SW8900306_HISTORICAL FILE_19900416

STORMWATER DIVISION CODING SHEET
POST-CONSTRUCTION PERMITS
PERMIT NO. SW8 ?(jO3c-)(o
DOC TYPE ❑ CURRENT PERMIT
❑ APPROVED PLANS
C'HISTORICAL FILE
❑ COMPLIANCE EVALUATION INSPECTION
DOC DATE I4(go 0� ( (O
YYYYMMDD

•�Pun My
State of North Carolina
Department of Environment, Health, and Natural Resources
Wilmington Regional Office
James G. Mamn, Governor Bob Jamieson
William W. Cobey, Jr., Secretary Regional Manager
DIVISION OF ENVIRONMENTAL MANAGEMENT
April 16, 1990
Mr. M. Kent Mitchell, President
Bald Head Island Management, Inc.
Post Office Drawer 10999
Southport, North Carolina 28461
Subject: Certification of Compliance
with Stormwater Regulations
Project No. 900306
Dowitcher Trail Cottages
Brunswick County
Dear Ms . Harris:
The Wilmington Regional Office received the Stormwater
submittal for Dowitcher Trail Cottages on March 7 , 1990 and final
information on April 11, 1990. Based on our review of the
project plans and specifications, we have determined that the
project complies with the Stormwater Regulations set forth in
Title 15A NCAC 2H. 1003 (a) (2) . This certification shall be
effective from the date of issuance until rescinded and the
project shall be constructed in accordance with the plans and
specifications as filed with the Wilmington Regional Office.
If you have any questions concerning this matter, please
call Paul Rawls or me at (919) 256-4161.
Sincerelqr{gmal Signed By
9. PRESTON HOWARD, JR
A. Preston Howard, Jr. , P.E.
Regional Supervisor
PER: 900306.APR
Attachment
cc: Michelle Harris, Bald Head Island Management, Inc.
Bill ills
WiRCF
7225 Wrightsville Avenue, Wilmington, N.C. 28403-3696 •_2ephone 919-2564161 • Fax [phone]
An Equal Opportunity Affirmative Acton Employer

DIVISION OF ENVIRONMENTAL MANAGBM�NT I00 30F>
5ubm,1ttal Form. for Projects Using Density Limits for stormwater Control
ROJECT DATA
Name of Project : alz ail Cottaqe
Location ( County , Township/Municipality , Address ) : Village o 8a ea
Brunswic oun y
Applicant Name ; Bald Head Island Management , Inc .
Mailing AddressP .O. Drawer 10999
South ort , Nc 28461 Attention : is e e arras
Phone No : 919-457-50 0
Submittal Date : Aprz rawings an orig� na h 6)
Brief Description ( include map and appropriate dxawings ) :
R s and golf course fairway
tb,ar ya 4igh rn cnnahr,7rr��fY.pg watt_ .a.goQL . on . The lots will be filled--
with 1 ' to 2 ' material as they are very low ( 4 ' to 5 ' MSL ) .
water Body Receiving stormwater Runoff :
Name of Water Body; Freshwater Lagoon north of Dowitcher Trail lots
Classification of Watez Body : Freshwater - does not rain o oceanoor cr'2ek.
Nearest• creek (SA) B�}ld Head Creek is 800' away .
Total. Area of 8roposed 'Project ( acres ) : Approx . •3 1/4 Acres total
2 . 11 acres in lots ( rest is lagoon )
State/Federal Permits and Ap
provals Required:
( Check Appropriate Blanks)
CAMA Major NA Sedimentation and Erosion Control x (obtained )
404 Permit XA DEM/DHS ' Sewage Disposal X Covered undeT General.
Other ( specify) : Permit issued to BfIT Utilit
Co . Site layout will be
.ALCULATION OF BUILT-UPON AREA Suhmittcd to DC114 for approva
of sewer disposal
:Built-upon area means that portion pf an individual development that is
:overed by impervious or partially pervious cover including buildings ;
?avement, recreation facilities, etc . but not .,including wooden decking . If
chi project includes areas draining to different water classifibations , then
note them separately as outlined below)'
NOTE : FOR THE TOTAL PROJECT AREA , FIGURES ARE GXVEN FQR THE LOTS , NOT THE LAGO(
Subwatershed Subwatershed Subwatershed
classification. : Fre ater lagoon
a ) Built-upon area : 19 , 285 SF
b) Total project area : 91 ,865 SF
% built-upon area - 20 . 9
C) built-upon area >
limits' for the
classified water? 30
1 % built•-upon, = (built-upon area / total project area ) 160
' % built-upon area limits : SA waters --- 25%
Other --- 30%
STORMwATER COLLECTION SXSTEM
is the only kind of stormwater collection system grass swales?
Yes No x
C

Hr tom: 1 i .� wt1 1 _i ✓i t: l—t HL t L r T 1 '� 1 b'4C �c.� P 0 5
Tf no, please provide a detailed descr_iptxon.
re— 4 ri er (m a d it�.a,--0.f,, m a i n c1f�e � a n u c r l a n d
flow.
SUFFER AR ,A
is the built-upon area at least 30 feet from mean high water of
all surface waters , Yes No
Bald Head Creek ( SA waters is approx..--8tJ—feet away.
if no , please provide a detailed description .
(Note : Only boa- ramps , public roads , public bridges and
walkways to water, related facilities are allowed within 30 feet
of mean high water if the project is intended to meet stormwater
control requirements through density . limits . )
DEED RESTRICTIONS AND PROTECTIVE COVENANTS
Do the deed restrictions and protettive covenants ensure that
subdivisions maintain the development consistent with the plans
and specifications approved by the division and inolude the State
as a beneficiary of the restrictions? Yes x No
Only the plans ( these ) approved by the Architectural Review Board can be
( Include a copy ' of the restrictions and covenants with this buil
form . )
CERTIFICATION
I , Mi.chglle Ha_rrlg ccrtif!y that the information
included on this submittal form is correct , that the project will
be constructed in conformance with this information, and that to
the best of my knowledge , the pxoposed project complies with the
reguriement of 1 NCAC 2H. 1003 ( b) .
�7
S ' gnature-owner or Agen to
4 G s /
Address
If agent, please list ow4herIs name and address below :
M.Kent Mitchell , President
Bald Head Island Mgmt . Inc .
99
Southport, DIVISION OF ENVIRONMENTAL MANAGEMENTSIGN-OFF
Southport, �� .
28461
Regional Office
el (9 0 �� d
D L/e Individual Evaluating Forms/Plant
Uarc Re io,nal Water Quality super. vlsor
Cc : Applicant/Region/Mills/CF

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•\/�o MAR 14 1990 U
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Property, Restrictions

NORTH CAROLINA WHEREAS, the parties hereto desire to amend and restate
BRUNSWICK COUNTY the restrictive covenants and the amended and restated
THIS AMENDED AND RESTATED DECLARATION OF declaration of restrictions to incorporate desired changes
COVENANTS, CONDITIONS AND RESTRICTIONS, made thereto;and
this 29th dayofJanuary,1982,by Bald Head Island Corporation, WHEREAS, the parties hereto desire to establish a man-
a North Carolina corporation, with its datory homeowners association;and
p principal office in WHEREAS, Declarant desires to hold, transfer, sell and
Southport,North Carolina,('Bald Head"and"Declarant'),and convey subject to this Amended and Restated Declaration of
the undersigned owners of parcels or residential lots shown on
the subdivision plats of Stage 1,Bald Head Island or as shown on Covenants, Conditions and Restrictions the property and/or
Exhibit A attached hereto,("Lot Owners"); lots owned by it as hereinafter set forth on Exhibit A;and
WHEREAS,the owners by execution of a separate agreement
W I T N E S S E T H : intend that lots or parcels within Stage I shall be annexed hereto
or brought within the coverage of this Declaration upon the
WHEREAS, CAROLINA CAPE FEAR CORPORATION,a execution and recordation of an agreement wherein the owner
North Carolina corporation did, while owner of Bald Head of said lot,lots or parcels and the Declarant agree that said lot, fd Island, place restrictive covenants on record to apply to land lots or parcels shall be held, transferred, sold and conveyed
conveyed by Carolina Cape Fear Corporation when the deed or subject to this Declaration; and
deeds for such land make specific reference to the restrictive WHEREAS,the parties hereto agree that upon the execution `
covenants recorded in Book 263, Page 621 of the Brunswick and recordation of an agreement or agreements wherein more
County Registry; and than fifty percent (50%) of the owners of residential lots, not
WHEREAS, Bald Head acquired substantially all of the including the Declarant,have agreed to this Declaration and the
undeveloped portion of Bald Head Island in Smithville modification of the previous Declarations as hereinabove set
Township, Brunswick County, North Carolina, pursuant to forth,then this Declaration shall be deemed the only Declaration
foreclosure deed,dated May 3,1976,and recorded in Book 350 governing and restricting the lots in Stage 1 or other parcels
at Page 68 of the Brunswick County Public Registry;and annexed to this Declaration and the Restrictive Covenants set
WHEREAS, subsequent to the recording of the above forth in Book 263,Page 621,the Declaration of Restrictions at
restrictive covenants,Carolina Cape Fear Corporation and Bald Book 374,Page645,and the Amended and Restated Declaration
Head did convey lots on Bald Head Island with reference to said of Restrictions at Book 409,Page 421,shall be null and void as to
restrictions; and the lots governed by this Declaration.
WHEREAS, Bald Head has recorded a Declaration of NOW THEREFORE, Declarant and Lot Owners hereby de-
Restrictions dated April 18, 1977, for property located within clare in consideration of the premises and intending tobelegally
Stage I of Bald Head Island,which Declaration of Restrictions is bound, that all of the properties described above, and/or
recorded in Book 374,Page 645 in the Brunswick County Public more particularly described in Exhibit A,attached hereto,and
Registry;and annexed by agreement shall be hereafter held, sold and
WHEREAS, Bald Head subsequently recorded an Amended conveyed subject to the following easements, restrictions,
and Restated Declaration of Restrictions,dated July 1, 1978,on covenants, and conditions,all of which are for the purpose of
property located in Stage l of Bald Head Island,which Amended enhancing and protecting the value, desirability and attrac-
and Restated Declaration of Restrictions is recorded in Book tiveness of the real property. These easements, covenants,
409, Page 421 in the Brunswick County Public Registry; and restrictions and conditions shall run with the real property and
WHEREAS, Paragraph Twenty of the restrictive covenants shall be binding on all parties having or acquiring any right,title
recorded at Book 263, Page 621 provides that the restrictive or interest in the described properties or any part thereof,and
covenants may be modified, changed or added to by an shall inure to the benefit of each owner thereof.It is the interact
agreement in writing of a majority of the then owners of lots Bald Head and the Lot Owners that this amended declaration of
within the development exclusiveof the developing corporation; covenants, conditions and restrictions for Bald Head shall
and supersede and replace all previous covenants and restrictions
WHEREAS, Paragraph 4 of the Declaration of Restrictions on lotsannexed tothis Declarationas previously described upon
recorded at Book 374,Page 645,provides that the restrictions the execution and recordation of agreements by more than fifty
and easements set forth therein may be modified only by the percent(50%)of the owners of existing lots in Stage 1,other than
execution of a Modification Agreement in recordable form Declarant.It is also the intent of Bald Head and the Lot Owners
executed by the owners,other than Bald Head,its successors or that this declaration of covenants,conditions and restrictions
assigns, of at least fifty (50%) percent of the residential lots comply with the provisions of the previous restrictions and
shown on the subdivision plats recorded in Map Book 12, at declarations and amended declarations as to those provisions
Pages l through 11 and 38of the Brunswick County Registryand which set forth the necessary requirements for amendment.
Bald Head,or its successors or assigns;and Further, it is the intent of Bald Head and the Lot Owners
WHEREAS, Paragraph 5 of the Amended and Restated expressly consent that effective with the recording of this
Declaration of Restrictions at Book 409,Page 421,provides that Declaration the maps indicated on Exhibit A shall be the current
the restrictions and easements contained therein may be and correct maps which shall subsequently be amended only in
modified only by the execution of a modification agreement in accordance with this Declaration.
recordable form executed by the owners of at least fifty percent Further,Declarant covenants and agrees that it will hold all of
(50%)of the residential lots;and the Subject Property intended to be Common Areas located
WHEREAS, the Amended and Restated Declaration of within Stage l until such time as it is conveyed to the Association
Restrictions recorded at Book 409, at Page 421, of the as Common Areas subject to the following restrictions:
Brunswick County Registry, provides that the Amended and (1) No single family or multifamily residential buildings will be
Restated Declaration of Restrictions was intended to comply constructed thereon;
with the provisions of Paragraph 4 and to amend, restate and (2) No commercial buildings shall be constructed thereon;
replace the aforesaid Declaration of Restrictions dated April 18, (3) The Subject Property intended to be"Common Areas"
1977 and recorded in Book 374, Page 645,Brunswick County shall be preserved in their natural and open state;
Registry, said Restrictions at Book 374, Page 645 thus were (4)The Subject Property intended to be "Common Area"
intended to become null and void;and may be used for recreational buildings and facilities including but
WHEREAS, as of the 31st day of December, 1981, 726 lots not limited to clubhouses,swimming pools,golf course,tennis
have been conveyed to individual lot owners either by Carolina courts, bike paths, vehicle parking for buildings, facilities and
Cape Fear Corporation or Bald Head;and conduits necessary to provide utility services including but not
WHEREAS,during the process of development various maps limited to sewer, water, gas, electricity and garbage disposal
of the property and portions thereof have been recorded;and and/or collection,and for access easements for constructions
WHEREAS, the Declarant and Lot Owners desire to clarify vehicles, service vehicles and other vehicular access as is
the status of each lot and the property owned by Bald Head;and necessary for the orderly development of the property.

Article I, Statement of Purpose and Intent
Bald Head is engaged in the development of Bald Head Island, Stage 1, containing
approximately 897 acres of land,located at the point at which the Cape Fear River empties into
the Atlantic Ocean. Bald Head and its predecessor, Carolina Cape Fear Corporation have
conveyed approximately 750 lots to Lot Owners in the development. Bald Head and the Lot
Owners desire to establish a formal representative body to represent their interest with Bald
Head and other corporations and institutions and to be responsible for collecting and
administering funds for utilization in the maintenance,operation and construction of common
facilities and common lands which Bald Head intends to convey to said association.
The purpose and intent of this Declaration is to establish a formal homeowners
association capable of succeeding to the rights and responsibilities of the Developer at such
time as the Developer's interest in the Properties is substantially diminished and such rights
and responsibilities are transferred by assignment or otherwise; and to provide for the
ownership and continued maintenance of said properties and any and all roadways (wynds,
trails, courts), greenways, planted and landscaped areas which are to become Common
Areas, median strips in thoroughfares and other areas suitable for landscaping, general use
and beautification of the island,dunes and beaches,all of which should enhance the property
values and liveability of residents on Bald Head Island.
Article II, Definitions
SECTION 1. "Association" shall mean and refer to Bald Head Association, its
successors and assigns.
SECTION 2. "Properties" or "Subject Property" shall mean and refer to that certain
real property described in Exhibit A attached hereto, all that property of Declarant which is
located between the following general boundaries:bounded on the North by North Bald Head
Wynd,on the East by Muscadine Wynd,on the South by the Atlantic Ocean and on the West
by the Cape Fear River, and such additions thereto as may hereafter be brought within the
jurisdiction of the Association.
SECTION 3. "Common Area" shall mean all real property owned by the Declarant or
the Association for the common use and enjoyment of all members of the Association,
including greenways,recreational areas,dunes,beaches and roadways.It is intended that the
Common Area shall include all of the Subject Property except platted lots,multi-family sites,
the Inn site and other non-residential areas, the golf course, clubhouse sites and sites
established for utility purposes.
SECTION 4. "Limited Common Area"shall mean those portions of the Common Area
that serve only a limited number of lots and which may include,but specifically is not limited to,
walkways,parking buildings or areas serving only specified lots,and such other similar areas as
i may be designated by the Association. Limited Common Areas shall be maintained at the
expense of the Owners of Lots served thereby and not at the expense of the Association.
SECTION 5. "Lot"shall mean and refer to any numbered plot of land or unit restricted
to residential use shown upon the last recorded subdivision map or maps of the Subject
Property on which such plot appears (provided said map has been approved by Declarant).
SECTION 6. "Multi-family site" shall mean and refer to any plot of land within the
perimeter of the Properties other than a"Lot"which is held for or available for development for
1

residential use as condominiums, townhouses, apartments or single-family attached or
detached units.
SECTION 7. "Non-residential areas" shall mean and refer to any plot of land which
shall be annexed to the Properties when permanently developed or established for non-
residential uses such as inns, motels, hotels, offices, shops, service businesses,maintenance
and repair areas and similar commercial or service uses necessary and desirable to the
development and operation of the community.
SECTION 8. "Unit" shall mean and refer to a dwelling or place of residence
constructed upon a lot located within and shown upon a recorded townhome,patio home or
villa development or a condominium unit as the same is defined in Section 3 of Chapter 47A
(Unit Ownership Act) of the General Statutes of North Carolina.
SECTION 9. "Member" shall mean and refer to every person or entity who holds
membership in the Association including the Declarant.
SECTION 10. "Owner"shall mean and refer to the record owner,whether one or more
persons or entities,of a fee simple title to any lot,unit or parcel which is a part of the Properties,
including contract sellers, but excluding those having such interest merely as security for the
performance of an obligation.
SECTION 11. "Declarant", when used in singular, shall mean and refer to Bald Head
Island Corporation and those of its successors and assigns, which party acquires through
assignment,deed or otherwise,substantially all of Bald Head's remaining ownership interest in
Bald Head Island and thereby becomes the Developer of Bald Head Island,if any,to whom the
rights of Declarant hereunder are expressly transferred hereafter, in whole or in part, and
subject to such terms and conditions as the Declarant may impose.
SECTION 12. "Amenities"shall mean the facilities constructed,erected,or installed on
the Common Area for the use, benefit and enjoyment of Members.
SECTION 13. "Person" shall mean and refer to any individual, corporation,
partnership, association, trustee, or other legal entity.
SECTION 14. "Board of Directors" or "Board" means those persons elected or
appointed and acting collectively as the Directors of the Association.
SECTION 15. "Common Expenses" shall mean and include:
(a) All sums lawfully assessed by the Association against its members;
(b) Expenses of administration, maintenance, repair or replacement of the Common
Areas and Limited Common Areas;
(c) Expenses declared to be common expenses by the provisions of this Declaration or
the Bylaws of the Association;
(d) Hazard,liability,or such other insurance premiums as the Declaration or the Bylaws
of the Association may require the Association to purchase.
SECTION 16. "Assessable Property" shall mean and refer to any lot, parcel, multi-
family unit-or site, or non-residential property including the Inn site, golf course and marina
which are subject by covenants of record to assessment by the Association.
Article III, Annexation of Additional Properties
SECTION 1. ANNEXATION BY MEMBERS. Except as provided in Section 2 and 3
of this Article,additional lands may be added and annexed to the Properties only if two-thirds
2

(2/3) of all of the votes entitled to be cast, are cast in favor of annexation.A meeting shall be
duly called for this purpose, written notice of which shall be sent to all members of the
Association,setting forth the time,place,and purpose of the meeting,not less than thirty(30)
days nor more than sixty (60) days in advance of the meeting.
For the purposes of such meeting,the presence thereat of members or proxies entitled to
cast sixty (60%) percent of the votes shall constitute a quorum. If the required quorum is not
forthcoming at any meeting, another meeting may be called within sixty(60)days thereafter,
subject to the notice requirement set forth above, and the required quorum of such
subsequent meeting shall be one-half(1/2) of the required quorum of the preceding meeting.
If a quorum is present and the majority of the votes are cast in favor of the annexation,but
the majority is less than the two-thirds(2/3)majority required for approval of the annexation,
and it appears that the required two-thirds(2/3)majority may be achieved if the members not
present or voting by proxy assent to the annexation,then and in that event,the members not
present or voting by proxy may assent to or dissent from the proposed annexation in writing
within 120 days following the date of the meeting at which the vote was taken.Each member so
assenting or dissenting shall be deemed to have cast,respectively,all of the votes to which he is
entitled under Article V of this Declaration either in favor of or against the annexation. If the
number of votes cast at the meeting in favor of the annexation,together with the votes deemed
to have been cast by the members assenting to the annexation, shall constitute the requisite
two-thirds (2/3) majority of all votes entitled to be cast the annexation shall stand approved.
SECTION 2. ANNEXATION BY DECLARANT. The Declarant may annex addi-
tional lands to the Properties in the following manner:
(a) If, within fifteen (15) years of the date of incorporation of the Association, the
Declarant should develop additional lands on Smith (Bald Head) Island in a manner
compatible with the existing development such additional lands may be annexed to said
Properties without the assent of the Association, provided that the membership or votes
created by such annexation shall not exceed the total number of votes or memberships in
existence at the time of such annexation;and further provided that the Declarant shall submit
plans for the development and use of the lands proposed for annexation to the Board of
Directors for review at least sixty (60) days prior to annexing said lands.
(b) The Declarant may annex to the Properties the additional lands described in
Subsection(a)of this Section 2 by recording in the Brunswick County Registry a declaration of
annexation, duly executed by Declarant,describing the lands annexed and incorporating the
provisions of this Declaration,either by reference or by fully setting out said provisions therein.
The additional land shall be deemed annexed to the Properties on the date of recordation of the
declaration of annexation,and no action or consent on the part of the Association or any other
person or entity shall be necessary to accomplish the annexation.
(c) Subsequent to recordation of the declaration of annexation by the Declarant, the
Declarant may deliver to the Association one or more deeds conveying any Common Area
within the lands annexed as such Common Area is developed.
SECTION 3. ANNEXATION BY LOT OWNER. Owners of lots or parcels located
within the Property as shown on Exhibit A may annex their individual lots or parcels to this
Declaration at any time by the execution of an instrument satisfactory to Declarant and
executed by Declarant and the Association. Said annexation instrument shall contain a
statement that the owner declares to be legally bound by this Declaration and their property
shall be thereafter held, sold and conveyed subject to this Declaration, that the easements,
covenants, restrictions and conditions shall run with the real property and shall be binding on
3

all parties having or acquiring any right,title or interest in the property or any part thereof,and
shall inure to the benefit of each owner thereof.
Article IV, Membership
SECTION 1. MEMBERS. The Declarant, for so long as it shall be an Owner, and
every person or entity who is a record owner of a fee or undivided fee interest in any Lot,multi-
family site,or non-residential property(hereinafter"Assessable Property")which is subject by
covenants of record to assessments by the Association, including contract sellers, shall be a
member of the Association. The foregoing is not intended to include persons or entities who
hold an interest merely as security for the performance of an obligation. Ownership of such
Assessable Property shall be the sole qualification for membership,and no Owner shall have
more than one membership, except as expressly provided hereinafter. Membership shall be
appurtenant to and may not be separated from ownership of any Assessable Property which is
subject to assessment by the Association. The Board of Directors may make reasonable rules
relating to the proof of ownership of an Assessable Property in this subdivision.
Article V, Voting Rights
SECTION 1. The Association shall have one class of voting membership.
Members shall be entitled to one vote for each Lot,Unit or other Assessable Property in
which they hold the interest required for membership by Article IV. When more than one
person holds such interest in any Assessable Property,all such persons shall be members.The
vote for each Assessable Property shall be exercised as they among themselves determine,but
in no event shall more than one vote be cast with respect to any single Assessable Property,
and no fractional vote be cast with respect to any Assessable Property.
SECTION 2. The right of any member to vote may be suspended by the Board of
Directors for just cause pursuant to its rules and regulations and according to the provisions of
Article VI, Section 1(c).
Article VI, Property Rights
SECTION 1. MEMBERS'EASEMENT OF ENJOYMENT. Every member shall have
a right and easement of enjoyment in and to the Common Area and such easement shall be
appurtenant to and shall pass with the title to every parcel of Assessable Property,subject to
each of the following provisions:
(a) The right of the Association to charge reasonable admission and other fees for the
use of any portions of the Common Area;
(b) The right of the Association, in accordance with its Articles and Bylaws,to borrow
money for the purpose of improving the Common Area and facilities and in aid thereof to
mortgage the Common Area,or any portion thereof,and the rights of such mortgagee in said
Properties shall be subordinate to the rights of the homeowners hereunder; provided,
however,that if any Common Area is mortgaged the execution of such mortgage shall require
the same approval of the membership which is required for special assessments for capital
improvements as set forth in Article VII, Section 4 of this Declaration;
(c) The right of the Association to suspend the voting rights and right to the use of the
recreational facilities by a member or any person to whom he has delegated his right or
enjoyment for any period during which any assessment against his Assessable Property
4

remains unpaid; and for a period not to exceed thirty (30) days, for any infraction of its
published rules and regulations;
(d) The right of the Association to dedicate or transfer all or any part of the Common
Area to any public agency, authority, or utility for such purposes and subject to such
conditions as may be agreed to by the members. No such dedication or transfer shall be
effective unless approved by members entitled to cast two-thirds (2/3) of the votes of
membership and unless written notice of the proposed action is sent to every member not less
than thirty (30) days nor more than sixty(60)days in advance.The instrument effecting such
dedication,transfer or conveyance shall be sufficient if executed by appropriate officers of the
Association, and contains a recital of the approval of the members;
(e) The right of the Association to formulate,publish and enforce rules and regulations
as provided in Article Vlll.
SECTION 2. DELEGATION OF USE. Any member may delegate, in accordance
with the Association Bylaws, his right of enjoyment to the Common Area and facilities to the
members of his family, his guests, tenants, lessees or contract purchasers who occupy the
property.
SECTION 3. TITLE TO THE COMMON AREA. The Declarant intends to convey
fee simple title to some portions of the area shown as road rights of way and unplatted areas on
the aforementioned recorded maps to the Association,free and clear of all encumbrances and
liens except utility, access, drainage and sedimentation easements and easements of
governmental authorities. Similarly, Declarant intends to convey to the Association additional
Common Areas which are portions of Bald Head Island as those portions are annexed in the
future.
SECTION 4. PARKING RIGHTS. Subsequent to conveyance of appropriate
Common Area the Association may regulate the parking of vehicles,boats,trailers and other
such items on the Common Area. No vehicles, boats, trailers or other similar types of
equipment shall be parked within the traffic lane of any street.The Association shall from time
to time adopt appropriate rules for the temporary parking of these items on the Properties.
SECTION 5. TV ANTENNAS AND PIPED-IN MUSIC. The Association shall have
the exclusive right to provide one or more central television antennas for the convenience of
the members and the cost of these may be included in annual or special assessments. The
Association may regulate or prohibit the erection of television antennas on the Subject
Properties.
Article VII, Covenant for Assessments
SECTION 1. CREATION OF THE LIEN AND PERSONAL OBLIGATION OF
ASSESSMENTS. The Declarant, and every other owner of any assessable property,
whether or not it shall be so expressed in any such deed or other conveyance, is deemed to
covenant and agree to pay to the Association:
(a) Annual assessments or charges;
(b) Special assessments for capital improvements; and
such assessments shall be fixed, established, and collected from time to time as
hereinafter provided.
The annual and special assessments, together with such interest thereon and costs of
collection thereof, as hereinafter provided, shall be a charge on the land and shall be a
continuing lien upon the lot and improvements against which each such assessment is made.
5

Each such assessment, together with such interest and costs and reasonable attorney's fees,
shall also be the personal obligation of the person who was the owner of the Lot at the time the
assessment fell due.The personal obligation of an owner for delinquent assessments shall not
pass to his successors in title unless expressly assumed by them.
SECTION 2. PURPOSES OF ASSESSMENTS. The assessments levied by the
Association shall be used exclusively for the purpose of promoting the beautification of the
Properties, the recreation, health, safety, and welfare of the residents in the Properties, the
enforcement of these Covenants and the rules of the Association, and, in particular, for the
improvement and maintenance of the roadways shown on Exhibit A and amenities and
providing the services and facilities devoted to this purpose and related to the use and
enjoyment of the Common Area.Nothing herein shall mean that assessments may not be used
for the maintenance and beautification of areas within the subdivision but which are not part of
the Common Areas, such as entrance signs, access easements crossing private property,
median strips within street rights of way or the interior of cul-de-sacs.
SECTION 3. BASIC AND MAXIMUM ANNUAL ASSESSMENTS. To and in-
cluding December 31, 1982,the basic(and maximum)annual assessment shall not be in excess
of$150.00 per Assessable Property,except as otherwise provided herein,the exact amount of
which shall be determined from time to time as provided in subsection (c) of this Section 3.
(a) From and after December 31, 1982,the basic annual assessment shall be determined
by the Board of Directors of the Association,effective January 1 of each year,without a vote of
the membership, based upon an annual budget of expenditures for authorized purposes,
including reasonable reserves for major repairs,replacements and working capital;provided,
however that in no event,without a vote of the membership as set forth in Section 3(b)hereof,
shall the annual assessment exceed one and one-half percent (1.5%) of the assessed taxable
value of each Assessable Property as determined from time to time by the taxing authorities of
Brunswick County.
(b) After December 31, 1982, should the Board of Directors increase the basic annual
assessment above that provided in (a) above, then the maximum basic annual assessments
may be increased by an affirmative vote of two-thirds(2/3)of the members or proxies who are
entitled to vote(exclusive of Declarant)at a meeting called for such purpose,and the increased
basic annual assessments shall be the basic annual assessment and be thereafter adjusted
pursuant to subparagraph(a)of this Section 3.Written notice of such meeting shall be given by
the Board of Directors to all members not less than thirty (30)days nor more than sixty(60)
days in advance of the meeting,setting forth the date,time,place,and purpose of the meeting.
The provisions of this subsection shall not apply to nor be a limitation upon any change in the
basic and maximum assessments undertaken as an incident to a merger or consolidation in
which the Association is authorized to.participate under its Articles of Incorporation.
(c) After consideration of the current maintenance costs and future needs of the
Association,the Board of Directors may fix the annual assessments at an amount not in excess
of the maximums as determined in subsection (a) of this Section 3.
SECTION 4. SPECIAL ASSESSMENTS FOR CAPITAL IMPROVEMENTS. In
addition to the annual assessments authorized above, the Association may levy in any
assessment year, a special assessment applicable to that year only, for the purpose of
defraying,in whole or in part,the cost of any new construction,acquisition of land,buildings or
equipment, reconstruction of capital improvements or unexpected repair or replacement of
capital improvements upon the Common Area,including the necessary fixtures and personal
property related thereto;provided that any such assessments shall be adopted by a two-thirds
6

(2/3) affirmative vote of members, exclusive of Declarant, voting in person or by proxy at a
meeting duly called for this purpose, written notice of which shall be sent to all members not
less than thirty(30)days nor more than sixty(60)days in advance of the meeting,setting forth
the time, place and purpose of the meeting.
SECTION 5. UNIFORM RATE OF ASSESSMENTS. Both annual and special
assessments relating to the Common Area and other expenses of the Association must be
fixed at a uniform rate per hundred dollars of value for each Assessable Property and may be
collected on either a monthly, quarterly or annual basis as determined by the Board of
Directors of the Association.Assessments shall be levied based on the assessed taxable values
as established from time to time by the taxing authorities of Brunswick County.
SECTION 6. QUORUM FOR ANY ACTION AUTHORIZED UNDER SECTIONS 3
AND 4. At the first meeting called for the purpose stated in Sections 3 and 4 hereof, the
presence at the meeting of members or of proxies entitled to cast sixty (60%) percent of all
votes shall constitute a quorum. If the required quorum is not forthcoming at any meeting,
another meeting may be called,subject to the notice requirement set forth in Sections 3 and 4,
and the required quorum at any such subsequent meeting shall be one-half(1/2)of the required
quorum at the preceding meeting.Such subsequent meeting shall be held within sixty(60)days
following the preceding meeting.
SECTION 7. DATE OF COMMENCEMENT OF ANNUAL ASSESSMENTS: DUE
DATES. The annual assessments provided for herein shall commence as to all Assessable
Property then existing, on the dates established by Section 3 above. The Board of Directors
shall fix the amount of the annual assessment against each Assessable Property at least thirty
(30) days in advance of each annual assessment period. Written notice of the annual
assessment shall be sent to every Owner subject thereto. If the Board of Directors of the
Association shall determine that it would be inequitable to require the payment of the full
amount of annual assessment as might be the case if only a portion of the amenities are
available for the use of members the Board may waive payment of any portion of the
assessment. The due dates and appropriate penalties for late payment shall be established by
the Board of Directors.The Association upon demand at any time shall furnish a certificate in
writing signed by an officer of the Association setting forth whether the assessments on a
specified Lot have been paid. A reasonable charge may be made to defray the actual cost of
furnishing such certificate.Such certificate shall constitute conclusive evidence of payment of
any assessment therein stated to have been paid.
SECTION 8. EFFECT OF NONPAYMENT OF ASSESSMENTS: REMEDIES OF
THE ASSOCIATION. Any assessments which are not paid when due shall be delinquent. If
the assessments are not paid within thirty (30)days after the due date,assessment shall bear
interest from the date of delinquency at the higher of the prevailing prime lending rate at North
Carolina banks or twelve(12%)percent per annum,and the Association may bring an action at
law against the Owner personally obligated to pay the same,and interest,costs and reasonable
attorney's fees of any such action shall be added to the amount of such assessment.No owner
may waive or otherwise escape liability for the assessment provided for herein by non-use of
the Common Area or abandonment of his Assessable Property.
SECTION 9. SUBORDINATION OF THE LIEN TO MORTGAGES. The lien of the
assessments provided for herein on any lot shall be subordinate to the lien of any first mortgage
or mortgages on such Lot,Unit or other Assessable Property.Sale or transfer of any lot shall
not affect the assessment lien; however, the sale or transfer of any lot pursuant to mortgage
foreclosure or any proceeding in lieu thereof,shall extinguish the lien of such assessments as to
7

payments which became due prior to such sale or transfer. No sale or transfer shall relieve
such lot from liability for any assessments thereafter becoming due or from the lien thereof.
Article V111, Building and Use Restrictions
SECTION 1. RULES AND REGULATIONS. The Board of Directors of the
Association shall have the power to formulate, publish and enforce reasonable rules and
regulations concerning the use and enjoyment of the Common Area.
SECTION 2. QUIET ENJOYMENT. No obnoxious or offensive activity shall be
carried on upon the Properties which may be or may become a nuisance or annoyance to the
neighborhood.
SECTION 3. USE AND CONSTRUCTION. All numbered lots shall be used for
single-family residential purposes only. Multi-Family sites or non residential areas when
developed and annexed to the Properties, shall be subject to these Covenants.No structure
shall be erected,altered,placed or permitted to remain on any numbered single-family lot other
than one(1)detached single-family dwelling and one(1)accessory building,which may include
a detached private garage and/or servants' quarters, provided the use of such accessory
building does not include any activity normally conducted as a business; such accessory
building may not be constructed prior to the construction of the main building; provided,
however, that a guest suite without cooking facilities may be included as a part of the main
building or accessory building, but such suite may not be rented or leased except as a part of
the entire premises, including the main building.
SECTION 4. PRIOR APPROVAL OF CONSTRUCTION PLANS. No building,
dwelling,accessory building,fence or other structure shall be erected,placed or altered on any
lot or parcel within the Property until the proposed building plans, specifications,elevations,
exterior color or finish,plot plan(showing the proposed location of such building or structure,
drives and parking areas)and construction schedule shall have been approved in writing by the
Declarant or the Association, pursuant to Article IX herein. No alterations in the exterior
appearance of any building or structure shall be made without like approval.One(1)copy of all
plans and related data shall be furnished the Declarant or its successor for its records. The
Declarant or its successor shall make available a general planning guide for assistance to those
contemplating construction.
SECTION 5. SITE PLACEMENT. That the maximum balance of view, privacy and
breeze will be available to each home located within the development and to assure that all
structures will be located with regard to the topography of each individual Lot or multi-family
site taking into consideration the height of the dunes, the location of trees on each lot and
similar considerations, the Declarant reserves to the Declarant the right to control and solely
to decide the precise site and location of any multi-family structures,house or dwelling or other
structure upon all Subject Property within this development, and in its right to control, the
following guides for building lines shall be used as a minimum standard and adhered to and
followed except with the prior written approval of Declarant:
(a) On estate lots no building or structure shall be located within 50 feet of the street
property line in front of said lot and within 25 feet of the side or ten feet of the rear of said lots.
(b) On all other lots than estate lots, no building or structure shall be located within 35
feet of the street property line in front of said lot or closer than ten feet of the side or rear lines of
said lots.
SECTION 6. GENERAL BUILDING RESTRICTIONS. Construction on numbered
8

i
single-family Lots within the development shall be governed by the following general minimum
requirements:
(a) All buildings shall be constructed a minimum of twelve and one-half (12-1/2) feet
above Mean Sea Level; except, however, garages and storage buildings,approved as set out
above, may be on ground level.
(b) Except with the prior written approval of the Declarant, all residences shall have a
maximum height of thirty-five (35) feet measured from the lowest point on said lot.
(c) Single-family residences shall have the minimum square footage of 1,600 square feet
of enclosed living area, unless prior approval is first obtained from the Declarant in writing to
build a cottage with less square footage,exclusive of garages,boat sheds,terraces,decks and
open porches; provided, however,a maximum of 300 square feet of the square footage of the
floor plan may be included in a fully screened porch,provided the roof of such porch forms an
integral part of the roof line of the main structure.
(d) The exterior of all approved buildings located within this subdivision shall have been
completed within six months after construction shall have been commenced, and failure to
complete the exterior of such buildings within the six months period shall operate as a
forfeiture of the permit granted,at the option of the Declarant or its successors,and thereupon
the Declarant shall have the right and privilege to go upon the premises with such labor and
materials as are necessary,and complete the same,and such shall operate as a lien against the
structure and the lot upon which it is located.
(e) No temporary structures,such as trailers,tents,or mobile homes,shall be placed on
any lot within this development; provided, however, that in the course of the construction of
the building as set out above, the contractor or builder may have shelters or storage sheds
used in the course of the construction and for no other purpose, and all such shelters or
storage sheds shall be removed from the premises within ten days after the completion of the
building.
SECTION 7. PROHIBITED USES. It is the intent and purpose of the Declarant to
develop and maintain the Bald Head Island complex into an exclusive residential and
commercial community of the highest quality and at the same time endeavor to retain the
natural, unspoiled beauty now existing on the island, and to that end the following restrictive
uses and limitations are placed on all lots sold within this development:
(a) No fuel tanks or storage receptacles shall be exposed to public view. These shall
either be located and kept in the accessory building referenced above or approved
underground receptacles. However, trash and garbage receptacles may be located at an
appropriate location on the lot so long as they are appropriately enclosed or screened.
(b) The Declarant and each other lot owner within the development shall maintain and
preserve his property in a clean, orderly and attractive appearance within the spirit of this
development, as set out above. Upon the failure on the part of any such owner to adhere to
such proper, clean, orderly and attractive maintenance of his property, and upon ten days'
written notice, Declarant may file a suit against such owner and any property owner may file
suit against the Declarant for specific performance.
(c) No open or exposed storage, including junk or abandoned items of personal
property,shall be maintained on any Assessable Property;no trash or refuse,including leaves,
shall be burned in an open incinerator within the development.
(d) No animals, livestock or poultry of any kind shall be raised,bred or kept within the
development,except that dogs,cats,or other household pets may be kept,provided that they
are not kept,bred or maintained for any commercial purpose,and are kept under control by
the owner at all times.
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(e) In an effort to effectively control obnoxious insects and pests,the Declarant reserves
for itself, its agents and employees, the right to enter upon any residential lot within the
development and use such measures as are generally recommended for effecting such control.
(f) No trees measuring three inches or more in diameter(outside bark to outside bark)at
four feet above the ground level may be removed without prior written approval of the
Declarant, which approval shall not be unreasonably withheld.
(g) The Declarant will from time to time furnish a list of shrubbery,herbs,grasses and all
Flora recommended to be planted on the Property.The Declarant also will make available from
time to time a list of herbicides and pesticides that may be used on the Property.The Declarant
reserves to itself the right to enforce strict conformity to these regulations and to use such legal
means as are necessary to protect the ecology of the Island.
(h) The Owners shall not remove,reduce,cut down or otherwise change or cause to be
removed, reduced, cut down or changed the elevation of any sand dunes or ridges or both
within the development,even upon their respective lots or any other lots on the Island,except
with the written permission and consent of the Declarant.
(i) The drilling of private wells for irrigation purposes or for any other purpose is
expressly prohibited unless the plans and specifications are approved in advance,in writing,by
the Declarant through its duly authorized representative.
Q) The use of septic tanks or equivalent systems for the disposal of sewage is expressly
prohibited unless the plans and specifications are approved in advance, in writing, by the
Declarant through its duly authorized representative.
SECTION S. UTILITY EASEMENTS. The Declarant reserves unto itself, its
successors and assigns, perpetual, alienable, and releasable easements within the
development and overall Assessable Properties and the right on,over and under the ground to
erect, maintain and use electric and telephone poles, wires, cables, conduits, sewers, septic
systems, water mains, and other suitable equipment for the conveyance of electricity,
telephone,gas,sewer,water and other public conveniences or utilities on,in and over the rear
and/or front ten feet of each lot and ten feet along the side of each lot or parcel within the
development.Further,Declarant reserves the right to subject the Properties to a contract with
Carolina Power and Light Company for the installation of underground electric cables and/or
the installation of street lighting,either or both of which may require an initial payment and/or a
continuing monthly payment to Carolina Power and Light Company by the owner of each
parcel of Assessable Property. All telephone, electric and other utility lines and connections
between the main utility lines and residence and other buildings located on each building site
shall be concealed and located underground so as not to be visible.
SECTION 9. GRADING EASEMENT. The Declarant reserves unto itself, its
successors and assigns,perpetual,alienable and releasable easements within the development
and the right on,over and under the ground to cut drainways for surface water and make any
grading of the soil whenever and wherever such action may appear to the Declarant to be
necessary to maintain reasonable standards of health, safety and appearance.
SECTION 10. WATER CONTROL EASEMENT. The Declarant reserves unto itself,
its successors and assigns, perpetual, alienable and releasable easements to locate wells,
pumping stations,wastewater treatment plants,drain fields and water storage tanks within the
development; provided, however, that the Declarant agrees to use reasonable care not to
materially affect the appearance of the area within which the wells, pumping stations,waste
water treatment plants, drain fields or tanks are (coated.
SECTION 11. LOT CHANGES. No Lot within the development shall be subdivided
10
I

or its boundary lines changed, except with the written consent of the Declarant; provided,
however, that any two property owners may jointly purchase and divide a Lot between their
respective Lots, but in such event, such Lot then ceases in perpetuity to be a Lot in the
development and is merged into the ownership of the respective adjoining property owners in
the ratio of their division and such division must be recorded in writing with the Declarant and
made a part of its development files. The total number of Lots, as indicated on the current
maps as are indicated on Exhibit A, Section A, being Stage 1, shall not be increased by the
Declarant. This Section shall not preclude the addition of Lots by subsequent annexation of
additional areas.
SECTION 12. ROADWAY EASEMENT. The rights-of-way of wynds, trails, courts
and other roads(all hereinafter called"roadways")shown on the Maps as set forth in Exhibit A
attached hereto("Maps")and made a part hereof by reference,are the property of Bald Head
and Bald Head hereby grants to all present or future Owners of Assessable Properties a
perpetual, nonexclusive easement, appurtenant to and running with the land of any such
owner to use such roadways for ingress, egress and regress, subject to the provisions
hereinafter set forth. A conveyance of said roads to the Association or other entity for
purposes of continued maintenance and administration shall be subject to said easement.It is
understood, however, that the easement granted above is not intended to grant any rights to
the general public. Bald Head does not agree by the granting of this easement to maintain or
improve such roadways, and Bald Head expressly retains the right to place utilities in and
under said roadways. However,the Property shown on Exhibit A may be used for recreational
buildings and facilities including,but not limited to,clubhouses,swimming pools,golf courses,
tennis courts and bike paths;vehicle parking and access easements;and for buildings,facilities
and conduits necessary to provide utility services including, but not limited to,sewer,water,
gas, electricity and garbage disposal and/or collection and leaching fields for septic systems.
SECTION 13. In addition to the other rights contained herein and in the event that it is
hereafter determined that roadways, Lots, or proposed multi-family sites, as shown on the
Maps, do not conform to said roadways, Lots or proposed multi-family sites as presently
located on the ground by corner stakes, or existing construction, the Declarant or its
successor or assign shall be authorized to amend this Declaration and the maps as set forth on
Exhibit A by executing and recording an amendment to this declaration and the relevant maps
which amended map adds to the definition of Maps contained in Exhibit A attached showing
the location of the roadway as presently constructed or the Lot,or proposed multi-family sites
as physically located by corner stakes and recorded in the Brunswick County Registry,
provided any such amendment is consented to by the Board of Directors of the Association,
and such consent is evidenced by the execution of such amendment by the President or a Vice
President of Association. It is understood that this right of consent is given to the Association,
upon the condition that the Board of Directors shall grant or deny consent within sixty (60)
days of receipt of a request for consent and that consent shall not be unreasonably withheld.In
the event the Board of Directors refuses to execute the consent within sixty (60) days after
receipt of a request for consent,Declarant may submit the facts and circumstances supporting
its request for said Board of Directors to consent to the amendment to a Judge of the General
Court of Justice, Superior Court Division,holding court in Brunswick County for determina-
tion of whether or not the failure to grant consent was unreasonable.If the Judge finds that the
failure to grant consent was unreasonable, that finding shall be equivalent to consent by the
Board of Directors.
SECTION 14. GOLF FACILITIES. Declarant, for itself, its successors and assigns,
agrees to reserve for golfing purposes a portion of the Property described in Exhibit A attached
hereto substantially equivalent in land area to the portion of the Property presently used for
11

such purposes. The land area presently used for golfing purposes is approximately 180 acres.
Said golf facilities shall be available to members and the public on a fee basis.
SECTION 15. MOTOR VEHICLE LIMITATION. In the interest of the health,safety
and esthetic enjoyment of the owners and visitors within the development, the Declarant
reserves unto itself,its successors and assigns,the right to prescribe or otherwise limit the size,
weight and engine or motor characteristics of all vehicles to be used within the development,
and to establish and enforce speed limits and other traffic rules and regulations within the
development as it deems appropriate.
SECTION 16. PARKING RESTRICTIONS. Parking on the traveled portion of
Wynds, trails, courts and other roads within the development shall be prohibited at all times;
each Lot Owner shall provide off-street parking space for his and his family's use and the use of
their guests;off-street parking spaces will be established by the Declarant or the Association at
various places for access to selected Common Areas.Any vehicle violating this restriction may
be removed by the Declarant and towing charges assessed with the impounding of the vehicle.
SECTION 17. BEACH TRAFFIC RESTRICTIONS. That the property owners,their
guests and the guests of the Declarant may enjoy free and uninterrupted usage of the beaches,
the use of vehicles of any nature, including bicycles, on the beaches of Bald Head, shall be
restricted by such rules and regulations as may be adopted from time to time by Declarant,its
successor or assign.
SECTION 18. SIGNS. Commercial signs, including "for rent"; "for sale" and other
similar signs shall not be erected or maintained within the development without approval by the
Declarant or the Association through architectural review procedures.
SECTION 19. GOLF COURSE RESTRICTIONS FOR FAIRWAY LOTS. The
following special restrictions, over and above those set out above, shall apply to all lots
abutting,adjoining or contiguous to the golf course areas which shall hereinafter be referred to
as Fairway Lots or Fairway residential properties:
(a) The landscaping of the area of any Lot within fifty(50)feet of the golf course fairway
property shall conform with the landscaping of the golf course fairway area established by the
Declarant and all individual lot landscaping plans within the area of fifty feet adjoining the golf
course fairway must be approved by Declarant or its successor or assign, before
implementation.
(b) Declarant reserves an assignable"golf course maintenance easement area"of thirty
(30) feet around the perimeter area of the golf course, fairways, greens and tees, for the
purpose of landscaping,planting of grass,watering the golf area,application of fertilizer to the
golf area as needed,and otherwise mowing and maintaining the easement area,the golf course,
tees and greens; this easement privilege shall include the removal of underbrush, trees less
than three inches in diameter (outside bark to outside bark) when measured four feet above
ground level, stumps, trash and debris that would or could be in conflict with the plans and
specifications of the golf course area as determined by the Declarant.
(c) Declarant reserves for itself, its successors or assigns, an easement to permit and
authorize registered golf course players and their caddies to enter upon the golf course
easement maintenance area to recover a ball or play a ball,subject to the official regulations of
the course,and such entering and playing shall not be deemed a trespass;provided,however,
registered golf players or their caddies shall not be privileged to enter the golf course
maintenance easement area on any lot with a golf cart or other vehicle. Declarant, its
12

successors or assigns, agrees to place and maintain"Out of Bounds"markers on said lots at
the expense of the Declarant, its successors and assigns.
(d) Owners of Fairway lots shall not engage in any activities which would detract from
the playing qualities of the Bald Head Island Golf Course or the development of an attractive
overall landscaping plan for the entire golf course area.
Article IX, Architectural Control and Inspection
No site preparation or initial construction,erection,or installation of any improvements,
including,but not limited to,residences,outbuildings,fences,walls,screens(whether by plants
or structures) and other structures,shall be undertaken upon the Properties unless the plans
and specifications therefor,showing the nature,kind,shape,height,materials,and location of
the proposed improvements shall have been submitted to the Declarant or its agent and
expressly approved in writing. No subsequent alteration or modification of any existing
improvements nor construction, erection, or installation of additional improvements may be
undertaken on any of the properties without prior review and express written approval of the
Board of Directors of the Association,or by an architectural committee composed of three(3)
or more representatives appointed by the Board.
In general,the construction or planting of fences,walls,screens and other structures will
not be permitted if in the opinion of the Declarant, Board, or Architectural Committee, as
applicable, such construction or planting constitutes an unreasonable obstruction of the view
of another owner.
In the event that the Declarant or the Association,as the case may be,fails to approve or
disapprove the site or design of any proposed improvements within thirty (30) days after
complete final plans and specifications therefor have been submitted and received, approval
will not be required,and the requirements of this Article will be deemed to have been fully met;
provided, that the plans and specifications required to be submitted shall not be deemed to
have been received by the Declarant or the Association if they contain erroneous data or fail to
present adequate information upon which the Declarant or the Association,as the case may
be, can arrive at a decision.
The Declarant and/or the Association (as applicable)shall have the right,at its election,
but shall not be required, to enter upon any of the Properties during site preparation or
construction, erection, or installation of improvements to inspect the work being undertaken
and to determine that such work is being performed in conformity with the approved plans and
specifications and in a good and workmanlike manner, utilizing approved methods and good
quality materials.
Article X, Right of First Mortgagees and Insurers of First Mortgages
SECTION 1. NOTICE OF DEFAULT TO FIRST MORTGAGEES AND INSURERS
OF FIRST MORTGAGES. In the event that any Member is in default in any obligation
" hereunder which remains unpaid for a period of sixty (60) days, every lender who is a first
mortgagee as to the Lot of the defaulting Member and the insurer of such first mortgage,shall
be immediately notified of such default, provided that such lender and or insurer shall have
given notice to the Association that it is a first mortgagee or insurer as to the Lot of such
Member and shall have requested the notice of default as herein set forth.
13

SECTION 2. RIGHT TO INSPECT BOOKS OF THE ASSOCIATION. Every first
mortgagee and or insurer of a first mortgage of the Lot of a Member of the Association shall
have the right during regular business hours to examine the books and records of the
Association, with respect to any lot in which they have a security interest.
Article XI, General Provisions
SECTION 1. ENFORCEMENT. The Association,or any Owner,shall have the right
to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants,
reservations,liens and charges now or hereafter imposed by the provisions of this Declaration.
Failure by the Association or by any Owner to enforce any covenant or restriction herein
contained shall in no event be deemed a waiver of the right to do so thereafter.
SECTION 2. SEVERABILITY. Invalidation of any of these covenants or restrictions
by judgment or court order shall in nowise affect any other provisions which shall remain in full
force and effect.
SECTION 3. EXCHANGE OF COMMON AREA FOR OTHER PORTIONS OF THE
PROPERTIES. Notwithstanding any provision herein to the contrary, it is expressly
provided that the Association may convey to the Declarant, as well as any other member,in
exchange for other portions of the Properties conveyed by the Declarant or other member of
the Association,any portion of the Common Area theretofore conveyed to the Association as
provided hereinafter.
The Association, acting through its Board, from time to time may exchange with any
member a portion of the Common Area for a portion of the real property owned by such
member within the Properties, provided that the real property acquired by the Association in
the exchange:
(a) is free and clear of all encumbrances except Protective Covenants of record, the
Declaration, and easements for drainage, utilities, and sewers;
(b) is contiguous to other portions of the Common Area; and
(c) has approximately the same area and utility as the portion of the Common Area
exchanged. The real property so acquired by the Association shall be a part of the Common
Area, and, without further act of the Association or membership, shall be released from any
provisions of the Protective Covenants and Declaration except those applicable to the
Common Area.The portion of the Common Area so acquired by the member,without further
act of the Association or membership,shall cease to be Common Area and shall be subject to
those provisions of the Protective Covenants and Declaration that were applicable to the real
property conveyed to the Association by the member.
Upon such conveyance,the area thus conveyed to the Declarant shall become Common
Area and subject to the Provisions of these Covenants relating to Common Area. The
following hypothetical example is by way of illustration and not of limitation:Due to a surveying
error or the erroneous plotting of topo lines,a greenway intended to extend along a drainage
area is incorrectly located. Thereafter, upon discovery of the error subsequent to the time of
the conveyance of the greenway to the Association, such error could be corrected by an
exchange of land between the Declarant and the Association.
SECTION 4. AMENDMENT. The covenants, conditions and restrictions of this
Declaration shall run with and bind the land,and shall inure to the benefit of and be enforceable
by the Association, or the owner of any Lot or parcel subject to this Declaration, their
respective legal representatives, heirs, successors, and assigns,for a term of thirty(30)years
14

from the date this Declaration is recorded, after which time said covenants shall be
automatically extended for successive periods of ten (10) years. The covenants, conditions
and restrictions of this Declaration may be amended by an instrument signed by the Owners of
not less than fifty (50%) percent of the Assessable Properties (as determined by Article V
above)existing at the time of such amendment;provided,however,that the Board of Directors
of the Association may amend this Declaration to correct any obvious error or inconsistency in
drafting, typing, or reproduction without action or consent of the owners, and such
amendment shall be certified as an official act of the Board and recorded in the Brunswick
County Registry.
SECTION 5. PROCEDURE FOR CERTIFICATION AND RECORDATION OF
AMENDMENT. Any instrument amending these covenants, conditions, and restrictions
other than an amendment by the Board to correct an error or inconsistency in drafting,typing,
or reproduction shall be delivered following execution by the owners, (as determined in
Section 4 above) to the Board of Directors of this Association. Thereupon, the Board of
Directors shall, within thirty (30) days after delivery, do the following:
(a) Reasonably assure itself that the amendment has been executed by the required
number of owners of Assessable Properties as provided in Section 4 of this Article. (For this
purpose, the Board may rely on its roster of members and shall not be required to cause any
title to any Assessable Property to be examined);
(b) Attach to the amendment a certification as to its validity,which certification shall be
executed by the Association in the same manner that deeds are executed.The following form
of certification is suggested:
CERTIFICATION OF VALIDITY OF AMENDMENT TO COVENANTS
CONDITIONS AND RESTRICTIONS OF BALD HEAD ISLAND
By authority of its Board of Directors, Bald Head Association hereby certifies that the
foregoing instrument has been duly executed by the owners of—percent of the Assessable
Properties of Bald Head Island and is,therefore,a valid amendment to the existing covenants,
conditions and restrictions of Bald Head Island.
This the day of 19
BALD HEAD ASSOCIATION
By
ATTEST: President
Secretary
(c) Immediately,and within the thirty(30)day period aforesaid,cause the amendment to
be recorded in the Brunswick County Registry.
All amendments shall be effective from the date of recordation in the Brunswick County
Registry,provided,however, that no such instrument shall be valid until it has been indexed in
the name of this Association. When any instrument purporting to amend the covenants,
conditions and restrictions has been certified by the Board of Directors,recorded and indexed
as provided by this Section, it shall be presumed that such instrument constitutes a valid
amendment as to the owners of all Assessable Properties in Bald Head Island.
SECTION 6. AMENDMENT OF DECLARATION WITHOUT APPROVAL OF
OWNERS. The Declarant, without the consent or approval of any other owner, shall have
the right to amend this Declaration to conform to the requirements of law or governmental
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agency having legal jurisdiction over the Property or to qualify the Subject Property or any Lots
and any other Assessable Properties and improvements thereon for mortgage or improvement
loans made by, guaranteed by, sponsored by or insured by a governmental agency or to
comply with the requirements of law or regulations of any corporation or agency belonging to,
sponsored by,or under the substantial control of, the United States Government or the State
of North Carolina, regarding purchase or sale of such Lots or other Assessable Property and
improvements,or mortgage interests therein,as well as any other law or regulation relating to
the control of the Subject Property, including, without limitation, ecological controls,
construction standards,aesthetics,and matters affecting the public health,safety and general
welfare. A letter from an official of any such corporation or agency, including, without
limitation, the Veterans Administration (VA), U.S. Department of Housing and Urban
Development (HUD), the Federal Home Loan Mortgage Corporation,Government National
Mortgage Association,the Federal National Mortgage Association,or any agency of the State
of North Carolina requiring an amendment as a condition of approval, or suggesting an
amendment, shall be sufficient evidence of the approval of such amendment of VA, HUD
and/or such corporation or agency.
No amendment made pursuant to this Section shall be effective until duly recorded in the
Brunswick County Registry.
SECTION 7. RIGHT OF ASSOCIATION TO AMEND TO ACHIEVE TAX-EXEMPT
STATUS. The Board of Directors of the Association,may amend this Declaration as shall be
necessary, in its opinion, and without the consent of any owner, in order to qualify the
Association or the Subject Properties or any portion thereof, for tax-exempt status. Such
amendment shall become effective upon the date of its recordation in the Brunswick County
Registry.
SECTION 8. OTHER ASSOCIATIONS. Nothing herein shall affect the Declarant's
right to establish other associations(e.g. golf course associations,condominium associations)
and in connection therewith designate limited common areas solely for the benefit of members
of such associations. The annexation to Bald Head Association of areas within such
associations shall not entitle the members of Bald Head Association to the use of Limited
Common Areas established for the benefit of members of such other associations.
SECTION 9. DELEGATION OF DECLARANTS RIGHTS. The rights of Declarant
hereunder may be assigned or transferred in whole or in part,and subject to such terms and
conditions as the Declarant may impose, by a written declaration recorded in the Brunswick
County Registry.
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BALD HEAD ISLAND CORPORATION
P. O. Box 11058
Southport, North Carolina 28461
[phone]