects of the permitting process remain unchanged, and all applications must be in compliance
with the statues, rules, regulations and minimum design criteria as certified by the owner and engineer.
Rep,ardless of the adiusted design daily wastewater flow rate, at no time shall the wastewater flows
exceed the effluent limits defined in the permit for the treatment facility or exceed the capacity of the
sewers downstream of any new sewer extension or service connection(s).
.�_ North Carolina Department of Environmental Quality I Division of Water Resources
z�D- 1E �JJrj 512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
41a+a� r i 919.707.9000

Lake Point Properties on Santeetlah LLC
Santeetlah Lakeside WWTP (WQ0031396)
The granting of this flow reduction does not prohibit the Division from reopening, revoking, reissuing
and/or modifying the flow reduction as allowed by the laws, rules, and regulations contained in 15A
NCAC 02T, NCGS 143-215.1, or as needed to address changes in State and/or Federal regulations with
respect to wastewater collection systems, protection of surface waters and/or wastewater treatment.
If you have any questions, please contact Christyn Fertenbaugh, P.E., at [phone], or via email at
Christen. Fertenbaugh @ncden r.gov.
Sincerely,
for Linda Culpepper
Director, Division of Water Resources
by Christyn L. Fertenbaugh, P.E.
Pretreatment, Emergency Response and Collection Systems Branch
Cc: Mike Dowd, P.E., McGill Associates ( [e-mail])
Nathaniel Thornburg, Non -Discharge Branch([e-mail])
Asheville Regional Office, Water Quality Regional Operations
Water Quality Permit Files: WQ0031396
PERCS (electronic copy)
Page 2 of 8

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Legend Lake Santeetlah
* Iron or Monument Found or Set
* Calculated Point (Nothing Found or Set)
0 Power Pole or Telephone Pole
m Water Valve/Meter/Fire Hydrant
Manhole (MH) - Sartitarty Sewer
Found (F)
Set (S)
Boundary Line M 1
Tie
Line
-
Right Of Way Line
Power Line
Fence Line
EIP- Existing Pipe/`Pm -lyZiS
PBF- Rebar Found ... ... .... .
RBS - 5/8" Rebar Set
SANTEETLAH IAKE
State of North Carolina, County of Graham
Filed for registration on the - day of
2022 at o'clo(;k _t��n� recorded in Plat Cabinet -----at
Slide____,
Notes.
North is Grid North
This plat represents a topographic and location survey
Acreage calculated by coordinate computation method.
Property is subject to all applicable easements and rights of way of record.
This survey was prepared without benefit of abstract titte; all matters of title
should be referred to an attorney at law
Horizontal control shown hereon
Property is not located in a special flood h
with current FEMA and FIRM maps.
North: GRID NORTH NAD83(201 1)
Scale: I inch 100 Feet
0 100 200 3
WIN
azard area in accordance
Tr
cr krr, ar-1 s - gvee
D!,a S
u EAL
L H V L 1 11 1L
P- 1628 oCaw
OR P,
V E
234 Bryson Walk, Bryson City, North Carolina [phone] "Illmnoo
State of North Carolina, County of Graham
Review Officer of
Graham Cokurity, certify 'that the map or plat to which this
certification is afixed rneets all statutory requirements for recording
Hmmz��
Yellow Creek Township, Graham County North Carolina
AAi2ln�ng_ Property Information AdioininR Property Information
P-1: Owner: Adam A. McCall & Mariko C. McCall
P-16: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 402, Page 577, Plat Book DB, Page 2686
Deed Book: 352, Page 524
Parcel Number: 56420421000501
Parcel Number: 564204210005
Lots 14 & 15 Section A
Lot 19 Section A
P-2: Owner: Christopher Hill Bradley& Brenda Kaye Bradley
P-17: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book 393, Page 83, Plat Book DB, Page 1439
Deed Book: 352, Page 524
Parcel Number: .56420421000513
Parcel Number: 5642042 1000-D
Lot 13 Section A
Lot 20 Section A
P-3: Owner', Mitchell R. Armenante, Debra A. Armenante
P-18: Owner: Lake Point Properties On Santeetlah, LLC
Christohper Hill Bradley & Brenda Kaye Bradley
Deed Book: 352, Page 524
Deed Book: 395, Page 252, Plat Book DB, Page 1054
Parcel. Number: 564204210005
Parcel Number: 5 64 2 04 2 1 AD 12
Lot 21 Section A
Lot 12 Section A
P-19: Owner: Owner: Lake Point Properties On Santeetlah, LLC
P-4: Owner- Mitchell R. Armenante, Debra A. Armenante
Deed Book: 325, Page 64 Plat Book DB, Page 1475
Deed Book 377, Page 782, Plat Book DB, Page 1446,
Parcel Number: 56420421000522
Plat Book DB, Page 1391
Lot 22 Section A
ParceLNumber: 56420421000511
Lot 11 Section A
P-20: Owner: Peter Barrett Szuch & Caroline Beth Szuch
Deed Book: 391, Page 512 Plat Book DB, Page 147
P-5: Owner: Luis Gonzalez & Rosa B. Gonzalez
Parcel Number: 56420421000523
Deed Book, 326, Page 169, Plat Book DB, Page 1218
Lot: 23 Section. A
Parcel Number! 56420421000510
Lot 10 Section A
P-21: Owner: Lake Point Properties On Santeetlah LLC
P-6: Owner: William J. Okeefe & Janice Okeefe
Deed Book 267, Page 768, Plat Book DB, Page 1,441
Parcel Number: 56420421000509
Lot 9 Section A
P-7: Owner: Posterity 111, LLC
Deed Book 403, Page 148, Plat Book DB, Page 2522
Parcel Number: 5642042100058A
Lot 8 Section A
P-8- Owner: Posterity 111, LLC
Deed Book 403, Page 469, Plat Book DB, Page 2522
Parcel Number: 56420421000505
Lot 7 Section A, Portion Of Lot 6 Section B
P-9: Owner: Jose Rosado
Deed Book: 352, Page 579
Parcel Number: 5642042 100055
Lot 5 Section B
P- I O: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 352, Page 524
Parcel Number: 564204210005
Lot 4 Section B
P- 11: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 352, Page 524
Parcel ,Number: 564204210005
Lot 3 Section B
P-12: Owner: Jorge Cadena & Lisa Cadena
Deed Book: 401, Page 686, Plat Book DB, Page 2683
Parcel Number: 5642042100052B
Lot 2 Section B
P-13: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 352, Page 524
Parcel Number: 56420421,0005
Lot 1 Section B
P-14: Owner: Mitchell R, Armenante, Debra A., Armenante
Deed Book 377, Page 782, Plat Book DB, Page 1446,
Plat Book DB, Page 1391
Parcel Number: 56420421000517
Lot 17 Section A
p- 15: Owner: Sandra Patricia Vallejo
Deed Book 265, Page 526, Plat Book DB, Page 1424
Parcel Number: 56420421000518
Lot 18 Section A
1, William R. Howell, certify that this map was drawn under my supervision
from an actual GPS survey made under my supervision and the following
information was used to perform the survey
Class of survey: Class A
Positional accuracy: ± 0.05'
Type of UPS field procedure: OPUS-RS
Date(s) of Survey: 7.22-2022, 07-26-2022
Datum/Epoch: NAD83(2011), Epoch 2010.00
Published/fixed control: COBS
Geoid Model: GEOID18
Combined Factor: 0,99978290
Units: US Survey Feet
Horizontal, positions are refereced to NAD83(201 1)
Vertical positions are referenced to NAVD88 (Geoid,18)
Combined Factor: 0.99978290
Deed Book: 352, Page 524
Parcel Number: 564204210005
Lot 24 Section B
P-22: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 350, Page 18, Plat Book DB, Page 1867
Parcel Number: 564204210005
Lot 25 Section B
P-23: Owner: Silvia Cavigilia
Deed Book 310, Page 812, Plat Book DB, Page 1836
Parcel Number: 542042100051
Lot 26 Section B, Ction Of Lot 6 Section B
P-24: Owner: Stephen Poole & Marcia Poole
Deed Book: 308, Page 583
Parcel' Number: 564204210004
Lot 4 Section 0
P- 2 5: Owner: Aura Griffith
Deed Book: 360, Page 445, Plad Book DB, Page 2277
Parcel Number: 56420421.0003
P-26: Owner: Janet Herren & Terry Herren
Deed Book: 383, Page 505
Parcel Number: 5642042 10001
Lot I Section 0
P-27: Owner: Santeetlah Lake Properties, LLC
Deed Book: 333, Page 121, Plat Book DB, Page 1393
Parcel Number: 564204210002
Lot 2 Section 0
P-28: Owner, Jack Cross & Constance Gross
Deed Book- 357, Page 660, Plat Book DB, Page 2241
Parcel Number., 5642042 10005P
P-29: Owner: Lake Point Properties On Santeetlah, LLC
Deed Book: 171, Page 728, Plat Book DA, Page 340
Parcel Number: 5642042 10005)
P-30: Owner: Santeetlah Marina, LLC
Deed Book 217, Page 295
Parcel Number: 5164204210015
Manhole Elevations (Based On NAVD88)
MH I- Top: 2016.47'lnvert: 2004.08'
MH 2- Top: 2016. ' -l'Invert: 2001,06'
MH 3- Top: 2016,53'lnvert: 2001.24'
MH 4- Top: 2016,46'lnvert: 2003,17'
MH 5- Top: 2016.45' Invert, 2001.17'
MI -I 6- Top: 2 016.46' Invert: 2 001 . 16'
MH 7- Top: 2015.22' Invert: 2001.74'
MH 8- Top: 2014.74' Invert: 2001.76'
MH 9- Top: 2 015 . 3 5' Invert- 2 006A 5'
MH 10- Top.- 21 0 14.84' Invert: 2 001.15'
MH ll-Tcip: 1984.73"nvert: 1982.03'
KID 12- Top: 1973.99'lrivert: 1970.39'
Control Points
-Control Point #1:
N: 62359154, E: 552346.42, Elev. 1980.89'
-Control Point #2:
N: 623165.93, E: 551812.27, Elev.- 2009.74
Combined Factor: 0.99978290
-Coordinates Established By OPUS, NAD83(201 1)
-Elevations Established By OPUS, NAVD88
I further certify that this plat meets the requirment of G.S. 4730 section F-I Id
That the survey is of another category such as a recombination of existing parcels, a MqRqqKi��
court -ordered survey, or other exemption or exception to the definition of subdivision. -MW1- Elevation at top of casing = 2016.62'
Elevation at water level 1939.67'
That this plat was prepared in accordinance with G.S. 4730 as amended.
-MW2- Elevation at top 01 casing - 1952.071
CA
Elevation all- water level 1937-71'
0
M
.
% Date: 07-28-2022
Jq V
lvpk Approved By, WRU
Pr ional and Surveyor SEAL
License Number L-3514 g L-3514 4 Drawn By: WAD
e Owner: Lakepoint Propertie, on Santeetlah
8 U Parcel Number: 564204210005
Drawing Number' 909-20-G
job File: 909-GRID

LAKESIDE LODGE CONDO / SEWER EXHIBIT
TSW 2.04.21
(NOTE: SEE SURVEY FOR LEGAL DESCRIPTION)
0 25 50 75 125
Sewer Calculations - Santeetlah Lakeside
# Br
# Units @ Hooked
System Capacity Approved Gal/Br # Brs 213r/Unit up Excess Br
Re -Use 4120 70 58 0 29 0
Assigment
1-7 14 7
15-21 14 7
24-26 6 3
Condos 10 20 10
Extra Condos 2 4 2
Total Assigned / Excess 58 29 0
Motel
Assigment
1920 70 27
9 1 5
11 1 3
13 1 4
22 1 2
23 1 3
Total Assigned / Excess 5 17 10
Summary We have enough capacity for the rest of the project based on the gallonage on the Re -Use System, plus the ones
currently connected to the Motel System and the ones with on site septic.
Based on the excess capacity available from the Motel System indicated by the GCHD and calculated on 70 GPD, we would
have a total of 27 additional bedrooms, of which 17 are already hooked up, giving us an excess of 10 additional bedrooms. The
above is for calculation purposes and does not indicate the specific assigments of future units to the specific system.
Recommend that we hold 8 in reserve assigned for an additional bedroom for each of lots 1-5, and 24-26. That would still
leave 2 connections in reserve.
This is a worse case scenario (assuming the GCHD allows what they promissed), since we originally got all of the units hooked
up to the Motel System designated as 2-Br units.
o\�
EXISTING ALUMINUM PIPE
S 01°31'15" E POINT ON SOUTH WITNESS TO USES CORNER 2
8.57' (TIE) MARGIN S.R. 1147 TRACT 1047-H
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( 5,000 GALLON
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NEW HOA COMMON AREA
FE U
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WATER LINE
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�.. �/ EXISTING 0.13 AC. moo- - - - $� Go j� \ CONDO LOTTo
�% N 32 ° LC ISTING SEWER C
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/ROCK WALL 1 L235 L23 _ A ROAD ACCESS
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ERB �/ 1 L236 / 0.20 AC. - 90TEL DRAIN FIEL o G 1
�t o % N 22°02'56" W
0 EAS' / 1�107' (TIE) / FO
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a -o/ m �O / N 2�°35'3V' IN SYSTEM N
o �O�LW EXISTING PJ° a �^ / 22. 6' (TIE)
SRB h j WELL b ON SITE LOT 17 L24C
10' SE OF CENTER oo qj Q _ C, ATE SEPTIC HOTEL HOTEL
THUNDERBIRD TRAIL o N � Q m �00 GN tiW RAIN FIEL 1 DRAIN FIEL _ _C2
ROAD J� /`T ° o� F ;� Q o LOT 14 OR REUSE OR REUSE N�-
� N� ON -SITE A A YC/Q /� ��� T
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SEPTIC N5 e L144
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o SEPTIC v C / �L� 30 �� I :1„ `O/
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_ OR REUSE SYSTEM HOTEL C, \ LOT 26 ID 0-
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HOTEL PROPOSED OR REUS CT \ CURVE TO LEFT RE -USE ��
PROPOSED LOT 20 / / G \ ) SYSTEM o W
DRAIN FIEL LOT 19 SYS OT L = 23,37' 1 o
OR REUSE DRAIN FIE LD / o� A R = 94.17' DIST. BOX
o �3 a S SCHEDULE 40 / PRO SE /
s SYSTEM PLASTIC A DELTA = 14°13'08 U
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SRBL�° L 6� 2 SR _ �/ I SEPTIC LINE SRB _ _ i 0 TAN
- P (A PROXIMATE LOG.)
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0 -- 3R - /
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8 DISTRIBUTION �� I 6 SEP eQ //L270 1 \ PROPOSED
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O LOT 1 OFT IT FS L25 \ � �9 /W p�% I 1 LOT 23 1 LOT 24
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SEPTIC PROPOSED
PROPOSED LOT 3 002
LOT 8 _ II LOT 4 v
i \ RE -USE \
LOT 5 SYSTEM \ SYSTEM C7Fa� R
N, LOT 6 RE -USE LiA9� C0NC0��i
T� / �� o SYSTEM L120�- - ?A 000
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�� L137� L136 - OR RE -USE 1 SYSTEM LTCT - �T P
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/ \ LA 23 - e ,
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L N 80°55'43" W
2.43' (TIE) A 2

190
1aI iguillilh li ilill
Doe ID: Recorded: 03/31/2008atT04:20:5 Ph
Fee Amt: $20.00 Page 1 of 3
Jackson County, NO
Joe Hamilton Register of Deeds
BK 1736 PG380-382
This instrument prepared by Kimberly R. Coward, Attorney at Law, Cashiers, NC 28717
STATE OF NORTH CAROLINA
COUNTY OF JACKSON
SECOND AMENDMENT TO THE
DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS
Wi0
MOUNTAINTOP COMMUNITY ASSOCIATION
THIS AMENDMENT DECLARATION is made this 3day of_,
2008, by CASHIERS RESORT COMMUNITY, LLC, a Delaware limited liability
company, hereinafter referred to as "Declarant'.
WITNESSETH:
WHEREAS, by Declaration of Covenants, Conditions, and Restrictions for
Mountaintop Community Association, recorded in Book 1419, Page 550, Jackson County
Registry, to which reference is specifically made, Declarant subjected certain real
property to the provisions thereof pursuant to an incremental plan of development and
`improvement; and
v
n o WHEREAS, in Article 18, Section 18.4 of said Declaration, Declarant reserved
� o'��.l he right to amend the Declaration, except for certain designated provisions, without
i w g n oinder of the Association; and
J m�
o 00
WHEREAS, Declarant desires to amend the Declaration as set forth below
—' n pprsuant to the aforesaid reserved right.
NOW, THEREFORE, pursuant to Article 18, Sections 18.1 and 18.4 of the
Jeclaration of Covenants, Conditions, and Restrictions for Mountaintop Community
Association, Inc., Declarant hereby amends the Declaration as follows:

The Association shall construct the Disposal System and/or make any additions or
modifications to the Disposal System in accordance with the permit and plans and
specifications hereafter issued and approved by the commission, and shall
thereafter properly operate and maintain such systems and facilities in accordance
with applicable permit provisions and law.
The Disposal System shall be properly maintained and operated in conformity
with law and the provisions of the permit for construction, operation, repair, and
maintenance of the system and facilities. The wastewater treatment, collection
and disposal system is described in the deed from Declarant to Association
recorded in Book 1722, Book 583, Jackson County Registry, to which reference is
specifically made, and will receive the highest priority for expenditures by the
Association except for Federal, State, and local taxes and insurance.
The Disposal System will be maintained out of the common expenses. In order to
assure that there shall be funds readily available to repair, maintain, or construct
the Disposal System beyond the routine operation and maintenance expenses, a
fund shall be created out of the common expenses. Such fund shall be separate
from the routine maintenance fund allocated for the facility and shall be part of
the yearly budget.
In the event the common expense allocation and separate fund(s) are not adequate
for the construction, repair, and maintenance of the Disposal System, the
Association may levy special assessments to cover such necessary costs. There
shall be no limit on the amount of such assessments, and the special assessments
can be made as necessary at any time.
If a wastewater collection system and wastewater treatment and/or disposal
facility provided by any city, town, village, county, water and sewer authorities,
or other unit of government shall hereinafter become available to serve the
Development, the Association shall take such action as is necessary to cause the
existing and future said wastewater of the Development to be accepted and
discharged into said governmental system, and shall convey or transfer as much
of the Disposal System and such necessary easements as the governmental unit
may require as condition of accepting the Development's wastewater.
Recognizing that it would be contrary to the public interest and to the public
health, safety and welfare for the Association to enter into voluntary dissolution
without having made adequate provision for the continued proper maintenance,
repair and operation of its Disposal System, the Association shall not enter into
voluntary dissolution without first having transferred its said system and facilities
to some person, corporation or other entity acceptable to and approved by the
Commission by the issuance of a permit.
1)

The Association shall not transfer, convey, assign or otherwise relinquish or
release its responsibility for the operation and maintenance of its Disposal System
until a permit has been reissued to the Association's successor.
IN WITNESS WHEREOF, the Authorization Representative of Declarant has set
his hand and seal, the day and year first above -written.
CASHIERS RESORT COMMUNITY, LLC,
a Delaw d liability company
By:
Stev delson, Authorized Representative
STATE OF AKt:ZP_y'10.
COUNTY OF U(Q -1 r D� ,2
I, a Notary Public of tAo r:rja& County and State aforesaid, do hereby
certify that STEVE ADELSON, Authorized Representative of CASHIERS
RESORT COMMUNITY, LLC, a Delaware limited liability company,
personally appeared before me this day and acknowledged the due
execution of the foregoing instrument on behalf of the company.
WITNESS my hand and official stamp or seal, this the 1 `� day of
,No rc h , 2008.
(SEAL)
tiATA� �iRllN
Notary Vuplie - Arl=ona
�laikopo Coungr
. Vcan�,
My Commission Expires: �� t, 10 201D
08-0090/lbk
Printed Name of Notary
3

STATE OF NORTH-AROLIN A
COUNTY OF % _ ' d .G . Ste/ Permit No.
HOME/PROPERTY OWNERS' OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (dI) and entered into this -- day of
by and between the North Carolina Environmental Management
Comi3� "-ion, an ag�:ncy of the Stag of North rC yrolina, hereinafter known as the COMMISSION; and
= Ii`�J a non-profit corporation organized
and existing under and y virtue of the laws f the State of North Carolina, hereinafter known as the
ASSOCIATION.
WITNESSETH:
The ASSOCIATION was formed for the
business of the development known as V.
(hereinafter the Development); of operating, maintaining, re -constructing and ruing the common
elements of the lands and improvements subject to unit ownership, including the wastewater collection
system with pumps, wastewater treatment works, and/or disposal facilities (hereinafter Disposal System);
and of collecting dues and assessment to provide funds for such operation, maintenance, re -construction
and repair.
2. The ASSOCIATION desires, to construct and/or operate a Disposal System to provide sanitary sewage
disposal to serve the Development on said lands.
3. The ASSOCIATION has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct, maintain, and/or operate the Disposal System.
4. The Development was created subject to unit ownership in the dwellings units, other improvements and
lands through filing of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter 47C
or 47F of the North Carolina General Statutes.
5. The COMMISSION desires to assure that the Disposal System of the Development is properly
constructed, maintained and operated in accordance with law and permit provisions in order to protect the
quality of the waters of the State and the public interest therein.
NOW, THEREFORE, in consideration of the promises and the benefits to be derived by each of the parties
hereto, the COMMISSION and ASSOCIATION do hereby mutually agree as follows:
1. The ASSOCIATION shall construct the Disposal System and/or make any additions or modifications to
the Disposal System in accordance with the permit and plans and specifications hereafter issued and
approved by the COMMISSION, and shall thereafter properly operate and maintain such systems and
facilities in accordance with applicable permit provisions and law.
2. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System
and appurtenances thereto are part of the common elements and shall thereafter be properly maintained
and operated in conformity with law and the provisions of the permit for construction, operation, repair,
and maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire
wastewater treatment, collection and disposal system as a common element which will Ire-6 E �tl�e_ highest -
priority for exp,n4itures-b_y-.he-A.ssociation-exc t for Federal, State, and loc I taxes Eirldi TtUrance.-
E"� -C IV
Division of Water Resources
FORM: HOA 08-13 Page 1 of 2 A11r
AUG - 7 2017

3. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System
will be maintained out of the common expenses. In order to assure that there shall be funds readily
available to repair, maintain, or construct the Disposal System beyond the routine operation and
maintenance expenses, the Declaration and Association Bylaws shall provide that a fund be created out of
the common expenses. Such fund shall be separate from the routine maintenance fund allocated for the
facility and shall be part of the yearly budget.
4. In the event the common expense allocation and separate fund(s) are not adequate for the construction,
repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for
special assessments to cover such necessary costs. There shall be no limit on the amount of such
assessments, and the Declaration and Bylaws shall be provided such that special assessments can be made
as necessary at any time.
5. If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city,
town, village, county, water and sewer authorities, or other unit of government shall hereinafter become
available to serve the Development, the ASSOCIATION shall take such action as is necessary to cause the
existing and future wastewater of the Development to be accepted and discharged into said governmental
system, and shall convey or transfer as much of the Disposal System and such necessary easements as the
governmental unit may require as condition of accepting the Development's wastewater.
6. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for
the ASSOCIATION to enter into voluntary dissolution without having made adequate provision for the
continued proper maintenance, repair and operation of its Disposal System, the ASSOCIATION shall
provide in the ASSOCIATION Bylaws that the ASSOCIATION shall not enter into voluntary dissolution
without first having transferred its said system and facilities to some person, corporation or other entity
acceptable to and approved by the COMMISSION by the issuance of a permit.
7. The ASSOCIATION shall not transfer, convey, assign or otherwise relinquish or release its responsibility
for the operation and maintenance of its Disposal System until a permit has been reissued to the
ASSOCIATION'S successor.
The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, and 7 above shall be conditions of any
permit issued by the COMMISSION to the ASSOCIATION for the construction, maintenance, repair and
operation of the Disposal System.
A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration is
filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of the
Association.
IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized
representative of the parties hereto on the day and year written as indicated by eacl of the parti s named below:
ter` 1.. 7 {, � /- 1
FOR THE ENVIRONMENTAL
MANAGEMENT COMMISSION
S. Jay Zimmerman, P.G.
Director, Division of Water Resources
(Date)
ame of
(Signature)
sl�
�
Printf i' ame and Title
FORM: HOA 08-13 Page 2 of 2
(Date)

Doc ID 003273320075
Jackson County, NC
BK 1491 PG 374-448
DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
MOUNTAINTOP COMMUNITY ASSOCIATION, INC.
RECEIVED
Division of Water Resources
AUG ' 7 2017
Water Quality Regional Operations
Asheville Regional Office

DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
MOUNTAINTOP
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS is
made and entered into as of the 30'b day of April, 2004, by CASHIERS RESORT
COMMUNITY, L.L.C., and a Delaware limited liability company (herein called "Declarant").
RECITALS
A. Declarant is the record owner of that parcel of real property situated in Jackson
County, North Carolina, described on Exhibit "A" attached hereto and by reference made a part
hereof (the "Parcel").
B. Declarant desires to submit and subject the Parcel, together with all Buildings,
Improvements and other permanent fixtures of whatever kind now or hereafter located thereon,
and all easements, rights, appurtenances and privileges belonging or in any way pertaining
thereto (all of which comprise a part of the "Property" as hereinafter defined), to the covenants,
conditions, restrictions, liens, assessments, easements, privileges and rights contained herein.
C. Declarant desires that the Property be developed as part of a Planned Community
pursuant to Chapter 47F of the General Statutes of North Carolina, to be known as
"Mountaintop" containing residential lots, one or more golf courses and related recreational
facilities (the "Project").
D. Declarant deems it desirable to establish covenants, conditions and restrictions
applicable to the Property and each and every portion thereof, and certain mutually beneficial
restrictions and obligations with respect to the proper use, occupancy and enjoyment thereof, all
for the purpose of enhancing and protecting the value, desirability and attractiveness of the
Property and enhancing the quality of life within the Property.
E. It is desirable for the efficient management of the Property to create an owners
association and to delegate to it the powers of (i) managing, maintaining and administering the
Common Areas and any Areas of Common Responsibility within the Property, (ii) administering
and enforcing these covenants, conditions and restrictions and (iii) collecting and disbursing
funds pursuant to the assessments and charges hereinafter created and performing other acts

provided for in this Declaration or which generally benefit its members, the Property, and the
owners of any interests therein.
F. Mountaintop Community Association, Inc., a nonprofit corporation, has been, or
will be, incorporated under the laws of the State of North Carolina for the purpose of exercising
the foregoing powers and functions.
- G. Declarant intends, but is not obligated, to annex real property to the Property in
addition to the Parcel, thereby subjecting the annexed property to the plan of this Declaration,
and binding the owners of any interests therein to the covenants, conditions and restrictions
contained in this Declaration. Owners of any property annexed to the Property and subjected to
the Declaration will automatically become members of the Association as provided herein.
H. Declarant desires and intends that the owners, mortgagees, beneficiaries and
trustees under deeds of trust, occupants and all other Persons hereafter acquiring any interest in
the Property shall at all times enjoy the benefits of, and shall hold their interests subject to, the
covenants, conditions, restrictions, liens, assessments, easements, privileges and rights
hereinafter set forth, all of which are declared to be in furtherance of a plan to promote and
protect the Property.
DECLARATIONS
NOW, THEREFORE, Declarant, for the purposes above set forth, declares that the
Property shall hereafter be held, transferred, sold, conveyed, leased, occupied and used subject to
the North Carolina Planned Community Act as contained in Chapter 47F of the General Statutes
of North Carolina and the covenants, conditions, restrictions, liens, assessments, easements,
privileges and rights hereinafter set forth, all of which shall run with the land and be binding
upon the Property and all parties having or acquiring any right, title or interest in or to the
Property, or any part thereof, and shall inure to the benefit of each owner thereof, the Association
and each member of the Association.
1. DEFINITIONS
Unless the context clearly requires otherwise, the following terms used in this
Declaration are defined as follows. Defined terms appear throughout this Declaration with the
initial letter of the term capitalized.
W

BYLAWS OF
MOUNTAINTOP COMMUNITY ASSOCIATION, INC.
ARTICLE I
GENERAL
1. Application of Declaration. These Bylaws are the Bylaws of Mountaintop
Community Association, Inc (the "Association"), a North. Carolina nonprofit corporation formed
pursuant to that certain "Declaration of Covenants, Conditions and Restrictions for Mountaintop",
as amended from time to time (the "Declaration"), recorded in the official records of Jackson
County, North Carolina.
2. Defined Terms. Unless otherwise defined herein, capitalized terms or phrases used
herein shall have the meanings given those terms or phrases in the Declaration or the Articles of
Incorporation for the Association, as amended from time to time (the "Articles').
3. Nonprofit Corporation. The Association is a North Carolina nonprofit corporation,
and is organized and existing under and by virtue of the laws of the State of North Carolina. The
office of the Association shall be located at: PO Box 2126, 34 High Mountain Drive, Cashiers, NC
28717.
ARTICLE H
MEMBERSHIP; MEETINGS
1. Membership. The Members of the Association and their voting rights shall be as
provided in the Declaration. It is hereby acknowledged that the Declaration may be amended from
time to time to change the qualifications and requirements of the Members and their voting rights.
2. Location of Meetings. Meetings of the Members shall be held at such place as may
be designated by the Board and stated in the notice of meeting.
3. Annual Meeting. An annual meeting of Members shall be held on such date and at
such time as shall be designated from time to time by the Board and stated in the notice of the
meeting for the purpose of electing the Board and transacting other business authorized to be
transacted by the Members.
4. Special Meetings. Special meetings of the Members may be called by the President,
the Board, or by the written demand of the holders of not less than twenty-five percent (25%) of the
Members of the Association for any purpose or purposes.
5. Notices and Quorums. Unless otherwise provided in the Declaration, written notice
of any annual or special meeting shall be sent to all Members not less than ten (10) days nor more
than sixty (60) days in advance of the meeting and shall specify the time and place of the meeting.
Any notice of a special meeting shall also specify the purpose for which it is called. Unless
otherwise provided in the Declaration, at any meeting, the presence of twenty-five percent (25%) of
the Members in person or by proxy shall constitute a quorum. If the required quorum is not present,

a majority of those present may adjourn the meeting from time to time. At any adjourned meeting,
any business that might have been transacted at the meeting as originally called may be transacted
without further notice. Unless the vote of a greater number is required by the Declaration, the
Articles, these Bylaws or applicable law, the affirmative vote of a Majority of a Quorum of
Members shall be binding as the act of the Members. Written notice of each meeting shall be given
by, or at the direction of, the Secretary or person authorized to call the meeting. Notice shall be
given by mailing a copy of the notice, postage prepaid, to each Member entitled to vote at the
meeting, addressed to the Member at the address last appearing on the books of the Association or
supplied by the Member for the purpose of notice.
6. Proxies. At all meetings of Members, each Member entitled to vote may vote in
person or by proxy. All proxies must be in writing and must be filed with the Secretary before or at
the time of the meeting. The Board may, from time to time, specify a specific form of proxy to be
used in connection with a particular meeting. Every proxy shall be revocable and shall
automatically terminate (a) as of the date the Member giving the proxy ceases to be a Member, or
(b) eleven (11) months from the date of its execution, unless otherwise provided in the proxy.
Memberships held by a legal personal representative or by a court appointed receiver may be voted,
in person or by proxy, by the representative or receiver without the transfer (except as required
under a valid voting trust agreement) of membership into the name of the trustee or receiver.
7. Informal Action. Any action required or permitted to be taken at a meeting of the
Members may be taken without a meeting if a consent in writing, setting forth the action taken, is
signed by the greater of (a) the percentage required under North Carolina law, or (b) the percentage
required under the Declaration, the Articles or these Bylaws.
8. Irregularities. All information and/or irregularities in calls, notices of meetings and
in the manner of voting, form of proxies, credentials and method of ascertaining those present, shall
be deemed waived if no objection is made at the meeting or if waived in writing.
9. Record Date. For the purpose of determining Members entitled to notice of (or to
vote at) any meeting of Members, or in order to make a determination of Members for any other
purpose, the Board may direct the membership books to be closed for a stated period, not to exceed
fifteen (15) days prior to the event concerned.
ARTICLE III
BOARD OF DIRECTORS
1. Number and Term of Office. The Board of Directors shall consist of not less than
three (3) nor more than seven (7) individuals. The qualifications of the members of the Board of
Directors shall be as provided in the Declaration. Until the Transition Date, Declarant shall have the
absolute power and right to appoint and remove the members of the Board. The initial Board of
Directors shall consist of three (3) individuals as described in the Articles. At the first annual
meeting after the Transition Date, the Members shall elect one (1) director for a term of three (3)
years, one (1) director for a term of two (2) years and one (1) director for a term of one (1) year. At
each annual meeting thereafter, the Members shall appoint or elect, as the case may be, the number
of directors as is appropriate to replace those directors whose terms have expired and to maintain
staggered terms for the directors for a term of three (3) years each. If the number of directors is
2

increased above three (3), after the Transition Date, the additional directors shall be elected to serve
such terms so that, to the extent possible, a proportionate number of directors are serving in
staggered terms.
2. Powers and Duties. The Board shall have the powers and duties necessary for the
administration of the affairs of the Association, and may do all such acts and things as are not
prohibited by law or otherwise directed to be exercised and done by the Members. The powers of
the Board shall include, but not be limited to, all of the rights, powers, privileges, duties and
obligations assigned to the Board in the Declaration, the Articles and these Bylaws.
3. Vacancies; Removal of Directors. If the office of any director becomes vacant by
reason of death, resignation, retirement, disqualification, removal from office, disability or
otherwise, the director will cease to be a director, and the position on the Board shall be deemed
vacant. Until the Transition Date, vacancies on the Board shall be filled by the Declarant. After
the Transition Date, vacancies on the Board shall be filled by vote of the remaining Board
members. The person selected to fill any vacancy shall serve for the remainder of the unexpired
term. A director may be removed from the Board with or without cause in the same manner as such
director was appointed or elected to the Board.
4. Disqualification and Resignation of Directors. Any director may resign at any time
by sending written notice of resignation to the Secretary of the Association. Unless otherwise
specified therein, any resignation shall take effect upon receipt by the Secretary. Except in the case
of injury, illness or similar circumstances, more than three (3) consecutive absences from regular
meetings of the Board by any director may be cause for immediate removal, effective as of the
conclusion of the last missed meeting.
5. Regular Meetings. The Board shall establish a schedule of regular meetings to be
held at such time and place as the Board may designate. Notice of regular meetings shall
nevertheless be given to each director personally, or by mail, telephone or facsimile, at least five (5)
days prior to the day named for the meeting.
6. Special Meetings. Special meetings of the Board may be called by the President of
the Association, or by any two (2) directors, after not less than three (3) days notice to each director,
given personally or by mail, telephone or facsimile. Notice shall state the time, place and purpose
of the meeting. Any member of the Board may participate in any regular or special meeting of the
Board by means of a conference telephone or similar communications equipment whereby all
members participating in the meeting can hear one another. Participation by conference telephone
or similar equipment shall constitute attendance in person, unless stated otherwise in Section 7 of
this Article.
7. Waiver of Notice. Before or at any meeting of the Board, any director may, in
writing, waive the requirement of prior notice of the meeting. Waiver of notice shall be deemed
equivalent to the receipt of required notice. Attendance by a director at any meeting of the Board
shall be a waiver of notice by him, except when a director attends for the express purpose of
objecting to lack of notice. If all the directors are present at any meeting of the Board, no notice
shall be required, and any business may be transacted at the meeting.
3

8. Quorum. At all meetings of the Board, a majority of the directors shall constitute a
quorum for the transaction of business. Every act or decision done or made by a majority of the
directors present at a duly held meeting at which a quorum is present shall be regarded as the act of
the Board. If there is less than a quorum present at any meeting of the Board, the majority of those
present may adjourn the meeting from time to time. At any adjourned meeting, any business which
might have been transacted at the original meeting may be transacted without further notice.
9. Informal Action. Any action required to be taken at a meeting of the directors, or
any other action which may be taken at such meeting, may be taken without a meeting if a consent
in writing, setting forth the action so taken, is signed by all the directors.
ARTICLE IV
OFFICERS
1. Enumeration and Election of Officers. The principal officers of the Association
shall be a president, a vice-president, a secretary and a treasurer. The election of officers shall take
place at the first meeting of the Board following each annual meeting of the Members. The same
individual may simultaneously hold more than one office in the Association.
2. Term. The officers of the Association shall be elected annually by the Board and
each shall hold office for one (1) year unless the officer shall sooner resign, be removed or
otherwise disqualified to serve. If the office of any officer becomes vacant for any reason, the
vacancy shall be filled by the Board. The officer appointed to fill a vacancy shall serve for the
remainder of the term of the officer replaced.
3. Special Appointments. The Board may elect such other officers as the affairs of the
Association may require, each of whom shall hold office for such period, have such authority, and
perform such duties as the Board may determine from time to time.
4. Resignation and Removal. Any officer may be removed from office with or without
cause by the Board. Any officer may resign at any time by giving written notice to the Board, the
president or the secretary. A resignation shall take effect on the date of receipt of the resignation
notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of
such resignation shall not be necessary to make it effective.
5. The President. The president shall be the chief executive officer of the Association;
shall preside at all meetings of the Members and of the Board; shall have executive powers and
general supervision over the affairs of the Association; shall see that orders and resolutions of the
Board are carried out; shall sign all leases, mortgages, deeds and other written instruments and shall
co-sign all promissory notes.
6. The Vice President. The vice president shall perform all of the duties of the
president in the President's absence, inability or refusal to act, and shall exercise and discharge such
other duties as may be required of him from time to time by the Board.
7. The Secretary. The secretary shall record the votes and keep the minutes of all
meetings and proceedings of the Board and of the Members; serve notice of meetings of the Board
9

and of the Members; keep appropriate current records showing the Members of the Association
together with their addresses, and shall perform such other duties as required by the Board.
8. The Treasurer. The treasurer shall receive and deposit in appropriate bank accounts
all funds of the Association and shall disburse such funds as directed by resolution of the Board;
shall co-sign all promissory notes of the Association; shall keep proper books of account; shall
cause audits of the Association books to be made from time to time as directed by resolution of the
Board; and shall prepare an annual budget and a statement of income and expenditures to be
presented to the membership at its regular meeting, and deliver a copy to each of the Members. The
treasurer shall be allowed to delegate the collection, deposit and disbursement of funds by
establishing a reasonable method of accounting which shall be periodically reviewed by the Board.
ARTICLE V
FISCAL MANAGEMENT
1. Depositories. The funds of the Association shall be deposited in such banks and
depositories as may be determined by the Board from time to time, upon resolutions approved by
the Board, and shall be withdrawn only upon checks and demands for money signed by an officer or
officers of the Association or persons or entities delegated such authority by resolution of the Board.
2. Records and Statements of Account. The Board, under the direction of the treasurer,
shall cause detailed and accurate records to be kept, in accordance with generally accepted
accounting practice. To the extent required under the Declaration and North Carolina law, the
records of the Association shall be available for examination by the Members at convenient hours
designated by the Board.
3. Fiscal Year. The fiscal year of the Association shall be the calendar year unless
otherwise determined by the Board.
4. Contracts. Unless otherwise provided by the Board, all contracts shall be executed
on behalf of the Association by either the president or vice president.
ARTICLE VI
CONSTRUCTION
In the case of any conflict between these Bylaws and the Articles, the Articles shall control.
In the case of any conflict between the Declaration and these Bylaws, the Declaration shall control.
If any provision of these Bylaws is less restrictive than the Declaration or the Articles when dealing
with the same subject, the more restrictive provisions of the Declaration or Articles (as the case may
be) shall be applicable in the same manner as if included in the provisions of these Bylaws.
ARTICLE VII
AMENDMENT OF THE BYLAWS
These Bylaws may be amended by the affirmative vote of a majority of the Board. These
Bylaws shall not be amended to contain any provisions that would be contrary to or inconsistent
5

with the Declaration or the Articles, and any provisions or purported amendment or modification to
these Bylaws which is contrary to or inconsistent with the Declaration or the Articles shall be void
to the extent of the inconsistency.
ARTICLE VIII
LIABILITY SURVIVES TERMINATION OF MEMBERSHIP
The termination of ownership of a Lot shall not relieve or release any former Owner or
Member from any liabilities or obligations incurred under or in any way connected. with the
Property and/or Association, during the period of ownership and membership, or impair any rights
or remedies which the Association may have against the former Owner and/or Member arising out
of or in any way connected with ownership and membership, and the duties and obligations incident
thereto.
ARTICLE IX
INDEMNIFICATION OF OFFICERS AND DIRECTORS
To the fullest extent permitted by the General Statutes of North Carolina as the same
exist or may be hereafter amended, no officer or director of the Association shall be liable to the
Association or its Members for monetary damages for any action taken or any failure to take any
action as an officer or director. No repeal, amendment or modification of this article, whether
direct or indirect, shall eliminate or reduce its effect with respect to any act or failure to act of an
officer or director of the corporation occurring prior to such repeal, amendment or modification.
To the fullest extent permitted by the General Statutes of North Carolina as the same exist or
may be hereafter amended, the Association shall indemnify and advance expenses to any person
who incurs expenses or liabilities by reason of the fact he or she is or was an officer or director
of the Association or is or was serving at the request of the Association as a director, officer,
employee or agent of another foreign or domestic corporation, partnership, joint venture, trust,
employee benefit plan or other entity. The foregoing indemnification and advancement of
expenses shall be mandatory in all circumstances in which the same are permitted by law. No
repeal, amendment or modification of this Article, whether direct or indirect, shall eliminate or
reduce its effect with respect to any matter giving rise to indemnification and advancement of
expenses occurring prior to such repeal, amendment or modification.

1.
Certificate of Adoption
The undersigned secretary does hereby certify that the foregoing Bylaws were adopted by
the board of directors of Mountaintop Community Association, Inc. pursuant to a written consent
of the Directors dated as of April 27, 2004
By:/s/ Steven Adelson
Secretary
7

Doc ID 003273320075
Jackson County, NC
BK 1491 PG 374-448
DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
MOUNTAINTOP COMMUNITY ASSOCIATION, INC.
bivisiNE EI RE®ces
AUG - 7 2017
Water Quality Regional Operations
Asheville Regional Office

TABLE OF CONTENTS
1.
2.
3
0
Page
DEFINITIONS................................................................................................................... 3
RIGHTS OF ENJOYMENT............................................................................................12
2.1 Owners' Right of Enjoyment............................................................................... 12
2.2 Delegation of Use................................................................................................ 13
2.3 Waiver of Use...................................................................................................... 13
ASSOCIATION............................................................................................................... 13
3.1 Purpose of Association........................................................................................ 13
3.2 Membership in Association................................................................................. 14
3.3 Suspension of Voting Rights............................................................................... 14
3.4 Pledge of Voting Rights....................................................................................... 14
3.5 Assignment of Declarant's Voting Rights........................................................... 14
3.6 Board of Directors................................................................................................15
3.7 Board's Determination Binding........................................................................... 15
3.8 Approval of Members.......................................................................................... 15
3.9 Additional Provisions in Articles and Bylaws.....................................................16
3.10 Association Rules.................................................................................................16
3.11 Indemnification.................................................................................................... 16
3.12 Non -Liability of Officials....................................................................................17
3.13 Easements............................................................................................................ 18
3.14 Accounting...........................................................................................................18
3.15 Records................................................................................................................18
3.16 Managing Agent...................................................................................................18
3.17 Declarant's Control of Association...................................................................... 18
3.18 Rights of Enforcement......................................................................................... 19
3.19 Contracts With Others For Performance of Association's Duties .......................19
3.20 Changes to Common Areas.................................................................................19
3.21 Purposes For Which Association's Funds May be Used ..................................... 20
3.22 Borrowing Power................................................................................................. 20
3.23 Association's Rights in Spending Funds From Year to Year .............................. 20
3.24 Special Use Fees.................................................................................................. 20
3.25 Designated Service Providers.............................................................................. 20
EASEMENTS AND ACCESS CONTROLS.................................................................. 21
4.1 Blanket Easements............................................................................................... 21
4.2 Use of Common Areas......................................................................................... 21
4.3 Exclusive Use Rights........................................................................................... 22
4.4 Perimeter Wall Easement..................................................................................... 22
4.5 Declarant Easement...................................................... .... ........................... 22
4.6 Association Easement.......................................................................................... 23
4.7 Easements For Drainage...................................................................................... 23
4.8 Access Control.................................................................... ...........F c C,E., 3---
Division of Wale, Resources
-i-
AVG _ 7 2017
Water Quality Regional Operations
Asheviife p ,tom, . --.

TABLE OF CONTENTS
(continued)
Page
4.8.1 Generally..................................................................................................23
4.8.2 Access Through Gates............................................................................. 23
4.8.3 Individual Lots......................................................................................... 24
4.8.4 Right of Entry.......................................................................................... 24
4.8.5 Liability....................................................................................................24
5. GOLF CLUB FACILITIES............................................................................................. 25
5.1 General.................................................................................................................25
5.2 Ownership of Golf Club Facilities....................................................................... 25
5.3 Assumption of Risk..............:............................................................................... 25
6. INSPECTION AND TURNOVER OF COMMON AREAS .......................................... 26
6.1 Inspection of Common Area Improvements........................................................ 26
6.2 Conveyance of Common Areas to Association................................................... 27
6.3 Turnover upon Transition Date............................................................................ 27
7. ASSESSMENTS..............................................................................................................28
7.1 Creation of Lien and Personal Obligation........................................................... 28
7.2 Purpose of Assessments....................................................................................... 29
7.3 Regular Assessments........................................................................................... 29
7.4 Special Assessments............................................................................................ 30
7.5 Uniform Assessment............................................................................................ 31
7.6 Exempt Property .................................................................................................. 31
7.7 Date of Commencement of Regular Assessments ............................................... 31
7.8 Time and Manner of Payment; Late Charges and Interest .................................. 32
7.9 No Offsets............................................................................................................ 32
7.10 Homestead Waiver............................................................................................... 32
7.11 Reserves............................................................................................................... 32
7.12 Subordination of Lien.......................................................................................... 33
7.13 Certificate of Payment......................................................................................... 33
7.14 Enforcement of Lien............................................................................................ 33
7.15 Pledge of Assessment Rights as Security............................................................ 34
7.16 Exemption of Unsold Lots................................................................................... 34
8. INSURANCE................................................................................................................... 34
8.1 Authority to Purchase.......................................................................................... 34
8.2 Owner's Responsibility........................................................................................ 34
8.3 Coverage.............................................................................................................. 35
8.4 Required Provisions............................................................................................. 36
8.5 Non -Liability of Association/Board/President...................:................................ 37
8.6 Premiums............................................................................................................. 37
8.7 Insurance Claims.................................................................................................. 38
8.8 Benefit..................................................................................................................38

TABLE OF CONTENTS
(continued)
Page
9.
DAMAGE AND DESTRUCTION OF COMMON AREAS ..........................................
38
9.1
Duty of Association.............................................................................................
38
9.2
Excess Insurance Proceeds..................................................................................
38
9.3
Contract for Reconstruction.................................................................................
38
9.4
Insurance Proceeds Trust.....................................................................................
39
10.
EMINENT DOMAIN ......................................................................................................
39
10.1
Definition of Taking...........................................................................................
39
10.2
Representation in Condemnation Proceedings....................................................
39
10.3
Award for Common Areas...................................................................................
39
11.
MAINTENANCE, REPAIRS AND REPLACEMENTS ................................................
39
11.1
Maintenance of Lots............................................................................................
39
11.1.1 Generally..................................................................................................39
11.1.2 Improper Maintenance .and Use of Lots ...................................................
40
11.2
Common Areas and Areas of Common Responsibility .......................................
40
11.2.1 Standard of Care......................................................................................
41
11.2.2 Board's Determination of Responsibility For Maintenance ....................
41
11.2.3 Contracts For Maintenance......................................................................
41
11.2.4 Assessment of Certain Costs of Maintenance and Repair of
Common Areas and Public Areas............................................................
42
11.3
Right of Access....................................................................................................
42
12.
ARCHITECTURAL AND LANDSCAPE CONTROL ..................................................
42
12.1
Appointment of Design Review Committee........................................................
42
12.2
Design Guidelines................................................................................................
42
12.3
General Provisions...............................................................................................
43
12.4
Approval and Conformity of Plans......................................................................
44
12.5
Non -Liability for Approval of Plans....................................................................
44
12.6
Inspection and Recording of Approval................................................................
45
12.7
Declarant Review.................................................................................................
45
12.8
Reconstruction of Common Areas.......................................................................
46
12.9
Additional Powers of the Design Review Committee .........................................
46
13.
USE AND OCCUPANCY RESTRICTIONS.................................................................
46
13.1
Residential Use....................................................................................................
46
13.2
Violation of Law or Insurance.............................................................................
47
13.3
Signs.....................................................................................................................47
13.4
Animals................................................................................................................
47
13.5
Nuisances.............................................................................................................
48
13.6
Boats and Motor Vehicles....................................................................................
48

TABLE OF CONTENTS
(continued)
Page
13.7 Lights................................................................................................................... 48
13.8 Antennas/Cable TV.............................................................................................. 48
13.9 Garbage................................................................................................................ 49
13.10 Mining; Wells...................................................................................................... 49
13.11 Safe Condition..................................................................................................... 49
13.12 Fires......................................................................................................................49
13.13 Clothes Drying Area............................................................................................ 49
13.14 No Further Subdivision........................................................................................ 49
13.15 No Obstructions to Drainage............................................................................... 50
13.16 Use of Lots........................................................................................................... 50
13.17 Golf Carts............................................................................................................. 50
13.18 Enforcement.........................................................................................................50
13.19 Recycling Programs ......................................................................................... 50
13.20 Diseases and Insects............................................................................................. 50
13.21 Repair of Buildings and Improvements............................................................... 51
13.22 Utility Service...................................................................................................... 51
13.23 Health, Safety, and Welfare................................................................................. 51
13.24 Implementation and Variances............................................................................ 51
13.25 Neighborhood Declarations................................................................................. 51
14. RIGHTS OF MORTGAGEES......................................................................................... 52
14.1
General Provisions...............................................................................................
52
14.2
Liability for Assessments.....................................................................................
52
14.3
No Personal Liability...........................................................................................
52
14.4
Enforcement After Foreclosure Sale....................................................................
53
14.5
Exercise of Owner's Rights.................................................................................
53
14.6
Subject to Declaration..........................................................................................
53
15. ANNEXATION OF ADDITIONAL PROPERTY.......................................................... 53
15.1 Development of the Project................................................................................. 53
15.2 Supplemental Declarations .............................................................................. 54
15.3 Annexation Without Approval............................................................................. 54
15.4 Annexation With Approval.................................................................................. 54
16. EXEMPTION OF DECLARANT FROM RESTRICTIONS .......................................... 54
17. REMEDIES......................................................................................................................55
17.1 General Remedies................................................................................................ 55
17.2 Expenses of Enforcement.................................................................................... 55
17.3 Legal Action......................................................................................................... 56
17.4 Effect on Mortgage.............................................................................................. 56
17.5 Limitation on Declarant's Liability..................................................................... 56

TABLE OF CONTENTS
(continued)
Page
18.
AMENDMENT................................................................................................................57
18.1 Amendment to Declaration..................................................................................
57
18.2 Effect of Amendment...........................................................................................
57
18.3 Required Approvals ....................................... :.....................................................
57
18.4 Declarant's Right to Amend................................................................................
57
19.
TERM; TERMINATION.................................................................................................
58
19.1 Term.....................................................................................................................58
19.2 Withdrawal by Declarant.....................................................................................
58
19.3 Termination..........................................................................................................58
20.
GENERAL PROVISIONS..............................................................................................
59
20.1 Notices.................................................................................................................
59
20.2 Captions and Exhibits; Construction...................................................................
59
20.3 Severability..........................................................................................................
59
20.4 Rule Against Perpetuities.....................................................................................
59
20.5 Mortgage of Lots..................................................................................................
59
20.6 Power of Attorney................................................................................................
59
21.
DECLARANT'S DISCLAIMER OF REPRESENTATIONS; NO COVENANTS
OR RESTRICTIONS; ZONING AND PLAN................................................................
60
21.1 Declarant's Disclaimer of Representations..........................................................
60
21.2 No Express or Implied Covenants or Restrictions ...............................................
60
21.3 Zoning and Plan...................................................................................................
60
22.
RIGHTS AND OBLIGATIONS......................................................................................
60
0
-v-

DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
MOUNTAINTOP
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS is
made and entered into as of the 30t' day of April, 2004, by CASHIERS RESORT
COMMUNITY, L.L.C., and a Delaware limited liability company (herein called "Declarant").
RECITALS
A. Declarant is the record owner of that parcel of real property situated in Jackson
County, North Carolina, described on Exhibit "A" attached hereto and by reference made a part
hereof (the "Parcel").
B. Declarant desires to submit and subject the Parcel, together with all Buildings,
Improvements and other permanent fixtures of whatever kind now or hereafter located thereon,
and all easements, rights, appurtenances and privileges belonging or in any way pertaining
thereto (all of which comprise a part of the "Property" as hereinafter defined), to the covenants,
conditions, restrictions, liens, assessments, easements, privileges and rights contained herein.
C. Declarant desires that the Property be developed as part of a Planned Community
pursuant to Chapter 47F of the General Statutes of North Carolina, to be known as
"Mountaintop" containing residential lots, one or more golf courses and related recreational
facilities (the "Project").
D. Declarant deems it desirable to establish covenants, conditions and restrictions
applicable to the Property and each and every portion thereof, and certain mutually beneficial
restrictions and obligations with respect to the proper use, occupancy and enjoyment thereof, all
for the purpose of enhancing and protecting the value, desirability and attractiveness of the
Property and enhancing the quality of life within the Property.
E. It is desirable for the efficient management of the Property to create an owners
association and to delegate to it the powers of (i) managing, maintaining and administering the
Common Areas and any Areas of Common Responsibility within the Property, (ii) administering
and enforcing these covenants, conditions and restrictions and (iii) collecting and disbursing
funds pursuant to the assessments and charges hereinafter created and performing other acts
►F)

provided for in this Declaration or which generally benefit its members, the Property, and the
owners of any interests therein.
F. Mountaintop Community Association, Inc., a nonprofit corporation, has been, or
will be, incorporated under the laws of the State of North Carolina for the purpose of exercising
the foregoing powers and functions.
G. Declarant intends, but is not obligated, to annex real property to the Property in
addition to the Parcel, thereby subjecting the annexed property to the plan of this Declaration,
and binding the owners of any interests therein to the covenants, conditions and restrictions
contained in this Declaration. Owners of any property annexed to the Property and subjected to
the Declaration will automatically become members of the Association as provided herein.
H. Declarant desires and intends that the owners, mortgagees, beneficiaries and
trustees under deeds of trust, occupants and all other Persons hereafter acquiring any interest in
the Property shall at all times enjoy the benefits of, and shall hold their interests subject to, the
covenants, conditions, restrictions, liens, assessments, easements, privileges and rights
hereinafter set forth, all of which are declared to be in furtherance of a plan to promote and
protect the Property.
DECLARATIONS
NOW, THEREFORE, Declarant, for the purposes above set forth, declares that the
Property shall hereafter be held, transferred, sold, conveyed, leased, occupied and used subject to
the North Carolina Planned Community Act as contained in Chapter 47F of the General Statutes
of North Carolina and the covenants, conditions, restrictions, liens, assessments, easements,
privileges and rights hereinafter set forth, all of which shall run with the land and be binding
upon the Property and all parties having or acquiring any right, title or interest in or to the
Property, or any part thereof, and shall inure to the benefit of each owner thereof, the Association
and each member of the Association.
1. DEFINITIONS
Unless the context clearly requires otherwise, the following terms used in this
Declaration are defined as follows. Defined terms appear throughout this Declaration with the
initial letter of the term capitalized.
3

1.1 "Act" means the North Carolina Planned Community Act as contained in Chapter
47F of the General Statutes of North Carolina.
1.2 "Annexable Property" means the real property more particularly described on
Exhibit `B", attached hereto and by reference made a part hereof, or any other real property
located within one -quarter mile of the Property or the real property more particularly described
on Exhibit `B".
1.3 "Annexed Property" means any additional real property that is annexed to the
Property in accordance with Section 15, thereby becoming a part of the Property and subject to
this Declaration.
1.4 "Area of Common Responsibility" means any area that is not owned, leased or
otherwise held by the Association (and is therefore not part of the Common Areas) but for which
the Association has maintenance, repair, and/or operational responsibility by the terms of this
Declaration, any Supplemental Declaration, any Neighborhood Declaration or other applicable
real property covenants, by requirements of governmental authorities, or by contract. Any area
described in the preceding sentence shall continue to be an Area of Common Responsibility only
so long as the Association's responsibility for it continues.
1.5 "Articles" means the Articles of Incorporation of the Association, as they may be
amended from time to time.
1.6 "Assessments" shall include the following:
1.6.1 "Regular Assessment" means the amount that is to be paid by each
Owner as the Owner's Proportionate Share of the Common Expenses of the Association, as
provided in Section 7.3.
1.6.2 "Special Assessment" means the amounts that are to be paid by
Owners pursuant to Section 7.4.
1.7 "Association" means Mountaintop Community Association, Inc., a North
Carolina nonprofit corporation, its successors and assigns.
1.8 "Association Rules" means the rules and regulations adopted by the Board
pursuant to Section 3.10.
1.9 "Board" means the Board of Directors of the Association.
n

1.10 "Building" means a residence or other structure constructed on any portion of the
Property.
1.11 "Building Envelope" means the area of a Lot delineating the boundaries within
which any Buildings and other Improvements may be located, subject to the Design Guidelines
and the approval of the Design Review Committee.
1.12 "Bylaws" means the bylaws of the Association adopted in accordance with the
Articles, as the Bylaws may be amended from time to time.
1.13 "Common Areas" means all real property (and the Improvements thereon) that
may from time to time be owned or leased by the Association or otherwise held by the
Association for the common use and enjoyment of the Owners. The Common Areas include, but
are not limited to, any Private Roads. The Common Areas do not include the Golf Club
Facilities or the Areas of Common Responsibility. Any real property, and Improvements
thereon, that are described as "Common Areas" in a Supplemental Declaration, a Neighborhood
Declaration or a Plat shall be deemed to be "Common Areas" as that term is defined herein for
the common use and enjoyment of the Owners, as may be provided, and shall, for all purposes,
be integrated into and deemed to be a part of the Common Areas subject to this Declaration.
Common Areas may be abandoned or modified as provided in Section 2.1.6 and Section 3.20.
1.14 "Common Expenses" means the actual and estimated costs incurred by the
Association in administering, maintaining and operating the Property, and in owing or leasing
any portions thereof, and in otherwise performing its rights and responsibilities including, but not
limited to, the following:
(a) The costs of maintenance, management, operation, repair and
replacement of the Common Areas, including any Private Roads, any Areas of Common
Responsibility, and all other areas in the Property that are managed or maintained by the
Association other than those areas being managed or maintained through a Special Assessment;
(b) Unpaid Assessments;
(c) The costs of maintenance by the Association of areas within the
right-of-way of public streets in the vicinity of the Property which may be provided for in this
Declaration or pursuant to agreements with governmental agencies or neighboring land owners;
(d) The costs of managing and administering the Association
including, but not limited to, compensation paid by the Association to managers, accountants,
attorneys and employees;
5

(e) The costs of utilities and services (including, but not limited to,
water, electricity, gas, sewer, trash pick-up and disposal services) that are provided to the
Association or the Common Areas or Areas of Common Responsibility, landscaping
maintenance and other services that generally benefit and enhance the value and desirability of
the Property and that are provided by the Association;
(f) The costs of insurance maintained by the Association;
(g) Reasonable reserves, as required or permitted herein, including the
Reserve for Capital Improvements, for contingencies, replacements and other proper purposes to
meet anticipated costs and expenses including, but not limited to, repair and replacement of those
Common Areas and Areas of Common Responsibility that must be repaired or replaced on a
periodic basis;
(h) The costs that the Board may elect to incur to bond the members of
the Board, officers of the Association, any professional managing agent or any other Person
handling the funds of the Association;
(i) Taxes paid by the Association;
0) Amounts paid by the Association for discharge of any lien or
encumbrance levied against all or any portion of the Common Areas or the Association's interest
in any Areas of Common Responsibility;
(k) Costs incurred by the Design Review Committee, or by Declarant
in exercising its rights under Section 12.7;
(1) Costs incurred by any other committees established by the Board
or the President;
(m) The costs of any access control systems and patrol or similar
services including, but not limited to, those services and facilities described in Section 4.8, other
than those that will be charged to individual Lots;
(n) The costs of, or the subsidization of, recreation, cultural, health -
related or similar facilities or enterprises available to or for the benefit of all or substantially all
Owners; and
C

(o) Other expenses incurred by the Association for any reason
whatsoever in connection with the Common Areas or any Areas of Common Responsibility
(excepting reconstruction costs and capital improvements as otherwise provided herein), or the
costs of any other item or items designated by, or to be provided or performed by the Association
pursuant to, this Declaration, any Supplemental Declaration, any Neighborhood Declaration, the
Articles, Bylaws, Association Rules or Design Guidelines, or in furtherance of the purposes of
the Association or in the discharge of any duties or powers of the Association.
Common Expenses do not include costs of owning, administering, maintaining and operating the
Golf Club Facilities. If any common services furnished to the Property are part of services that
are provided to or benefit property in addition to the Property (such as, by way of illustration and
not limitation, patrol services furnished to the Property and other areas of the Project that are not
subject to this Declaration, such as the Golf Club Facilities), Common Expenses shall only
include the cost of such services reasonably allocated to the services provided to the Property.
1.15 "Declarant" means Cashiers Resort Community, L.L.C., a Delaware limited
liability company, its successors and assigns, or any Person to whom Declarant's rights
hereunder are hereafter assigned in whole or in part by recorded instrument, or any Mortgagee of
Declarant that acquires title to or succeeds to the interest of Declarant in any Lot or other portion
of the Property by reason of the foreclosure (or conveyance in lieu of foreclosure) or trustee's
sale under the Mortgage of said Mortgagee. The term "Declarant," as used herein, shall include
not only the named Declarant but also any of the foregoing successors, assigns, assignees of
right(s) and Mortgagees. An assignment by recorded instrument of all of Declarant's rights shall
vest in the assignee all of Declarant's rights hereunder (including, but not limited to, all of
Declarant's easements, rights of consent or approval and voting rights) on the same terms that
they were held by Declarant hereunder. An assignment by recorded instrument of part of
Declarant's rights shall vest in the assignee the specific Declarant's right(s) named in the
instrument of assignment on the same terms that they were held by Declarant hereunder.
Notwithstanding anything to the contrary herein, an assignment of all or any portion of
Declarant's rights, or a sharing of those rights with any Designated Builder, shall not deprive the
assignor of any protection, indemnity or freedom from liability that would otherwise exist under
this Declaration if the assignor had retained all of Declarant's rights hereunder.
1.16 "Declaration" means this instrument, as from time to time amended.
1.17 "Default Rate of Interest" means an annual rate of interest equal to the greater of
(i) 18% per annum or (ii) 4% plus the prime interest rate of major U.S. banks as published in the
Money Rates Section of The Wall Street Journal (the "Prime Rate"). The Default Rate of
Interest shall be adjusted as and when the Prime Rate changes. Therefore, if, during any periods
while interest is accruing, the Prime Rate plus 4% per annum is less than 18%, interest shall
accrue during those periods at 18% per annum. Notwithstanding anything in this Declaration to
the contrary, if, during any periods, the highest lawful rate of interest that may, under applicable
law, be paid by the Person required to pay the Default Rate of Interest hereunder, despite the
provisions of this Declaration, is less than the rate provided above, the Default Rate of Interest
7

payable by that Person during those periods shall be the highest lawful rate. If The Wall Street
Journal should cease to publish the Prime Rate, the Board may elect to use 18% as the Default
Rate of Interest, or may specify the rate, in lieu of the Prime Rate, for purposes of the
computation hereunder that the Association would reasonably have to pay to borrow money at
the time.
1.18 "Design Guidelines" means the rules, regulations, restrictions, architectural
standards and design guidelines from time to time adopted by the Design Review Committee or,
prior to the Transition Date, Declarant, pursuant to Section 12.2.
1.19 "Design Review Committee" means the committee provided for in Section 12.
1.20 "Designated Builder" means a Person that constructs or causes the construction of
homes on one or more Lots within the Property for sale to Retail Purchasers and that Declarant
elects, in its sole and absolute discretion, to name as a "Designated Builder" in a written notice
delivered to the Association. In any written notice naming a Designated Builder, Declarant shall
specify what rights, privileges, obligations and exemptions of Declarant that particular
Designated Builder will have with respect to this Declaration, any applicable Supplemental
Declaration, any applicable Neighborhood Declaration, the Association Rules and the Design
Guidelines. Declarant may revise, alter, supplement or rescind the rights, privileges, obligations
and exemptions previously given to a Designated Builder by delivering written notice to the
Association detailing any revisions, alterations, supplements, or rescissions.
1.21 "Golf Club Facilities" means any golf course (a "Golf Course") and related
facilities (including, but not limited to, any golf practice facilities, tennis facilities, swimming
pool and related recreational and social facilities) constructed within the boundaries of the
Project, and all Improvements and appurtenances thereto, including, but not limited to, any
maintenance or other Buildings associated therewith. As long as the Golf Club Facilities are not
owned by the Association, they shall not constitute a part of the Property nor shall they be
Common Areas or Areas of Common Responsibility. It is not contemplated that any Golf Club
Facilities will be annexed to the Property and thereby subjected to this Declaration, but
Declarant, at its election (with the consent of the Golf Club Owner), may elect to annex all or
any portion of any Golf Club Facilities to the Property at any time. Declarant may specify areas
that constitute Golf Club Facilities by recorded instrument, but Declarant shall have no
obligation to do so. Nothing in this Declaration shall be deemed or construed to constitute a
representation by Declarant that any Golf Course or any related facilities will be constructed or,
if constructed, that any Golf Course or related facilities will be constructed at any particular time,
in any particular manner, or will have any particular characteristics.
1.22 "Golf Club Owner" means Cashiers Resort Community, L.L.C., a Delaware
limited liability company, and its successors and assigns who from time to time own the Golf
Club Facilities.

1.23 "Improvements" means all Buildings, parking areas, loading areas, fences, walls,
plantings, lighting, poles, driveways, roads, ponds, trails, gates, excavation and all other site
work, including, but not limited to, grading, road construction, utility improvements, removal of
trees or plantings and any exterior construction or alterations that may not be included in the
foregoing, and all subsequent changes to any of the foregoing. The term "Improvements" does
not include turf, shrub or tree repair or replacement that does not change the appearance of the
subject property or the repair and reconstruction of any Improvement in a manner that does not
change the exterior appearance of that Improvement.
1.24 "Lot" means a subdivided lot as shown on a Plat. A "Lot" includes the Buildings
and other Improvements constructed thereon.
1.25 "Majority of Members" means the Members holding more than 50% of the total
votes entitled to be cast by Members (including, unless otherwise specifically provided herein,
Declarant so long as Declarant or any Related Party owns any portion of the Property) with
respect to a given matter. Any specified fraction or percentage of the Members means the
Members holding that fraction or percentage of the total votes entitled to be cast by Members
(including, unless otherwise specifically provided herein, Declarant so long as Declarant or any
Related Party owns any portion of the Property) with respect to a given matter. A "Majority of a
Quorum of Members" means the Members holding more than 50% of the total votes entitled to
be cast by the Members (including, unless otherwise specifically provided herein, Declarant so
long as Declarant or any Related Party owns any portion of the Property) who are present (in
person or by proxy) at a meeting at which a quorum of Members (as defined in the Bylaws) is
present. Unless otherwise specified, any provision herein requiring the approval of the Members
means the approval of a Majority of a Quorum of Members.
1.26 "Member" means every Person who is a member of the Association.
1.27 "Membership" means a membership in the Association but does not in any
manner imply or refer to membership rights that may exist by contract with respect to the Golf
Club Facilities or other recreational amenities at the Project.
1.28 "Mortizaae" means any recorded, filed or otherwise perfected instrument given in
good faith and for valuable consideration (which is not a fraudulent conveyance under North
Carolina law) as security for the performance of an obligation including, but not limited to, a
deed of trust, but shall not include any instrument creating or evidencing solely a security interest
arising under the Uniform Commercial Code.
1.29 "Mortgagee" means the holder of a note secured by a Mortgage, including the
trustee and beneficiary under any deed of trust.
9

1.30 "Neighborhood" means any portion of the Property that is designated as a
"Neighborhood" by Declarant in an instrument recorded by (or with the consent of) Declarant
(including, but not limited to, a Supplemental Declaration or a Neighborhood Declaration).
1.31 "Neighborhood Declaration" is defined in Section 13.25.
1.32 "Occupant" means any Person, other than an Owner, in rightful possession of a
Lot, whether an Owner's immediate family member, guest, tenant or other individual.
1.33 "Owner" means the record owner, whether one or more Persons, of fee simple
title, whether or not subject to any Mortgage, to any Lot that is a part of the Property, including
contract sellers, but excluding those having an interest in a Lot merely as security for the
performance of an obligation. If a Lot is subject to a deed of trust pursuant to North Carolina
law (as amended from time to time), legal title shall be deemed to be in the grantor or trustor
under the deed of trust. If fee simple title is vested of record in a trustee pursuant to North
Carolina law (as amended from time to time), legal title shall be deemed to be in the beneficiary.
1.34 "Parcel" means that parcel of real property referred to in the recitals hereof and
described in Exhibit "A" hereto.
1.35 "Person" means an individual, corporation, partnership, limited liability company,
trustee or other entity capable of holding title to real property, and their respective heirs,
successors and assigns.
1.36 "Plat" means any plat of subdivision of the Parcel as first recorded in the Office
of the Register of Deeds of Jackson County, North Carolina, and as thereafter from time to time
amended or supplemented, together with all subsequent recorded plats of subdivision for any
Annexed Property.
1.37 "President" means the duly elected or appointed president of the Association.
1.38 "Private Roads" and "Private Streets" are synonymous and mean any street,
roadway or other similar right-of-way within or partly within the Property that has not expressly
been dedicated to public use.
1.39 "Project" means the master planned development of the property, as described in
the recitals hereof, to be called "Mountaintop". The Property is located within the Project. The
Project includes the Golf Club Facilities.
10

1.40 "Property" means the Parcel and any additional real property made subject to this
Declaration by annexation pursuant to Section 15, together with all Buildings, Improvements and
other permanent fixtures of whatever kind now or hereafter located thereon, and all easements,
rights, appurtenances and privileges belonging or in any way pertaining thereto. The Property
shall not include the Golf Club Facilities or any property other than the Parcel (including, but not
limited to the real property more particularly described on Exhibit "B" attached hereto), unless
and until the property is annexed hereto pursuant to Section 15.
1.41 "Proportionate Share" means (a) in the case of Special Assessments imposed
against the Lots in a Neighborhood pursuant to Section 7.4.5, that fraction wherein the numerator
is one and the denominator is the total number of Lots in the applicable Neighborhood, and (b) in
all other cases, that fraction wherein the numerator is one and the denominator is the sum of the
total number of Lots in the Property.
1.42 "Related Parties" means Declarant's constituent members; the members, partners,
shareholders and owners of the Declarant's constituent members and their constituent entities;
Declarant's affiliates; the affiliates of Declarant's constituent members; and the officers,
directors, members, shareholders, trustees and other principals of all of the foregoing entities,
and their respective successors and assigns.
1.43 "Reserve for Capital Improvements" means a reserve established pursuant to
Section 7.11 for repair and replacement of capital assets and similar property, and other proper
purposes to meet anticipated costs and expenses including, but not limited to, repairs and
replacement of those Common Areas that must be repaired or replaced on a periodic basis.
1.44 "Retail Purchaser" means a Person who purchases a Lot in a retail transaction and
shall not include Declarant, any Related Party, any Designated Builder or any other Person who
acquires a Lot (i) in a bulk sale transaction, or (ii) by distribution (as distinguished from
purchase), or (iii) in any similar transaction.
1.45 "Special Declarant Rights" means the rights reserved in this Declaration for the
benefit of Declarant pursuant to Section 47F-1-103(28) of the Act.
1.46 "Special Use Fees" means special fees that an Owner, an Occupant, or any other
Person is obligated by this Declaration, any applicable Supplemental Declaration, any applicable
Neighborhood Declaration or the Association Rules to pay to the Association for use of, access
to, or for the granting of a right or privilege with respect to, an amenity, facility, or other
Improvement including, but not limited to, any Common Area or Area of Common
Responsibility. Special Use Fees shall be in addition to any Assessment hereunder.
11

1.47 "Supplemental Declaration" means a declaration of covenants, conditions and
restrictions, or similar instrument, annexing additional real property to the Property and
subjecting the Annexed Property to this Declaration as provided in Section 15.
1.48 "Transition Date" means 90 days following the date upon which 95% of the total
number of "Permitted Lots" have been conveyed to Retail Purchasers or such earlier date as
Declarant turns over control of the Association to the Owners. For purposes of this Section 1.47,
the term "Permitted Lots" shall mean the total number of Lots allowed to be developed on the
Property and the real property more particularly described on Exhibit `B", pursuant to the
Jackson County Watershed Protection Ordinance, as the same may be amended from time to
time.
2. RIGHTS OF ENJOYMENT
2.1 Owners' Right of En gent. Every Owner and Occupant shall have a
nonexclusive easement for use and enjoyment in and to the Common Areas, subject to all of the
easements, covenants, conditions, restrictions and other provisions contained in this Declaration
including, but not limited to, the following provisions:
2.1.1 The right of the Association to limit the number of guests of Owners
and Occupants and to limit the use of the Common Areas by Persons who are not Owners, but
who are in possession of a Lot or own a portion of, or less than the entire ownership interest of, a
Lot and to charge admission, membership and other Special Use Fees for the use of any
Common Areas when provided for in a Supplemental Declaration with respect to land subject to
it, a Neighborhood Declaration with respect to land subject to it or when all or any portion of the
costs of ownership should, in the opinion of the Board, be borne (in whole or in substantial part)
by users rather than by all Members.
2.1.2 The right of the Association to establish reasonable rules and
regulations pertaining to or restricting the use of the Common Areas by Owners, Occupants or
other Persons including restricting certain areas to drainage, utility or similar uses.
2.1.3 The right of the Association to borrow money for the purpose of
improving, replacing, restoring or expanding the Common Areas or Areas of Common
Responsibility or adding new Common Areas and the right to mortgage the Common Areas,
provided that the rights of any lender shall be subordinated to the rights of the Owners.
2.1.4 The rights of the Association to suspend the right of an Owner,
Occupant and any other Person (including, but not limited to, a member of the family of an
Owner or Occupant) to use the Common Areas, or any designated portion thereof, during any
12

time in which any Assessment attributable to the Owner or the Owner's Lot remains unpaid and
delinquent, or for a period not to exceed 60 days for any single infraction of the Association
Rules or breach of this Declaration, any applicable Supplemental Declaration or any applicable
Neighborhood Declaration, and up to one year for any subsequent violation of the same or
similar provision of the Association Rules, this Declaration, any applicable Supplemental
Declaration or any applicable Neighborhood Declaration, provided that any suspension of any
Person's right to use the Common Areas, except for failure to pay Assessments, shall be made
only by the Board or a duly appointed committee thereof, after notice and a reasonable
opportunity for hearing. Notwithstanding the foregoing, the Association shall not have the right
to suspend any Owner's right to use any portion of the Property, including any Private Roads,
necessary for the Owner to gain access to the Owner's Lot.
2.1.5 The right of the Association to dedicate or transfer all or any part of, or
interest in, the Common Areas to any public agency, authority, or utility for such purposes and
subject to such conditions as may be agreed to by the Association provided that these actions
otherwise comply with this Declaration.
2.1.6 The right of the Association to change the use, size, shape or location
of Common Areas, to exchange Common Areas for other properties that then become Common
Areas, and to abandon or otherwise transfer Common Areas, provided that all of these actions
otherwise comply with this Declaration.
2.2 Delegation of Use. No Owner may delegate the Owner's right to use and enjoy
the Common Areas to any Person, to Occupants of the Owner's Lot, or to the Owner's guests,
except as permitted by the Association Rules. An Owner's right of use and enjoyment of the
Common Areas shall be appurtenant to and shall pass with title to the Owner's Lot.
2.3 Waiver of Use. No Owner may exempt himself, and no Owner shall be exempt,
from personal liability for Assessments, or release any Lot the Owner owns from the liens,
charges and other provisions of this Declaration, any applicable Supplemental Declaration, any
applicable Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design
Guidelines, by voluntary waiver of, or suspension or restriction of the Owner's right to, the use
and enjoyment of the Common Areas, or the abandonment of the Owner's Lot.
3. ASSOCIATION
3.1 Purpose of Association. The Association has been, or, will be, incorporated as a
nonprofit corporation to serve as the governing body for all of the Owners for the protection,
improvement, alteration, maintenance, repair, replacement, administration and operation of the
Property, the assessment of expenses, payment of losses, disposition of casualty insurance
proceeds, and other matters as provided in this Declaration, any Supplemental Declaration, any
13

Neighborhood Declaration, the Articles, Bylaws, Association Rules and Design Guidelines. The
Association shall not be deemed to be conducting a business of any kind and all funds received
by the Association shall be held and applied by it for the Owners in accordance with the
provisions of this Declaration, any applicable Supplemental Declaration, any applicable
Neighborhood Declaration, the Articles and the Bylaws.
3.2 Membership in Association. Except as provided in Sections 3.4 and 3.17, there
shall be one Membership in the Association with one Membership vote for each Lot. Each
Membership shall be entitled to one vote on each matter to be decided by the Members. If the
Owner of a Lot is other than one individual, each individual and entity comprising the Owner
shall be considered a Member but the number of Memberships or votes attributable to the Lot
shall not be increased by the fact of multiple ownership. In the case of multiple ownership, the
Owner shall give the Association written notice identifying the individual who is entitled to cast
the Membership vote for the Lot. In the absence of written notice, Assessments shall
nevertheless be charged against the Lot and the Owner thereof, but there shall be no right to cast
the Membership vote. The individual entitled to cast the Membership vote must be an Owner,
or, if the Owner is or includes a Person other than an individual, must be an individual who is (i)
a member of the limited liability company, if the Owner is or includes a limited liability
company, or (ii) a partner in the partnership, if the Owner is or includes a partnership, or (iii) an
officer of the corporation, if the Owner is or includes a corporation, or (iv) a beneficiary of the
trust, if the Owner is or includes a trust, or (v) an owner of the entity, if the Owner is or includes
a Person other than an individual, a limited liability company, a partnership, a corporation or a
trust. The individual, as so specified, shall be the only Person entitled to vote for the Owner of
the Lot at Association meetings and elections. An Owner may change the individual who is
designated for the Owner's Lot, provided the individual is eligible to cast the Membership vote
hereunder. The Board may establish reasonable processing fees and reasonable procedures for
changing the designated individual including rules governing the manner and frequency in which
designations can be made. An Owner shall remain a member of the Association until the Owner
ceases to be an Owner, at which time the Owner's membership in the Association shall
automatically cease.
3.3 Suspension of Voting Rights. No Owner shall be entitled to exercise any voting
rights as a Member in the Association during any period in which the Owner is delinquent in the
payment of any Assessments.
3.4 Intentionally Omitted.
3.5 Assignment of Declarant's Voting Rights. If any lender to whom Declarant has
assigned, or hereafter assigns, all or substantially all of its rights under this Declaration as
security succeeds to the interests of Declarant by virtue of the assignment, the absolute voting
rights of Declarant provided for in Section 3.17 shall not be terminated by the assignment, and
the lender shall hold Declarant's memberships and voting rights on the same terms as they were
held by Declarant pursuant hereto.
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3.6 Board of Directors.
3.6.1 The affairs of the Association shall be conducted by the Board as
provided herein and in accordance with the Articles and Bylaws. Except for directors appointed
by Declarant, each director shall be an individual qualified under Section 3.2 to be designated to
cast votes for a Membership (whether or not actually so designated). If a director ceases to meet
the foregoing qualifications during the director's term, the director will thereupon cease to be a
director and the director's place on the Board shall be deemed vacant. Unless the vote or consent
of the Members is expressly required hereunder, any action required or permitted to be taken by
the Association, shall be satisfied or taken by the Board. The Board may appoint various
committees (which may consist, in whole or in part, of individuals who are not on the Board).
3.6.2 Declarant shall have the absolute power and right to appoint and
remove the members of the Board until the Transition Date. After the Transition Date, the
Members of the Association shall have the power and right to elect and remove the members of
the Board as provided in the Articles and Bylaws. Declarant may (but shall not be required to)
relinquish its rights under this Section prior to the Transition Date by recording a notice of
relinquishment.
3.7 Board's Determination Binding. Subject to the provisions of Section 16, in the
event of any dispute or disagreement between or among any Owners, Members, or any other
Persons subject to this Declaration, relating to the Property, or any question of interpretation or
application of the provisions of this Declaration, any Supplemental Declaration, any
Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines, then
(subject to any judicial decision by a court of competent jurisdiction) the determination thereof
by the Board shall be final and binding on each Owner, Member or other Person subject to this
Declaration. The Board, at its election, may delegate the resolution of any such dispute or
disagreement to the President or a committee appointed by the Board.
3.8 Approval of Members. Unless elsewhere otherwise specifically provided in this
Declaration, any Supplemental Declaration, any Neighborhood Declaration the Articles or
Bylaws, any provision of this Declaration, any Supplemental Declaration, any Neighborhood
Declaration, the Articles or Bylaws that requires the vote or written assent of the Members of the
Association shall be deemed satisfied by the following:
(a) The vote in person or by proxy of the specified percentage of
Members at a meeting duly called and noticed pursuant to the provisions of the Articles or
Bylaws dealing with annual or special meetings of the Members.
15

(b) Written consents signed by the specified percentage of Members as
provided in the Articles or Bylaws.
(c) If no percentage of Members is otherwise specified then the vote
or written assent of a Majority of a Quorum of Members shall be required.
3.9 Additional Provisions in Articles and Bylaws. The Articles and Bylaws may
contain any provision relating to the conduct of the affairs of the Association and the rights and
powers of its directors, officers, employees, agents and members not inconsistent with law or this
Declaration.
3.10 Association Rules. The Board shall be empowered to adopt, amend or repeal
rules and regulations that it deems reasonable and appropriate (the "Association Rules"), binding
upon all Persons subject to this Declaration and governing the use and/or occupancy of the
Common Areas or any other part of the Property. The Association Rules may establish a system
of fines and penalties enforceable as Special Assessments. The Association Rules shall govern
all matters pertaining to the purposes of the Association including, but not limited to, the use of
the Common Areas and Areas of Common Responsibility; provided, however, that the
Association Rules may not discriminate among similarly situated Owners except as expressly
provided or permitted herein, or in a Supplemental Declaration with regard to property subject to
the Supplemental Declaration, or in a Neighborhood Declaration with regard to property subject
to the Neighborhood Declaration, and shall not be inconsistent with this Declaration, any
Supplemental Declaration, any Neighborhood Declaration, the Articles, Bylaws or Design
Guidelines. A copy of the Association Rules as they may from time to time be adopted,
amended or repealed or a notice setting forth the adoption, amendment or repeal of specific
portions of the Association Rules shall be delivered to each Owner in the same manner
established in this Declaration for the delivery of notices. Upon completion of the notice
requirements, the Association Rules shall have the same force and effect as if they were set forth
in and were part of this Declaration and shall be binding on the Owners, and all other Persons
having any interest in, or making any use of, the Property, whether or not actually received
thereby. The Association Rules, as adopted, amended or repealed, shall be available at the
principal office of the Association to each Owner or other Person reasonably entitled thereto,
upon request. In the event of any conflict between any provision of the Association Rules and
any provisions of this Declaration, any Supplemental Declaration, any Neighborhood
Declaration or the Articles, Bylaws or Design Guidelines, the provisions of the Association
Rules shall be deemed to be superseded by the provisions of this Declaration, any Supplemental
Declaration, any Neighborhood Declaration, the Articles, Bylaws or Design Guidelines to the
extent of the conflict.
3.11 Indemnification. To the fullest extent permitted by law, the Association shall
indemnify the following Persons against all expenses and liabilities including, but not limited to,
attorneys' fees, witness fees (including expert witness fees), costs and litigation -related expenses
reasonably incurred by or imposed upon them in connection with any proceeding to which they
may be parties, or in which they may become involved, by reason of their being or having served
16

in those capacities on behalf of the Association (or by reason of having appointed, removed or
controlled or failed to control members of the Board or the Design Review Committee), or any
settlement of any such proceeding: (i) every director and officer of the Association; (ii) every
member of the Design Review Committee and other committees of the Association;
(iii) Declarant and all Related Parties (and their respective employees); and (iv) all the
employees of the Association. Any agent of the Association may, in the discretion of the Board
and subject to the findings described below, also be indemnified by the Association. Any Person
described in the first sentence shall be entitled to indemnification whether or not that Person is a
director, officer, member of the Design Review Committee or serving in any other specified
capacity at the time the expenses are incurred. Notwithstanding anything to the contrary in this
Declaration, before any Person is entitled to indemnity pursuant to this Section 3.11, the Board
shall determine, in good faith, that the Person to be indemnified did not act, fail to act, or refuse
to act with gross negligence or fraudulent or criminal intent in the performance of that Person's
duties. These rights of indemnification shall be in addition to and not exclusive of all other
rights to which the Persons to be indemnified may be entitled at law or otherwise.
3.12 Non -Liability of Officials. To the fullest extent permitted by law, none of the
following Persons shall be liable to any Member, Owner, Occupant, the Association or any other
Person for any damage, loss or prejudice suffered or claimed on account of any decision,
approval or disapproval of plans or specifications (whether or not defective), course of action,
act, inaction, omission, error, negligence or the like made in good faith and which the following
Persons reasonably believed to be within the scope of their respective duties: (i) every director
and officer of the Association; (ii) every member of the Design Review Committee and other
committees of the Association; (iii) Declarant and all Related Parties (and their respective
employees); and (iv) all the employees of the Association. Each Owner, Occupant, and other
Person having any interest in the Property or entering upon or using any portion of the Property
is deemed to acknowledge and accept the following:
(a) None of the Persons described above in this Section 3.12 shall be
liable or responsible for, or in any manner be guarantor or insurer of, the health, safety, or
welfare of any Owner, Occupant, or other Person entering upon or making use of any portion of
the Property. Each Owner, Occupant, and other Person assumes all risks associated with the use
and enjoyment of the Property including, but not limited to, any recreational facilities upon or
within the Property.
(b) None of the Persons described above in this Section 3.12 shall be
liable or responsible for any personal injury, illness, or any other loss or damage caused by the
presence or malfunction of any utility line, equipment, or substation adjacent to, near, over, or on
the Property. Each Owner, Occupant and other Person assumes all risks of personal injury,
illness, or other loss or damage arising from the presence or malfunction of any utility line,
equipment, or substation adjacent to, near, over, or on the Property.
(c) No provision of this Declaration, any Supplemental Declaration,
any Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines
17

shall be construed or interpreted as creating a duty by any of the Persons described above in this
Section 3.12 to protect or further the health, safety, or welfare of any Person, even if funds of the
Association are used for such a purpose.
3.13 Easements. In addition to the other easements granted hereunder, the Association
is authorized and empowered to grant permits, licenses, easements and rights -of -way upon,
across or under real property owned or controlled by the Association for sewer lines, water lines,
underground conduits, storm drains, television cable and other similar public or private utility
purposes, roadways or other purposes as may be reasonably necessary and appropriate for the
development, maintenance or preservation of the Common Areas or Areas of Common
Reasonability or for the preservation of the health, safety, convenience and welfare of the
Owners, provided that any damage to a Lot resulting from a grant of any of the foregoing rights
shall be repaired by the grantee at its expense.
3.14 Accounting. The Association, at all times, shall keep, or cause to be kept, true
and correct records of account in accordance with generally accepted accounting principles, and
shall have available for the inspection of all Owners at reasonable times during regular business
hours at the principal office of the Association, books or other records specifying in reasonable
detail all expenses incurred and funds accumulated from Assessments or otherwise. The
Association shall cause the books and records of the Association to be audited on an annual basis
by an accounting firm selected by the Board.
3.15 Records. The Association shall, upon reasonable written request and during
reasonable business hours, make available for inspection by each Owner, at the Association's
office, the books, records and financial statements of the Association together with current
copies, as amended from time to time, of this Declaration, any Supplemental Declarations, any
Neighborhood Declaration, the Articles, Bylaws, Association Rules and Design Guidelines.
Declarant shall be under no obligation to make its own books and records available for
inspection by any Owner or other Person.
3.16 Managing Agent. All powers, duties and rights of the Association, the President
or the Board, as provided by law and herein, may be delegated to a managing agent under a
management agreement; provided, however, that no delegation shall relieve the Association of
its obligation to perform any delegated duty. Any agreement for professional management, or
any other contract providing for services to the Association, shall not exceed a term of three
years, subject to renewal by agreement of the parties for successive one-year periods, and shall
further provide for termination by the Association with or without cause and without payment of
a termination fee upon 90 days' written notice.
3.17 Declarant's Control of Association. Notwithstanding anything in this Declaration
to the contrary, Declarant shall maintain absolute control over the Association, including
appointment of the President and the members of the Board, until the Transition Date. In
addition, until the Transition Date, Declarant shall have exclusive jurisdiction over architectural

and design matters and shall be entitled to exercise the architectural and design review powers
reserved to Declarant under this Declaration as provided in Section 12. Until the Transition
Date, only Declarant will be entitled to cast any vote with respect to any matter requiring the
approval of the Members except referendums of the Members with respect to certain provisions
of this Declaration as set forth in Sections 7.3.4, 7.4.3, 7.4.4, 7.15 and 18.4. Declarant
voluntarily may (but shall not be required to) permit the Members to assume control of the
Association at any time.
3.18 Rights of Enforcement. The Board shall have the exclusive right to enforce the
provisions of this Declaration and/or any and all covenants, restrictions, reservations, charges,
servitudes, assessments, conditions, liens, or easements provided for in any contract, deed,
declaration or other instrument relating to the Property that have been executed pursuant to, or
subject to, the provisions of this Declaration, or that otherwise indicate its provisions were
intended to be enforced either by the Association or by Declarant for the Association. If,
however, the Board fails or refuses to enforce this Declaration or any provision of the
instruments listed above for an unreasonable period of time after written request to do so, then an
Owner (at the Owner's expense) may enforce them on behalf of the Association by any
appropriate legal action, whether at law or in equity. Notwithstanding any provision hereof
concerning the rights and powers of the Board, Declarant may pursue whatever rights and
remedies might be available to it at law or in equity. Notwithstanding any provision of this
Declaration, Declarant shall have no duty to undertake any such enforcement actions and shall
not be deemed a guarantor of enforcement.
3.19 Contracts With Others For Performance of Association's Duties. Subject to the
restrictions and limitations contained in this Declaration, the Board may enter into contracts and
transactions with others, including Declarant, any Related Party and any affiliated Persons, for
the performance of the Association's duties and for other purposes consistent with this
Declaration. No contract or transaction shall be invalidated or in any way affected by the fact
that one or more directors or officers of the Association or members of any committee may be
employed by or otherwise connected with the other party to the contract or transaction, provided
that any relationship of the other party to directors or officers of the Association and members of
any committee is disclosed or known to the other directors or committee members acting upon
the contract or transaction, and provided further that the transaction or contract is fair and
reasonable. Any director, officer, or committee member with a relationship to, or any other
interest in, the other party to the contract (i) may be counted in determining the existence of a
quorum at any meeting that authorizes any contract or transaction described above or that grants
or denies any approval sought by the other party, and (ii) may vote there to authorize any
contract, transaction or approval, as if the director or member had no relationship to the other
party to the contract.
3.20 Changes to Common Areas. The Association, through the action of the Board,
may sell, exchange, convey, abandon or change the use of any Common Areas, provided the
Board has determined that the change is in the best interest of the Property, the Project and the
Owners. Prior to the Transition Date, the Board may act to effect a change described in this
19

Section 3.20 without the vote or consent of any Owner or other Person. After the Transition
Date, the Board may act to effect a change described in this Section 3.20 only with the consent of
Declarant, so long as Declarant or any Related Parry owns any portion of the Project.
3.21 Purposes For Which Association's Funds May be Used. The Association, except
as otherwise permitted in this Declaration, shall apply all funds and property collected and
received by it from any source (including Assessments, fees, loan proceeds, and surplus funds)
for the common good and benefit of the Property, the Owners, and Occupants by devoting these
funds and property, among other things, to the Common Expenses described in Section 1.14.
Notwithstanding these requirements, all funds of the Association shall be deemed to be the sole
property of the Association in its corporate capacity, and not trust funds, and the Association
shall not be deemed to hold any funds as trustee or in any fiduciary capacity, except as expressly
provided in this Declaration. The Association also may expend its funds for any purposes for
which any municipality in the State of North Carolina may expend its funds under the laws of the
State of North Carolina or the municipality's charter.
3.22 BorrowingPower. ower. The Association may borrow money in such amounts, at such
rates, upon such terms and security, and for such periods of time as the Board deems necessary
or appropriate.
3.23 Association's Rights in Spending Funds From Year to Year. The Association
shall not be obligated to spend in any year all the sums received by it in that year, regardless of
source, unless specifically provided to the contrary in this Declaration. The Association may
carry forward as additional working capital or reserves any remaining balances. The Association
shall not be obligated to reduce the amount of the Regular Assessments in the succeeding year if
a surplus exists from a, prior year, and the Association may carry forward from year to year any
surplus that the Board, in its discretion, may determine to be desirable for the greater financial
security of the Association and the accomplishment of its purposes.
3.24 Special Use Fees. Subject to the provisions of this Declaration including, but not
limited to, Section 16, and any applicable provisions of any Supplemental Declaration or
Neighborhood Declaration, the Board is authorized to impose, bill for, sue for, collect,
administer, and disburse Special Use Fees, and the payment of all Special Use Fees shall be
secured by the lien established in Section 6.3. In establishing or adjusting the amounts of Special
Use Fees from time to time, the Board shall have the absolute discretion to establish reasonable
classifications among Owners, Occupants, and other Persons.
3.25 Designated Service Providers. The Board shall have the authority to designate
exclusive providers of services within the Property when the Board deems it necessary or
desirable to do so for reasons of obtaining better rates or terms of service or for other reasons
deemed reasonable by the Board. If the Board makes such a designation, the Association may
enter into an agreement with the designated service provider, and the cost of services purchased
by the Board shall be considered a Common Expense of the Association and shall be included in
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the Regular Assessments payable by each Owner, provided, however, that the Board may
allocate such costs between improved and unimproved properties, or among Neighborhoods, as a
Special Assessment, in such a manner as the Board deems equitable. Notwithstanding any
designation and negotiation with a service provider, each Owner may contract separately with
the designated service provider to receive services in excess of those provided to the Property
pursuant to the service provider's agreement with the Association, and the cost of the additional
services shall be paid separately by the Owner and shall not be an Assessment under this
Declaration. Any service provider designated by the Board pursuant to this Section 3.25 shall
have an easement over the Common Areas to the extent necessary or convenient for the efficient
delivery of the designated service.
4. EASEMENTS AND ACCESS CONTROLS
4.1 Blanket Easements. There is hereby created a blanket easement upon, across,
over and under the Property (including all Lots, Common Areas and Areas of Common
Responsibility) for ingress and egress, installing, constructing, replacing, repairing, maintaining
and operating all utilities including, but not limited to, water, sewer, gas, telephone, electricity,
television cable, alarm systems, and communication lines and systems, and in addition thereto
for the use of emergency vehicles of all types. By virtue of the easement, it shall be expressly
permissible for the providing service provider to erect (including, but not limited to, underground
installation) and maintain the necessary facilities, wires, circuits, conduits, cables and related
appurtenances, facilities and equipment on the Property. Notwithstanding anything to the
contrary contained in this Section, no easements shall be created nor shall any sewers, electrical
lines, water lines or other facilities for utilities be installed or relocated except as initially created
and approved by Declarant or thereafter created or approved by the Association. This provision
shall in no way affect any other recorded easements on the Property.
4.2 Use of Common Areas. Except for the use limitations provided in this Section, in
Section 4.3, in any Supplemental Declaration (with respect to any portion of the Property subject
to the Supplemental Declaration) and in any Neighborhood Declaration (with respect to any
portion of the Property subject to the Neighborhood Declaration), each Owner shall have the
nonexclusive right to use the Common Areas in common with all other Owners as required for
the purposes of access and ingress and egress to (and use, occupancy and enjoyment of) any Lot
owned by the Owner or other Common Areas available for the use of the Owner. This right to
use the Common Areas for purposes of access and ingress and egress shall, subject to the
Association Rules, extend to each Owner, Occupant and the agents, servants, tenants, family
members and invitees of each Owner. The right to use the Common Areas shall be perpetual and
appurtenant to each Lot, but shall be subject to and governed by the provisions of this
Declaration, any applicable Supplemental Declaration, any applicable Neighborhood
Declaration, the Articles, Bylaws and Association Rules and the reasonable limitations and
restrictions as are from time to time be contained therein. The Board may limit or restrict the
right of Owners and other Persons to use portions of the Common Area which exist for the
21

benefit of the Association, but which by their nature are not intended for access and ingress and
egress including, but not limited to drainage, utility or similar easements or rights.
4.3 Exclusive Use Rights. Certain portions of the Common Areas may be reserved by
any Supplemental Declaration, any Neighborhood Declaration, any Plat or by the Board, in its
reasonable discretion, for the exclusive control; possession and use of the Owner of a Lot or the
Owners of more than one but fewer than all Lots. If any portion of the Common Area serves as
access to and from two or more Lots, the Owners of the affected Lots shall have joint control,
possession and use of the portion of the Common Area that reasonably serves the affected Lots.
The exclusive use rights created in this Section 4.3 are subject to the blanket easement,
maintenance, and architectural and landscape control provisions contained in this Declaration
and to any reasonable rules and regulations with respect to possession, control, use and
maintenance as the Board may from time to time promulgate. Easements are hereby created in
favor of and running with each Lot having an area described in the first sentence of this
Section 4.3, for the exclusive control and use of the applicable portion of the Common Area.
Each Owner, by accepting title to a Lot, shall be deemed to have further ratified the easements
and rights to exclusive use created by this Section 4.3.
4.4 Perimeter Wall Easement. There is hereby created an affirmative easement in
favor of Declarant, each Related Party, the Association, and their employees and agents, upon,
over and across each Lot adjacent to the perimeter boundaries of the Property (and each Lot
adjacent to the perimeter boundaries of any Neighborhood) for reasonable ingress, egress,
installation, replacement, maintenance and repair of any perimeter wall that is located along a
perimeter boundary of the Property (or along a perimeter boundary of any Neighborhood).
4.5 Declarant Easement. There is hereby created a nonexclusive easement for ingress
and egress over, for the right to go over, under, and across, and for the right to enter and remain
upon, all portions of the Property, including, but not limited to, Lots (except the interiors of
occupied dwelling units) and Common Areas (including, but not limited to, any Private Streets,
and a right of access through any guard gates, key gates or other access control points) for the
purpose of enabling Declarant, the Related Parties and their respective employees, agents,
invitees, licensees, contractors and guests to exercise Declarant's rights and obligations
hereunder and to engage in activities reasonably related to the development, management,
administration, operation, maintenance, advertisement and sale or rental of the portions of the
Property and the Project owned by Declarant or any Related Party. The easement created in this
Section 4.5 shall be in favor of Declarant and the Related Parties, and appurtenant to portions of
the Project owned by Declarant or a Related Party. The rights of access established in this
Section 4.5 shall be exercised so as to reasonably minimise interference with the quiet enjoyment
of a Lot by its Owner and any Occupant. The easement created in this Section 4.5 shall continue
until the day upon which neither Declarant nor any Related Party has any interest in any portion
of the Project, including the Golf Club Facilities.
22

4.6 Association Easement. There is hereby created a nonexclusive easement in favor
of the Association for ingress and egress over all the Property (except the interiors of occupied
dwelling units) for the purpose of enabling the Association and its contractors, employees,
representatives, and agents to implement the provisions of this Declaration. The rights of access
established in this Section 4.6 shall be exercised so as to reasonably minimize interference with
the quiet enjoyment of a Lot by its Owner and any Occupant. Every Lot is also hereby subjected
to a nonexclusive easement for overspray and runoff of water from any irrigation systems
serving the Common Areas or any Areas of Common Responsibility. Under no circumstances
will the Association or any officers, directors, employees, or agents of the Association be
responsible for any property damage or personal injury resulting from any overspray or from the
operation of the irrigation systems serving the Common Areas or Areas of Common
Responsibility.
4.7 Easements For Drainage. All Lots and Common Areas are hereby subjected to an
easement for drainage of storm water runoff from other portions of the Property; provided,
however, that no Person shall be entitled to alter the drainage patterns on any portion of the
Property to increase materially the drainage of storm water onto adjacent portions of the Property
or Project (or materially relocate its locations) without the consent of any Owners of the affected
property and the Board.
4.8 Access Control. The Association, or its duly delegated representative, may
operate an access control system for the Property, any portion of the Property, or any
Neighborhood in the Property.
4.8.1 Generally. Any access control (or similar) system may (but is not
required to) include all or any of the following: guard gates, key gates and other access control
points, both manned and unmanned, at entries to various portions of the Property or individual
Neighborhoods; patrol vehicles, patrolmen and patrol supervisors; computer and/or other
monitoring equipment; television monitoring devices; burglar and fire alarm devices installed in
Buildings located on Common Areas -and Areas of Common Responsibility; communications
equipment; direct line phones; and such other devices as may be deemed appropriate by the
Board. The cost of any services described in this Section 4.8.1 shall be part of the Common
Expenses, unless allocated to particular Neighborhoods and collected through a Special
Assessment imposed pursuant to Section 7.4.5.
4.8.2 Access Through Gates. Subject to the easements created in
Section 4.5 and elsewhere in this Declaration, the Association shall have the right, from time to
time, to determine who may have access through guard gates, key gates and other access control
points into various portions of the Property or individual Neighborhoods and onto any Private
Roads. Declarant reserves the unrestricted right of access through guard gates, key gates and
other access control points and the use of any Private Roads for itself and its successors in
interest as to any other property in the Project owned by Declarant or a Related Party and for
their employees, agents, invitees, licensees, and guests. Subject to applicable restrictions in this
Declaration, the Association may, from time to time, make reasonable rules relating to the right
23

of entry through guard gates, key gates and other access control points throughout the Property,
but none restricting entry by Owners or Occupants or their tenants and guests or by prospective
purchasers of homes or Lots invited by an Owner. Subject to Section 4.5 and Section 5, any gate
may be abandoned, or its hours of manned operation reduced to less than 24 hours per day, at the
discretion of the Association.
4.8.3 Individual Lots. When appropriate for the efficient administration of
the Property or any Neighborhood, including, but not limited to, effective control over access to
the Property or any Neighborhood therein, the Association may require that any Owner wishing
security or similar services (including, but not limited to, patrol service and fire and burglar
alarm protection) for the Owner's Lot (as distinguished from general services under
Section 4.8.1) obtain the service from a Person (which may be the Association) selected by the
Board to provide such services to all Owners or to all Owners in a particular Neighborhood
wishing such services. The Board, however, may not require any Owner to have such services
for the Owner's particular Lot. The cost of any such services shall not be a Common Expense or
included in the Regular Assessment, but, if provided by or through the Association, will be
charged to the Owner requesting the service. The cost of any such services selected by the Board
shall be reasonably competitive with the charges for similar services rendered by unaffiliated
companies providing similar services on a contract basis to other communities and customers in
comparable areas of the City.
4.8.4 Right of Entry. Representatives and agents of the Association
including, but not limited to, patrolmen, shall have the right to enter upon all Lots, Common
Areas and Areas of Common Responsibility when responding to alarms or when otherwise
reasonably deemed necessary for the protection of Persons or property, and neither the
Association, nor any representative or agent thereof, shall have any liability to any Person when
acting in good faith pursuant to this Section 4.8.4.
4.8.5 Liabili . Neither the Association, Declarant, nor any Related Party is
or should be considered a guarantor or insurer of security in the Property including, but not
limited to, individual Lots. Neither the Association, the members of the Board, Declarant, any
Related Party, nor their respective employees shall be liable to any Owner, Occupant, or other
Person if any patrol and/or access control system is ineffective to prevent or detect in any case
the risk for which it is intended. Moreover, no approval of a security (or similar) system for a
Lot by the Design Review Committee or the Board shall constitute a warranty or assurance of
any kind by the Design Review Committee or Board that the system will function as intended
and neither the Design Review Committee nor the Board (nor any employee, member or agent of
either) shall have any liability by reason of any approval if any security system fails to prevent or
detect the risk for which it is intended.
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5. GOLF CLUB FACILITIES
5.1 General. The Golf Club Facilities are not Common Areas and are not subject to
this Declaration, and no provision of this Declaration gives, or shall be deemed to give, any
Owner or Occupant the right to use the Golf Club Facilities. Rights to use the Golf Club
Facilities will be granted only to those Persons, and on those terms and conditions, as may be
determined from time to time by the Golf Club Owner. By way of example, but not limitation,
the Golf Club Owner shall have the right to approve users and determine eligibility for use, to
reserve use rights, to transfer any or all of the Golf Club Facilities or operation thereof to anyone
and on any terms, to limit availability of use privileges, and to require the payment of a purchase
price, a membership contribution, an initiation fee, a membership deposit, dues, and/or use
charges. Each Owner and Occupant hereby acknowledges that no right to the use or enjoyment
of the Golf Club Facilities arises from ownership or occupancy of a Lot but arises, if at all, only
from a membership agreement or other similar agreement with the Golf Club Owner. The Golf
Club Owner shall have the right, from time to time in its sole and absolute discretion and without
notice, to amend or waive the terms and conditions of use of the Golf Club Facilities including,
but not limited to, eligibility for and duration of use rights, categories of use, extent of use
privileges, and number of users. The Golf Club Owner shall also have the right, in its sole and
absolute discretion and without notice, to reserve use rights and to terminate use rights
altogether, subject to the provisions of any outstanding membership documents.
5.2 Ownership of Golf Club Facilities. Each Owner and Occupant hereby
acknowledges that no representations or warranties have been or are made by Declarant or any
other Person with regard to the use of, or the nature or size of improvement to, or the continuing
ownership or operation of the Golf Club Facilities. No representation or warranty of Declarant
regarding the foregoing matters shall be effective unless in writing and signed by Declarant. It is
not contemplated that the Golf Club Facilities will be annexed to the Property and thereby
subjected to this Declaration.
5.3 Assumption of Risk. Each Owner and Occupant expressly assumes the risk of
noise, personal injury or property damage or any other condition caused by the existence of the
Golf Club Facilities or caused by the maintenance and operation of the Golf Club Facilities
including, but not limited to: (a) noise from maintenance equipment, (b) noise caused by golfers,
(c) use of pesticides, herbicides, fertilizers and effluent, (d) view restrictions caused by
maturation of trees and shrubbery, (e) reduction in privacy caused by golf traffic on any Golf
Course or the removal or pruning of shrubbery or trees on any Golf Course, (f) design of any
Golf Course, and (g) the possibility of golf balls entering the property adjacent or in proximity to
the Golf Club Facilities and causing damage to property and injury to Persons. Each Owner and
Occupant acknowledges that maintenance of golf courses typically takes place around sunset or
sunrise. Each Owner and Occupant agrees that neither the Association, the Golf Club Owner,
Declarant, any Related Party, the designer of any Golf Course, nor any other Person owning or
managing any portion of the Golf Club Facilities or supplying equipment, materials or services
to any portion of the Golf Club Facilities (nor any of their respective members, partners,
25

shareholders, principals, officers, directors, employees or agents) shall be liable to any Owner or
any other Person claiming any loss or damage including, but not limited to, indirect, special or
consequential loss or damage arising from personal injury, destruction of property, trespass, loss
of enjoyment or any other alleged wrong or entitlement to remedy based upon, due to, arising
from or otherwise related to the proximity of an Owner's Lot to the Golf Club Facilities
including, but not limited to, any claim arising in whole or in part from the negligence of the
Association, the Golf Club Owner, Declarant, any Related Parry, the designer of any Golf Course
or any other Person owning or managing any portion of the Golf Club Facilities or supplying
equipment, materials or services to any portion of the Golf Club Facilities (or any of their
respective members, partners, shareholders, principals, officers, directors, employees or agents).
Each Owner, by acceptance of a deed or other conveyance of an interest in a Lot, is deemed to
agree and covenant not to make any claim or institute any action whatsoever against the
Association, the Golf Club Owner, Declarant, any Related Parry, the designer of any Golf
Course, any other Person owning or managing any portion of the Golf Club Facilities or
supplying equipment, materials or services to any portion of the Golf Club Facilities (or any of
their respective members, partners, shareholders, principals, officers, directors, employees or
agents) arising from or otherwise related to the proximity of an Owner's Lot to the Golf Club
Facilities.
6. INSPECTION AND TURNOVER OF COMMON AREAS
6.1 Inspection of Common Area Improvements. Not later than each date upon which
Declarant conveys any Common Areas to the Association and as a condition to the conveyance,
Declarant shall select experts to inspect any completed Buildings, rights -of -way, sidewalks or
other Improvements to those Common Areas to determine whether the Improvements have been
constructed in substantial compliance with the plans and specifications, as modified by any
change orders, and to inspect for defects in materials and workmanship and for governmental
code violations. In addition, upon Declarant's completion of any Building, right-of-way,
sidewalk or other Improvement in the Common Areas previously conveyed to the Association
(costing in excess of $10,000), Declarant shall select experts to inspect the completed
Improvements to determine whether the Improvements have been constructed in substantial
compliance with the plans and specifications, as modified by any change orders, and to inspect
for defects in materials and workmanship and for governmental code violations. The
Association shall pay the cost of the inspections and the cost shall be a Common Expense. Each
Owner, by acceptance of a deed or other conveyance of an interest in a Lot, is deemed to agree to
the inspectors selected by Declarant and the inspection process set forth in this Section and to
agree to abide by the inspectors' determinations. Declarant shall, at its sole cost and expense,
make all repairs to the Improvements which the inspectors deem necessary to cause the
Improvements to comply substantially with the plans and specifications, as modified by any
change orders, to be free from defects in materials and workmanship and to be in compliance
with applicable governmental codes. Except as provided in Section 6.3, Declarant shall have no
obligation to make any additional repairs to the Improvements other than the repairs which the
inspectors deem necessary as provided in the preceding sentence. The Association and each
Owner, by acceptance of a deed or other conveyance of an interest in a Lot, release Declarant
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and the Related Parties from any further obligations with respect to repairs to any Common Area
Improvements except any repairs required to be made by Declarant pursuant to Section 6.3. At
such time as Declarant has completed all repairs required to be made by Declarant under this
Section 6.1 and the inspectors selected by Declarant have certified that all required repairs have
been completed, the Association shall be deemed to own and to have accepted (and shall have no
right to refuse to accept) the Improvements. Thereafter, the Association shall have no right to
require Declarant or any of the Related Parties to make any further repairs to the Common Area
Improvements (except as provided in Section 6.3) and shall have no right to bring any claim or
action against Declarant or any of the Related Parties (or any of their respective employees)
relating to the Improvements.
6.2 Conveyance of Common Areas to Association. On or before the Transition Date,
Declarant shall convey the Common Areas to the Association by special warranty deed or other
appropriate instrument as determined by Declarant, subject to this Declaration and all matters of
record. The Association shall accept title to the Common Areas transferred to it by Declarant.
All costs and expenses of any conveyance of the Common Area by Declarant to the Association
shall be paid by the Association. SUBJECT TO ANY REPAIRS REQUIRED UNDER
SECTION 6.3, THE ASSOCIATION SHALL ACCEPT THE COMMON AREAS "AS IS"
AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN
FACT OR BY LAW WITH RESPECT THERETO, OR WITH RESPECT TO THE
IMPROVEMENTS, INCLUDING, BUT NOT LIMITED TO, REPRESENTATIONS OR
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR THE ORDINARY OR ANY
PARTICULAR PURPOSE, AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES
REGARDING FUTURE REPAIRS OR REGARDING THE CONDITION, CONSTRUCTION,
ACCURACY, COMPLETENESS, DESIGN, ADEQUACY OF THE SIZE OR CAPACITY IN
RELATION TO THE UTILIZATION, DATE OF COMPLETION OR THE FUTURE
ECONOMIC PERFORMANCE OR OPERATIONS, EXCEPT AS SET FORTH HEREIN.
THE ASSOCIATION AND EACH OWNER, BY ACCEPTANCE OF A DEED OR OTHER
CONVEYANCE OF AN INTEREST IN A LOT, RELEASE DECLARANT AND THE
RELATED PARTIES (AND THEIR RESPECTIVE EMPLOYEES) FROM ANY CLAIMS
AND WARRANT THAT NO CLAIM SHALL BE MADE BY THE ASSOCIATION OR ANY
OWNER RELATING TO THE CONDITION OR COMPLETENESS OF THE COMMON
AREAS OR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING
THEREFROM.
6.3 Turnover upon Transition Date. Prior to the Transition Date, Declarant shall
select experts to inspect the Common Areas and Improvements constructed thereon to determine
whether the Improvements contain any defects in materials or workmanship and to review and
evaluate the level of reserves of the Association to determine whether the Association's reserves
for capital improvements are sufficient based on the age and condition of any Improvements to
the Common Areas. The Association shall pay the cost of the inspections and the cost shall be a
Common Expense. Each Owner, by acceptance of a deed or other conveyance of an interest in a
Lot, is deemed to agree to the inspectors selected by Declarant and the inspection process set
forth in this Section and to agree to abide by the inspectors' determinations. Declarant shall, at
its sole cost and expense, make all repairs to the Improvements which the inspectors deem
27

necessary to cause the Improvements to be free of defects in materials and workmanship.
Nothing in this Section shall require Declarant to make any repairs to the Common Areas or the
Improvements thereto necessitated by ordinary wear and tear. Declarant shall also deposit with
the Association the amount of funds, if any, determined by the inspectors to be necessary to
provide the Association with sufficient reserves for capital improvements. Declarant shall have
no obligation to make any additional repairs to the Improvements other than the repairs which
the inspectors deem necessary as provided herein or to fund the Association's reserves for capital
improvements. The Association and each Owner, by acceptance of a deed or other conveyance
of an interest in a Lot, release Declarant and the Related Parties from any further obligations to
repair the Common Area Improvements and to fund reserves for capital improvements. At such
time as Declarant has completed all repairs required to be made by Declarant to the Common
Area Improvements, Declarant has deposited with the Association any funds deemed necessary
by the inspectors to provide sufficient reserves as provided herein, and the inspectors selected by
Declarant have certified that all required repairs have been completed and all required funds have
been deposited, the Association and the Owners shall be deemed to have accepted the condition
of the Common Areas and Improvements thereto and the amount of the reserves for capital
improvements, and, thereafter, the Owners and the Association shall have no right to require
Declarant or any Related Parry to make any further repairs to the Improvements to the Common
Areas or to contribute to the reserves of the Association and shall have no right to bring any
claim or action against Declarant or any Related Party (or their respective employees) relating to
the condition of the Common Areas, the Common Area Improvements and the level of the
Association's reserves for capital improvements.
7. ASSESSMENTS
7.1 Creation of Lien and Personal Obligation. Each Owner, by acceptance of a deed
or other conveyance of an interest in a Lot, is deemed to covenant and agree to pay to the
Association: Regular Assessments, Special Assessments, and any other sums established and
collected from time to time as provided in this Declaration, any applicable Supplemental
Declaration, any applicable Neighborhood Declaration, the Association Rules and the Design
Guidelines. All Assessments shall be established and collected, from time to time, as provided in
this Declaration. The Assessments and charges provided for in this Declaration, any applicable
Supplemental Declaration, any applicable Neighborhood Declaration, the Association Rules and
Design Guidelines, together with interest thereon, late charges, attorneys' fees, witness fees
(including expert witness fees), costs, litigation -related expenses and other costs of collection
thereof, as hereinafter provided, shall be a continuing lien upon the Owner's Lot against which
the Assessments and charges are made. Each Assessment and charge, together with interest and
other costs, shall also be -the personal obligation of the Owner to whom the Assessment or charge
relates. The personal obligation for delinquent payments shall not pass to an Owner's successor
unless expressly assumed by the Owner's successor. If more than one Person owns a Lot, all
co -Owners of the Lot shall be jointly and severally liable for all Assessments and charges
provided for in this Declaration, any applicable Supplemental Declaration, any applicable
Neighborhood Declaration, the Association Rules and the Design Guidelines.
W.

7.2 Purpose of Assessments. The Assessments levied by the Association shall be
used to promote the recreation; health, safety, and welfare of the Owners, to enhance the quality
of life within the Property, to preserve the value of the Property, to pay the costs of
administration of the Association and all other Common Expenses and to otherwise further the
interests of the Association. Where a Lot has separate gas, electrical, sewer, cable television or
other similar utility service, all costs related to the services (including, but not limited to, service
charges, repairs, and maintenance) shall be the personal obligation of the Owner of the Lot and
shall not be part of the Common Expenses to be paid through Assessments.
7.3 Regular Assessments.
7.3.1 Except as otherwise specifically provided herein, each Owner shall
pay as the Owner's Regular Assessment the Owner's Proportionate Share of the Common
Expenses.
7.3.2 Not later than 60 days prior to the beginning of each fiscal year of the
Association (starting with the first full fiscal year after the sale of the first Lot to a Retail
Purchaser), the Association shall make available for review by each Owner at the Association's
office during reasonable times a pro forma operating statement or budget for the upcoming fiscal
year, which shall, among other things, estimate the total Common Expenses to be incurred for
the fiscal year. The Association shall at that time determine the amount of the Regular
Assessment to be paid by each Owner and notify each Owner thereof. Each Owner shall
thereafter pay to the Association the Owner's Regular Assessment at such regular intervals as
may be determined by the Board, from time to time. Each installment shall be due and payable
on the date set forth in the written notice sent to Owners. The fiscal year of the Association shall
be the calendar year, unless otherwise specified in the Articles or Bylaws.
7.3.3 If the Association determines that the total Regular Assessments for
the current year are, or will become, inadequate to meet all Common Expenses for whatever
reason, including Common Expenses in excess of the estimated Common Expenses used in
preparation of the Association's budget for that year, the Association shall then determine the
approximate amount of the inadequacy and issue a supplemental estimate of the Common
Expenses and determine the revised amount of Regular Assessments to be paid by each Owner
for the balance of the year, and the date or dates when due. If the estimated total Regular
Assessments for the current year prove to be in excess of the actual Common Expenses, the
Association may, at the discretion of the Board, retain the excess as additional working capital or
reserves, reduce the amount of the Regular Assessments for the succeeding year, or abate
collection of Regular Assessments for a period of time deemed appropriate by the Board. No
reduction or abatement of Regular Assessments because of any anticipated surplus may diminish
the quantity or quality of services upon which the Common Expenses for the year in question are
based.

7.3.4 From one fiscal year to the next, in no event shall the Board increase
Regular Assessments payable by Lots by more than the greater of (a) 10% or (b) the increase
during the preceding year of the Consumer Price Index for All Urban Consumers - U.S. Cities
Average - All Items (the "CPI") published by the United States Department of Labor, Bureau of
Labor Statistics (1982-84 = 100), but in no event more than the maximum increase permitted by
applicable law, without a vote or written consent by a Majority of a Quorum of Members except
Declarant and by Declarant (so long as Declarant owns any Lot within the Property). In the
event the Bureau of Labor Statistics shall cease to publish the CPI and such information is not
available from any other source, public or private, then a new formula for determining the
maximum annual increase without a vote or written consent of the Members shall be adopted by
the Board.
7.4 Special Assessments. Subject to the provisions of any applicable Supplemental
Declaration or any applicable Neighborhood Declaration, the Association may levy Special
Assessments in accordance with the following:
7.4.1 The Association may levy a Special Assessment against a particular
Owner and Lot that is subject to Assessment to recover the cost, including overhead and
administrative expenses, of providing benefits, items, or services to the Lot (or to its Owner or
Occupant) that are not included in the Common Expenses payable as Regular Assessments
(including, but not limited to, any charge imposed against Lots pursuant to any agreement with a
cable TV provider for cable TV access). Special Assessments under this Section 7.4.1 may be
levied in advance and payment of the Special Assessment may be a condition of providing the
benefit, item or service.
7.4.2 The Association may levy a Special Assessment against a particular
Owner and Lot that is subject to Assessment to cover the cost of bringing a Lot (or its Owner or
Occupant) into compliance with the requirements of this Declaration, any applicable
Supplemental Declaration, any applicable Neighborhood Declaration, the Articles, Bylaws,
Association Rules and Design Guidelines including, but not limited to, increased maintenance
costs to the Association caused by an Owner's use or treatment of the Owner's Lot. Before any
Special Assessment is levied pursuant to this Section 7.4.2, any Owner affected by the Special
Assessment shall be given notice and an opportunity to be heard by the Board (or by a committee
designated, for the purpose by the Board). The term "Special Assessment" shall also include any
fines levied or fixed by the Board or the Design Review Committee pursuant to this Declaration,
any Supplemental Declaration, any Neighborhood Declaration, the Association Rules and the
Design Guidelines and attorneys' fees, witness fees (including expert witness fees), costs,
litigation -related expenses, interest and other costs incurred in connection with a Special
Assessment.
7.4.3 The Association may levy a Special Assessment against each Owner,
for the Proportionate Share of each Lot owned by that Owner, for the purpose of defraying, in
whole or in part, the cost of any action or undertaking on behalf of the Association in connection
with, or the cost of any construction or replacement of, a described capital improvement upon the
30

Common Areas, including the necessary fixtures and personal property related thereto. Without
the vote of a Majority of a Quorum of Members (and, if prior to the Transition Date, the written
consent of Declarant), the Association shall not impose a Special Assessment for the purposes
described in this Section 7.4.3 in an amount that in any one year exceeds 5% of the estimated
annual Common Expenses. All amounts collected as Special Assessments pursuant to this
Section 7.4.3 shall be used only for the purposes set forth in this Section 7.4.3.
7.4.4 The Association may levy a Special Assessment against each Owner,
for the Proportionate Share of each Lot owned by that Owner, for the purpose of providing any
necessary funds for restoration and repair of damaged or destroyed Common Areas or Areas of
Common Responsibility in accordance with Section 9. Notwithstanding the foregoing sentence,
if the amount available from the proceeds of any insurance policies for restoration and repair,
together with any uncommitted or unreserved capital of the Association, is less than 75% of the
estimated cost of restoration and repair, the Association may levy a Special Assessment pursuant
to this Section 7.4.4, unless two-thirds of the Members, at a special meeting held for that
purpose, disapprove the restoration and repair. All amounts collected as Special Assessments
pursuant to this Section 7.4.4 shall be used only for the purposes set forth in this Section 7.4.4.
7.4.5 If a Supplemental Declaration or a Neighborhood Declaration recites,
or in the exercise of its reasonable judgment the Association determines, that a Neighborhood
benefits in a substantial way from a particular feature, characteristic or service and other Lots
outside the Neighborhood do not benefit or do not benefit as much from the feature,
characteristic, or service, the Association may levy against each Lot within the Neighborhood a
Special Assessment to pay for the incremental cost incurred in connection with the feature,
characteristic or service including, but not limited to, maintenance, repair and replacement costs.
7.4.6 The Association also may levy Special Assessments for any other
charge designated as a Special Assessment in this Declaration, any Supplemental Declaration,
any Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines.
7.5 Uniform Assessment. The Regular Assessment and any Special Assessments
imposed pursuant to Section 7.4.3 or 7.4.4 shall be uniform for all Lots. Any Special
Assessment imposed pursuant to Section 7.4.5 shall be uniform for all Lots in the affected
Neighborhood.
7.6 Exempt Property. All properties dedicated to and accepted by, or otherwise
owned or acquired by, a public authority shall be exempt from the Assessments created herein.
7.7 Date of Commencement of Regular Assessments. Regular Assessments, as to
Lots within the Property subject to Assessment, shall commence on the first day of the month
following the date of conveyance of the first Lot to be conveyed to a Retail Purchaser. Regular
Assessments for Lots within any Annexed Property, as to Lots within the Annexed Property
31

subject to Assessment, shall commence upon the effective date of the annexation making them
Annexed Property.
7.8 Time and Manner of Payment; Late Charges and Interest. The manner and timing
of payment of Assessments shall be designated by the Board. The Board may, in its discretion,
establish late fees and charge interest (including interest at the Default Rate of Interest) on any
Assessment not paid by its due date. The Board may, in its discretion and without waiving the
imposition of a late charge or interest in any other instance, waive the late charge and/or interest
in any particular instance. A Member who is delinquent in payment of Assessments shall also be
liable for attorneys' fees, witness fess (including expert witness fees), costs, and other
litigation -related expenses incurred by the Association as a result of the delinquency, and if any
suit, action or other proceeding is brought to collect any delinquent Assessment or charge, then
there shall be added to the amount thereof reasonable attorneys' fees, witness fees (including
expert witness fees), costs and other litigation -related expenses, to be fixed by the court and
included in any judgment or award rendered thereon.
7.9 No Offsets. All Assessments shall be payable in the amount specified in the
Assessment or notice of Assessment and no offsets against the specified amount shall be
permitted for any reason including, but not limited to, a claim that (a) the Association, the Board,
the President or Declarant is not properly exercising its duties and powers as provided in this
Declaration; (b) Assessments for any period exceed Common Expenses; or (c) a Member has
made, and elects to make, no use of the Common Areas.
7.10 Homestead Waiver. Each Owner, to the extent permitted by law, hereby waives,
to the extent of any liens created pursuant to this Declaration, whether the liens are now in
existence or are created at any time in the future, the benefit of any homestead or exemption laws
of the State of North Carolina now in effect, or in effect from time to time hereafter.
7.11 Reserves. Upon Declarant's initial transfer of record title to a Lot to a Retail
Purchaser, and/or upon subsequent transfers of record title to the Lot thereafter, Declarant may
require the new Owner of the Lot to make a contribution to the capital of the Association in an
amount to be determined from time to time by Declarant, but not more than one -sixth of the
annual amount of the Regular Assessments for that Lot, to establish reserves of the Association.
Notwithstanding the foregoing, Declarant shall have no obligation to collect or contribute to the
reserves of the Association. In addition, the Board may, but shall not be required to, annually
prepare a reserve budget which shall take into account the number and nature of replaceable
assets, the useful life of each asset and the anticipated repair and replacement cost. If the Board
establishes a reserve budget, the Board shall establish a required contribution to the Reserve for
Capital Improvements, in an amount sufficient to permit the Association to meet its projected
needs, as shown on the reserve budget, with respect both to amount and timing of annual
Assessments over the period of the budget. Any required contributions to the Reserve for
Capital Improvements shall be assessed as a portion of the Regular Assessment on each Lot.
Any reserves collected upon the initial sale of a Lot as described above and any additional
reserves included in the Common Expenses which are collected as part of the Regular
32

Assessments shall be deposited by the Association in a separate bank account to be held in trust
for the purposes for which they are collected and are to be segregated from and not commingled
with any other funds of the Association, except to the extent that the Association's regularly
employed accountant deems it desirable to do otherwise on the basis of standard accounting
principles in similar contexts or the laws, tax or otherwise, of the State of North Carolina or the
United States relating to nonprofit corporations or homeowners associations. All reserves shall
be deemed a contribution to the capital account of the Association by the Members. The
responsibility of the Board (whether while controlled by Declarant or the Members) shall be only
to provide for an amount of reserves as the Board in good faith deems reasonable, and neither the
Board (nor any member thereof), nor Declarant, nor any Related Parties (nor the respective
employees of the Declarant and the Related Parties) shall have any liability to any Owner, to the
Association, or to any other Person if the reserves prove to be inadequate.
7.12 Subordination of Lien. Any lien that arises against a Lot by reason of the failure
or refusal of an Owner to make timely payment of any Assessment shall be subordinate to the
lien of a prior recorded Mortgage on the Lot, acquired in good faith and for value, except for the
amount of the unpaid Assessment that accrues from and after the date on which a Mortgagee
comes into possession of or acquires title to the Lot, whichever occurs first (together with any
reasonable attorneys' fees, witness fees (including expert witness fees), costs, litigation -related
expenses, interest and any late charges related thereto). If any lien for unpaid Assessments prior
to the date the Mortgagee comes into possession of or acquires title to the Lot has not been
extinguished by the process by which the Mortgagee came into possession of or acquired title to
the Lot, the Mortgagee shall not be liable for unpaid Assessments arising prior to the foregoing
date and, upon written request to the Association by the Mortgagee, the lien shall be released in
writing by the Association. Any unpaid Assessments that are extinguished as a lien pursuant to
the foregoing sentence shall continue to be the personal obligation of the delinquent Owner and
may also be reallocated by the Association among all Members as part of the Common
Expenses.
7.13 Certificate of Payment. Any Person acquiring an interest in any Lot shall be
entitled to a certificate from the Association setting forth the amount of due but unpaid
Assessments relating to the Lot, if any, and that Person shall not be liable for, nor shall any lien
attach to the Lot in excess of, the amount set forth in the certificate, except for Assessments that
occur or become due after the date thereof and any reasonable attorneys' fees, witness fees
(including expert witness fees), costs, litigation -related expenses, interest and any late charges
related to those Assessments.
7.14 Enforcement of Lien. Any Assessment levied against a Lot remaining unpaid for
a period of thirty (30) days or longer shall constitute a lien on that Lot when a claim of lien is
filed of record in the Office of the Clerk of Superior Court of Jackson County. The lien provided
for in this Section 6.3 may be foreclosed by the Association in any manner provided or permitted
for the foreclosure of realty mortgages or deeds of trust in the State of North Carolina. All of the
provisions of this Section 7 relating to the enforcement of the lien provided for herein (including,
but not limited to, the subordination provisions in Section 7.12 or the provisions of this
33

Section 7.14) shall apply with equal force in each other instance provided for in this Declaration,
any Supplemental Declaration, any Neighborhood Declaration, the Association Rules or Design
Guidelines wherein it is stated that payment of a particular Assessment, charge or other sum shall
be secured by the lien provided for in this Section 7. Nothing in this Section shall be construed
as requiring that the Association take any action in any particular instance, and the failure of the
Association to take such action at any time shall not constitute a waiver of the right to take action
at a later time or in a different instance.
7.15 Pledge of Assessment Rights as Security. The Board shall have the power to
pledge the right to exercise the Association's assessment powers and rights provided for in this
Declaration as security for any obligation of the Association; provided, however, that any pledge
of the Association's assessment powers and rights shall require the prior affirmative vote or
written assent of a Majority of a Quorum of Members and, so long as Declarant or any Related
Party owns any portion of the Project, Declarant. The Board's power to pledge the Association's
assessment powers shall include, but not be limited to, the ability to make an assignment of
Assessments that are then payable to, or that will become payable to, the Association; provided
the assignment, although presently effective, allows Assessments to continue to be paid to the
Association and used by the Association as set forth in this Declaration, unless and until the
Association defaults on its obligations secured by the assignment.
7.16 Exemption of Unsold Lots. Notwithstanding anything in this Section 6.3 to the
contrary, prior to the Transition Date, no Assessments shall be levied upon, or payable with
respect to, any Lot owned by Declarant or any Related Party until the Lot has been conveyed by
Declarant or the Related Party to a non-affiliated purchaser thereof.
8. INSURANCE
8.1 Authority to Purchase. The Association shall purchase and maintain insurance
including, but not limited to, the insurance described in Section 8.3. Except as otherwise
specifically provided herein, policies shall be on such terms and conditions as the Board shall
determine in its discretion. All policies maintained by the Association, and endorsements
thereon, or copies thereof shall be deposited with the Association. The Association shall advise
the Owners of the coverage of any policies purchased by the Association in order to permit the
Owners to determine which particular items are included within the coverage so that the Owners
may insure themselves as they see fit if certain item are not insured by the Association. All of
the Association's insurance policies and claims thereunder shall be administered by the Board.
8.2 Owner's Responsibility. Each Owner shall provide insurance on any additions
and insurable Improvements to the Owner's Lot in the amount of the full replacement cost of the
additions and Improvements. Each Owner also shall be responsible for providing insurance on
the Owner's Lot, the furnishings and personal property located on the Owner's Lot, the Owner's
personal property stored elsewhere within the Property, the Owner's personal liability to the
I

extent not covered by the public liability insurance obtained by the Association and any other
insurance as the Owner desires. No Owner shall maintain any insurance, whether on the
Owner's Lot or otherwise, that would limit or reduce the insurance proceeds payable under the
casualty insurance maintained by the Association in the event of damage to the Improvements or
fixtures on the Common Areas.
8.3 Coverage. The Association shall maintain and pay for policies of insurance as
follows:
8.3.1 A blanket property insurance policy covering "risks of direct physical
loss" on a "special form" basis (or comparable coverage) covering all of the Common Areas
providing, at a minimum, fire and extended coverage, and all other coverage in kinds and
amounts customarily acquired or required for projects similar in construction, location and use
including, but not limited to, perils normally covered by an "all-risk" policy, in an amount
determined by the Board, but in all events an amount sufficient to cover the full replacement cost
of any insured Improvements. If "special form" coverage is not generally available at a
reasonable cost, then "broad form" coverage may be substituted.
8.3.2 A policy of commercial general liability insurance covering all of the
Common Areas and acts for which the Association might be responsible in an amount
determined by the Board but not less than $1,000,000 per occurrence, for personal injury or
death and/or property damage. The scope of coverage shall include all other coverage in the
kinds and amounts customarily acquired or required for projects similar in construction, location
and use including, but not limited to, liability for non -owned and hired automobiles, liability for
property of others, liability arising in connection with the operation, maintenance or use of the
Common Areas, liability assumed by contract or contractual liability, and liability arising out of
any employment contracts of the Association.
8.3.3 The Association shall, at the Board's election, obtain fidelity insurance
coverage against dishonest acts on the part of directors, officers, managers, trustees, agents,
employees or other individuals responsible for handling funds belonging to or administered by
the Association. If funds of the Association are handled by a management agent, fidelity
insurance coverage shall also be obtained for the officers, employees or agents thereof handling
or responsible for Association funds. The fidelity insurance must name the Association as the
named insured and shall be written to provide protection in an amount not less than the lesser of
(a) one-half times the Association's estimated annual operating expenses and reserves, (b) a sum
equal to three months' aggregate Regular Assessments plus reserves, or (c) the estimated
maximum amount of funds, including reserves, in the custody of the Association (and its
management agent) at any one time. In connection with the coverage, an appropriate
endorsement to the policy to cover any individual who serves without compensation shall be
added if the policy would not otherwise cover volunteers. Any such coverage must also name
the Association as an obligee.
35

8.3.4 A worker's compensation policy, if necessary to meet the requirements
of law.
8.3.5
and omissions coverage.
MW
A policy of "directors and officers" liability insurance, including errors
Other insurance, in amounts and on terms, as the Board may determine
from time to time to be desirable.
If at any time any of the foregoing types of coverage are not reasonably available, the
Association shall maintain the most nearly equivalent coverages that are available.
8.4 Required Provisions. The insurance policies purchased by the Association shall,
to the extent reasonable and available, contain the following provisions:
8.4.1 The coverage afforded by the policies purchased by the Association
shall not be brought into contribution or proration with any insurance that may be purchased by
any Owner or Mortgagee.
8.4.2 The conduct of any one or more Owners shall not constitute grounds
for avoiding liability on any of the policies.
8.4.3 There shall be no subrogation with respect to the Association, its
agents or employees, Owners or members of their households or families and employees, and
each Mortgagee of all or any part of the Property or of any Lot, or the policies should name those
Persons as additional insureds. Each policy must also contain a waiver of any defenses based on
co-insurance or on invalidity arising from the acts of the insured.
8.4.4 A "severability of interest" endorsement shall be obtained which shall
preclude the insurer from denying the claim of an Owner because of the conduct or negligent
acts of the Association and its agents or other Owners.
8.4.5 Any "other insurance" clause shall exclude insurance purchased by
Owners or Mortgagees.
8.4.6 Coverage must not be prejudiced by (a) any act or neglect of Owners
when the act or neglect is not within the control of the Association or (b) 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.
M

8.4.7 Coverage may not be cancelled or substantially modified without at
least 30 days' (or a lesser period as the Board may reasonably deem appropriate) prior written
notice to the Association.
8.4.8 Any policy of property insurance that gives the carrier the right to elect
to restore damage in lieu of a cash settlement must provide that the election is not exercisable
without the prior written approval of the Board, or when in conflict with the insurance trust
provisions contained herein, or any requirement of law.
8.4.9 A recognition of any insurance trust agreement entered into by the
Association.
8.4.10 Each hazard insurance policy shall be written by a hazard insurance
carrier which has a Best's Key Rating Guide rating of A or better and is assigned a financial size
category of IX or larger as established by A. M. Best Company Inc., or if that rating service is
discontinued, an equivalent rating by a successor thereto or a similar rating service.
8.4.11 Each insurance carrier must be specifically licensed or authorized by
law to transact business within the State of North Carolina.
8.4.12 Policies shall not be utilized where, under the terms of the carrier's
charter, bylaws or policy, contributions or assessments may be required from the Owners or the
Association or loss payments are contingent upon action by the carrier's board of directors,
policyholders, or members.
8.5 Non -Liability of Association/Board/President. Notwithstanding the duty of the
Association to obtain insurance coverage as stated herein, neither the Association, the President,
the members of the Board, Declarant, the Related Parties, nor any of their respective employees
shall be liable to any Owner, Mortgagee or other Person if any risks or hazards are not covered
by insurance or if the amount of insurance is not adequate, and it shall be the responsibility of
each Owner to ascertain the coverage and protection afforded by the Association's insurance and
to procure and pay for additional insurance coverage and protection as the Owner may desire.
8.6 Premiums. Premiums for insurance policies purchased by the Association shall
be paid by the Association as a Common Expense, except that the amount of increase over any
annual or other premium arising from the use, misuse, occupancy or abandonment of a Lot or its
appurtenances, or of the Common Areas, by an Owner may be assessed against that particular
Owner.
37

8.7 Insurance Claims. The Board, acting for the Association, is hereby irrevocably
appointed and authorized, subject to the provisions contained herein, to adjust all claims arising
under insurance policies purchased by the Association and to execute and deliver releases upon
the payment of claims, and to do all other acts reasonably necessary to accomplish any of the
foregoing. The Board has full and complete power to act for the Association in this regard and
may, at its discretion, appoint an authorized representative, or enter into an insurance trust
agreement wherein the trustee shall have authority, to negotiate losses under any policy
purchased by the Association.
8.8 Benefit. Except as otherwise provided herein, all insurance policies purchased by
the Association shall be for the benefit of, and any proceeds of insurance received by the
Association or any insurance trustee shall be held or disposed of in trust for, the Association or
the Owners, as their interests may appear.
9. DAMAGE AND DESTRUCTION OF COMMON AREAS
9.1 Duty of Association. In the event of partial or total destruction of all or any
portion of the Common Areas or Areas of Common Responsibility, or any Improvements
thereon, the Association shall elect either (i) to restore and repair the destroyed area; or (ii) to
clear and landscape the destroyed area as promptly as practical pursuant to this Section 9. The
proceeds of any casualty insurance maintained pursuant to this Declaration shall be used for
whichever purpose is elected by the Association pursuant to the foregoing sentence, subject to
the prior rights of Mortgagees whose interest may be protected by said policies.
9.2 Excess Insurance Proceeds. In the event any excess insurance proceeds remain
after any damaged or destroyed area is either restored and repaired or cleared and landscaped
pursuant to Section 9.1, the Board, in its discretion, may retain those sums in the general funds of
the Association or may distribute all or a portion of the excess to the Owners in their
Proportionate Shares, subject to the prior rights of Mortgagees whose interests may be protected
by the insurance policies carried by the Association. The rights of an Owner or the Mortgagee of
a Lot to such a distribution shall be governed by the provisions of the Mortgage encumbering the
Lot.
9.3 Contract for Reconstruction. In the event the Association undertakes the repair
and restoration of the Common Areas or Areas of Common Responsibility, the Association shall
contract with a licensed contractor or contractors who may be required to post a suitable
performance or completion bond. The contract with the contractor or contractors shall provide
for the payment of a specified sum for completion of the work described therein and shall
provide for periodic disbursements of funds, subject to the prior presentation of an architect's, or
similar, certificate containing such provisions as may be appropriate in the circumstances and
deemed suitable by the Association

9.4 Insurance Proceeds Trust. Upon receipt by the Association of any insurance
proceeds, the Association may cause the insurance proceeds to be paid directly to a bank, savings
and loan association, or trust company located in Jackson County, North Carolina, designated by
the Association to be a trustee (the "Insurance Trustee"). The insurance proceeds shall be
received, held and administered by the Insurance Trustee subject to a trust agreement consistent
with the provisions of this Declaration and which shall be entered into between the Insurance
Trustee and the Association. Disbursements to contractors performing any repair or
reconstruction upon the Property shall be made periodically as the work progresses in a manner
consistent with procedures then followed by prudent lending institutions in Jackson County,
North Carolina.
10. EMINENT DOMAIN
10.1 Definition of Taking. The term "Taking" as used in this Section 10 shall mean
condemnation by eminent domain or sale under threat of condemnation of all or any portion of
the Common Areas.
10.2 Representation in Condemnation Proceedings. In the event of a threatened
Taking of all or any portion of the Common Areas, the Owners hereby appoint the Association
(through individuals designated by the Board) to represent all of the Owners in connection
therewith. The Board shall act in its sole and absolute discretion with respect to any awards
being made in connection with the Taking and shall be entitled to make a voluntary sale to the
condemnor in lieu of engaging in a condemnation action.
10.3 Award for Common Areas. Any awards received by the Association on account
of the Taking of Common Areas shall be paid to the Association. The Board may, in its sole and
absolute discretion, retain any award in the general funds of the Association or distribute all or
any portion thereof to the Owners as their interests may appear. The rights of an Owner and the
Mortgagee of the Owner's Lot to any distribution shall be governed by the provisions of the
Mortgage encumbering the Lot.
11. MAINTENANCE, REPAIRS AND REPLACEMENTS
11.1 Maintenance of Lots.
11.1.1 Generally. Subject to the Association's obligations with respect to any
Areas of Common Responsibility on Lots, each Owner shall famish and be responsible for, at
the Owner's expense, all of the maintenance, repairs and replacements within the Owner's own
Lot. Without limiting the generality of the foregoing sentence, each Owner shall keep all shrubs,
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trees, hedges, grass, and plantings of every kind located on the Owner's Lot (including setback
areas and easements) neatly trimmed, shall keep all of those areas properly cultivated and free of
trash, weeds, and other unsightly material, and shall maintain in good condition and repair all
paved, concrete and other synthetically surfaced areas including, but not limited to, driveways,
roadways, and parking areas. Subject to the Association's obligations with respect to any Areas
of Common Responsibility on Lots, in the event of damage to or destruction of Buildings on any
Lot, the Owner of the Lot shall proceed promptly to repair or reconstruct the Buildings in a
manner consistent with the original construction or other plans and specifications approved in
accordance with Section 12.4.
11.1.2 Improper Maintenance and Use of Lots. Subject to the provisions of
Section 16, if (i) any portion of any Lot is so maintained as to present a public or private
nuisance or an unreasonable condition (as determined by the Board) with respect to other
Owners or Occupants, or as to detract substantially from the appearance or quality of the
surrounding Lots or other areas of the Properly or the Project including, but not limited to,
excessive growth of unsightly weeds before Buildings and other Improvements are constructed;
(ii) any portion of a Lot is being used in a manner that violates this Declaration, any applicable
Supplemental Declaration, any applicable Neighborhood Declaration, the Association Rules or
the Design Guidelines; or (iii) the Owner of any Lot fails to perform any of the Owner's
obligations under this Declaration, any applicable Supplemental Declaration, any applicable
Neighborhood Declaration, the Association Rules or Design Guidelines, then the Board may by
resolution make a finding to that effect, specifying the particular condition or conditions that
exist, and pursuant thereto give notice to the offending Owner that unless corrective action is
taken within a deadline reasonably established by the Board, the Board may cause corrective
action to be taken at the Owner's cost. If, at the expiration of the deadline fixed by the Board,
the requisite corrective action has not been taken, the Board is authorized and empowered to
cause remedial action to be taken. The cost of any remedial action shall become a Special
Assessment against the offending Owner and the Owner's Lot and shall be secured by the lien
provided for in Section 6.3. Notwithstanding the foregoing, if the Board believes that immediate
action is or may be necessary to avoid a risk of serious physical injuries to individuals or damage
to property, the Board shall be entitled, after giving notice to the affected Owner, to take
whatever action it may believe to be minimally necessary to guard against or prevent injuries or
damage without being required to wait for the period otherwise established by the Board as a
deadline for action by the defaulting Owner.
11.2 Common Areas and Areas of Common Responsibility. The Association, or its
duly delegated representative, shall maintain and otherwise manage all Common Areas and
Areas of Common Responsibility including, but not limited to, any Private Streets, landscaping,
walkways, riding paths, parking areas, drives, recreational facilities and the roofs, interiors, and
exteriors of the Buildings and other Improvements located upon the Common Areas; provided,
however, the Association shall not be responsible for maintaining any Common Areas or Areas
of Common Responsibility that are part of Lots unless (i) the Buildings or other Improvements
are available for use by all Owners and Occupants or are within easements intended for the
general benefit of the Property, and (ii) the Association assumes in writing the responsibility for
the maintenance, or the Association's responsibility is set forth in a recorded instrument as

provided in this Declaration (such as a Supplemental Declaration or a Neighborhood
Declaration).
11.2.1 Standard of Care. The Board shall use a reasonable standard of care in
providing for the repair, management, and maintenance of Common Areas and Areas of
Common Responsibility so that the Property will reflect a pride of ownership. In the discretion
of the Board, the Association may perform any of the following within the Common Areas and
Areas of Common Responsibility:
(a) Construct, reconstruct, repair, replace or refinish any Improvement
or portion thereof;
(b) Replace injured and diseased trees and other vegetation, and plant
trees, shrubs, and ground cover to the extent the Board deems necessary for the conservation of
water and soil and for aesthetic purposes;
(c) Place and maintain such signs as the Board and Design Review
Committee may deem appropriate for the proper identification, use, and regulation of these
areas;
(d) Do all such other and further acts that the Board deems necessary
or appropriate to preserve and protect these areas and the beauty thereof, in accordance with the
general purposes specified in this Declaration.
The Board shall be the sole judge of the appropriate maintenance of all Common Areas and
Areas of Common Responsibility.
11.2.2 Board's Determination of Responsibility For Maintenance. If any
Supplemental Declaration, Neighborhood Declaration, Plat, deed restriction, or this Declaration
permits the Board to determine whether or not Owners of certain Lots will be responsible for
maintenance of certain portions of the Common Areas, Areas of Common Responsibility, Private
Roads, or public right-of-way areas, the Board shall have the sole and absolute discretion to
determine whether or not it would be in the best interest of the Owners and Occupants of the
Property for the Association or an individual Owner to be responsible for this maintenance,
considering cost, uniformity of appearance, location, and other factors deemed relevant by the
Board.
11.2.3 Contracts For Maintenance. The Board may cause the Association to
contract with others for the performance of the maintenance and other obligations of the
Association under this Section 11.2 and, in order to promote uniformity and harmony of
appearance, the Board also may cause the Association to contract to provide maintenance

services to Owners of Lots having these responsibilities in exchange for the payment of such fees
as the Board and the applicable Owners may agree upon. All fees that the Board and Owners
agree upon pursuant to the preceding sentence shall be considered Special Assessments, and
shall be levied and collected by the Board pursuant to Section 7.4.
11.2.4 Assessment of Certain Costs of Maintenance and Repair of Common
Areas and Public Areas. If the need for maintenance, repair, or replacement of Common Areas,
Areas of Common Responsibility or any other areas maintained by the Association is caused
through the willful or negligent act of any Owner or Occupant or the family, guests, or invitees
of either, the cost of all required maintenance or repairs shall be a Special Assessment against the
Owner and the Owner's Lot and shall be secured by the lien provided for in Section 6.3.
11.3 Right of Access. An authorized representative of the Association, and all
contractors, repairmen or other agents employed or engaged by the Association, shall be entitled
to reasonable access to each of the Lots as may be required in connection with maintenance,
repairs or replacements of or to the Common Areas and Areas of Common Responsibility, or any
equipment, facilities or fixtures affecting or serving other Lots and the Common Areas or Areas
of Common Responsibility, or to perform any of the Association's duties or responsibilities
hereunder.
12. ARCHITECTURAL AND LANDSCAPE CONTROL
12.1 Appointment of Design Review Committee. Subject to Section 12.7, the
Association shall have a Design Review Committee consisting of not less than three nor more
than five individuals, as specified from time to time by resolution of the Board. After the
Transition Date or such earlier date as Declarant elects to delegate the design review powers to
the Design Review Committee, members of the Design Review Committee shall be appointed by
the Board. Individuals appointed to the Design Review Committee need not be Owners. In an
effort to provide the expertise desirable for the efficient functioning of the Design Review
Committee, it is anticipated, but not required, that one or more members of the Design Review
Committee will be design professionals licensed in architecture, landscape architecture or
engineering or will satisfy other requirements that may be designated by the Board from time to
time.
12.2 Desian Guidelines. The Design Review Committee shall establish reasonable
procedural rules, regulations, restrictions, architectural standards and design guidelines (the
"Design Guidelines"), which the Design Review Committee may, from time to time, in its sole
and absolute discretion, amend, repeal or augment. After the Transition Date or such earlier date
as Declarant elects to delegate the design review powers to the Design Review Committee, any
change in the Design Guidelines will be effective only if it is approved by Declarant (so long as
Declarant or any Related Party, owns any property within the Project). The Design Guidelines
are hereby incorporated herein and shall be deemed to be a part of this Declaration and shall be
42

binding on all Owners and other Persons having any interest in the Property as if expressly set
forth herein. A copy of the current Design Guidelines shall at all times be a part of the
Association's records. The Design Guidelines may include, among other things, those
restrictions and limitations set forth below:
12.2.1 Time limitations for the completion, within specified periods after
approval, of the Improvements for which approval is required pursuant to the Design Guidelines.
12.2.2 Designation of a Building Envelope within a Lot, thereby establishing
the area where all Improvements shall take place on the Lot.
12.2.3 Conformity of completed Improvements to plans and specifications
approved by the Design Review Committee. For purchasers and encumbrancers in good faith
and for value, however, unless (a) a notice of non -completion or nonconformance identifying the
violating Lot and specifying the reason for the notice, executed by the Design Review
Committee, is recorded with the Register of Deeds of Jackson County, North Carolina, and (b)
the notice is given to the Owner of the Lot within one year following the expiration of the time
limitation described in Section 12.2.1, or, if later, within one year following completion of the
Improvement, or (c) legal proceedings are instituted to enforce compliance or completion within
the foregoing one-year period, the completed Improvements shall be deemed to be in compliance
with plans and specifications approved by the Design Review Committee and in compliance with
the architectural standards of the Association and this Declaration.
12.2.4 Additional limitations and restrictions as the Design Review
Committee in its discretion may adopt including, but not limited to, the regulation of all
landscaping (including, but not limited to, absolute prohibition of certain types of landscaping,
trees and plants), construction, reconstruction, exterior addition, change or alteration to or
maintenance of any Building or other Improvement (including, but not limited to, limitations on
the nature, kind, shape, height, materials, exterior color, surface texture, and location of any
Improvements). Notwithstanding the foregoing, in no event shall any change in the Design
Guidelines rescind or invalidate approvals previously given.
12.3 General Provisions.
12.3.1 The Design Review Committee may assess reasonable fees in
connection with its review of plans and specifications.
12.3.2 The Design Review Committee may delegate its plan review
responsibilities, except final review and approval required by the Design Guidelines, to one or
more of its members or architectural consultants retained by the Design Review Committee.
Upon any delegation of responsibilities, the approval or disapproval of plans and specifications
43

by the member or consultants shall be equivalent to approval or disapproval by the entire Design
Review Committee.
12.3.3 The address of the Design Review Committee shall be the address
established for giving notice to the Association, unless otherwise specified in the Design
Guidelines. That address shall be the place for the submittal of plans and specifications and the
place where the current Design Guidelines shall be kept.
12.3.4 The establishment of the Design Review Committee and the
procedures herein for architectural approval shall not be construed as changing any rights or
restrictions upon Owners to maintain or repair their Lots otherwise specified in this Declaration,
any applicable Supplemental Declaration, any applicable Neighborhood Declaration, the
Articles, Bylaws and Association Rules.
12.3.5 The Design Review Committee shall approve or disapprove any plans
and specifications submitted to it in accordance with the Design Guidelines within any period as
may be specified in the Design Guidelines.
12.3.6 The Design Review Committee, in its discretion, from time to time,
may waive compliance with the restrictions set forth in this Section 12 or any comparable
restrictions set forth in any Supplemental Declaration, any Neighborhood Declaration or the
Design Guidelines; provided, however, following the Transition Date, any such waiver shall
require the prior written approval of Declarant, so long as Declarant or any Related Party owns
property within the Project.
12.4 Approval and Conformity of Plans. No Building or other Improvement of
whatever type shall be commenced, erected or maintained upon the Property, nor shall there be
any addition to or change to the exterior of any Building or other Improvement upon a Lot,
including, but not limited to, the painting (other than painting with the same color of paint as
previously existed) of exterior walls, patio covers and fences, except in compliance with plans
and specifications therefor which have been submitted to and approved by the Design Review
Committee in accordance with the Design Guidelines as to harmony of external design and
location in relation to surrounding structures and topography. It is understood and agreed by
each Person having or acquiring an interest in the Property that the Design Review Committee
will include aesthetic judgment in its decision -making process and approval of submitted plans
will not be required simply because the plans satisfy stated objective requirements.
12.5 Non-Liabili , for Approval of Plans. Plans and specifications shall be approved
by the Design Review Committee as to style, exterior design, appearance and location, and are
not approved for engineering design or for compliance with zoning and building ordinances (or
other governmental requirements), and by approving the plans and specifications neither the
Design Review Committee, the members thereof, Declarant, any Related Party, the Association,

any Owner, the President nor the Board (nor any committee, officer, director, employee or agent
of any of the foregoing) assumes any liability or responsibility therefor, or for any defect in any
Building or other Improvement constructed from the plans and specifications. Neither the
Design Review Committee, any member thereof, Declarant, any Related Party, the Association,
the President, nor the Board (nor any committee, officer, director, employee or agent of any of
the foregoing) shall be liable to any Owner or other Person for any damage, loss or prejudice
suffered or claimed on account of (a) the approval or disapproval of any plans, drawings and
specifications, whether or not defective, (b) the construction or performance of any work,
whether or not pursuant to approved plans, drawings and specifications, (c) the development, or
manner of development of any property within the Project, or (d) the execution and filing of an
estoppel certificate pursuant to the Design Guidelines, whether or not the facts therein are
correct; provided, however, that the action, with the actual knowledge possessed by the Person
executing and filing the estoppel certificate, was taken in good faith. Approval of plans and
specifications by the Design Review Committee is not, and shall not be deemed to be, a
representation or warranty that said plans or specifications comply with applicable governmental
ordinances or regulations including, but not limited to, zoning ordinances and building codes.
12.6 Inspection and Recordingof Approval. Any member or authorized consultant of
the Design Review Committee, or any authorized officer, director, employee or agent of the
Association, may at any reasonable time enter, without being deemed guilty of trespass, upon
any Lot after reasonable notice as provided herein to the Owner in order to inspect
Improvements constructed or being constructed on the Lot to ascertain that the Improvements
have been or are being built in compliance with the Design Guidelines and this Declaration. The
Design Review Committee shall cause an inspection to be undertaken within 30 days of a request
therefor from any Owner as to the Owner's Lot, and if the inspection reveals that the
Improvements located on the Lot have been completed in compliance with this Section 12, the
Design Guidelines, any applicable provisions of an applicable Supplemental Declaration and any
applicable provisions of an applicable Neighborhood Declaration, the Design Review Committee
shall provide the Owner a notice of approval in recordable form which, when recorded, shall be
conclusive evidence of compliance with the provisions of this Section 12 and the Design
Guidelines as to the Improvements described in the recorded notice, but as to the described
Improvements only.
12.7 Declarant Review. Each Owner acknowledges that Declarant, as the developer of
the Property and as an owner of significant portions of the Property and the Project, has a
substantial interest in ensuring that the Improvements within the Property enhance Declarant's
reputation as a community developer and do not impair Declarant's ability to market, sell or
lease its property. Notwithstanding anything contained in this Declaration to the contrary, until
the Transition Date, Declarant, shall have all of the rights granted in this Declaration, any
Supplemental Declaration or any Neighborhood Declaration to the Design Review Committee,
and shall exercise all of the powers granted in this Declaration, any Supplemental Declaration or
any Neighborhood Declaration to the Design Review Committee through individuals appointed
by Declarant for such purpose including, but not limited to, establishment of the Design
Guidelines. Until the Transition Date or such earlier time as Declarant delegates all or a portion
of its design review powers to the Design Review Committee, the Association shall have no
M

jurisdiction over architectural or design review matters. If Declarant delegates all or a portion of
its design review powers to the Design Review Committee prior to the Transition Date,
Declarant shall give the Association at least 30 days prior written notice of the delegation. Upon
the expiration or relinquishment of Declarant's rights under this Section, the Association, acting
through the Design Review Committee, shall assume jurisdiction over architectural and design
review matters. In exercising its powers under this Section 12.7, Declarant shall be acting in its
own interest as developer of the Project.
12.8 Reconstruction of Common Areas. The reconstruction of any Common Areas or
Areas of Common Responsibility after destruction by casualty or otherwise that is accomplished
in substantial compliance with "as built" plans for the Common Areas or Areas of Common
Responsibility, as applicable, shall not require compliance with the provisions of this Section 12
or the Design Guidelines.
12.9 Additional Powers of the Design Review Committee. The Design Review
Committee may promulgate as a part of the Design Guidelines additional architectural and
landscape standards, rules and regulations as it deems appropriate; provided the standards, rules
and regulations are not in conflict with this Declaration or the architectural and landscape
standards, rules and regulations promulgated by Declarant in the exercise of its powers under
Section 12.7. WITHOUT LIMITING THE GENERALITY OF THE PRECEDING
SENTENCE, THE DESIGN REVIEW COMMITTEE MAY FIX A FINE OF UP TO $25,000
AGAINST ANY OWNER AND ANY LOT SUBJECT TO THIS DECLARATION FOR
FAILURE TO OBTAIN REQUIRED APPROVAL FROM THE DESIGN REVIEW
COMMITTEE OR FOR FAILURE TO COMPLY WITH ANY APPROVAL OF THE DESIGN
REVIEW COMMITTEE AND MAY REQUIRE SECURITY DEPOSITS TO ASSURE
COMPLIANCE WITH APPLICABLE REQUIREMENTS.
13. USE AND OCCUPANCY RESTRICTIONS
13.1 Residential Use. Each Lot may be used only for residential purposes and none
other. No business or commercial Building may be erected on any Lot and no business or_
commercial enterprise or other non-residential use may be conducted on any part thereof. No
temporary Buildings or trailers may be erected, placed or maintained on any Lot except as
expressly permitted by, and in compliance with, the Design Guidelines. Nothing herein
contained shall be deemed to limit Declarant's rights as set forth in Section 16. The restriction
on use of any Lot for business or commercial enterprise shall not prohibit an activity if it meets
all of the following requirements: (a) is not apparent or detectable by sight, sound or smell from
outside the Lot on which it occurs, (b) does not involve individuals coming onto the Lot who do
not reside on the Lot or solicitation of residents of the Property by anyone, whether or not a
resident, and (c) is consistent with the residential character of the Lot and the Property and not a
nuisance, or a hazardous or offensive use, as may be determined in the sole and absolute
discretion of the Board. By way of illustration, but not limitation, activities conducted from
within a residence solely by telephone, facsimile, or computer, without the use of employees

other than those who reside on the Lot, to outside parties off of the Property (or wholly without
communication to outside parties) are not considered prohibited but the activity shall be
prohibited if it involves or requires visits to the Lot by actual or prospective customers, clients,
or patients, or by others (excluding once a day document delivery services such as Federal
Express), as a result of business activities by the Owner or Occupant of the Lot. Similarly, the
fact that family members or other occupants of a residence are employed in business affairs
within the Lot will not make such employment a prohibited business use of the Lot, but visits to
the Lot by employees who do not reside there shall be prohibited if the individuals are employed
for the business purposes of the Owner or Occupant of the Lot. The scope of the types of
activities that are prohibited by this Section may be clarified, supplemented and interpreted by
the Board (or by Declarant, prior to the Transition Date) from time to time, as it may choose in
its sole and absolute discretion, so long as not materially inconsistent with the terms set forth
above.
13.2 Violation of Law or Insurance. No Owner or Occupant shall permit anything to
be done or kept in the Owner's Lot or in or upon any Common Areas that will result in the
cancellation, increase in premiums or reduction in coverage of insurance maintained by the
Association or that would be in violation of any law or other applicable requirement of
governmental authorities.
13.3 Ste. No sign of any kind shall be displayed to the public view or from any Lot
or any Common Areas without the approval of the Association or the Design Review
Committee, except: (a) signs used by Declarant or any Related Party in connection with the
development and sale of Lots in the Property; (b) signs required by legal proceedings, or the
prohibition of which is precluded by law; (c) signs of an approved size placed in approved
locations on a Lot indicating that the Lot is served by security or alarm services; and, (d) signs
required for traffic control and regulation of Common Areas. No "For Sale" or "For Rent" sign
may be posted on any Lot; provided, however, an Owner may, in accordance with applicable
provisions of the Association Rules, be permitted to post or keep on record one "For Sale" or
"For Rent" notice in a form approved by the Board in a location specified for that purpose by the
Board, rather than on the Owner's Lot.
13.4 Animals. No animals, including horses or other domestic farm animals, fowl or
poisonous reptiles of any kind may be kept, bred or maintained in any Lot or in or upon any
Common Area, except a reasonable number of commonly accepted household pets in accordance
with the Association Rules. No animals shall be kept, bred or raised within the Property for
commercial purposes. In no event shall any domestic pet be allowed to run free away from its
owner's Lot without a leash, or conduct itself so as to create a nuisance. No dogs, regardless of
whether they are restrained by a leash, shall be allowed on the Golf Club Facilities including, but
not limited to, any Golf Course. Owners, Occupants or other Persons shall immediately clean up
their animals' waste from the Common Areas and other portions of the Property. All domestic
pets must be registered with the Association and must have proof of proper immunization
presented with their registration.
47

13.5 Nuisances, No Owner or Occupant shall permit or suffer anything to be done or
kept about or within the Owner's Lot, or on or about the Property, that will obstruct or interfere
with the rights of other Owners, Occupants or other individuals holding the right to use and
enjoy the Common Areas, or annoy them by unreasonable noises or otherwise. No Owner or
Occupant shall commit or permit any nuisance or commit or suffer any illegal act to be
committed on or about the Property. Each Owner and Occupant shall comply with the
Association Rules, the requirements of all health authorities and other governmental authorities
having jurisdiction over the Property. Normal construction activities and parking in connection
with the building of Improvements on a Lot shall not be considered a nuisance or otherwise
prohibited by this Declaration, provided they are in compliance with the Design Guidelines and
requirements of the Design Review Committee and Board. Lots, Common Areas and Areas of
Common Responsibility shall be kept in a neat and tidy condition during construction periods;
trash and debris shall not be permitted to accumulate, and supplies of brick, block, lumber, and
other building materials shall be piled only in such areas as may be approved by the Design
Review Committee or Board. In addition, any construction equipment and building materials
stored or kept on the Property during construction of Improvements may be kept only in areas
approved by the Design Review Committee or Board, which also may require screening of the
storage areas. The Board, in its sole and absolute discretion (but subject to the provisions of this
Declaration including, but not limited to, Section 16), shall have the right to determine the
existence of any unreasonable annoyance or nuisance under this Declaration.
13.6 Boats and Motor Vehicles. Except as specifically permitted by the Association
Rules, (a) no boats, trailers, buses, motor homes, campers or other vehicles shall be parked or
stored in or upon the Common Areas or upon a Lot except within an enclosed garage or as
permitted by the Design Guidelines; (b) no vehicle shall be repaired or rebuilt in any Lot or upon
the Common Areas; and, (c) nothing shall be parked on any Private Streets except in parking
areas designated by the Board. The Board may remove, or cause to be removed, any
unauthorized vehicle at the expense of the owner of the vehicle in any manner consistent with
law.
13.7 Lights. No spotlights, flood lights or other high intensity lighting shall be placed
or utilized upon any Lot, which in any manner will allow light to be directed or reflected on the
Common Areas, the Golf Club Facilities, any other Lot, or any portion of any of the foregoing,
except as may be expressly permitted by the Association Rules or the Design Guidelines. No
tennis courts may be lighted, except in accordance with the Design Guidelines and any rules and
regulations by the Design Review Committee.
13.8 Antennas/Cable TV. The Board may adopt reasonable rules, restrictions and
requirements from time to time regulating the placement, appearance, size, operation, and other
aspects of any antennas, satellite dishes, and other similar structures and devices allowed for use
on Lots, within the constraints of any applicable law. Any such rules, restrictions and
requirements shall take into account aesthetic considerations, available technology, cost, feasible
alternatives, and the effect (if any) of applicable laws and other requirements of governmental
authorities. The Board shall have the authority (but no obligation) to enter into contracts
M.

providing for the availability of cable television and related services to the Property, or to such
portions as the Board deems appropriate, on such terms as the Board may elect. If the Board
elects to enter into such contracts, the costs of any such service shall be a Common Expense
payable by those properties to which service is available (whether or not the Owner elects to
receive the service), but the Board may allocate the costs of such service between improved and
unimproved properties that are subject to Assessment in such proportions as the Board deems
equitable.
13.9 Garbage. No garbage or trash shall be kept, maintained or contained in any Lot
so as to be visible from another Lot or the Common Areas except on the day of pick up for the
minimum period reasonably required and in containers approved by Association Rules or Design
Guidelines. No incinerators shall be kept or maintained in any Lot. No refuse pile, garbage or
unsightly objects shall be allowed to be placed, accumulated or suffered to remain anywhere on a
Lot.
13.10 Mining Wells. No portion of the Property shall be used in any manner to explore
for or remove any water, oil or other hydrocarbons or minerals of any kind or earth substance of
any kind.
13.11 Safe Condition. Without limiting any other provision in this Section, but subject
to any responsibility of the Association for Areas of Common Responsibility, each Owner shall
maintain and keep the Owner's Lot at all times in a safe, sound and sanitary condition and repair
and shall correct any condition or refrain from any activity that might interfere with the
reasonable enjoyment by other Owners and Occupants of their respective Lots or the Common
Areas.
13.12 Fires. Other than barbecues, in properly constructed barbecue pits or grills, and
firepits and outdoor fireplaces in compliance with the Association Rules and the Design
Guidelines, or as otherwise expressly permitted in the Association Rules, no open fires shall be
permitted on the Lots nor shall any other similar activity or condition be permitted that would
tend to increase the insurance rates for the Common Area, or for other Owners.
13.13 Clothes Drying Area. No portion of any Lot shall be used as a drying or hanging
area for laundry of any kind. All laundry facilities shall be provided within the Buildings to be
constructed on each Lot.
13.14 No Further Subdivision. No Lot shall be divided or subdivided. Notwithstanding
the foregoing, Declarant may amend any Plat prior to the date when any Lot within the Plat has
been sold by Declarant and may adjust the Lot boundaries on any Plat (even after a Lot within
the Plat has been sold) for any Lots not yet sold, provided the adjustment does not materially
affect the total number of Lots on the affected Plat.

13.15 No Obstructions to Drainage. No Owner shall erect, construct, maintain, permit
or allow any fence or other Improvement or other obstruction that would interrupt the normal
drainage of the land or within any area designated on a Plat, or other binding document, as a
"drainage easement" or similar designation, except that, with the prior consent of applicable
governmental authorities and the Design Review Committee, non -permanent structures,
including fences, may be erected in those areas that contain only underground closed conduit
storm drainage facilities.
13.16 Use of Lots. An Owner shall be responsible for assuring compliance by any
Occupants of the Owner's Lot including, but not limited to, any lessee or other Person who the
Owner allows to use the Owner's Lot with all of the provisions of this Declaration, any
applicable Supplemental Declaration, any applicable Neighborhood Declaration, the Articles,
Bylaws, Association Rules or Design Guidelines, all as amended and supplemented from time to
time, and shall be jointly and severally responsible for any violations of this Declaration, any
applicable Supplemental Declaration, any applicable Neighborhood Declaration, the Articles,
Bylaws, Association Rules or Design Guidelines by the lessee or other Person.
13.17 Golf Carts. The use of golf carts and similar vehicles is prohibited on any Private
Roads (other than incidentally crossing any Private Roads in the course of play on a Golf
Course).
13.18 Enforcement. The Association and its authorized agents may enter any Lot in
which a violation of these restrictions exists and may correct the violation at the expense of the
Owner of the Lot. Any expenses, and any fines imposed pursuant to this Declaration, any
Supplemental Declaration, any Neighborhood Declaration, the Articles, Bylaws, Association
Rules or. Design Guidelines, shall be a Special Assessment secured by a lien upon the Lot
enforceable in accordance with the provisions of Section 6.3. All remedies described in
Section 17 and all other rights and remedies available at law or equity shall be available in the
event of any breach by any Owner, Occupant or other Person of any provision of this Section 13.
13.19 Recyclinggrams. The Board may establish a recycling program and recycling
center within the Property. The Association may, but shall have no obligation to, purchase
recyclable materials in order to encourage participation in the recycling program and any income
received by the Association as a result of the recycling efforts shall be used to reduce Common
Expenses.
13.20 Diseases and Insects. No Owner shall cause or permit any thing or condition to
exist upon the Property that induces, breeds, or harbors infectious plant disease or noxious
insects.
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13.21 Repair of Buildings and Improvements. No Building or other Improvement on
the Property shall be permitted to fall into disrepair, and (subject to any provisions of this
Declaration, a Supplemental Declaration or a Neighborhood Declaration expressly imposing
maintenance and repair obligations on the Association or other Persons) all Buildings and other
Improvements on a Lot shall at all times be kept by the Owner of that Lot in good condition and
repair and adequately painted or otherwise finished.
13.22 Utility Service. No lines, wires, or other services for the communication or
transmission of electric current or power or electromagnetic impulses, including telephone,
television, and radio signals, shall be erected, placed, or maintained anywhere in or upon the
Property unless they are contained in conduits or cables installed and maintained underground or
concealed in, under, or on Buildings approved by the Design Review Committee.
Notwithstanding the foregoing, but subject to any applicable requirements of governmental
authorities, the Design Review Committee may authorize the erection of microwave towers and
similar structures on Common Areas for centralized reception, transmission, and retransmission
of microwave and similar signals. No provision of this Declaration shall be deemed to forbid the
erection of temporary power or telephone structures incident to the construction of Buildings or
other Improvements approved by the Design Review Committee.
13.23 Health, Safety, and Welfare. If any uses, activities, and facilities are deemed by
the Board to be an unreasonable annoyance or a nuisance, or to adversely affect the health,
safety, or welfare of Owners or Occupants, the Board may make such rules restricting or
regulating their presence on the Property as part of the Association Rules or may direct the
Design Review Committee to make rules governing their presence on Lots as part of the Design
Guidelines. Any rules promulgated pursuant to this Section 13.23 shall be consistent with the
provisions of this Declaration including, but not limited to, Section 16.
13.24 , Implementation and Variances. Subject to Section 16, the Board may implement
the restrictions set forth in this Section 13, or otherwise restrict and regulate the use and
occupancy of the Property and the Lots by reasonable rules and regulations adopted by the Board
from time to time that shall be incorporated into the Association Rules. Subject to Section 16,
the Board may, in its discretion, modify or waive the restrictions set forth in this Section 13;
provided, however, following the Transition Date, any such waiver or variance shall require the
prior written approval of Declarant, so long as Declarant or any Related Party owns any property
within the Project.
13.25 Neighborhood Declarations. Declarant shall have the right to record
"Neighborhood Declarations" against individual Neighborhoods within the Property which may
include such complementary additions and modifications of the covenants, conditions and
restrictions contained in this Declaration as may be necessary to reflect the different character, if
any, of the individual Neighborhoods and as are not materially inconsistent with the plan of this
Declaration. Each Neighborhood Declaration shall be executed by Declarant and by the owner
of the land subject to it (if the owner is other than Declarant). A Neighborhood Declaration and
a Supplemental Declaration may be combined into a single instrument. Among other things, a
51

Neighborhood Declaration may (a) designate Areas of Common Responsibility and Common
Areas, (b) reserve or grant easements to such Persons and for such purposes as Declarant may
deem appropriate, (c) impose such additional covenants, conditions and restrictions as Declarant
may deem appropriate for the land subject to the Neighborhood Declaration, (d) determine
Special Assessments applicable to particular Neighborhoods and the allocation of such Special
Assessments among the Lots or other properties within that Neighborhood, and (e) provide for
Assessments appropriate to the land subject to the Neighborhood Declaration. A Neighborhood
Declaration shall not be materially inconsistent with the plan of this Declaration and shall not
revoke or modify the covenants established by this Declaration (or by any previous
Neighborhood Declaration) with respect to any other portion of the Property.
14. RIGHTS OF MORTGAGEES
14.1 General Provisions. Notwithstanding and prevailing over any other provisions of
this Declaration, any Supplemental Declaration, any Neighborhood Declaration, the Articles,
Bylaws, Association Rules and Design Guidelines, the following provisions shall apply to and
benefit each holder of a Mortgage upon a Lot.
14.2 Liability for Assessments. A Mortgagee who comes into possession or becomes
record Owner of a mortgaged Lot by virtue of foreclosure of the Mortgage, or through any
equivalent proceedings such as, but not limited to, the taking of a deed or assignment in lieu of
foreclosure or acquiring title at a trustee's sale under a first deed of trust, and any third -party
purchaser at a foreclosure sale or trustee's sale (a "Successor Owner"), will not be liable for the
Lot's unpaid dues, charges or Assessments that accrued prior to the time the Successor Owner
comes into possession of the Lot or becomes record Owner of the Lot, whichever occurs first. In
addition, a Successor Owner shall acquire title free and clear of any lien authorized by or arising
out of the provisions of this Declaration that secures the payment of any dues, charges or
Assessments accrued prior to the time the Successor Owner either comes into possession of the
Lot or becomes record Owner of the Lot. Any unpaid dues, charges or Assessments against the
foreclosed Lot shall be deemed to be a Common Expense charged proratably against all of the
Owners. Nevertheless, in the event the Owner against whom the original Assessment was made
is the purchaser or redemptionor, the lien shall continue in effect and may be enforced by the
Board, for the Lot's Assessment that was due prior to the final conclusion of the foreclosure or
equivalent proceedings. Further, any unpaid Assessment shall continue to exist as the personal
obligation of the defaulting Owner of the Lot, and the Board may use reasonable efforts to
collect unpaid Assessments from the Owner even after the Owner is no longer the Owner of the
Lot.
14.3 No Personal Liability. A Mortgagee shall not in any case or manner be personally
liable for the payment of any Assessment or charge, nor the observance or performance of any
covenant, restriction, or rule and regulation of the Association, or any provision of the Articles or
Bylaws, or any management agreement, except for those matters that are enforceable by
52

injunctive or other equitable actions, not requiring the payment of money, except as specifically
provided in this Section 14.
14.4 Enforcement After Foreclosure Sale. An action to abate the breach of any of
these covenants, conditions, restrictions, and reservations may be brought against any purchaser
who has acquired title through foreclosure of a Mortgage and the subsequent foreclosure or
trustee's sale (or through any equivalent proceedings), and the successors in interest to the
purchaser, even though the breach existed prior to the time the purchaser acquired an interest in
the Lot.
14.5 Exercise of Owner's Rights. During the pendency of any proceedings to
foreclose a Mortgage (including any period of redemption) or from the time a trustee under a
deed of trust has given notice of sale pursuant to power of sale conferred under the deed of trust
and pursuant to law, the Mortgagee, or a receiver appointed in any such action, may but need not
exercise any or all of the rights and privileges of the Owner in default including, but not limited
to, the right to vote as a member of the Association in the place and stead of the defaulting
Owner.
14.6 Subject to Declaration. At such time as a Mortgagee comes into possession of or
becomes record Owner of a Lot, the Mortgagee shall be subject to all of the terms and conditions
of this Declaration including, but not limited to, the obligation to pay all Assessments and
charges accruing thereafter, in the same manner as any other Owner.
15. ANNEXATION OF ADDITIONAL PROPERTY
Additional real property, including, but not limited to, the Annexable Property, may be
annexed to and become subject to this Declaration as hereinafter set forth in this Section 15.
15.1 Development of the Project. Declarant intends to develop the Project sequentially
on a phased basis. Declarant may, however, elect not to develop all or any part of the additional
real property anticipated to be included within the Project (including, but not limited to, the
Annexable Property), to annex and develop property other than the Annexable Property in
accordance with this Section 15, to annex the Annexable Property or other real property to this
Declaration in increments of any size whatsoever, or to develop more than one such increment at
any given time and in any given order. Moreover, Declarant reserves the right to subject all or
any portion of the Project (including, but not limited to, the Annexable Property) to the plan of
this Declaration or to one or more separate declarations of covenants, conditions and restrictions
which subject that property to the jurisdiction and powers of a homeowner association or other
entity with powers and obligations similar to the Association and which is not subject to the
provisions of this Declaration. Although Declarant shall have the ability to annex additional
property as provided in this Section 15, Declarant shall not be obligated to annex all or any
portion of the Annexable Property or any other real property presently contemplated or intended
53

to be included within the Project, and such property shall not become subject to this Declaration
except as provided in this Section 15.
15.2 Supplemental Declarations. A Supplemental Declaration shall be a writing in
recordable form that annexes additional real property to the plan of this Declaration and that
incorporates by reference all of the covenants, conditions, restrictions, easements and other
provisions of this Declaration. Supplemental Declarations may contain such complementary
additions and modifications of the covenants, conditions and restrictions contained in this
Declaration as may be necessary to reflect the different character, if any, of the Annexed
Property and as are not materially inconsistent with the plan of this Declaration. In no event,
however, shall any Supplemental Declaration revoke, modify or add to the covenants established
by this Declaration with respect to any portions of the Property already subject to this
Declaration. The recordation of a Supplemental Declaration shall constitute and effectuate the
annexation of the Annexed Property described therein, making the Annexed Property subject to
this Declaration and subject to the functions, powers and jurisdiction of the Association. After
annexation, the Annexed Property shall be part of the Property for all intents and purposes of this
Declaration, and all of the Owners of Lots in the Annexed Property shall automatically be
Owners and Members in accordance with Section 3.
15.3 Annexation Without Approval. Declarant shall have the sole right to annex all or
any portion of the Annexable Property (in such increments and at such times as Declarant may
elect, in its sole and absolute discretion) to this Declaration as provided in this Section 15,
without the approval, assent or vote of the Association or its Members, by recordation of a
Supplemental Declaration covering the applicable portions of the Annexable Property.
15.4 Annexation With Approval. Declarant shall have the sole right (with the consent
of the other owner(s) of the additional property if Declarant does not own the additional
property) to annex additional property to this Declaration that is not part of the Annexable
Property, with the approval of a Majority of a Quorum of Members, by recordation of a
Supplemental Declaration covering the property to be annexed.
16. EXEMPTION OF DECLARANT FROM RESTRICTIONS
Notwithstanding anything contained in this Declaration to the contrary, none of the
restrictions contained in this Declaration shall be construed or deemed to limit or prohibit any act
of Declarant, any Related Party, or their respective employees, agents and subcontractors, or
parties designated by them in connection with the construction, completion, sale or leasing of the
Lots, Common Areas, the Property or other property owned by Declarant or any Related Party
(whether or not annexed to this Declaration). Without limiting the generality of this Section 16
in any way and notwithstanding anything to the contrary in this Declaration, (a) Declarant is
expressly exempted from the provisions of this Declaration requiring submittals to or
authorizations by the Design Review Committee including, but not limited to, Section 12.4, (b)
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Declarant shall have the right to erect, operate and maintain one or more administrative and sales
offices on any portion of the Property owned or leased by Declarant or any Related Parry
(including, but not limited to, Lots), and (c) neither the provisions of Section 12, nor the Design
Guidelines, nor any comparable provisions in any Supplemental Declaration or Neighborhood
Declaration shall apply to Buildings or other Improvements constructed by Declarant, any
Related Parties or their respective agents or employees, and Declarant's Buildings and other
Improvements may have an architectural style and present general aesthetics that are quite
different from the architectural style and aesthetics elsewhere in the Property or the Project.
17. REMEDIES
17.1 General Remedies. In the event of any default by any Owner, Occupant or other
Person under the provisions of this Declaration, any applicable Supplemental Declaration, any
applicable Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design
Guidelines, the Association, and its successors or assigns, and its agents, and Declarant, shall
have each and all of the rights and remedies that may be provided for in this Declaration, any
applicable Supplemental Declaration, any applicable Neighborhood Declaration, the Articles,
Bylaws, Association Rules or Design Guidelines, or that may be available at law or equity, and
may prosecute any action or other proceedings against the defaulting Owner, Occupant or other
Persons for an injunction, whether affirmative or negative, or for enforcement or foreclosure of
the lien herein provided and the appointment of a receiver for the Lot, or for damages, or specific
performance, or for judgment for payment of money and collection thereof, or for any
combination of remedies or for any other relief, all without notice and without regard to the
value of the Lot or the solvency of the Owner. The proceeds of any such rental or sale shall first
be paid to discharge litigation costs including, but not limited to, reasonable attorneys' fees,
witness fees (including expert witness fees), costs, litigation -related expenses and all other
expenses of the proceeding and sale, and all such items shall be taxed against the defaulting
Owner in a final judgment. Any balance of proceeds after satisfaction of charges and any unpaid
Assessments hereunder or any liens shall be paid to the Owner. Upon the confirmation of the
sale, the purchasers thereupon shall be entitled to a deed to the Lot and to immediate possession
of the Lot, and it shall be a condition of any such sale, and the judgment shall so provide, that the
purchaser shall take the interest in the property sold subject to this Declaration.
17.2 Expenses of Enforcement. All expenses, if any, of the Association and Declarant
in connection with any action or proceeding described or permitted by this Section 17, including
reasonable attorneys' fees, witness fees (including expert witness fees), costs and other
litigation -related expenses, and all damages, liquidated or otherwise, together with interest
thereon until paid at the Default Rate of Interest, shall be charged to and assessed against the
defaulting Owner and shall be a Special Assessment against such Owner, and the Association
shall have a lien as provided in Section 6.3 therefor. In the event of any such default by any
Owner, the Association and Declarant, and the manager or managing agent of the Association, if
so authorized by the Board, shall have the authority to correct the default and to do whatever
may be necessary to correct the default, and all expenses in connection therewith shall be
55

charged to and assessed against such defaulting Owner as a Special Assessment, which shall
constitute a lien against the defaulting Owner's Lot as provided in Section 6.3. Any and all such
rights and remedies may be exercised at any time and from time to time, cumulatively or
otherwise, by the Association and Declarant.
17.3 Legal Action. In addition to any other remedies available under this Section 17, if
any Owner (either by the Owner's conduct or by the conduct of any Occupant of the Owner's
Lot or family member, guest, invitee or agent) violates any of the provisions of this Declaration,
any applicable Supplemental Declaration, any applicable Neighborhood Declaration, the
Articles, Bylaws, Association Rules or Design Guidelines, as then in effect, the Association and
Declarant shall have the power to file an action against the defaulting Owner or Member for a
judgment or injunction against the Owner requiring the defaulting Owner to comply with the
provisions of this Declaration, any applicable Supplemental Declaration, any applicable
Neighborhood Declaration, the Articles, Bylaws, Association Rules and Design Guidelines, and
granting other appropriate relief, including money damages.
17.4 Effect on Mortgage. Notwithstanding anything to the contrary herein, any breach
of any of the covenants, restrictions, reservations, conditions and servitudes provided for in this
Declaration, or any right of re-entry by reason thereof, shall not defeat or adversely affect the
lien of any Mortgage upon any Lot but, except as herein specifically provided, each and all of
said covenants, restrictions, reservations, conditions and servitudes shall be binding upon and
effective against any lessee or Owner of a Lot whose title thereto is acquired by foreclosure,
trustee's sale, sale, deed in lieu of foreclosure or otherwise.
17.5 Limitation on Declarant's Liability. Notwithstanding anything to the contrary in
this Declaration, each Owner, by accepting title to any portion of the Property and becoming an
Owner, and each other Person acquiring an interest in the Property (including, but not limited to,
any Mortgagee), acknowledges and agrees that neither Declarant (including, but not limited to,
any assignee of the interest of Declarant hereunder and any member in such assignee) nor any
Related Party shall have any personal liability to the Association, or any Owner, Member,
Mortgagee or other Person, arising under, in connection with, or resulting from (including, but
not limited to, resulting from action or failure to act with respect to) this Declaration, any
Supplemental Declaration, any Neighborhood Declaration, the Association Rules, the Design
Guidelines, the Association, or the Design Review Committee, except to the extent of that
Person's interest in the Property, and, in the case of a Related Party (or, in the case of a member
in an assignee of the interest of Declarant), that Person's interest in, Declarant (or such assignee),
and, in the event of a judgment against any of the foregoing Persons, no execution or other action
shall be sought or brought thereon against any other assets, nor be a lien upon the other assets, of
the judgment debtor.
56

18. AMENDMENT
18.1 Amendment to Declaration. Amendments to this Declaration shall be made by an
instrument in writing entitled "Amendment to Declaration" which sets forth the entire
amendment. Except as otherwise specifically provided for in this Declaration, any proposed
amendment must be approved by a majority of the Board prior to its adoption by the Members.
Amendments may be adopted at a meeting of the Members upon the approval thereof of
two-thirds of the Members (excluding Declarant) or without any meeting if all Members have
been duly notified and if two-thirds of the Members (excluding Declarant) consent in writing to
such amendment. In all events, the amendment when adopted shall bear the signature of the
President and shall be attested by the secretary, who shall verify that the amendment was
properly adopted, and shall be acknowledged by them as officers of the Association.
Amendments once properly adopted shall be effective upon recording in the Office of the
Register of Deeds of Jackson County.
18.2 Effect of Amendment. It is specifically covenanted and agreed that any
amendment to this Declaration properly adopted will be completely effective to amend any and
all of the covenants, conditions and restrictions contained herein which may be affected and any
or all clauses of this Declaration, unless otherwise specifically provided in the Section being
amended or the amendment itself.
18.3 Required Approvals. Notwithstanding the provisions of the foregoing sections of
this Section 18:
(a) If this Declaration or any applicable provision of law requires the
consent or agreement of all Members and/or all Owners and/or all lienholders and all trustees
and/or beneficiaries under trust deeds, or a specified percentage thereof, for any action specified
in this Declaration, then any instrument changing, modifying or rescinding any provision of this
Declaration with respect to the action shall be approved by all of the Members and/or all Owners
and/or all lienholders and trustees and/or beneficiaries under deeds of trust, or the specified
percentage thereof, as required by this Declaration or by law.
(b) Until the Transition Date, this Declaration may not be amended by
the Members pursuant to Section 18.1 without the prior written consent of Declarant, which may
be withheld for any reason.
(c) The following provisions of this Declaration may not be amended
at any time without the prior written consent of Declarant: Sections 1.1, 1.15, 1.25, 3.11, 3.12,
4.5, 4.8.2, 6, 15.3, 16, 17.5, this 18.3(c), 18.4 and 21.
57

18.4 Declarant's Right to Amend. Notwithstanding any other provision of this
Section 18, until the Transition Date, Declarant reserves the right to amend this Declaration
without the approval of the Board or the Members, except as specifically set forth in this
Section 18.4. After the conveyance of the first Lot to an Owner, Declarant may not amend the
following provisions of this Declaration without the approval of the Members as provided in
Section 18.1: Sections 3.2 (to change the number of Memberships attributable to each Lot or to
change the number of votes for each Lot or Membership), Section 7.3.4 (to increase the cap on
increases in Regular Assessments), the second sentence of Section 7.4.3 (to increase the amount
of the Special Assessment provided for therein that may be collected without a vote of a Majority
of a Quorum of Members), and this Section 18.4 (to delete any references to Sections that require
the approval of the Members to amend).
19. TERM; TERMINATION
19.1 Term. This Declaration shall be effective upon the date of its recordation and, as
amended from time to time, shall continue in full force and effect until January 1, 2090.
Thereafter, this Declaration shall continue (as amended from time to time) for consecutive
periods of 25 years each, unless there is an affirmative vote, not more than 360 days prior to the
date otherwise scheduled for commencement of the next extension of the term of this
Declaration, to terminate this Declaration by a vote of at least 90% of the Members at a duly held
meeting of the Members, or without any meeting if all Members have been duly notified and if at
least 90% of the Members consent in writing to the termination within the 360-day period.
19.2 Withdrawal by Declarant. This Declaration may be terminated by Declarant
without the approval or consent of any other Person if the action is taken before any sale to a
Retail Purchaser. Any Plat may be withdrawn by Declarant, without the approval or consent of
any other Person, if the action is taken before the sale of any real property shown on that Plat to a
Retail Purchaser.
19.3 Termination. After the first sale to a Retail Purchaser, this Declaration may be
terminated at any time upon a vote in favor of termination by 90% of the Members and with the
consent of Declarant (so long as Declarant or a Related Party owns any property within the
Project). Declarant may, but shall not be obligated to, release its consent rights by recorded
instrument. If the necessary votes and consents are obtained, the Board shall cause to be
recorded in the Office of the Register of Deeds of Jackson County a Certificate of Termination,
duly signed by the President or a vice president of the Association and attested by the secretary
or an assistant secretary of the Association, with their signatures acknowledged. Thereupon, this
Declaration, as of the date of recordation of the Certificate of Termination (or such later date as
may be specified in the Certificate of Termination), shall have no further force and effect, and
the Association shall be dissolved.
58

20. GENERAL PROVISIONS
20.1 Notices. Notices provided for in this Declaration, any Supplemental Declaration,
any Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines,
shall be in writing and shall be addressed to the Association at the address specified in the
Bylaws. The Association may designate a different address or addresses for notice by giving
written notice of change of address to all Owners. All notices to Owners shall be to their
respective Lots or to the last address shown on the records of the Association. Notices addressed
as above shall be deemed delivered when mailed by United States mail, or when delivered by
courier or overnight delivery service with written acknowledgment of the delivery thereof.
20.2 Captions and Exhibits; Construction. Captions given to various Sections herein,
and the Table of Contents for this Declaration, are for convenience only and are not intended to
modify or affect the meaning of any of the substantive provisions hereof. The various exhibits
referred to herein are incorporated as though fully set forth where such reference is made. The
provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a
uniform plan for the development and operation of the Property as hereinabove set forth.
20.3 Severability. If any provision of this Declaration, any Supplemental Declaration,
any Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines, or
any section, clause, sentence, phrase or word, or the application thereof in any circumstance, is
held invalid, the validity of the remainder of this Declaration, any Supplemental Declaration, any
Neighborhood Declaration, the Articles, Bylaws, Association Rules or Design Guidelines, and of
the application of any such provision, section, sentence, clause, phrase or word in any other
circumstances, shall not be affected thereby, and the remainder of this Declaration, any
Supplemental Declaration, any Neighborhood Declaration, the Articles, Bylaws, Association
Rules or Design Guidelines shall be construed as if such invalid part were never included therein.
20.4 Rule Against Perpetuities. If any of the options, privileges, covenants or rights
created by this Declaration shall be unlawful, void or voidable for violation of the rule against
perpetuities, then such provision shall terminate 90 years from the date of recordation of this
Declaration.
20.5 Mortgage of Lots. Each Owner shall have the right, subject to the provisions
hereof, to make separate Mortgages for the Owner's respective Lot.
20.6 Power of Attorney. Whenever the Association is granted rights, privileges or
duties in this Declaration, the Board shall have the authority to act for the Association. Further,
unless otherwise specifically restricted by the provisions of this Declaration, wherever the
Association is empowered to take any action or do any act including, but not limited to, actions
in connection with the Common Areas or sale thereof, which may at any time be deemed to
require the act of an Owner, the Owners and each of them hereby constitute and appoint the
QN

Association as their attorney -in -fact, as may be appropriate, for the purposes of taking such
action or doing such acts including, but not limited to, executing, acknowledging and delivering
any instruments or documents necessary, appropriate or helpful for such purposes. It is
acknowledged that this power of attorney is irrevocable and coupled with an interest and by the
acceptance of a deed for a Lot or by signing a contract for purchase of a Lot or by succeeding in
any other manner to the ownership of a Lot, or any interest therein, each Owner and Member
shall be deemed and construed to have ratified and expressly granted the above power of
attorney.
21. DECLARANT'S DISCLAIMER OF REPRESENTATIONS; NO COVENANTS OR
RESTRICTIONS; ZONING AND PLAN
21.1 Declarant's Disclaimer of Representations. Notwithstanding anything to the
contrary in this Declaration, Declarant makes no warranties or representations whatsoever that
the plans presently envisioned for the complete development of the Project can or will be carried
out, or that any land now owned or hereafter acquired by Declarant or any Related Party is or
will be subjected to this Declaration, or that any land (whether or not it has been subjected to this
Declaration) is or will be committed to or developed for a particular (or any) use, or that if any
land is once used for a particular use, the use will continue in effect.
21.2 No Express or Implied Covenants or Restrictions. Nothing in this Declaration
shall create, or be deemed to create, any express or implied covenants or restrictions with respect
to any real property that has not been subjected to this Declaration.
21.3 Zoning and Plan. Each Owner, by accepting title to a Lot and becoming an
Owner, and each other Person, by acquiring any interest in the Property, acknowledges
awareness that the development of the Project is likely to extend over many years, and agrees, so
long as the Owner owns the Lot, or holds any other interest in the Property, not to protest or
otherwise object to (a) zoning or changes in zoning or to uses of, or changes in density of, the
property in the Project, or (b) changes in any conceptual or master plan for property in the
Project; provided, in either case, the zoning, use, density, or conceptual, development, or plan
revision is or would be lawful (including, but not limited to, lawful by special use permit,
variance, or the like) and is not inconsistent with what is permitted by this Declaration (as
amended from time to time). Notwithstanding anything to the contrary in this Section 21.3, the
provisions of this Section 21.3 shall be enforceable only to the extent not in violation of any
applicable provision of law.

22. RIGHTS AND OBLIGATIONS
Each grantee of Declarant, by the acceptance of a deed of conveyance, and each
purchaser under any contract for a deed of conveyance, and each purchaser under any agreement
of sale, and the heirs, successors and assigns of the foregoing Persons, accepts the grant,
conveyance or agreement subject to all restrictions, conditions, covenants, reservations, liens and
charges, and the jurisdiction, rights and powers created or reserved by this Declaration, and all
rights, benefits and privileges of every character hereby granted, created, reserved or declared.
Further, all impositions and obligations imposed by this Declaration shall be deemed and taken
to be covenants running with the land and equitable servitudes, and shall bind any Person having
at any time any interest or estate in the Property, and shall inure to the benefit of any 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, purchase contract or instrument evidencing or creating
such an interest.
[END]
61

IN WITNESS WHEREOF, Declarant has caused this Declaration to be duly executed as
of the date set forth above.
CASHIERS RESORT COMMUNITY, L.L.C., a
Delaware limited liability company
By: /s/ Steven Adelson
Its: Authorized Representative
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
I, Connie Concetto, a Notary Public, certify that Steven Adelson, personally
appeared before me this day and acknowledged that he is Manager of CASHIERS RESORT
COMMUNITY, L.L.C., a Delaware limited liability company, and that he, as Manager, being
authorized to do so, executed the foregoing on behalf of the limited liability company.
WITNESS my hand and notarial seal this 30t' day of April, 2004.
(SEAL)
My Commission Expires:
5/11/2007
/s/ Connie Concetto
Notary Public
62

Doc ID 003273320075
Jackson County, NC
BK 1491 PG 374-448
EXHIBIT "A"
Lots E129 through E148, Phase I Mountaintop, Plat Cabinet 12, Slide 779, Records of Jackson County, North
Carolina

Doc ID 003273320075
Jackson County, NC
BK 1491 PG 374-448
EXHIBIT "B"
Description of Annexable Property
All property located within five (5) miles of the "PINCHOT TRACT", Parcel A, containing
10 1. 75 acres more or less, as shown on a plat thereof prepared by Hutchison -Biggs & Associates,
Inc., dated October 13, 2003 and recorded in Plat Cabinet 12, Slide 469, Jackson County
Registry.