Book 6092 Page 906 BK: RB 6092 PG: 906-936 RECORDED: 09/29/2017 02:55:07 PM BY: CAROL HUGHLEY DEPUTY 2017031848 NEW HANOVER COUNTY, TAMMY THEUSCH BEASLEY REGISTER OF DEEDS DECLARATION OF COVENANTS, CONDITIONS RESTRICTIONS AND EASEMENTS FOR BELLA PORT Prepared by and Return To Ellis & Winters LLP (DLH) P.O. Box 33550 Raleigh, NC 27636 NC FEE $90.00 EXTX $0.00 ELECTRONICALLY RECORDED THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS.
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA.
Submitted electronically by "The Law Group" in compliance with North Carolina statutes governing recordable documents and the terms of the submitter agreement with the New Hanover County Register of Deeds.
Book 6092 Page 907 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR BELLA PORT This DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR BELLA PORT is made as of the 29th day of September, 2017, by Level Carolina Homes, LLC, a North Carolina limited liability company ("Declarant”), and Halyburton Land Holdings LLC, a North Carolina limited liability company (“Halyburton”).
WITNESSETH: WHEREAS, Declarant is the owner of the Lots real property described on Exhibit A-1, and Halyburton is the owner of the roads and other common elements described on Exhibit A-2, all of which together comprises all of the property shown on that certain plat entitled "Survey for: Bella Port" prepared by Gary W. Keyes Land Surveying, P.A. and recorded in Map Book 63, Page 311, New Hanover County Registry (the "Original Community Plat"); and WHEREAS, Declarant and Halyburton desire to subject the real property described on
rveying, P.A. and recorded in Map Book 63, Page 311, New Hanover County Registry (the "Original Community Plat"); and WHEREAS, Declarant and Halyburton desire to subject the real property described on Exhibit A-1 and Exhibit A-2, and possibly other property, to the provisions of this Declaration to create a residential community.
NOW THEREFORE, Declarant hereby declares that the real property described on Exhibit A-1 and Exhibit A-2 of this Declaration, including any improvements which may be (but are not required to be) constructed on that property, is subjected to the provisions of this Declaration.
NOTWITHSTANDING ANY PROVISION OF THIS DECLARATION TO THE CONTRARY, HALYBURTON JOINS IN THE EXECUTION OF THIS DECLARATION FOR THE LIMITED AND SOLE PURPOSE OF SUBJECTING THE REAL PROPERTY THAT IT OWNS AND THAT IS DESCRIBED ON EXHIBIT A-2 TO THIS DECLARATION AND ALL OF THE COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS SET FORTH HEREIN, INCLUDING WITHOUT LIMITATION THE STORWMATER PROVISIONS SET FORTH IN SECTION 14 OF ARTICLE XII. All such real property described on Exhibit A-1 and Exhibit A-2 of this Declaration shall be held, sold, transferred, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments, and liens, contained in this Declaration. The provisions of this Declaration shall run with the title to the property now or hereafter subjected to this Declaration. This Declaration shall be binding on all Persons having any right, title, or interest in all or any portion of the property now or hereafter made subject hereto, their respective heirs, legal representatives, successors, successors-in-title, and assigns and shall inure to the benefit of each and
any portion of the property now or hereafter made subject hereto, their respective heirs, legal representatives, successors, successors-in-title, and assigns and shall inure to the benefit of each and every owner of all or any portion thereof. Membership in the Association described below is required of each buyer and subsequent owner of a Lot.
ARTICLE I.
DEFINITIONS The following words, when used in this Declaration (unless the context shall prohibit), shall have the following meanings: "Act" shall mean and refer to the North Carolina Planned Community Act, Chapter 47F, North Carolina General Statutes.
"Affiliate" shall mean: (i) any corporation at least fifty percent (50%) of the voting stock of which is owned or controlled by Declarant, and any partnership, joint venture or limited liability company 2 #4839-4998-1263 Book 6092 Page 908 in which Declarant has at least a fifty percent (50%) equity interest or an interest in at least fifty percent (50%) of the cash flow from such partnership, joint venture or company; or (ii) any person or entity owning or controlling at least a fifty percent (50%) equity interest in Declarant or an interest in at least fifty percent (50%) of the cash flow from Declarant.
"Annexation Declaration" shall mean and refer to a document, by whatever name denominated, that is recorded for the purposes of annexing additional property to the Community pursuant to the provisions of Article IX of this Declaration and causing such additional property to be subject to the scheme of covenants, charges, conditions and restrictions contained in this Declaration and including any additional covenants, charges, conditions and restrictions contained in the Annexation Declaration.
e of covenants, charges, conditions and restrictions contained in this Declaration and including any additional covenants, charges, conditions and restrictions contained in the Annexation Declaration.
"Association" shall mean Bella Port Homeowners Association, Inc., a North Carolina nonprofit corporation, its successors and assigns, which was incorporated on or about June 21, 2017.
"Board" shall mean and refer to the executive board or board of directors of the Association, and may also be referred to as the "Executive Board" or the "Board of Directors."
"Bylaws" shall refer to the bylaws of the Association in effect from time to time.
"Common Elements" or "Common Area" shall mean all real property owned by the Association (whether owned in fee or by way of license or easement) or leased by the Association, other than a Lot.
"Common Expenses" shall mean all expenditures made by or financial liabilities of the Association, together with any allocations to reserves.
"Community" shall mean the real property and interests described on Exhibit A-1 and Exhibit A-2 and such additions to that property as may be made by Declarant or by the Association pursuant to Article IX of this Declaration.
“Declarant" shall mean and refer to Level Carolina Homes, LLC, a North Carolina limited liability company, as well as its successors and assigns pursuant to an express assignment or conveyance of any of the Special Declarant Rights to such successor or assign, all of which rights, including Declarant's voting, easement and development rights, shall be assignable and may be apportioned on a lot-by-lot basis. Any such assignment shall be recorded in the office of the Register of Deeds of the county in which the Community is located. FOR THE AVOIDANCE OF DOUBT, HALYBURTON IS
portioned on a lot-by-lot basis. Any such assignment shall be recorded in the office of the Register of Deeds of the county in which the Community is located. FOR THE AVOIDANCE OF DOUBT, HALYBURTON IS NOT INTENDED TO BE, AND SHALL IN NO CIRCUMSTANCE WHATSOEVER BE CONSTRUED AS, A DECLARANT.
"Declarant's Development Period" shall mean and refer to the period of time commencing on the date this Declaration is recorded in the Registry of Deeds for the County in which the Community is located, and continuing until the later of: (i) one (1) year after Declarant shall cease to own any property within the Community; or (ii) for so long as Declarant shall have the unilateral right to subject additional property to this Declaration; provided, however, that Declarant may, in its sole and absolute discretion, terminate Declarant's Development Period upon written notice to the Association of its election to do so.
"Declaration" shall include this Declaration of Covenants, Conditions, Restrictions and Easements for Bella Port, as the same may be supplemented or amended pursuant to any Annexation Declaration or any amendment to this Declaration in accordance with its terms.
"Drainage" shall mean the removal of surface water or ground water from land by drains, 3 #4839-4998-1263 Book 6092 Page 909 grading or other means, and includes control of runoff to minimize erosion and sedimentation during and after construction or development and likewise includes undertaking those measures necessary for water supply preservation for prevention or alleviation of flooding.
"Landscape Buffer Area" shall have the meaning given in Article V, Section 4.
"Lot" shall mean and refer to any lot or any separately numbered portion of the Community
tion or alleviation of flooding.
"Landscape Buffer Area" shall have the meaning given in Article V, Section 4.
"Lot" shall mean and refer to any lot or any separately numbered portion of the Community shown on any now or subsequently recorded subdivision plat of the Community that is intended for use or used as a site for a single-family dwelling and shall include any improvements constructed thereon and "Lots" shall refer to all such lots collectively. For the avoidance of doubt, the lots designated as Pond Lot 1, Pond Lot 2 and Pump Station Lot on the Original Community Plat do not constitute Lots.
Declarant hereby reserves the right to reconfigure, from time to time and without the consent of any other Owner or the Members of the Association, the boundaries of any Lot or Lots owned by Declarant or an Affiliate and to thereby create additional Lots, eliminate existing Lots or create additional Common Elements. If Declarant elects to exercise its right to revise the boundaries of one or more Lots owned by Declarant, Declarant shall record a revised plat of the affected Lot or Lots. Upon the recording by Declarant of such a revised plat, each lot shown on the previously recorded plat or plats, the boundaries of which are revised by the revised plat, shall cease to be a “Lot” as defined in this Declaration and each newly configured lot shown on the revised plat shall be a "Lot” as defined in this Declaration.
"Mortgage" means any mortgage, security deed, deed of trust, or similar instruments used for the purpose of encumbering real property in the Community as security for the payment or satisfaction of an obligation.
"Mortgagee" shall mean the holder of a Mortgage.
"Occupant" shall mean any Person occupying all or any portion of a Lot or other property
as security for the payment or satisfaction of an obligation.
"Mortgagee" shall mean the holder of a Mortgage.
"Occupant" shall mean any Person occupying all or any portion of a Lot or other property located within the Community for any period of time, regardless of whether such occupancy or right of occupancy is based on ownership, lease, license or easement.
"Owner" shall mean the record owner, whether one or more Persons, of the fee simple title to any Lot located within the Community; excluding any Person holding such interest merely as security for the performance or satisfaction of any obligation.
"Person” means a natural person, corporation, joint venture, partnership (general or limited), limited liability company, association, trust, or other legal entity.
"Reviewing Authority" shall mean and refer to Declarant, during Declarant's Development Period, and thereafter the Association, by action of its Board, or by action of a committee of the Association appointed by the Board to which such authority has been delegated by the Board.
"Special Declarant Rights" refers to all of the rights reserved for the benefit of Declarant, including, but not limited to rights (i) to complete improvements indicated on plats and plans of the Community; (ii) to exercise any development right; (iii) to maintain sales offices, management offices, signs advertising the Community, and models; (iv) to use the easements herein and otherwise established in favor of Declarant, including easements through the Common Elements for the purpose of making improvements within the Community or within real estate which may be added to the Community; or, (v) to appoint or remove any officers or Executive Board members of the Association in accordance with the
rovements within the Community or within real estate which may be added to the Community; or, (v) to appoint or remove any officers or Executive Board members of the Association in accordance with the provisions of this Declaration. No Special Declarant Right may be modified, amended or terminated without the written consent and approval of Declarant and any successor Declarant to which such right(s) have been assigned.
4 #4839-4998-1263 Book 6092 Page 910 ARTICLE II.
PROPERTY SUBJECT TO THIS DECLARATION Section 1. Property Subject to This Declaration. The real property which is subject to the covenants and restrictions contained in this Declaration is the real property described in Exhibit A-1 and Exhibit A-2.
Section 2. Other Property. Only the real property described in Section 1 of this Article is made subject to this Declaration. However, Declarant may subject all or portions of the additional real property described in Article IX, Section J hereof by recording one or more Annexation Declarations or by other legal means.
ARTICLE III.
ASSOCIATION MEMBERSHIP AND VOTING RIGHTS Section 1. Classes of Membership. The Association shall have two classes of voting membership: Class A: The Class A Members shall be every Person who or which is a record owner of a fee or undivided fee interest in any Lot which is subject by covenants of record to assessment by the Association, except for Declarant or any Affiliate, during any period that Declarant is entitled to appoint the Board members of the Association pursuant to the provisions of Section 2 below of this Article. The foregoing is not intended to include Persons that hold an interest in a Lot merely as security for the performance of an obligation. When more than one Person holds an
ion 2 below of this Article. The foregoing is not intended to include Persons that hold an interest in a Lot merely as security for the performance of an obligation. When more than one Person holds an interest in any Lot, all such Persons shall be Members. Class A Members shall be entitled to one (1) vote for each Lot owned.
Class B: Declarant shall be the sole Class B Member and Declarant shall be entitled to nine (9) votes for each Lot that is owned by Declarant and/or any Affiliate. The Class B membership shall cease and be converted to Class A membership at such time as Declarant no longer has the right to appoint the members of the Board of the Association pursuant to the provisions of Section 2 of this Article.
Section 2. Board Members Appointed by Declarant. Declarant shall have the right to appoint or remove any member or members of the Board or any officer or officers of the Association until such time as the first of the following events shall occur: (a) ten (10) years from the date the Declaration was recorded; (b) the date on which 90% of the lots developed or to be developed as part of the Community (including all present and future phases) pursuant to the then current site plan, have been conveyed to Persons other than Declarant; or (c) the surrender by Declarant in writing of the authority to appoint and remove directors and officers of the Association. Following the expiration of such period of time, all members of the Board shall be elected by the Owners (including Declarant) in accordance with the provisions of the Articles and Bylaws of the Association. Each Owner, by acceptance of a deed to or other conveyance of a Lot, vests in Declarant such authority to appoint and remove Board members and
provisions of the Articles and Bylaws of the Association. Each Owner, by acceptance of a deed to or other conveyance of a Lot, vests in Declarant such authority to appoint and remove Board members and officers of the Association. The Board members selected by Declarant need not be Owners or residents in the Community.
Section 3. Powers of Association. Subject to the provisions of this Declaration and the Articles of Incorporation, the Association may exercise all powers provided by NCGS §47F-3-102 of the Act.
5 #4839-4998-1263 Book 6092 Page 911 ARTICLE IV.
ASSESSMENTS Section 1. Obligation for Assessments. Each Owner, by execution of this Declaration or by acceptance of a deed or other instrument conveying title to a Lot, whether it shall be so expressed therein, is deemed to consent and agree to pay to the Association (or to any Person who may be designated by the Association to collect such monies) all dues, assessments and other charges required by this Declaration, including the following: (1) annual dues and assessments; (2) working capital assessments; (3) special assessments; (4) fines for violations of the provisions of this Declaration or the Articles, Bylaws, rules and regulations or architectural guidelines of the Association or assessments levied against Owners for misuse and damage to the Common Elements by the Owners or their family members, tenants, agents, contractors and guests; (5) individual dues and assessments for any expense under the Code or this Declaration which the Association becomes obligated to pay and pays on behalf of an Owner; (6) late payment charges, interest on unpaid dues and assessments, costs of collection, including without limitation, court costs, service charges, and attorney's fees as provided in the Act, and charges for
e payment charges, interest on unpaid dues and assessments, costs of collection, including without limitation, court costs, service charges, and attorney's fees as provided in the Act, and charges for dishonored checks; all as established by the Board from time to time; and (7) all other assessments and charges imposed or allowed to be imposed by this Declaration or the Act.
Section 2. Purpose of Assessments. The annual assessment primarily is for the purpose of funding the Common Expenses of the Association, including monies allocated for reserve funds, for the fiscal year to which it applies and in accordance with the budget for that fiscal year adopted by the Association, although such assessments may be used for payment of any Common Expenses as determined by the Board.
Section 3. Annual Assessments; Budgets. The Association is at all times empowered to levy assessments against the Lots and the Owners of Lots within the Community for the payment of Common Expenses. Until December 31 of the year of the conveyance of the first Lot to an Owner other than Declarant or an Affiliate, the “Projected Maximum Annual Assessment Amount" shall be Seven Hundred and No/Dollars ($700.00) per Lot. Unless a higher Projected Maximum Annual Assessment Amount is approved by the vote of a majority vote of the Members, voting in person or by proxy at a meeting of the Members duly called and noticed for such purpose, the Projected Maximum Annual Assessment Amount for each subsequent fiscal year is 115% of the amount of the Projected Maximum Annual Assessment Amount for the immediately preceding fiscal year. The Executive Board of the Association shall not fix annual assessments more than the then current Projected Maximum Annual
Maximum Annual Assessment Amount for the immediately preceding fiscal year. The Executive Board of the Association shall not fix annual assessments more than the then current Projected Maximum Annual Assessment Amount unless the budget providing for such assessments is ratified by the Members in accordance with the following procedure.
At least ninety (90) days in advance of each annual assessment period, the Executive Board shall establish an annual budget and fix the amount of the annual assessments in advance for the following year. The Executive Board shall determine the amount of annual assessments to be levied against each Lot by dividing the annual Common Expense liability of the Association as reflected in the budget by the total number of Lots subject to assessment hereunder. Annual assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly, quarterly or annual basis. Within thirty (30) days after the adoption of the proposed budget, the Board shall send a copy of the proposed budget to the Members and shall give written notice to the Members of a meeting of the Members to consider ratification of the budget, such meeting to be held not sooner than ten (10) days nor more than sixty (60) days after the mailing of such notice. Such meeting may, but need not be, combined with the annual meeting of the Members. There shall be no requirement that a quorum be present to vote on ratification of the budget (although a quorum must be present to vote on other matters). If the budget provides for an annual assessment per Lot not in excess of the Projected Maximum Annual Assessment Amount in effect for that fiscal year of the Association, such budget shall be deemed ratified unless Members entitled to cast at 6 #4839-4998-1263
in excess of the Projected Maximum Annual Assessment Amount in effect for that fiscal year of the Association, such budget shall be deemed ratified unless Members entitled to cast at 6 #4839-4998-1263 Book 6092 Page 912 least eighty percent (80%) of the votes of the entire membership vote to reject the budget. If the budget provides for an annual assessment per Lot in excess of the Projected Maximum Annual Assessment Amount in effect for that fiscal year of the Association, such budget shall be deemed ratified unless at that meeting Members entitled to cast at least a majority of the votes of the entire membership vote to reject the budget. If any proposed budget is rejected by the Members, the budget last ratified by the Members shall be continued until such time as the Members ratify a subsequent budget proposed by the Board.
Section 4. Effect of Non-Payment; Remedies. No Owner shall be exempt from liability for any assessment provided for herein for reason of non-use of the Common Elements or such Owner's Lot, or abandonment or leasing of such Owner's Lot, or unavailability of the use or enjoyment of the Common Elements. All assessments, dues and other charges shall be established and collected as provided in this Declaration. All dues, assessments and other charges remaining unpaid for thirty (30) days or longer, together with late charges, interest, and the costs of collection thereof, including attorney's fees, shall be a charge on the Owner's Lot as provided in N.C. Gen. Stat. § 47F-3-116 and, upon filing of a claim of lien in the office of the Clerk of Superior Court of the county in which the Lot is located in the manner provided in N.C. Gen. Stat. § 47F-3-116(g), shall be a continuing lien upon the Lot against which such
the office of the Clerk of Superior Court of the county in which the Lot is located in the manner provided in N.C. Gen. Stat. § 47F-3-116(g), shall be a continuing lien upon the Lot against which such unpaid amount of dues, assessments or other charges is made until paid in full. The lien may be foreclosed by the Association in any manner permitted under the Act or by law. When the holder of a first Mortgage of record or other purchaser of a Lot who obtains title to the Lot as a result of a foreclosure of a first Mortgage, such purchaser and its heirs, successors, and assigns shall not be liable for the assessments and other charges against such Lot which became due prior to the acquisition of title to such Lot by such purchaser. Each assessment and/or other charges due hereunder, together with late charges, interest, the costs of collection thereof, including attorney's fees, shall also be the personal obligation or corporate obligation of each Person who was Owner of the Lot at the time when the assessment or other charge first became due and payable and may be collected by appropriate action at law. If more than one Person held an ownership interest in the Lot at the time the assessment or other charge first became due, then each Person shall be both jointly and severally liable. An Owner's personal obligation for payment of such assessments and other charges shall not become the personal obligation of a subsequent Owner unless expressly assumed by the subsequent Owner, although the lien shall continue against the Lot until the amounts due are paid.
Section 5. Supplementary Budgets. The ratification of a budget for a specified period shall not preclude the adoption of a modified budget by the Board at any time to address increases in Common
paid.
Section 5. Supplementary Budgets. The ratification of a budget for a specified period shall not preclude the adoption of a modified budget by the Board at any time to address increases in Common Expenses or unforeseen or unexpected Common Expenses. Any such budget must be ratified pursuant to the provisions Section 3 of this Article.
Section 6. Certificate of Payment. The Association shall, within three (3) business days after receiving a written request, furnish a certificate signed by an officer of the Association setting forth whether the assessments, other charges, and fines on a specified Lot have been paid. A properly executed certificate shall be binding upon the Association, the Board, and the Owner as of the date of issuance. The Board shall have the right to impose a reasonable charge for providing this certificate.
Section 7. Special Assessments. In addition to the other assessments authorized by this Declaration, the Association may levy special assessments from time to time. Special assessments must be approved by the Members entitled to cast at least two-thirds (2/3) of the votes of the Association at a meeting of the Members of the Association duly called for the purpose, among others, of voting on the special assessment. Special assessments shall be paid as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed. Special assessments must be fixed at a uniform rate for all Lots.
Section 8. No Setoff or Deduction, No Owner may waive or otherwise exempt himself from 7 #4839-4998-1263 Book 6092 Page 913 liability for the assessments provided for in this Declaration. No setoff, diminution, or abatement of any
ion, No Owner may waive or otherwise exempt himself from 7 #4839-4998-1263 Book 6092 Page 913 liability for the assessments provided for in this Declaration. No setoff, diminution, or abatement of any assessment shall be claimed or allowed because of any alleged failure of the Association to take some action, for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority. The obligation to pay assessments is a separate and independent covenant on the part of each Owner and is not subject to setoff.
Section 9. Application of Payments. All payments shall be applied first to costs (including, if applicable, reasonable attorneys' fees), then to late charges, then to interest, and then to delinquent assessments.
Section 10. Date of Commencement of Assessments. As to each Lot, assessments shall start on the date of the conveyance of the Lot to a Person other than Declarant. The first annual assessment shall be adjusted according to the number of days then remaining in that fiscal year.
Section 11. Individual Assessments. Pursuant to this Section, the Board shall have the power to levy individual assessments for the following Association expenses (except for expenses incurred for maintenance and repair of items which are the Association's maintenance responsibility): (a) Expenses of the Association which benefit less than all the Lots may be individually assessed equitably among all the Lots which are benefited according to the benefit received; and (b) Expenses of the Association which benefit all Lots, but which do not provide an
may be individually assessed equitably among all the Lots which are benefited according to the benefit received; and (b) Expenses of the Association which benefit all Lots, but which do not provide an equal benefit to all Lots, may be assessed equitably among all Lots according to the benefit received.
Failure of the Board to exercise its authority under this Section shall not be grounds for any action against the Association or the Board and shall not constitute a waiver of the Board's right to exercise its authority under this Section in the future.
Section 12. Reserve Funds. The Executive Board of the Association, in establishing the annual budget for operation, management and maintenance of the Community, may designate therein an amount to be reserved for the periodic maintenance, repair and replacement of any part of the Community for which the Association is responsible. The Executive Board of the Association may, but expressly is not required to, budget for reserves that will cover all projected costs of the repair and replacement of all portions of the Community for which the Association is responsible and may rely on the funding of part or all such costs at the time they are incurred through the then current budget. In addition, reserve funds may, in the reasonable discretion of the Executive Board, be used to meet the current obligations of the Association.
Section 13. Working Capital Assessments. Upon acquisition of record title to a Lot by the first Owner other than Declarant, a contribution in an amount equal four hundred dollars ($400.00) (“Working Capital Assessment”) shall be made by or on behalf of the purchaser to the Association. The Working Capital Assessment shall be in addition to, not in lieu of, any annual or special assessments. The Working
l Assessment”) shall be made by or on behalf of the purchaser to the Association. The Working Capital Assessment shall be in addition to, not in lieu of, any annual or special assessments. The Working Capital Assessment shall be payable at closing, shall not be prorated, and the Association shall have all rights under the Declaration for enforcement of assessments if it is not paid. The Working Capital Assessment referred to in this paragraph is payable only one time, and will not be charged to subsequent purchasers of a Lot once paid. Working Capital Assessment funds may, in the reasonable discretion of the Executive Board, be used to meet the current obligations of the Association.
8 #4839-4998-1263 Book 6092 Page 914 ARTICLE V.
MAINTENANCE & CONVEYANCE OF COMMON ELEMENTS TO ASSOCIATION Section 1. Association's Responsibility. The Association shall maintain or caused to be maintained the Common Elements. The Association shall also maintain or cause to be maintained in a good and slightly condition with a buffer of trees and shrubbery at least as opaque as was in place as of the date of this Declaration the following areas as shown on the Original Community Plat: (a) the areas designated “25 Buffer & Landscape Easement" on Pond Lot 1, Pond Lot 2 and Lots 4 through 10, inclusive; and (b) the areas designated "Common Area 1 Buffer & Landscape Easement” and “Common Area 2 Buffer & Landscape Easement," including to the extent applicable portions of the Pump Station Lot (collectively, the "Landscape Buffer Area"). No Owner will cause or permit an Occupant to damage, alter or interfere with the Landscape Buffer Area without the prior written consent of the Board.
The Association shall be responsible for ad valorem taxes levied against the Common Elements but not
, alter or interfere with the Landscape Buffer Area without the prior written consent of the Board.
The Association shall be responsible for ad valorem taxes levied against the Common Elements but not against the portions of the Landscape Buffer Area that are owned by Owners and do not constitute Common Elements.
Each Owner and Occupant is hereby put on notice that, contemporaneously with the execution of this Declaration, the Association and Halyburton have entered into that certain Landscape Maintenance Agreement dated September , 2017, as the same may be amended and assigned from time to time in accordance with its terms.
Section 2. Owner's Responsibility. Each Owner shall be liable and responsible for maintenance, repair and replacement, as the case may be, of such Owner's Lot and the dwelling constructed thereon in a good and sightly condition consistent with the other Lots and dwellings within the Community, including, without limitation, as follows: maintenance, repair and replacement of all driveways and walkways located on the Lot, the roof, gutters, downspouts, structural elements, exterior building surfaces (including all doors, garage doors and windows, glass surfaces, screens and storm doors), porches, patios, decks, hardscape features, air conditioning and heating equipment and all other equipment required to provide water, light, power, telephone, sewage and sanitary service to the Lot which are not publicly maintained and serve only that Lot whether located on the Lot or the Common Elements. In addition, the Owner of each Lot shall be independently and separately responsible for the maintenance and replacement of all plantings located on such Lot as follows: mulch, fertilize, replace seasonal landscaping,
Owner of each Lot shall be independently and separately responsible for the maintenance and replacement of all plantings located on such Lot as follows: mulch, fertilize, replace seasonal landscaping, replace dead or diseased trees or shrubs and prune all trees or shrubs, subject, however, to the limitations on interference with the Landscape Buffer Area set forth in Section 1 above. In the event that an Owner neglects or fails to maintain his or her Lot and/or the exterior of his or her dwelling, the Association may provide such exterior maintenance and all cost incurred by the Association in providing such maintenance shall be assessed exclusively against such Lot and the assessment shall be the personal obligation of such Owner and a lien against such Lot as provided in Article IV of this Declaration; provided, however, that the Association shall first give written notice to the Owner of the specific items of exterior maintenance or repair the Associations intends to perform and the Owner shall have twenty (20) days from the date of mailing of said notice within which to perform such exterior maintenance himself or herself. The determination as to whether an Owner has neglected or failed to maintain his or her Lot and/or dwelling in a good and sightly condition consistent with other Lots and dwellings within the Community shall be made by the Executive Board of the Association, in its sole discretion.
Section 3. Conveyance of Common Elements and Personal Property by Declarant to Association. Declarant may convey to the Association any improved or unimproved real property, leasehold, easement, or other property interest located within or adjacent to the Community. Such
rant to Association. Declarant may convey to the Association any improved or unimproved real property, leasehold, easement, or other property interest located within or adjacent to the Community. Such conveyance shall be accepted by the Association, and the property shall thereafter be Common Elements to be maintained by the Association in accordance with this Declaration. Declarant shall not be required 9 #4839-4998-1263 Book 6092 Page 915 to make any improvements whatsoever to property to be conveyed and accepted pursuant to this Section.
Declarant in recording any plat of the Community may identify thereon certain areas of land as "Open Space," "Common Elements," "Common Area," "Common Property," "Common Open Space," or similar designation. Such designated properties, unless otherwise expressly provided, are expressly not dedicated to the public, but are intended to be conveyed by Declarant to the Association as Common Elements.
Declarant, however, reserves the right to reconfigure, in accordance with any applicable local governmental ordinances and regulations, all or any portion of such areas and all or any one or more of the Lots shown on any recorded subdivision plat at any time prior to the conveyance of such property by recording a revised subdivision plat of the property and thereby increase or decrease the area of any "Open Space," "Common Elements," "Common Area," "Common Property," or similarly designated property and/or increase or decrease the number or size of the Lots shown thereon. Any "Open Space," "Common Elements,” “Common Area,” “Common Property,” or similarly designated property conveyed to the Association shall be conveyed subject to all easements and restrictions then of record, including all
mmon Elements,” “Common Area,” “Common Property,” or similarly designated property conveyed to the Association shall be conveyed subject to all easements and restrictions then of record, including all easements and restrictions herein reserved and established, and the recording of a plat showing such areas shall not limit the rights of Declarant to further restrict such property and to grant and convey easements on, over or upon such property, prior to its conveyance to the Association, or otherwise in accordance with the terms of this Declaration. In addition, Declarant may convey to the Association any personal property to be used by the Association in connection with Common Elements or any services to be provided by the Association pursuant to this Declaration. Such conveyance shall be accepted by the Association and the costs of maintaining such property shall be a Common Expense.
Section 4. Additional Improvements to the Common Elements. During Declarant's Development Period, Declarant, in its sole discretion, may (but shall not be obligated to) make additional improvements to Common Elements. In addition, the Association, with the consent of Declarant during Declarant's Development Period may (but shall not be obligated to) make additional improvements to the Common Elements. All such improvements shall be accepted by the Association as part of the Common Elements and maintained in accordance with the terms of this Declaration. The cost of such maintenance shall be a Common Expense of the Association.
ARTICLE VI.
ARCHITECTURAL REVIEW; USE RESTRICTIONS Section 1. Architectural Review. No improvements, alteration, repair, change in paint color, excavation, change in grade, planting, landscaping, exterior decoration, or interior decoration visible from
ection 1. Architectural Review. No improvements, alteration, repair, change in paint color, excavation, change in grade, planting, landscaping, exterior decoration, or interior decoration visible from the exterior (including, without limitation, yard ornaments, figurines, statues, bird baths, houses and feeders, flags, decals, window treatments and similar items) or other work which in any way alters the exterior of any Lot or the improvements located thereon from their natural or improved state existing on the date such Lot was first conveyed in fee by Declarant to an Owner other than Declarant shall be commenced, erected or maintained upon any Lot and no building, fence, residence or other structure shall be commenced, erected, maintained, improved, altered or removed, until the plans and specifications showing the nature, kind, shape, height, materials and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Reviewing Authority. Temporary seasonal exterior decorations and seasonal plantings shall not require the prior approval of the Reviewing Authority, but if any such decorations or plantings are determined, in the sole discretion of the Reviewing Authority, to be distasteful or otherwise disruptive of the aesthetics or visual harmony of the community, the Reviewing Authority may require that such decorations or plantings, as the case may be, promptly and permanently be removed. In the event that an Owner neglects or fails to remove any such decorations or plantings at the request of the Reviewing Authority, the Association may provide such removal. In order to enable the
ed. In the event that an Owner neglects or fails to remove any such decorations or plantings at the request of the Reviewing Authority, the Association may provide such removal. In order to enable the Association to accomplish the foregoing, there is hereby reserved to the Association the right to unobstructed access over and upon each Lot at all reasonable times for such purpose and the cost of such 10 #4839-4998-1263 Book 6092 Page 916 removal shall be assessed exclusively against such Lot and the assessment shall be the personal obligation of such Owner and a lien against such Lot as provided in Article IV of this Declaration. Notwithstanding the foregoing, nothing herein contained shall prevent or interfere with the right of Declarant to improve and develop the Community, including the Lots, as Declarant chooses, so long as said development follows the site plan for or including the Community now or hereafter approved by the applicable county or municipality. Accordingly, Declarant need not seek or obtain the approval of the Reviewing Authority for improvements erected within the Community by or at the direction of Declarant.
(a) Any Person desiring to make any improvement, alteration or change described in above in this Section 1 shall submit the complete plans and specifications therefor, showing the nature, kind, shape, height, materials and location of the same, to the Reviewing Authority which shall evaluate such plans and specification in light of the purposes of this Article.
(b) Upon approval by the Reviewing Authority of any plans and specifications submitted pursuant to this Declaration, a copy of such plans and specification, as approved, shall be deposited for permanent record with the Reviewing Authority and a copy of such plans and
fications submitted pursuant to this Declaration, a copy of such plans and specification, as approved, shall be deposited for permanent record with the Reviewing Authority and a copy of such plans and specification bearing such approval, in writing, shall be returned to the applicant submitting the same. Approval for use in connection with any Lot of any plans and specification shall not be deemed a waiver of the Reviewing Authority's right, in its discretion, to disapprove similar plans and specifications or any of the features or elements included therein if such plans, specifications, features or elements are subsequently submitted for use in connection with any other Lot.
Approval of any such plans and specifications relating to any Lot, however, shall be final as to that Lot and such approval may not be reviewed or rescinded thereafter, provided that there has been adherence to, and compliance with, such plans and specification, as approved, and any conditions attached to any such approval. As a condition to the granting of approval of any request made under this Article, the Association may require that the Owner(s) requesting such change be liable for any cost of maintaining, repairing and insuring the approved alteration. If such condition is imposed, the Owner(s) shall evidence consent thereto by a written document in recordable form satisfactory to the Association. Thereafter, the Owner(s), and any subsequent Owner(s) of the Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, are deemed to covenant and agree that the cost of maintaining, repairing and insuring such alteration shall be a part of the annual assessment or charge set forth herein, and subject to the lien rights described herein.
ant and agree that the cost of maintaining, repairing and insuring such alteration shall be a part of the annual assessment or charge set forth herein, and subject to the lien rights described herein.
(c) No Reviewing Authority shall be responsible or liable in any way for any defects in any plans or specifications approved by them, nor for any structural defects in any work done according to approved plans and specifications or otherwise. Further, no Reviewing Authority shall be liable in damages to anyone by reason of mistake in judgment, negligence, misfeasance, malfeasance or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve or disapprove any such plans or specifications or the exercise of any other power or right provided for in this Declaration.
Section 2. Residential Use. Except as otherwise herein provided with respect to (a) the use of portions of the Community as sales offices, construction offices and/or model homes and (b) the maintenance of offices or home businesses, all Lots shall be used for single-family residential purposes exclusively, and no portion of the Community shall be used except for single- family residential purposes and uses ancillary thereto, including recreational, park and street purposes. Notwithstanding the foregoing restrictions, Declarant, during Declarant's Development Period, shall have the right to operate and maintain one or more sales offices, construction offices and model homes within the Community. In addition, notwithstanding the foregoing restrictions, an Owner may maintain an office or home business on such Owner's Lot or in any dwelling or other improvement located on the Lot only if: (i) such office or 11 #4839-4998-1263 Book 6092 Page 917
tions, an Owner may maintain an office or home business on such Owner's Lot or in any dwelling or other improvement located on the Lot only if: (i) such office or 11 #4839-4998-1263 Book 6092 Page 917 home business is operated by the Owner or a member of the Owner's household residing on the Lot, or by Owner's tenant residing on the Lot; (ii) there are no displays or signs indicating that the Lot or improvement is being used other than as a residence; (iii) such office or business does not generate significant traffic or parking usage (as determined from time to time in the sole discretion of the Board) by clients, customers or other Persons; (iv) no equipment or other items related to the office or business are stored, parked or otherwise kept on such Owner's Lot outside of the dwelling or other enclosure approved by the Reviewing Authority; (v) such Owner has obtained from all applicable local governmental authorities, and maintains in effect, all required approvals for such use; (vi) the activity is consistent with the residential nature of the Community and complies with all applicable federal, state and local laws and ordinances; (vii) no person is employed on-site in such office or home business except for the Owner or the members of the Owner's household residing on the Lot or the Owner's tenant residing on the Lot; and (viii) the Owner has obtained prior written approval from the Board and thereafter registers annually with the Association as long as the operation of the home business continues. As a condition to such use, the Board may require the Owner to pay any increase in the rate of insurance, trash removal, utilities or other costs for the Association or other Owners which result from such use. Garage
o such use, the Board may require the Owner to pay any increase in the rate of insurance, trash removal, utilities or other costs for the Association or other Owners which result from such use. Garage sales, yard sales and similar activities shall be conducted only in accordance with all applicable federal, state and local laws and ordinances and the rules and regulations, if any, adopted by the Board.
Section 3. Permitted Structures. No structure, except as hereinafter provided, shall be erected, altered, placed or permitted to remain on any Lot other than a detached single family dwelling, a garage and an accessory building, provided such accessory building does not in the opinion of the Reviewing Authority overcrowd the Lot. Such accessory building may not be constructed prior to the construction of the primary dwelling. All garages must be attached to the main dwelling, unless the Reviewing Authority approves in writing a variance permitting a detached garage.
Section 4. Square Footage Requirements. The primary dwelling erected on any Lot shall contain a minimum enclosed dwelling area of 2,500 square feet. In addition, thereto, prior to the occupancy of the Lot an enclosed garage for at least two cars shall be completed on the Lot. The term "enclosed dwelling area" as used in this Section shall mean the total enclosed floor area within a dwelling subject to heating and cooling; provided however, that the term specifically does not include garages, terraces, open porches, decks, stoops and like areas regardless of heating or cooling. Variances of these square footage requirements in an amount of not more than 15% may be granted by the Reviewing Authority.
Section 5. Minimum Setbacks. All setbacks shall conform with applicable county and municipal
se square footage requirements in an amount of not more than 15% may be granted by the Reviewing Authority.
Section 5. Minimum Setbacks. All setbacks shall conform with applicable county and municipal codes and regulations.
Section 6. Nuisance. It shall be the responsibility of each Owner and Occupant to prevent the development of any unclean, unhealthy, unsightly, or unkempt condition on his or her Lot. No property within the Community shall be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or material be kept that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property. No noxious or offensive activity shall be carried on within the Community, nor shall anything be done tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property within the Community. There shall not be maintained any plants or animals or device or thing of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the community. There shall be no poultry kept on any Lot. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier, or other sound device, except such devices as may be used exclusively for security purposes or as approved by the Reviewing Authority, shall be located, installed, 12 #4839-4998-1263 Book 6092 Page 918 or maintained upon the exterior of any Lot unless required by law.
y for security purposes or as approved by the Reviewing Authority, shall be located, installed, 12 #4839-4998-1263 Book 6092 Page 918 or maintained upon the exterior of any Lot unless required by law.
Section 7. Signs. No sign of any kind shall be displayed to the public view on any portion of the Community except for signs which are approved by Declarant, during Declarant's Development Period, and thereafter, by the Board, and any of the following: (i) signs advertising a Lot for sale or rent by an Owner other than Declarant, provided that only one (1) such sign may be displayed with respect to any given Lot that is for sale or rent and that the sign complies with all applicable zoning ordinances; (ii) signs advertising Declarant, its Affiliates and its assignees or designees during the construction and/or sales period; and signs advertising any portion of the Community for sale or rent by Declarant or its Affiliates or assignees or designees; (iii) signs erected by or on behalf of Declarant, during Declarant's Development Period, and thereafter, by or on behalf of the Association identifying the subdivision name of the Community or of a phase, section or subdivision within the Community, any portion of the Common Elements, or the number or street address of a Lot or Dwelling, or directing Persons as to the location of certain portions of the Community; and (iv) signs required by any applicable governmental authority or a utility provider. All signs maintained on any portion of the Community must comply with all applicable federal, state and local laws and ordinances.
Section 8. Vehicles. The term "vehicles," as used herein, shall include, without limitation, motorhomes, boats, trailers, motorcycles, minibikes, scooters, go-carts, trucks, campers, buses, vans, and
Section 8. Vehicles. The term "vehicles," as used herein, shall include, without limitation, motorhomes, boats, trailers, motorcycles, minibikes, scooters, go-carts, trucks, campers, buses, vans, and automobiles. The following provisions shall govern the use, parking and storage of Vehicles within the Community: (a) Vehicles owned, leased or operated by an Owner or an occupant or his or her tenant, guest, family member or other invitee shall be parked only in the garage or driveway serving the Lot, or in such other paved areas as have been designated by the Executive Board for parking vehicles. A maximum of two (2) vehicles may be parked outside the garage on any paved area, if any, of a Lot. On-street parking in the Community shall be as determined by the Executive Board in accordance with this Declaration and shall be subject to such conditions as may be imposed by, the Executive Board.
(b) Commercial vehicles, vehicles with commercial writing on their exteriors, vehicles primarily used or designed for commercial purposes, tractors, mobile homes, recreational vehicles, trailers (either with or without wheels), campers, camper trailers, boats and other watercraft, and boat trailers shall be prohibited on the Community, unless completely enclosed in a garage and not visible from adjacent Lots or Common Elements property. Stored vehicles which are either obviously inoperable or do not have current operating licenses, license plates or permits, shall not be permitted on the Community except within enclosed garages. Vehicles that become inoperable while on the Community must be removed from the Community or stored completely enclosed in a garage within seventy-two (72) hours of becoming inoperable. For
d garages. Vehicles that become inoperable while on the Community must be removed from the Community or stored completely enclosed in a garage within seventy-two (72) hours of becoming inoperable. For purposes of this Section, a vehicle shall be considered "stored" if it is put up on blocks or covered with a tarpaulin and remains on blocks or so covered for seventy-two (72) consecutive hours without the prior approval of the Board. Notwithstanding the foregoing, service and delivery vehicles may be parked in the Community during daylight hours for such periods of time as is reasonably necessary to provide service or to make a delivery to a Lot or the Common Elements.
Any vehicle parked in violation of this Section or parking rules promulgated by the Board may be towed in accordance with the Bylaws or Rules and Regulations adopted by the Board.
(c) Garage doors shall be kept closed at all times, except during times of ingress and egress from the garage.
(d) No motorized vehicles shall be permitted on pathways or unpaved Common 13 #4839-4998-1263 Book 6092 Page 919 Elements except for public safety vehicles and vehicles authorized by the Board.
(e) No garage shall be enclosed, modified or otherwise used so as to reduce its capacity for parking vehicles below the capacity existing at the time of completion of construction of the initial improvements on the Lot.
Section 9. Leasing. Except as otherwise herein provided, Lots may be leased for residential purposes. Owners shall require that all tenants and occupants be obligated to comply with the restrictions and covenants contained in this Declaration, and the Articles, Bylaws and rules and regulations of the Association and in the event of noncompliance, the Board, in addition to any other remedies available to
enants contained in this Declaration, and the Articles, Bylaws and rules and regulations of the Association and in the event of noncompliance, the Board, in addition to any other remedies available to it, may, after notice to all Owners and tenants of the Lot and an opportunity for them to be heard, evict the tenant on behalf of the Owner and specifically assess all costs associated therewith against the Owner and the Owner's Lot in accordance with the provisions of Article IV. No studio above the garage located on any Lot may be leased separate from the dwelling located on that Lot unless rent for such studio is a portion of the compensation paid to an employee of the household.
Section 10. Animals and Pets. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any portion of the Community, except that dogs, cats, or other usual and common household pets, may be kept by the Owner(s) or occupants of Lots, so long as such pets are kept in compliance with requirement of law applicable to such animal and any rules and regulations promulgated in accordance with the authority herein conferred on Declarant or the Association. No pets shall be kept, bred or maintained for any commercial purpose. All pet animals must be secured by a leash or lead and under the control of a responsible person and obedient to that person's command at any time they are permitted outside a residence on the Lot or Common Elements. The Executive Board, with the approval of Declarant during Declarant's Development Period, shall have the power to adopt, publish, amend and enforce rules and regulations governing the keeping of pets on the Community and to establish penalties
clarant during Declarant's Development Period, shall have the power to adopt, publish, amend and enforce rules and regulations governing the keeping of pets on the Community and to establish penalties for the infraction thereof, to the extent such rules and regulations do not conflict with this provision. Such rules and regulations may place reasonable limits on the number and/or size of pets that may be kept by the Owner(s) and occupants of each Lot.
Section 11. Antennas. No satellite dishes, antennas, and similar devices for the transmission of television, radio, satellite, or other signals of any kind shall be placed, allowed, or maintained within the Community, except that Declarant and the Association shall have the right, without the obligation, to erect or install and maintain any such apparatus for the benefit of all or a portion of the Community, and except that (i) satellite dishes designed to receive direct broadcast satellite service which are one meter or less in diameter; (ii) satellite dishes designed to receive video programming services via multi-point distribution services which are one meter or less in diameter or diagonal measurement; or (iii) antennas designed to receive television broadcast signals ((i), (ii), and (iii), collectively, "Permitted Devices")) shall be permitted, provided that any such Permitted Device is placed in the least conspicuous location on the Lot (generally being the rear of the Lot) at which an acceptable quality signal can be received and is not visible from the street, Common Elements, or neighboring property or is screened from the view of adjacent Lots in a manner consistent with any design guidelines established by the Reviewing Authority.
isible from the street, Common Elements, or neighboring property or is screened from the view of adjacent Lots in a manner consistent with any design guidelines established by the Reviewing Authority.
Section 12. Garbage Cans, Woodpiles, Etc. All garbage cans, woodpiles, and other similar items shall be stored completely enclosed within the garage that is a part of the residence located on the Lot or located in the rear of the Lot and screened so as to be concealed from view of neighboring streets and property.
Section 13. Subdivision of Lot. No Lot shall be subdivided or its boundary lines changed except with the prior written approval of the Reviewing Authority and, during Declarant's Development Period, Declarant. Declarant, however, hereby expressly reserves the right to re-plat any Lot or Lots and 14 #4839-4998-1263 Book 6092 Page 920 Common Elements owned by Declarant. Any such division, boundary line change, or re-platting shall not be in violation of the applicable subdivision and zoning regulations. Declarant's right to re-plat any Lot shall include the right to change the configuration of streets and otherwise make changes on the final plat for the Community as to how the streets and Common Elements in the Community are laid out. Nothing in this Section 13 limits in any way Declarant's rights set forth in Section 1 under the definition of "Lot.”
Section 14. Guns. The use of firearms in the Community is prohibited. The term “firearms” includes rifles, pistols, "BB" guns, pellet guns, and small firearms of all types.
Section 15. Occupants Bound. All provisions of the Declaration, Bylaws, and of any rules and regulations, use restrictions, or design guidelines promulgated pursuant thereto which govern the conduct
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Section 15. Occupants Bound. All provisions of the Declaration, Bylaws, and of any rules and regulations, use restrictions, or design guidelines promulgated pursuant thereto which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all Occupants even though Occupants are not specifically mentioned. Fines may be levied against Owners or Occupants. If a fine is first levied against an Occupant and is not timely paid, the fine may then be levied and assessed against the Owner and secured with a lien against such Owner's Lot in accordance with the provisions of Article IV.
ARTICLE VII.
INSURANCE AND CASUALTY LOSSES Section 1. Insurance on Common Elements. The Executive Board or the duly authorized agent of the Association shall have the authority to and shall obtain a policy of property insurance on the Common Elements, in an amount equal to not less than eighty percent (80%) of the replacement cost of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property insurance. Such insurance policy must protect against loss or damage by fire and other hazards covered by the standard extended coverage endorsement and, if reasonably available, shall include an agreed amount endorsement or its equivalent and an inflation guard endorsement. Such insurance may, in the discretion of the Board, include coverage for personal property owned by the Association.
Section 2. Liability Insurance. The Board shall obtain a general commercial liability policy in reasonable amounts, covering all occurrences commonly insured against for death, bodily injury, and
ion.
Section 2. Liability Insurance. The Board shall obtain a general commercial liability policy in reasonable amounts, covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of the or in connection with the use, ownership or maintenance of the Common Elements. The general commercial liability policy shall have a combined single limit of at least one million dollars ($1,000,000.00).
Section 3. Worker's Compensation; Officer's Liability and Fidelity Coverage. In addition to the other insurance required by this Section, the Board shall obtain worker's compensation insurance, if and to the extent necessary to satisfy the requirements of applicable laws. If available, the Board is authorized to obtain directors' and officers' liability insurance coverage and, if the Association elects to manage its own affairs and directly receive and disburse its own funds (or, if in addition to professional management, the officers or Executive Board members of the Association can and do directly receive or disburse the monies of the Association), fidelity coverage against dishonest acts by the Association's officers, Executive Board members, trustees and employees, and all others who are responsible for handling funds of the Association. If the Association employs a professional property management Person to manage the Association and to receive and disburse the monies of the Association, then such professional management Person shall have adequate fidelity coverage against dishonest acts and the existence of such coverage shall satisfy the requirement of this paragraph. Any such fidelity coverage shall name the Association as an obligee; shall be written in an amount equal to at least three (3) months
of such coverage shall satisfy the requirement of this paragraph. Any such fidelity coverage shall name the Association as an obligee; shall be written in an amount equal to at least three (3) months of assessments plus reserves on hand; shall contain waivers of any defense based on the exclusion of Persons who serve without compensation from any definition of "employee" or similar expression; and 15 #4839-4998-1263