HOAproxy ← Glenwood Oaks Homeowners Association, Inc.

Document

Glenwood Oaks Homeowners Association, Inc. · 32 pages
Open PDF
Pages 1–2

Hidalgo County Arturo Guajardo Jr.

a Instrument Number: 2011-2257582 AS Recorded On: November 15, 2011 Recording Parties: Billable Pages: 31 To Number of Pages: 32 Comment: DECLARATION Recording 136.00 Total Recording: 136.00 Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law.

File Information: Record and Return To: Document Number: 2011-2257582 DAVID CROOK Receipt Number: 1236740 100 SAVANNAH STE. 380 Recorded Date/Time: November 15, 2011 04:09P MCALLEN TX 78503-1253 User / Station: | Leal - Cash Station 02 STATE OF TEXAS COUNTY OF HIDALGO (hereby certity that this instrument was FILED in the File Number sequence on the date/time printed heron, and was duly RECORDED in the Official Records of Hidalgo County, Texas Arturo Guajardo Jr.

County Clerk Hidalgo County, TX DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR GLENWOOD OAKS SUBDIVISION Ka i ia Bt in THE STATE OF TEXAS § § COUNTY OF HIDALGO § WITNESSETH: WHEREAS, EMPIRE HOME DEVELOPMENT, L.L.C., a Texas limited liability company (“Empire”) (“Declarant”) is the owner of all of Glenwood Oaks Subdivision, a subdivision in Hidalgo County, Texas, according to the map or plat thereof recorded as Document Number 2256667 in the Map Records of Hidalgo County, Texas (the “Property”).

WHEREAS, the purpose of this instrument is to guard against the erection of poorly designed or proportioned structures and the use of unsuitable materials, to encourage and secure the erection of attractive improvements which are harmonious with their sites and, in general, to enhance the

Pages 2–3

ed or proportioned structures and the use of unsuitable materials, to encourage and secure the erection of attractive improvements which are harmonious with their sites and, in general, to enhance the environmental quality and economic value of the Property; and WHEREAS, Declarant desires to create and carry out a uniform plan for the improvement, development and sale of Property for the benefit of the present and future owners of the Property, and in furtherance thereof, Declarant hereby adopts and establishes the following declaration of covenants, conditions and restrictions to apply uniformly to the ownership, encumbrance, lease, use, occupancy, enjoyment and conveyance of all the Property.

Now, THEREFORE, it is hereby declared that all of the Property shall be owned, encumbered, leased, used, occupied, enjoyed and conveyed subject to the following covenants, conditions and restrictions, which are for the purpose of protecting the value and desirability of, and which shall run with, the Property and shall be binding on all parties having any right, title or interest in or to the Property or any part hereof, their heirs, administrators, legal representatives, successors and assigns, and shall inure to the benefit of each owner thereof.

ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used in this Declaration shall have the meanings hereinafter specified: 1.1 ASSESSMENTS “Assessment(s)” shall mean assessment(s) levied by the Association and includes both regular and special assessment(s) as provided in Article 5 hereof.

1.2 1.3 1.4 13 1.6 1.9 1.10 1.12 1.13 1.14 ASSOCIATION “Association “ shall mean Glenwood Homeowners Association, Inc., a Texas non-profit corporation.

l assessment(s) as provided in Article 5 hereof.

1.2 1.3 1.4 13 1.6 1.9 1.10 1.12 1.13 1.14 ASSOCIATION “Association “ shall mean Glenwood Homeowners Association, Inc., a Texas non-profit corporation.

BENEFICIARY “Beneficiary” shall mean a mortgagee under a mortgage or a beneficiary under a deed of trust.

BOARD “Board” shall mean the Board of Directors of the Association.

BUILDING “Building” shall mean a structure, including a residence, having a roof supported by columns or walls for the shelter, support or enclosure of persons or property.

BYLAWS “Bylaws” shall mean the Bylaws of the Association which may be adopted by the Board, as the Bylaws may from time to time be amended.

CERTIFICATE “Certificate” shall mean the Certificate of Formation of the Association, which have been filed in the office of the Secretary of State of the State of Texas, as the Certificate may from time to time be amended.

COMMON AREA “Common Area” shall mean the lake, the streets, and the other areas labeled “common area” on the plat of the subdivision.

DECLARANT “Declarant” shall mean Empire Development, L.L.C., and its duly authorized representatives and successors or assigns; provided, however, any assignment of the rights of Empire Development, L.L.C., as Declarant, must be expressly set forth in a written instrument recorded in the Official Records of Hidalgo County, Texas. The mere conveyance of a portion of the Property without such a written, recorded assignment of the rights of Declarant shall not be sufficient to constitute an assignment of the rights of Declarant hereunder.

DECLARATION “Declaration” shall mean this instrument, as this instrument may from time to time be amended or supplemented.

IMPROVEMENTS “Improvements” shall mean every structure and all appurtenances thereto

Page 4

TION “Declaration” shall mean this instrument, as this instrument may from time to time be amended or supplemented.

IMPROVEMENTS “Improvements” shall mean every structure and all appurtenances thereto of every type and kind.

Lots “Lot” or ” Lots” shall mean the lot or lots of land within the Property as established on the plat for the Subdivision.

MANAGER “Manager” shall mean the person, firm or corporation, if any, employed by the Association pursuant to this Declaration and delegated the duties, powers and functions of the Association as provided in Section 4.5.3 hereof.

MEMBERS “Member” shall mean any person or entity who is a member of the Association.

1.16 1.17 1.18 1.19 MORTGAGE “Mortgage” shall mean any mortgage or deed of trust covering any portion of the Property, including any Lot or Lots, voluntarily given by an Owner to secure the payment of a debt.

OWNERS “Owner (s)” shall mean any person or entity, including Declarant, holding record legal title to a fee simple interest in any portion of the Property, including any Lot or Lots, but shall not include any Beneficiary whose sole interest in the Property or a portion thereof is derived from a Mortgage.

PLANS AND SPECIFICATIONS “Plans and Specifications” shall mean any and all documents designed to guide or control the construction, alteration or removal of any improvement, including but not limited to those indicating location, size, shape, configuration, materials, including roofing materials, site plans, excavation plans, grading plans, foundation plans, drainage plans, landscaping plans, fencing plans, screening plans, elevation drawings, floor plans, exterior lighting plans, specifications on all building products and construction

Pages 4–5

foundation plans, drainage plans, landscaping plans, fencing plans, screening plans, elevation drawings, floor plans, exterior lighting plans, specifications on all building products and construction techniques, samples of exterior colors and materials, plans for utility services, and all other documentation or information relevant to such construction, alteration or removal.

SUBDIVISION “Subdivision” shall mean Glendwood Oaks Subdivision, a Subdivision in Hidalgo County, Texas, according to the map thereof recorded as Document Number 2256667 in the Map Records of Hidalgo County, Texas.

TRUSTEE “Trustee” shall mean and refer to that certain individual (s) or entity (ies) designed or appointed from time to time and at any time by the Association to perform the duties and responsibilities described within Section 5.6 below, and its successors and assigns.

ARTICLE 2 USE RESTRICTIONS All of the Property shall be owned, encumbered, leased, used, occupied, enjoyed and conveyed subject to the following limitations and restrictions: 2.1 CONSTRUCTION, ALTERATION OR REMOVAL OF IMPROVEMENTS 2.1.1 All lots shall be improved and used solely for single family residential use and accessory use, including, without limitation, a garage, fencing and such other improvements as are necessary or customarily incident to residential use. No manufacturing, trade, business, commerce, industry, profession or other occupation whatsoever may be conducted or carried on in any portion of the Property or in any improvement thereon. No improvement constructed on a Lot may be used as an apartment house, flat, lodging house or hotel, but such improvements may be leased for single family residential purposes for a minimum term of thirty (30) days.

Zee 2.3

ted on a Lot may be used as an apartment house, flat, lodging house or hotel, but such improvements may be leased for single family residential purposes for a minimum term of thirty (30) days.

Zee 2.3 2.1.2 No improvement may be constructed, altered or removed upon or from any of the Property without the prior written approval of the Architectural Committee. Any action, other than normal maintenance, which in any way alters the exterior appearance of any improvement, including, without limitation, its color, or which involves the removal of any improvement or the alteration of the landscaping on a Lot, shall be performed only with the prior written approval of the Architectural Committee.

2.1.3 The positioning of all improvements upon all Lots is hereby expressly made subject to Architectural Committee review. No improvement shall be allowed on any Lot that is of such size or architectural design or that involves the use of such landscaping, color schemes, exterior finishes and materials and similar features as to be incompatible with residential development in the subdivision and the surrounding area as determined by the Architectural Committee.

BUILDING HEIGHT No improvement greater than 30 feet in height may be constructed on any Lot which may have a roof height of 35 feet unless approved by the Architectural Committee. For purposes of this Section 2.2, “height” means the vertical distance from “grade” to the highest point of the coping ofa flat roof or to the deck line of a mansard roof or to the average height of the highest gable on a pitched or hipped roof, or if none of the preceding, then to the highest point of the improvement. As applied to a building, height is measured from an elevation derived from the average of the highest and lowest grade

Page 6

roof, or if none of the preceding, then to the highest point of the improvement. As applied to a building, height is measured from an elevation derived from the average of the highest and lowest grade adjacent to the building.

BUILDING MATERIALS; RESIDENCE SIZE; AND MAILBOXES 2.3.1 EXTERIOR MATERIALS All single family residences shall be of recognized standard construction quality, and at least 75% of the area of each residence’s front and sides (exclusive of areas above the roof line) shall be covered with masonry, stucco or other material specifically approved in writing by the Architectural Committee. All windows shall contain clear or lightly tinted, non-reflective glass. Aluminum window frames may be used only if the frames are powder-coated or anodized. A plain silver-colored aluminum frame shall not be allowed.

2.3.2 ROOFING MATERIALS All roofs must be of high grade and quality materials and consistent with the exterior design, color and appearance of other improvements within the Property. No roofing materials will be approved by the Architectural Committee unless such materials are constructed of one of the following materials: clay tile, concrete tile, cedar shingles, slate or approved architectural metals (bronze, copper, etc.). All roofing materials must be designated on the plans submitted to the Architectural Committee as to make, color and type of materials, and any changes to such submitted items must be approved in writing by the Architectural Committee.

No asbestos, fiberglass, composition roofs or reflective roofs shall be permitted.

2.4 2.5 2.6 2.3.3. MINIMUM FLOOR AREA 2.3.3.1 Each single family residence shall contain not less than 2,500 square feet of enclosed living space, exclusive of porches and patios (open or covered),

d.

2.4 2.5 2.6 2.3.3. MINIMUM FLOOR AREA 2.3.3.1 Each single family residence shall contain not less than 2,500 square feet of enclosed living space, exclusive of porches and patios (open or covered), decks and garages. The first floor of any two-story residence shall contain at least 1,500 square feet of total living area.

2.3.3.2 The Architectural Committee may approve structures that do not meet the minimums as outlined above if the design is unique, attractive or an advanced building concept design or material that fits with the intended use of the property.

2.3.4 IDENTIFICATION OF LOTS The house number for each single family residence shall be located on a pre-approved plate mounted on a stone or masonry structure to dimensions supplied by the Architectural Committee. The structure shall be illuminated by an electric lighting fixture and constructed of materials consistent with the dwelling, and in a location approved by the Architectural Committee.

GOVERNMENTAL REQUIREMENTS All improvements and construction shall comply with all applicable governmental laws, ordinances and regulation, including, without limitation, all setback and impervious cover restrictions.

2.4.1 SETBACK REQUIREMENTS No building shall be located on any of the Lots nearer to the front lot line or nearer to the side street line than the minimum set back lines set out below which are also shown on the recorded plat of the Subdivision 2.4.1.1 No building located on any of lot shall be located nearer than 25 feet from the front lot line, or nearer than six feet from any side lot line, or nearer than ten feet from any rear lot line.

2.4.1.2 No building shall be located on any Cul-de-Sac Lots nearer to the front lot line or nearer to the side street line than the minimum set back lines shown

Page 7

r than ten feet from any rear lot line.

2.4.1.2 No building shall be located on any Cul-de-Sac Lots nearer to the front lot line or nearer to the side street line than the minimum set back lines shown on the recorded plat of the Subdivision.

2.4.2 PERMITS All Owners must obtain building permits from the City of Mission, prior to commencing construction.

BUILDING CODES All residences and associated buildings must be built in compliance with the building codes that have been adopted by the City of Mission.

SIGNS Except for the permanent entrance sign for the Subdivision, no sign of any kind shall be displayed to the public, except for signs which are part of Declarant’s overall marketing plan for the Property. The Architectural committee may permit signs of any type advertising Recorded On-2011-Nov-15 As-2257582 2.7 2.8 2.9 2.11 portions of the Property for sale or lease and it may set standards for the same.

SUBDIVIDING No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof without the prior written approval of the Architectural Committee; provided, however, that when Declarant is the Owner thereof, Declarant may further divide and subdivide any Lot and convey any easement or other interest less than the whole, all without the approval of the Architectural committee.

RUBBISH AND DEBRIS No rubbish or debris of any kind shall be placed or permitted to accumulate upon the Property or any portion thereof and no odors shall be permitted to arise therefrom so as to render the Property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property or to is occupants. Refuse, garbage and trash shall be

tted to arise therefrom so as to render the Property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property or to is occupants. Refuse, garbage and trash shall be kept at all times in covered containers and all such containers shall at all times be kept within an enclosed structure or appropriately screened from view of all adjacent property and public and private rights-of-way; provided, however, garbage containers shall be permitted to be placed outside of enclosed structures and may be removed from screened areas a maximum of two times each week, for no longer than 12 hours each time, for garbage collection.

NOISE; NUISANCES Horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes) shall be located, used or placed on any portion of the Property; provided however, exterior stereo speakers may be installed on residences, but no Owner may play music or other sounds through such speakers loud enough to disturb the occupants of other lots. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property or its occupants. No noxious or offensive activity shall be conducted on any portion of this Property. The Board, in its sole discretion, shall determine whether an action or activity constitutes a violation of this Section 2.9.

CONDITION AND REPAIR OF IMPROVEMENTS All improvements upon the Property shall at all times be kept in good condition and repair and adequately painted or otherwise maintained by the Owner thereof. All windows in any improvement on the Property facing any public or private right-of-way shall have draperies, shutters or other types of acceptable

Page 8

inted or otherwise maintained by the Owner thereof. All windows in any improvement on the Property facing any public or private right-of-way shall have draperies, shutters or other types of acceptable window coverings installed by the resident or Owner thereof. No aluminum foil coverings will be allowed LANDSCAPING Within 90 days of completion of construction on any Lot, the Declarant shall plant grass, shrubbery, and one tree on each Lot and maintain the same in a neat and wellgroomed condition and appearance, with all trees and shrubs properly pruned, yards regularly mowed, edged and raked and all areas kept free of trash, debris, weeds and overgrowth. The Association shall keep all trees, shrubs, grass and plantings on such Owner’s Lot or Lots adequately watered, maintained, and free of disease and insects consistent with good horticultural practice.

Recorded On-2011-Nov-15_ As-2257582 2.11.1 The Declarant shall cause two water meters to be installed on each Lot, one for the house and one for the sprinkler system. Each Owner shall cause the bill for water usage by the Sprinkler system to be mailed or delivered to the Association who shall pay the same as part of the common expenses to be paid from the assessment.

2.12 HAZARDOUS ACTIVITIES; FERTILIZERS, PESTICIDES AND HERBICIDES | 2.12.1 No activities shall be conducted or allowed to exist on any portion of the Property and no improvements shall be constructed on the Property which are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, activities that are expressly prohibited include (a) mining, quarrying, drilling, boring, or exploring for or removing water, oil, gas, or other hydrocarbons,

limiting the generality of the foregoing, activities that are expressly prohibited include (a) mining, quarrying, drilling, boring, or exploring for or removing water, oil, gas, or other hydrocarbons, minerals of any kind, rocks, stones, sand, gravel, aggregate or earth, (b) the use or discharge of firecrackers or other fireworks within the Property, (c) the use or storage of propane gas, gasoline, oil or any type of flammable liquids or gases in other than closed tanks with capacities of 5 gallons or 21 pounds or less within an enclosed structure or permanently screened from view within the building setback requirements; provided however, only such liquids and gases as are customarily used for residential purposes shall be allowed on the Property, (d) any activities which may be offensive or hazardous by reason of odor, fumes, dust, smoke, noise, vision, vibration or pollution, or which are hazardous by reason of excessive danger, fire or explosion, (e) hunting, trapping and discharge of firearms, (f) open fires in other than acontained barbecue unit for cooking purposes, while attended and in use, or within a safe and well designed interior fireplace, (g) the use of bows and arrows, crossbows, slingshots, darts or other projectile devices, or (h) the discharge or leakage of any type of hazardous or toxic chemical or material, such as oil, fertilizers, pesticides or herbicides, provided, however, only such materials as are customarily used for residential purposes shall be allowed on the Property.

2.12.2 No fertilizers, pesticides or herbicides other than those generally available for consumer use and approved by an agency, such as the Food and Drug Administration, the United States Department of Agriculture, or the Environmental Protection

Page 9

other than those generally available for consumer use and approved by an agency, such as the Food and Drug Administration, the United States Department of Agriculture, or the Environmental Protection Agency, for the purpose intended shall be placed, used or stored on any Lot. All Owners using any such materials shall strictly comply with all instructions provided with such materials and shall take proper precautions in placing, using and storing such materials so that such materials are contained at all times and do not result in the unnecessary discharge thereof onto any other Lot.

2.13 VEHICLES; UNSIGHTLY ARTICLES; TEMPORARY STRUCTURES 2.13.1 Passenger vehicles, motorcycles and scooters owned or used by an Owner shall not be parked or left on any portion of the Property other than such Owner’s garage or for not longer than twelve (12) hours at a time, such Owner’s driveway. No mobile 2.14 2.13.2 2.13.3 homes, travel trailers, boats, buses, trucks (other than passenger vehicle trucks), boat trailers, graders, tractors or wagons shall be permanently parked or placed on any Lot at any time unless housed out of sight in a garage or other such appropriate structure that is consistent with the overall architectural design of the Property; provided, however, construction equipment may be left on a Lot during construction on such Lot, but shall be removed as soon as such equipment is no longer needed in such construction. No travel trailers or recreational vehicles shall be parked on or near any Lot so as to be visible from adjoining property or public or private rights-of-way for longer than 48 hours at a time. Satellite dishes shall not be visible from the street.

No junk vehicles or equipment, spare vehicle or equipment parts or other article

lic or private rights-of-way for longer than 48 hours at a time. Satellite dishes shall not be visible from the street.

No junk vehicles or equipment, spare vehicle or equipment parts or other article deemed to be unsightly by the Board shall be permitted to remain on any Lot so as to be visible from adjoining property or public or private rights-of-way. All garden maintenance equipment shall be kept at all times, except when in actual use, in an enclosed structure or screened from view of adjoining property and public and private rights-of way. No recreational equipment, including but not limited to swing sets, playscapes, skate boards, bicycles, skate board or bicycle ramps, basketball hoops and nets or badminton nets, shall be permitted in the front yard or in the driveway in front of any residence on the Property. Gardens shall be permitted for household use only and shall not be permitted in the front yards of residences. No repair or maintenance work shall be done on any garden maintenance equipment or on any vehicle (other than minor emergency repairs) except in an enclosed garage or other structure. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household materials shall be appropriately screened from view; and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials or scrap or refuse of trash shall be kept, stored or allowed to accumulate on any portion of the Property except within an enclosed structure or appropriately screened from view.

No tent, shack, barn or other temporary improvement shall be place upon any portion of the Property; provided, however, that temporary structures necessary for storage of tools and equipment and for office space for architects, builders and foremen

Page 10

ent shall be place upon any portion of the Property; provided, however, that temporary structures necessary for storage of tools and equipment and for office space for architects, builders and foremen during actual construction may be maintained with the prior written approval of the Architectural Committee, such approval to include the nature, size, duration and location of such structure.

ANIMALS No kennel or other facility for raising or boarding dogs or other animals for commercial purposes shall be kept on any Lot. Only the keeping of ordinary household pets such as dogs and cats, not to exceed two each in number, is allowed; however, no commercial breeding, raising, or boarding of such pets is permitted on any Lot. No pit bull terriers or other dangerous breed of dogs as determined by the Board in its sole discretion may be kept on any Lot for any period of time. All pets permitted by this Declaration shall at all times be properly vaccinated and cared for. No poultry or livestock of any kind may Recorded On-2011-Nov-15 As-2257582 be kept on any Lot for any period of time. All pets shall be kept on the Owner’s Lots and shall not be allowed to roam loose, and Owners having pets shall keep their Lot and all other Lots free of offensive or unsanitary accumulations of waste from such pets.

FENCES No fence, wall, or hedge shall be built or maintained forward of the front wall line of the main structure, not including decorative walls or fences which are part of the architectural design of the main structure, and which are not to be built or maintained nearer than the building setback line of any lot. An exception shall be made in the case of retaining walls not to exceed 24 inches above the ground.

2.15.1 ZL Dee 2.15.3 2.15.4 2.15.5

t or maintained nearer than the building setback line of any lot. An exception shall be made in the case of retaining walls not to exceed 24 inches above the ground.

2.15.1 ZL Dee 2.15.3 2.15.4 2.15.5 Notwithstanding the foregoing, the Architectural Committee is empowered to waive the aforesaid height or setback limitation in connection with retaining walls and decorative walls if, in its sole discretion, such waiver is advisable in order to accommodate a unique, attractive or advanced building concept design or material and the resulting decorative wall and/or retaining wall will not detract from the general appearance of the neighborhood.

Chain link and other open mesh, wire type fences may not be constructed or maintained on any Lot; provided, however, that this prohibition shall not apply to the perimeter fences constructed by Declarant.

All front elevation fences situated between a dwelling and the side property line or lines of a lot shall be of masonry construction (as defined in the preceding Section) and must be harmonious (in the opinion of the Architectural Committee) with the masonry construction of the dwelling situated thereon. Gates visible from the front elevation of a lot shall be of wooden or ornamental iron construction (“Front Elevation” fences shall be deemed as those fences running substantially parallel to the street fronting the lot and being readily visible from such street). No fence, wall, or hedge, or shrub planting which obstructs sight lines shall be placed or permitted to remain on any corner lot within the triangular areas formed by the street property lines and a line connecting them at points 25 feet from the intersection of the street lines or in the case of a rounded property corner, from the intersection of the street

Page 11

med by the street property lines and a line connecting them at points 25 feet from the intersection of the street lines or in the case of a rounded property corner, from the intersection of the street line extended; the same sight line limits shall apply on any lot within10 feet from the intersection of street property lines with the edge of a driveway or alley pavement.

No tree shall be permitted to remain within such distance of such intersections, unless the foliage is maintained at sufficient height to prevent obstruction of such sight lines.

All rear fences (except for perimeter fences or walls erected by Declarant) shall be approved by the Architectural Committee.

The Architectural Committee may, in its discretion, prohibit the construction of any proposed fence, or specify the materials of which any proposed fence must be constructed, or require that any proposed fence be screened by vegetation or Recorded On-2011-Nov-15 As-2257582 2.16 2.17 2.18 2.19 2.20 otherwise so as not to be visible from other portions of the Property.

CARPORTS; GARAGES No carports shall be erected or permitted to remain on any Lot. Each residence constructed on a Lot shall have attached to it an enclosed garage that shall be large enough to accommodate at least two full size passenger automobiles, but shall not accommodate more than four vehicles. All garage doors shall be kept in the closed position when the garage is not being used for ingress and egress by the owner or occupant of the Lot.

DRIVEWAYS The location of all driveway cuts shall be subject to approval by the Architectural Committee, but a driveway may not be closer to the side lot line than the setback requirements set forth in Section 2.4 above. Driveways on corner Lots facing both

ect to approval by the Architectural Committee, but a driveway may not be closer to the side lot line than the setback requirements set forth in Section 2.4 above. Driveways on corner Lots facing both a cul-de-sac and a main thoroughfare shall be located on the cul-de-sac; provided however that the Architectural Committee shall have the authority to approve circular drives on any Lot. All driveways shall be at least 12 feet, but no more than 15 feet, wide and be continuous to the garage unless otherwise approved by the Architectural Committee.

2.17.1 All driveways must be constructed of brick, stone, or concrete. If concrete is used, it must be colored and/or textured. If textured, it must be stamped, salted, or finished ina way that has been approved by the Architectural Committee. Decorative concrete may be used subject to the approval of the Architectural Committee. Any driveway constructed of decorative concrete shall be 4 % sack concrete with a minimum of 3/4" aggregate, 5" thick.

SIDEWALKS Sidewalks are required on all Lots. Sidewalks shall be five feet wide and adjacent to the curb.

ATHLETIC FACILITIES Tennis court lighting and fencing shall be allowed with the approval of the Architectural Committee. No basketball goals or backboards or any other similar sporting equipment of either a permanent or temporary nature shall be visible from the street or within 15 feet from the front property line of any lot in the subdivision without the prior written consent of the Architectural Committee.

UNDERGROUND UTILITY LINES No utility lines or wires, including, but not limited to, wires or other devices for the communication or transmission of telephone, electric current or power or cable television, shall be erected, placed or maintained in or upon any Lot unless

Page 12

t limited to, wires or other devices for the communication or transmission of telephone, electric current or power or cable television, shall be erected, placed or maintained in or upon any Lot unless the same shall be contained in conduit or cables that are installed and maintained underground or that are concealed in, under or on buildings; provided, however, that no provision hereof shall be deemed to forbid the erection of temporary power or telephone structures incident to the construction of improvements which have been previously approved in writing by the Architectural committee. The installation method, including, but not limited to, location, type of installation equipment, trenching method and other aspects of installation for both temporary and permanent utility lines and wires shall be included in the Plans and Specifications for all improvements.

10 Recorded On-2011-Nov-15 As-2257582 2.2] Did 2.23 3.1 WATER SOFTENERS No water softener shall be installed or used that discharges effluent brine into the sewage or septic system. Location, type, and screening of water softeners shall be first approved by the Architectural Committee before installation or use.

EXTERIOR LIGHTING All exterior lighting on any improvement must be approved by the Architectural committee; provided, however, Christmas and other holiday lights shall be permitted without prior approval during the month of December each year, but must be removed by January 15 of the next year. No lighting shall be permitted that constitutes a nuisance or hazard to any Owner or occupant of any Lot. The Board in its sole discretion shall determine whether the provisions of this Section 2.22 have been satisfied.

GENERAL RESTRICTIONS

titutes a nuisance or hazard to any Owner or occupant of any Lot. The Board in its sole discretion shall determine whether the provisions of this Section 2.22 have been satisfied.

GENERAL RESTRICTIONS 2.23.1 All buildings constructed on the Property shall be built in place on the Lot.

2.23.2 There shall be no interference with the established drainage patterns over any of the Property, except by Declarant, unless adequate provision is made for proper drainage and the prior written approval of Architectural committee is obtained.

2.23.3 All building foundations on fill shall utilize design and construction practices certified by a registered professional engineer qualified to practice in such field and such design shall be delivered to the Architectural Committee with the Plans and Specifications.

2.23.4 Once commenced, construction shall be diligently pursued to completion so that construction is completed within 12 months after the date that construction begins.

If a residence is not completed within such 12 month construction period, the Association may foreclose the lien created in Article 5. All construction materials and debris shall promptly be cleared from each Lot upon completion of construction thereon.

ARTICLE 3 ARCHITECTURAL COMMITTEE MEMBERSHIP AND DUTIES OF ARCHITECTURAL COMMITTEE 3.1.1 The Architectural Committee shall be composed of not more than three persons, except that Andres Boesh and Roberto Boesch shall serve as the initial members of the Architectural Committee, until such time as Declarant selects additional members of the Architectural Committee.

3.1.2 The Architectural Committee shall consider and act upon any and all Plans and Specifications submitted for its approval pursuant to this Declaration or as from time

Page 13

the Architectural Committee.

3.1.2 The Architectural Committee shall consider and act upon any and all Plans and Specifications submitted for its approval pursuant to this Declaration or as from time to time shall be assigned to it by the Board. The Architectural Committee shall have 1] Recorded On-2011-Nov-15_ As-2257582 3.2 oo 3.4 the authority to disapprove any proposed Improvement, and the decision of the Architectural Committee shall be final and binding so long as it is made in good faith. The Architectural Committee shall not be responsible for inspecting any proposed Improvement, nor shall its approval of any Plans or Specifications be deemed approval of any Improvement as to structural safety, engineering soundness or conformance with any building or other codes.

TERM Each member of the Architectural Committee shall hold office until such time as he has resigned or has been removed and his successor has been appointed.

DECLARANT’S RIGHTS OF APPOINTMENT Declarant, and its successors and assigns, shall have the right to appoint and remove all members of the Architectural Committee for any reason or no reasonat all. The Board shall have the right to appoint and remove all members of the Architectural Committee after 50% of the Lots have been sold.

REVIEW OF CONSTRUCTION, ALTERATION OR REMOVAL OF IMPROVEMENTS 3.4.1 Whenever in this Declaration the approval of the Architectural Committee is required, the Architectural Committee shall have the right to consider all of the Plans and Specifications for the Improvement or proposal in question and all other facts, material, construction samples and other information which it considers, in its sole discretion, to be relevant. Prior to commencement of any construction, alterations

Pages 13–14

in question and all other facts, material, construction samples and other information which it considers, in its sole discretion, to be relevant. Prior to commencement of any construction, alterations or removal of any Improvement on any Lot, two copies of the Plans and Specifications therefor shall be submitted to the Architectural Committee, and construction, alteration or removal thereof may not commence unless and until the Architectural Committee has approved such Plans and Specifications in writing. All such construction, alterations or removal shall conform to the approved Plans and Specifications.

3.4.1.1 The Architectural Committee may request in writing that the Owner submit to it such additional materials, construction samples and information that the Architectural Committee considers relevant in reviewing the Plans and Specifications for compliance with this Declaration. Until receipt by the Architectural Committee of all information requested by it, it may postpone review of such Plans and Specifications. Upon receipt of all such information requested by it, the Architectural Committee shall act upon such Plans and Specifications within 30 days. The written request of the Architectural Committee for additional information shall be binding upon the Architectural Committee as a complete list of such information if the additional information is received by it within 60 days of its request. The Architectural Committee may request the additional information described herein at any time it receives revised Plans and Specifications; provided, however, such request shall be limited to the additional or revised items 12 Recorded On-2011-Nov-15 As-2257582 therein and not to items previously reviewed by the Architectural Committee

s; provided, however, such request shall be limited to the additional or revised items 12 Recorded On-2011-Nov-15 As-2257582 therein and not to items previously reviewed by the Architectural Committee unless such items are affected by such revision.

3.4.1.2 If the Architectural Committee approves such Plans and Specifications, it shall mark both sets of the Plans and Specifications “Approved” with the date thereof, and retain one set for its records and return one set to the Owner.

The Owner must commence construction of the Improvements shown in approved Plans and Specification within 90 days or the approval shall lapse.

Upon written request of an Owner, the Architectural Committee may grant up to two 30 day extensions of such approval.

3.4.1.3 Ifthe Architectural Committee disapproves such Plans and Specifications, it shall mark both sets of the Plans and Specifications “Disapproved” with the date thereof, and retain one set for its records and return one set to the Owner, with a written statement of all of the items that were found not to comply with this Declaration. Thereafter, the Owner shall submit to the Architectural Committee two revised sets of Plans and Specifications, with notations thereon sufficient to identify the revised portions, and the Architectural Committee shall act on such revised Plans and Specifications within 30 after receipt by it of such revised Plans and Specifications. The written statement of non-complying items shall be binding upon the Architectural Committee as a complete list of such items if revised Plans and Specifications with changes conforming to such statement are received by it within 60 days of the date of such statement. The Architectural Committee may disapprove revised

Page 15

items if revised Plans and Specifications with changes conforming to such statement are received by it within 60 days of the date of such statement. The Architectural Committee may disapprove revised Plans and Specifications submitted to it according to the provisions hereof; provided, however, the Architectural Committee shall only disapprove the revised Plans and Specifications based on the revised or additional items therein and not based on items previously reviewed by the Architectural Committee.

3.4.2 FAILURE TO ACT If the Architectural Committee fails to act on any Plans and Specification submitted to it within 30 days after receipt by the Architectural Committee of all information requested by it in connection with such Plans and Specification, approval of the matters submitted to it shall be presumed.

3.4.3. SUBMISSION AND APPROVAL OF PLANS AND SPECIFICATIONS An Owner, other than Declarant, proposing to construct, alter or remove an Improvement on any Lot shall submit an application to the Architectural Committee together with two sets of the Plans and Specifications for such construction, alteration or removal and the application fee described herein below at the offices of the Architectural Committee Within thirty 30 after receipt by the Architectural Committee of such Plans and Specifications, it shall act on the Plans and Specifications as follows.

13 Recorded On-2011-Nov-15 As-2257582 3.5 3.6 3.7 3.8 3.9 3.4.4. The Board shall establish and may thereafter amend from time to time an application fee that shall be paid in cash by each Owner at the time of submittal of any application and Plans and Specifications to the Architectural Committee. Such fee may be in different amounts based upon the activity proposed in such application.

wner at the time of submittal of any application and Plans and Specifications to the Architectural Committee. Such fee may be in different amounts based upon the activity proposed in such application.

Such fee shall not exceed the reasonable costs and expenses of the Board and the Architectural Committee for the processing and review of Plans and Specifications.

ACTIONS OF THE ARCHITECTURAL COMMITTEE The Architectural Committee may, by resolution unanimously adopted in writing, designate one or two of its members, or an agent acting on its behalf, to take any action or perform any duties for and on behalf of the Architectural Committee. In the absence of such designation, the vote of a majority of all of the members of the Architectural Committee taken at a meeting shall constitute an act of the Architectural Committee. In the event that the members of the Architectural Committee cannot agree by majority vote on any matter submitted to them, the matter may be decided by a majority vote of the Board of Directors of the Association, provided that a quorum is present.

No WAIVER OF FUTURE APPROVALS The approval or consent of the Architectural Committee to any Plans or Specifications for any work done or proposed or in connection with any other matter requiring the approval or consent of the Architectural Committee shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any Plans and Specification, or other matter whatsoever, subsequently or additionally submitted for approval or consent by the same or a different Owner.

WAIVER The Architectural Committee may grant such waivers of any of the restrictions contained in this Declaration as it considers appropriate based upon the quality and design

Page 16

e or a different Owner.

WAIVER The Architectural Committee may grant such waivers of any of the restrictions contained in this Declaration as it considers appropriate based upon the quality and design of a proposed Improvement; provided, however, it shall not grant a waiver of the restrictions contained in Sections 2.1, 2.2, 2.6 and 2.11 hereof.

NONCONFORMING OR UNAPPROVED IMPROVEMENTS The Architectural Committee, at its option, may inspect all work in progress to ensure compliance with approved Plans and Specifications. The Architectural Committee may require any Owner to restore such Owner’s Lot to the condition existing prior to construction, alteration or removal of any Improvement thereon, including, without limitation, the demolition and removal of any unapproved or nonconforming Improvement, if such Improvement was constructed or altered in violation of these Covenants, Conditions and Restrictions. In addition, the Architectural Committee may, but has no obligation to, cause such restoration, demolition and removal of any such Improvement, and levy the amount of the cost thereof as a special individual assessment against the Lot upon which such unapproved or nonconforming Improvement was constructed or altered.

NONLIABILITY OF ARCHITECTURAL COMMITTEE AND BOARD MEMBERS Notwithstanding anything to the contrary in this Declaration, neither the Architectural Committee nor the members thereof, nor the Board nor the members thereof, shall be liable to any Owner or any 14 Recorded On-2011-Nov-15 As-2257582 41 4.2 4.3 other third party due to the construction of any Improvements within the Property or the creation thereby of an obstruction to the view from such Owner’s Lot or Lots.

ADDRESS Plans and Specifications shall be submitted to the Architectural Committee in care

ents within the Property or the creation thereby of an obstruction to the view from such Owner’s Lot or Lots.

ADDRESS Plans and Specifications shall be submitted to the Architectural Committee in care of Glenwood Homeowners Association, Inc., Attention: Architectural Committee or such address as may be designated from time to time in writing by the Architectural Committee.

ARTICLE 4 GLENWOOD OAKS HOMEOWNERS ASSOCIATION ORGANIZATION The Association is a non-profit corporation created by Declarant for the purposes, and charged with the duties and vested with the powers, prescribed by law and set forth in its Articles and Bylaws or in this Declaration. Neither the Articles nor Bylaws shall for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. In the event of inconsistency between this Declaration and the Articles of Incorporation and/or Bylaws of the Association, the terms of this Declaration shall be controlling.

MEMBERSHIP Any person or entity upon becoming an Owner shall automatically become a Member of the Association. Membership shall be appurtenant to and shall run with the property interest which qualifies the Owner thereof for membership, and membership may not be severed from, or in any way transferred, pledged, mortgaged, or alienated except together with the title to such property interest.

VOTING RIGHTS The right to cast votes, and the number of votes which may be cast, for election of Members to the Board of Directors of the Association and on all other matters to be voted on by the Members shall be calculated as follows: 4.3.1 THE OWNER (excluding Declarant) of each Lot shall have one vote for each Lot owned on all matters subject to voting approval of the members of such association.

Page 17

s shall be calculated as follows: 4.3.1 THE OWNER (excluding Declarant) of each Lot shall have one vote for each Lot owned on all matters subject to voting approval of the members of such association.

4.3.2 DECLARANT shall have ten (10) votes for each Lot owned by Declarant.

4.3.3 RESUBDIVISION In the event of the resubdivision of any Lot, the number of votes to which such lot is entitled shall be increased as necessary to retain the ratio of one vote for each lot resulting from such resubdivision. No resubdivision shall be effective, for the purposes of these restrictions, unless the same is approved by the appropriate governmental entity in accordance with the requirements of state law and the applicable municipal and county ordinances, and duly recorded in the Plat Records of Hidalgo County, Texas. In the event of consolidation of two or more lots for the purposes of construction of a single residence thereon, voting rights shall continue to be determined according to the number of original Lots contained in such consolidation.

15 Recorded On-2011-Nov-15 As-2257582 4.4 4.3.4 MULTIPLE_INTEREST When more than one person or entity holds an interest in any such Lot, all such persons or entities shall be Members. The vote for such Lot may be cast as the owners thereof mutually agree, but in no event shall a Lot have more than one vote.

DEFAULT Any Member in default in the payment of any assessment or the performance of any obligation imposed by this Declaration shall not be entitled to vote at any meeting of the association so long as such default remains in existence.

DUTIES OF THE ASSOCIATION Subject to and in accordance with this Declaration, the Association, acting through the Board, shall have and perform each of the following duties: 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5

Pages 17–18

IES OF THE ASSOCIATION Subject to and in accordance with this Declaration, the Association, acting through the Board, shall have and perform each of the following duties: 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7 4.4.8 4.4.9 To accept conveyance of title to the Common Area from the Declarant.

To pay all real and personal property taxes and other taxes and assessments levied upon or with respect to the Common Area and any other property owned by or leased to the Association, to the extent that such taxes and assessments are not levied directly upon the Members. The Association shall have all rights granted by law to contest the legality and the amount of such taxes and assessments.

To obtain and maintain in effect policies of insurance which, in the Board’s judgment, are reasonably necessary or appropriate to carry out the Association functions.

To make, establish and promulgate, and in its discretion to amend or repeal and reenact, such Association Bylaws, not in conflict with this Declaration, as it deems proper covering any and all aspects of its functions.

To keep books and records of the Association’s affairs.

To maintain, repair, and provide for the upkeep of the Common Area, lawn and landscaping on each Lot, and any other property owned by or leased to the Association.

To maintain, repair, replace, clean, inspect and protect the Common Area, including all water quality control equipment and devices located therein or thereon.

To maintain, preserve, and operate all security devices installed or constructed within the subdivision, to the extent and the effect that the Association’s Board of Directors deems appropriate from time to time.

To maintain, repair, replace and protect the entrance sign and gated entrance to the 16 Recorded On-2011-Nov-15 As-2257582 4.5

the Association’s Board of Directors deems appropriate from time to time.

To maintain, repair, replace and protect the entrance sign and gated entrance to the 16 Recorded On-2011-Nov-15 As-2257582 4.5 4.4.10 4.4.11 4412 4.4.13 subdivision.

To pay all utilities provided to the Common Area, sprinkler systems on each Lot, and/or the entrance to the Subdivision.

To carry out and enforce all duties of the Association set forth in this Declaration.

To pay all expenses incurred by the Architectural Committee and/or the Association.

To establish reserve funds which shall be maintained and accounted for separately from other funds maintained for annual operating expenses. The Association may establish separate, irrevocable trust accounts or any other recognized bookkeeping or tax procedures in order to better demonstrate that the amounts deposited therein are capital contributions and not net or taxable income to the Association.

POWERS AND AUTHORITY OF THE ASSOCIATION The Association shall have the powers of a Texas non-profit corporation, subject only to such limitations upon the exercise of such powers as are expressly set forth in this Declaration. It shall further have the power to do and perform any and all acts which may be necessary or proper, for or incidental to, the exercise of any of the express powers granted to it by the laws of Texas or by this Declaration.

Without in any way limiting the generality of the two preceding sentences, the Association and the Board acting on behalf of the Association, shall have the power and authority at all times as follows: 45.1 4.5.2 To levy Assessments as provided in Article 5 below.

To enter at any time in an emergency, or in a non-emergency after twenty-four (24)

Page 19

have the power and authority at all times as follows: 45.1 4.5.2 To levy Assessments as provided in Article 5 below.

To enter at any time in an emergency, or in a non-emergency after twenty-four (24) hours written notice, without being liable to any Owner, upon any Lot or into any Improvement thereon, for the purpose of enforcing this Declaration or for the purpose of maintaining or repairing any area, Improvement or other facility to conform to this Declaration, and the expense incurred by the Association in connection with the entry upon any Lot or Improvement and the maintenance and repair work conducted thereon shall be a personal obligation of the Owner of the Lot entered upon, shall be secured immediately by a lien upon the Lot entered upon and the Improvements thereon, and shall be enforced in the same manner and to the same extent as provided in Article 5 thereof for regular and special Assessments. The Association shall have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce, by mandatory injunction or otherwise, or to restrain and enjoin the breach or threatened breach of this Declaration. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce this Declaration; provided, however, that the Board shall never be authorized to expend any Association funds 17 Recorded On-2011-Nov-15 As-2257582 4.6 for the purpose of bringing suit against Declarant, its agents, contractors, successors or assigns.

4.5.3. To retain and pay for the services of a Manager to manage and operate the

v-15 As-2257582 4.6 for the purpose of bringing suit against Declarant, its agents, contractors, successors or assigns.

4.5.3. To retain and pay for the services of a Manager to manage and operate the Association, to the extent deemed advisable by the Board. To the extent permitted by law, the Association and the Board may delegate any duties, powers and functions to the Manager. The Members hereby release the Association and the members of the Board from liability for any omission or improper exercise by the Manager of any such duty, power or function so delegated.

4.5.4 To retain and pay for legal and accounting services necessary or proper in the operation of the Association.

4.5.5 To obtain and pay for any other property and services, and to pay any other taxes or assessments which the Association or the Board is required to secure or to pay for pursuant to applicable law or the terms of this Declaration.

4.5.6 To enter into contracts with Declarant and with other persons on such terms and provisions as the Board shall determine, and to acquire and own , and to dispose of all manner of real and personal property, whether by grant, lease, gift or otherwise.

4.5.7 To enforce the provisions of this Declaration and any rules made hereunder and to enjoin and seek damages from any Owner for violation of such provisions or rules.

The Board is specifically authorized and empowered to establish (and to revise and amend from time to time) a monetary “fines” system which may include component steps such as warning citations, ticketing, due process hearings and appeals and a flat rate or discretionary range or geometric progression of fine amounts, which, when pronounced, shall constitute an assessment secured by the lien established in Section 5 fi,

Page 20

ngs and appeals and a flat rate or discretionary range or geometric progression of fine amounts, which, when pronounced, shall constitute an assessment secured by the lien established in Section 5 fi, POWER TO INDEMNIFY AND TO PURCHASE INDEMNITY INSURANCE The Association shall indemnify and may reimburse and/or advance expenses and/or purchase and maintain insurance or any other arrangement on behalf of any person who is or was a director or officer of the Association against any liability asserted against such person and incurred by such person in such a capacity or arising out of his status as such a person to the maximum extent permitted by Article 1396 Section 2.22A of the Texas Non-Profit Corporation Act, as such Act may form time to time be amended (without regard, however, to Section Q of such Article with respect to officers of the Association who are not directors of the Association). Further, the Association may indemnify and/or reimburse and/or advance expenses and/or purchase and maintain insurance or any other arrangement on behalf of any person, other than any person who is a director of the Association, who is or was an officer, employee or agent of the Association, or is or was serving at the request of the Association as a director, officer, partner, venturer, proprietor, trustee, employee, agent or similar 18 Recorded On-2011-Nov-15 As-2257582 4.7 5.1 functionary of another corporation, partnerships, joint venture, sole proprietorship, trustee, employee benefit plan or other enterprise, against any liability asserted against such person and incurred by such person in such a capacity or arising out of his status as such a person, to such extent (or, in the case of officers of the Association to such further extent), consistent

person and incurred by such person in such a capacity or arising out of his status as such a person, to such extent (or, in the case of officers of the Association to such further extent), consistent with applicable law, as the Board may from time to time determine. The provisions of this Section 4.6 shall not be deemed exclusive of any other rights to which any such person may be entitled under any Bylaw, agreement, insurance policy, vote of the Members, or otherwise.

RIGHT OF THE DECLARANT If the Association fails to perform its duties, including but not limited to paying taxes on the Common Area and properly maintaining the Common Areas, the Declarant may, but is not required to, perform such duties. The Association shall reimburse Declarant for all sums it expends in performing such duties. Such reimbursement shall be on demand. The obligation to make such reimbursement shall be secured by a selfexecuting and continuing contract lien and equitable charge on the Common Area which may be enforced the same way that the lien to secure assessments is enforced.

ARTICLE 5 ASSESSMENTS ASSESSMENTS The Association may from time to time levy Assessments against each Lot, whether or not such Lot is improved; provided, however, that no Assessments shall be levied hereunder against any Lot owned by Declarant.

5.1.1 Where an Owner’s obligation to pay Assessments first arises after the commencement of the year or other period for which an Assessment was levied, such Assessment shall be in a prorated amount proportionate to the fraction of the year or other period remaining after said date.

5.1.2 Each purchaser of any Lot, by acceptance of a deed therefor, shall be deemed to covenant to pay to the Association each Assessment levied hereunder against such

Page 21

period remaining after said date.

5.1.2 Each purchaser of any Lot, by acceptance of a deed therefor, shall be deemed to covenant to pay to the Association each Assessment levied hereunder against such Lot, whether or not such covenant shall be expressed in any such deed or other conveyance. Each unpaid Assessment together with interest thereon and costs and expenses of collection thereof, including, without limitation, reasonable attorneys’ fees as hereinafter provided, shall be the personal obligation and debt of the Owner of the Lot against which the Assessment was levied.

5.1.3 The obligation to pay Assessments levied by the Association hereunder is part of the purchase price of each Lot when sold to an Owner. An express vendor’s lien is hereby retained to secure the payment of each and every Assessment levied hereunder, and each such vendor’s lien is hereby transferred and assigned to the Association, each such vendor’s lien to be superior and paramount to any homestead or other exemption provided by law. The Association may enforce the payment of Assessments in accordance with the provisions of this Article 5.

19 5.2 5.3 5.4 5.1.4 The Assessments shall be used exclusively for the purpose of promoting the comfort, health, safety and welfare of the Owners, the maintenance and improvement of the Property owned by the Association, and for carrying out the purposes of the Association as stated herein or as otherwise provided in the Articles of the Association.

REGULAR ANNUAL ASSESSMENTS Prior to the beginning of each fiscal year for the Association, the Board shall estimate the expenses to be incurred by the Association during such year in performing its functions under this Declaration, including a reasonable provision

year for the Association, the Board shall estimate the expenses to be incurred by the Association during such year in performing its functions under this Declaration, including a reasonable provision for contingencies and appropriate replacement reserves, less any expected income and any surplus from the prior year’s fund. Assessments sufficient to pay such estimated net expenses shall then be levied by the Association as herein provided, and the amount of such assessments as determined by the Board shall be final and binding so long as such determination is made in good faith. All such regular Assessments shall be due and payable to the Association at the beginning of the fiscal year for the Association for which such Assessments are payable, or during such fiscal year in equal monthly installments on or before the first day of each month, or in such other manner as The Board may designate in its sole and absolute discretion.

SPECIAL ASSESSMENTS In addition to the regular Assessments provided for above, the Association may levy such special Assessments are necessary to enable the Board to carry out the functions of the Association under this Declaration. The amount of any special Assessments shall be determined by the Members in their sole discretion and shall be due and payable in any manner as the Members may designate.

5.3.1 NOTICE AND QUORUM Written notice of any meeting called by the Board for the purpose of levying a special assessment shall be sent to all Members of the Association not less than 15 days nor more than 50 days in advance of the meeting.

The presence of Members entitled to cast one-third of all of the votes of the Members, or their proxies, shall constitute a quorum. If the required quorum is not

Page 22

han 50 days in advance of the meeting.

The presence of Members entitled to cast one-third of all of the votes of the Members, or their proxies, shall constitute a quorum. If the required quorum is not present, the meeting may be adjourned until such time as a quorum is present.

OWNER’S PERSONAL OBLIGATION FOR PAYMENT OF ASSESSMENTS. Each regular and special Assessment provided for herein shall be the personal and individual debt of the Owner of the Lot against which such Assessment was levied. No Owner, other than Declarant, may exempt himself from personal liability for such Assessments. In the event of default in the payment of any Assessment, the Owner of the Lot against which such Assessment was levied shall be obligated to pay interest at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date thereof (or if there is no such highest rate, then at the rate of 2% per month) together with all costs and expenses of collection, including, without limitation, reasonable attorneys’ fees.

20 5.5 EFFECT OF NON-PAYMENT OF ASSESSMENT; THE PERSONAL OBLIGATION OF THE OWNER; THE LIEN; AND REMEDIES OF ASSOCIATION 5.5.1 5.5.2 Effective as of, and from and after the filing and recordation of this Declaration, there shall exist a self-executing and continuing contract Lien and equitable charge on each Lot to secure the full and timely payment of each and all assessments and all other charges and monetary amounts and performance of obligations due hereunder. Such lien shall be at all times superior to all other liens except for liens for: (a) property taxes and assessments on a Lot, and (b) any first lien deed of trust, defined as a deed of trust that has priority over other deeds of trust made in good faith and for value.

r liens for: (a) property taxes and assessments on a Lot, and (b) any first lien deed of trust, defined as a deed of trust that has priority over other deeds of trust made in good faith and for value.

If any assessment, charge or fine or any part thereof is not paid on the date (s) when due, then the unpaid amount of such assessment, charge or fine shall (after the passage of any stated grace period) be considered delinquent and shall, together with any late charge and interest thereon at the highest lawful rate of interest per annum and costs of collection thereof, become a continuing debt secured by the selfexecuting Lien on the Lot of the non-paying Owner which shall bind such Lot in the hand of the Owner and Owner’s heirs, executors, administrators, devisees, personal representatives, successors and assigns. The Association shall have the right to reject partial payments of an unpaid assessment or other monetary obligation and demand the full payment thereof. The personal obligation of the then-existing Owner to pay such assessment, however, shall remain the Owner’s personal obligation and shall not pass to Owner’s successors in title unless expressly assumed by them. However, the lien for unpaid assessments shall be unaffected by any sale or assignment of a Lot and shall continue in full force and effect. No Owner may waive or otherwise escape liability for any assessment provided herein by non-use of the Common Properties or abandonment of the Lot. No diminution or abatement of assessments shall be claimed or allowed by reason of any alleged failure of the Association to take some action or to perform some function required to be taken or performed by the Association, or for inconvenience or discomfort arising from the making of

Page 23

y alleged failure of the Association to take some action or to perform some function required to be taken or performed by the Association, or for inconvenience or discomfort arising from the making of improvements or repairs 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 such assessments being a separate and independent covenant on the part of each Owner.

5.5.1.1 The Association may also give written notification to the holder (s) of any mortgage on the Lot of the non-paying Owner of such Owner’s default in paying any assessment, charge or fine, particularly where the Association has theretofore been furnished in writing with the correct name and address of the holder (s) of such mortgage, a reasonable supply of self-addressed postage prepaid envelopes, and a written request to receive such notification.

If any assessment, charge or fine or part thereof is not paid when due, the Association 21 shall have the right and option to impose a late charge (but only to the extent permitted by applicable law) to cover the additional administrative costs involved in handling the account and/or to reflect any time-price differential assessment schedule adopted by the Association. The unpaid amount of any such delinquent assessment, charge or fine shall bear interest from and after the date when due at the highest lawful rate of interest per annum until fully paid. If applicable state law provides or requires an alternate ceiling under Chapter 303 of the Texas Finance Code, then that ceiling shall be the indicated rate ceiling. The Association may, at its election, retain

ble state law provides or requires an alternate ceiling under Chapter 303 of the Texas Finance Code, then that ceiling shall be the indicated rate ceiling. The Association may, at its election, retain the services of an attorney to review, monitor and/or collect unpaid assessments, charges, fines and delinquent accounts, and there shall also be added to that amount of any unpaid assessment, charge, fine or any delinquent account any and all attorneys’ fees and other costs of collection incurred by the Association.

The Association may, at its discretion but subject to all applicable debt collection statutes: (i) prepare and file a lien affidavit in the public records of Hidalgo County, Texas, which specifically identifies the unpaid assessment, charges or fines; and (ii) publish and post, within one or more locations within the Properties, a list of those individuals or entities who are delinquent and, if applicable, their suspended use and enjoyment of the Common Properties until and unless the delinquency has been cured to the reasonable satisfaction of the Association. Each Owner consents to these procedures and authorizes the Board to undertake such measures for the general benefit of the Association.

All agreements between any Owner and the Association and/or Declarant, whether now or existing or hereafter arising and whether written or oral and whether implied or otherwise, are hereby expressly limited so that in no contingency or event whatsoever shall the amount paid, or agreed to be paid, to the Association and/or Declarant or for the payment or performance of any covenant or obligation contained herein or in any other document exceed the maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision

Page 24

nce of any covenant or obligation contained herein or in any other document exceed the maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision hereof or of such other document at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the Association and/or Declarant should ever receive an amount deemed interest by applicable law which shall exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the actual base assessment amount or principal amount owing hereunder and other indebtedness of the Owner to the Association and/or Declarant and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of the actual Annual Assessment hereof and such other indebtedness, the excess shall be returned to Owner. All sums paid or agreed to be paid by any Owner for the use, forbearance or detention of any indebtedness to the Association and/or Declarant shall, to the extent permitted by applicable law, be amortized, prorated, allocated and 22 Recorded On-2011-Nov-15 As-2257582 spread throughout the full term of such indebtedness until payment in full so that the interest charged, collected or received on account of such indebtedness is never more than the maximum amount permitted by applicable law. The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between any Owner and the Association and/or Declarant.

5.6 POWER OF SALE 5.6.1 5.6.2

aw. The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between any Owner and the Association and/or Declarant.

5.6 POWER OF SALE 5.6.1 5.6.2 The lien described within the preceding section is and shall be a contract Lien. Each Owner, for the purpose of better securing each and all monetary obligations described within these Covenants, and in consideration of the benefits received and to be received by virtue of the ownership of real estate within Glenwood Oaks Subdivision, has granted, sold and conveyed and by these covenants does grant, sell and convey unto the Trustee, such Owner’s Lot. To have and to hold such Lot, together with the rights, privileges and appurtenances thereto belonging unto the said Trustee, and to its substitutes or successors, forever. And each Owner does hereby bind himself and/or herself, their heirs, executors, administrators and assigns to warrant and forever defend the Lot unto the said Trustee, its substitutes or successors and assigns, forever, against the claim, or claims of all persons claiming or to claim the same or any part thereof.

This conveyance is made in trust to secure payment of each and all assessments and other obligations prescribed by these Covenants to and for the benefit of the Association. In the event of default in the payment of any obligation hereby secured, in accordance with the terms thereof, then and in such event, the Association may elect to declare the entire indebtedness hereby secured with all interest accrued thereon and all other sums hereby secured due and payable (subject, however, to the notice and cure provisions set forth in Section 51.002 of the Texas Property Code).

Page 25

ecured with all interest accrued thereon and all other sums hereby secured due and payable (subject, however, to the notice and cure provisions set forth in Section 51.002 of the Texas Property Code).

In the event of default in the payment of said indebtedness when due or declared due, it shall be the duty of the Trustee, or its successor or substitute as hereinafter provided, at the request of the Association (which request is hereby conclusively presumed), to enforce this trust. After obtaining a court order pursuant to Section 209.0092 of the Texas Property Code, and thereafter advertising the time, place and terms of the sale of the Lot then subject to the lien hereof, and mailing and filing notices as required by Section 51.002, Texas Property Code, as then amended, and otherwise complying with that statute, the Trustee shall sell the Lot at public auction in accordance with such notices on the first Tuesday in any month between the hours of ten o’clock A.M. and four o’clock P.M., to the highest bidder for cash, selling all of the Lot as an entirety or in such parcels as the Trustee acting may elect, and make due conveyance to the Purchaser or Purchasers, with general warranty binding upon the Owner, his heirs and assigns. Out of the money arising from such sale, the Trustee shall pay first, all the expenses of advertising the sale and making the conveyance, including a reasonable commission to itself, which commission shall be 23 Recorded On-2011-Nov-15 As-2257582 5.6.4 due and owing in addition to the attorney’s fees provided for, and then to the Association the full amount of principal, interest, attorney’s fees and other charges due and unpaid on said indebtedness secured hereby, rendering the balance of the sale

rovided for, and then to the Association the full amount of principal, interest, attorney’s fees and other charges due and unpaid on said indebtedness secured hereby, rendering the balance of the sale price, if any, to the Owner, his heirs or assigns and/or to any other lienholders (if so required by applicable law). The recitals in the conveyance to the Purchaser or Purchasers shall be full and conclusive evidence of the truth of the matters therein stated. All prerequisites to said sale shall be presumed to have been performed, and such sale and conveyance shall be conclusive against the Owner, his heirs and assigns.

It is agreed that in the event a foreclosure hereunder should be commenced by the Trustee, or its substitute or successor, The Association may at any time before the sale of said property direct the said Trustee to abandon the sale, and may then institute suit for the collection of said indebtedness, and for the foreclosure of this contract Lien; it is further agreed that if The Association should institute a suit for the collection thereof, and for a foreclosure of this contract Lien, that it may at any time before the entry of a final judgment in said suit dismiss the same, and require the Trustee, its substitute or successor to sell the Lot in accordance with the provisions of this section. The Association, if it is the highest bidder, shall have the right to purchase at any sale of the Lot, and to have the amount for which such Lot is sold credited on the debt then owing. The Association in any event is hereby authorized to appoint a substitute trustee or a successor trustee, to act instead of the Trustee named herein without other formality than the designation in writing of a substitute

Page 26

ny event is hereby authorized to appoint a substitute trustee or a successor trustee, to act instead of the Trustee named herein without other formality than the designation in writing of a substitute or successor trustee; and the authority hereby conferred shall extend to the appointment of other successor and substitute trustees successively until the indebtedness hereby secured has been paid in full, or until said Lot is sold hereunder, and each substitute and successor trustee shall succeed to all of the rights and powers of the original trustee named herein. In the event any sale is made of a Lot, or any portion thereof, under the terms of this section, the Owner, his heirs and assigns, shall forthwith upon the making of such sale surrender and deliver possession of the property so sold to the Purchaser at such sale, and in the event of his failure to do so he shall thereupon from and after the making of such sale be and continue as tenants at will of such Purchaser, and in the event of his failure to surrender possession of said property upon demand, the Purchaser, his heirs or assigns, shall be entitled to institute and maintain an action for forcible detainer of said property in the Justice of the Peace Court in the Justice Precinct in which such property, or any part thereof, is situated. The foreclosure of the continuing contract Lien on any one or more occasions shall not remove, replace, impair or extinguish the continuing lien from securing all obligations arising from and after the date of foreclosure.

Notwithstanding anything in any dedicatory instrument, the Association may not foreclose its lien if the debt secured by the lien consists solely of fines assessed by the Association, attorney's fees incurred by the Association solely associated with 24

, the Association may not foreclose its lien if the debt secured by the lien consists solely of fines assessed by the Association, attorney's fees incurred by the Association solely associated with 24 Recorded On-2011-Nov-15 As-2257582 5.7 6.1 fines assessed by the Association, or amounts added to the Owner's account as an assessment to pay fees assessed for obtaining a copy of or inspecting the Association books and records under Section 209.005 of the Texas Property Code.

EXEMPT PROPERTY The following property subject to this Declaration shall be exempt from the assessments, charges, and liens created herein; 5.7.1 All property dedicated and accepted by any local governmental authority and devoted to public use; 5.7.2. All Common areas; and 5.7.3 All Lots owned by the Declarant, provided, however, the Declarant shall have the obligation to pay from time to time, such sums as Declarant, in its judgement, determines to be its pro rata portion (based upon the number of Lots owned by Declarant) of the maintenance expenses actually paid by the Association from the assessments authorized hereunder.

ARTICLE 6 EXTERIOR MAINTENANCE MAINTENANCE REQUIREMENTS In the event the Owner of any Lot shall fail to maintain such Lot and the improvements situated thereon in a neat and orderly manner, the Association, acting through the Architectural Committee, its agents and employees, shall have the right to enter upon said Lot and to repair, maintain, and restore the Lot and exterior of any and all buildings and other improvements erected thereon, all at the expense of Owner.

6.1.1 The Owner of any Lot adjoining a drainage right of way shall maintain the drainage right of way and banks free of weeds and debris and, if the Owner shall fail to do so,

Page 27

at the expense of Owner.

6.1.1 The Owner of any Lot adjoining a drainage right of way shall maintain the drainage right of way and banks free of weeds and debris and, if the Owner shall fail to do so, the Association shall have said area maintained at the expense of the Owner.

“Drainage right of way ” as used in this paragraph, shall mean that property lying between the centerline of a drainage right of way to the far line of the drainage easement, if any, on the Lot, or, if no such drainage easement exists, then that property lying between the center line of the drainage right of way to the top of the drainage right of way. Anything to the contrary contained in this paragraph notwithstanding, all drainage right of way maintenance performed by an Owner, or by the Association, shall be performed in accordance with all applicable regulations and the ordinances of the City of McAllen.

6.1.2 LANDSCAPING Landscaping plans showing all existing trees, with a diameter of three inches (3") or greater, all proposed new planting and all proposed removal or transplanting or existing vegetation shall be included with all Plans and 25 Recorded On-2011-Nov-15 As-2257582 7.1 Tae Specifications and shall be subject to the approval of the Architectural Committee.

Architectural Committee approval of Plans and Specifications containing such landscaping plans shall be required prior to any disruption, cutting or clearing of existing vegetation.

6.1.2.1 No trees in excess of three inches (3") in diameter measured at a point twelve inches (12") above the ground, shall be removed from any lot without first obtaining written approval of the Architectural Committee.

6.1.2.2 Irrigation sprinkler systems designs must be approved by a Landscape

") above the ground, shall be removed from any lot without first obtaining written approval of the Architectural Committee.

6.1.2.2 Irrigation sprinkler systems designs must be approved by a Landscape Architect or a licensed Landscape Irrigator. All systems must meet State of Texas and local municipal Codes.

6.1.3 ACCEPTABILITY OF MAINTENANCE The Architectural Committee shall have the sole authority to make a determination as to the acceptability of the maintenance and appearance of any Lot, and the Architectural Committee shall have the absolute discretion and authority to determine the necessity for required maintenance of Lots within the Subdivision. No unsightly Lots shall be permitted at any time.

ARTICLE 7 UTILITY EASEMENTS RESERVATION OF EASEMENTS Easements for the installation and maintenance of utilities and drainage facilities are reserved as shown on the plat of the Subdivision and on such additional Easements as may be recorded by the Declarant in the Official Records of Hidalgo County, Texas. The Declarant hereby reserves for itself, its successors and assigns, a ten foot utility easement along and parallel with the front, side and back of all lots whose front, side or back is adjacent a street or roadway.

INCLUDED RIGHTS The right of use of any dedicated easement shall include at all times the right of ingress and egress for the installation, operation, maintenance, repair, or removal of any utility facilities, together with the right of removal of any obstruction that may be placed in such easement which would constitute interference with the use, maintenance, operation, or installation of such utility facilities.

7.2.1 All utility lines, including, but not limited to, wires for the communication or

Page 28

h would constitute interference with the use, maintenance, operation, or installation of such utility facilities.

7.2.1 All utility lines, including, but not limited to, wires for the communication or transmission of telephone or electric current or power, television cables and any other type of lines or wires erected, installed, or placed anywhere in or upon any property within the Subdivision shall be contained in conduits installed underground or concealed in buildings or other structures approved in writing by the Architectural Committee, unless such requirement is expressly waived, in writing, by the Architectural Committee.

26 Recorded On-2011-Nov-15 As-2257582 a 13 8.1 8.2 8.3 8.4 8.5 Use OF EASEMENTS No utility company, water district, political subdivision, or other authorized entity using the easements herein referred to shall be liable for any damage done by it or its agents, employees, or servants to shrubbery, trees, fences, flowers, or other property of an Owner situated within any such easement.

ARTICLE 8 GENERAL PROVISIONS TERM This Declaration, including all of the covenants, conditions and restrictions hereof, shall continue in force and effect until January 1, 2042, unless amended as herein provided.

After January 1, 2042, the Declaration, including all such covenants, conditions, and restrictions, shall be extended automatically for successive periods of ten years each, unless amended or extinguished by a written instrument executed by the Owners of at least threefourths of the Lots. Notwithstanding the foregoing, this Declaration shall remain in force and effect and shall not terminate for so long as Declarant owns any portion of the Property.

AMENDMENT This Declaration may be amended by Declarant so long as Declarant owns at

shall remain in force and effect and shall not terminate for so long as Declarant owns any portion of the Property.

AMENDMENT This Declaration may be amended by Declarant so long as Declarant owns at least one Lot. No amendment by Declarant shall be effective until there has been recorded in the Official Records of Hidalgo County, Texas, an instrument executed and acknowledged by Declarant and setting forth the amendment.

8.2.1 In addition to the method provided in Section 8.2, this Declaration may be amended by the recording in the Official Records of Hidalgo County, Texas, of an instrument executed and acknowledged by the President and Secretary of the Association, setting forth the amendment and certifying that such amendment has been approved by Owners entitled to cast as least 67% of votes entitled to be cast pursuant to Section 4.3.

ASSOCIATION BOOKS AND RECORDS An Owner or a person designated in a writing signed by an Owner as the Owner's agent, attorney, or certified public accountant may inspect the books and records, including financial records, in accordance with Section 209.005 of the Texas Property Code.

No WARRANTY OF ENFORCEABILITY While Declarant has no reason to believe that any of the restrictive covenants or other terms and provisions contained in this Declaration are or may be invalid or unenforceable for any reason or to any extent, Declarant makes no warranty or representation as to the present or future validity or enforceability of any such restrictive covenants, terms or provisions. Any Owner acquiring a Lot in reliance on one or more of such restrictive covenants, terms or provisions shall assume all risks of the validity and enforceability thereof and by acquiring the Lot agrees to hold Declarant harmless therefrom.

Page 29

n one or more of such restrictive covenants, terms or provisions shall assume all risks of the validity and enforceability thereof and by acquiring the Lot agrees to hold Declarant harmless therefrom.

NOTICES Any notice permitted or required to be given by this Declaration shall be in writing 27 Recorded On-2011-Nov-15 As-2257582 8.6 8.7 8.8 8.9 and may be delivered either personally or by mail. If delivery is made by mail, it shall be deemed to have been delivered on the third day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, certified mail, return receipt requested, addressed to the person at the address given by such person to the Association for the purposes of service of notices, or the residence of such person if no address has been given to the Association. Such address may be changed from time to time by notice in writing given by such person to the Association.

INTERPRETATION The provisions of this Declaration shall be liberally construed to effectuate the purposes of creating a uniform plan for the development and operation of the Subdivision and of promoting and effectuating the fundamental concepts of the Subdivision set forth in this Declaration. This Declaration shall be construed and governed under the laws of the State of Texas.

EXEMPTION OF DECLARANT; UTILITY EASEMENT 8.7.1 Notwithstanding anything in this Declaration to the contrary, neither Declarant nor any of Declarant’s activities shall in any way be subject to the control of or under the jurisdiction of the Board, the Association or the Architectural Committee. Without in any way limiting the generality of the preceding sentence, this Declaration shall

Pages 29–30

t to the control of or under the jurisdiction of the Board, the Association or the Architectural Committee. Without in any way limiting the generality of the preceding sentence, this Declaration shall not prevent or limit the right of Declarant to excavate and grade, to construct and alter drainage patterns and facilities, to construct any and all other types of Improvements, sales and leasing offices and similar facilities, and to post signs incidental to construction, sales and leasing anywhere within the Property.

8.7.2 Declarant reserves the right to locate, construct, erect and maintain or cause to be located, constructed, erected and maintained in and on any areas owned by Declarant sewer and other pipelines, conduits, wires and any Improvements relating to a public utility function, with the right of access to the same at any time for the purposes of repair and maintenance.

ASSIGNMENT OF DECLARANT Notwithstanding anything in this Declaration to the contrary, Declarant may assign its privileges, exemptions, rights, and duties under this Declaration only to another person or entity who has purchased all of the Lots owned by Declarant. Such assignment shall be evidenced by a written instrument, executed by Declarant and assignee, recorded in the Official Records of Hidalgo, County, Texas.

ENFORCEMENT AND NONWAIVER 8.9.1 Except as otherwise provided herein, any Owner at his own expense, Declarant or the Board shall have the right to enforce the provisions of this Declaration. Such right of enforcement shall include both damages for, and injunctive relief against, the breach or threatened breach of any such provision. The Declarant shall not at any 28 Recorded On-2011-Nov-15 As-2257582 4 on 9 8.10 time have a duty to enforce this Declaration.

ve relief against, the breach or threatened breach of any such provision. The Declarant shall not at any 28 Recorded On-2011-Nov-15 As-2257582 4 on 9 8.10 time have a duty to enforce this Declaration.

8.9.2 Every act of omission whereby any provisions of this Declaration is violated, in whole or in part, is hereby declared to be a nuisance and may be enjoined by any Owner (at his own expense), Declarant or the Board.

8.9.3. Any violation of any federal, state or local law, ordinance or regulation pertaining to the ownership, occupancy or use of any portion of the Property is hereby declared to be a violation of this Declaration and subject to all of the enforcement procedures set forth herein.

8.9.4 The failure to enforce any provision of this Declaration at any time shall not constitute a waiver of the right thereafter to enforce any such provision or any other provision of this Declaration.

8.9.5 The Association shall have the right, when appropriate in its judgment, to claim and impose a lien upon any Lot or Improvement constructed thereon (except any Lot or Improvement owned by Declarant) in order to enforce any right under, or effect compliance with, this Declaration.

ALTERNATIVE DISPUTE RESOLUTION In the event of any dispute, controversy or claim between or among Declarant, any Owner or Owners, the Association and/or the Architectural Committee relating to or arising out of any provision of this Declaration, the parties to the dispute shall meet in a good faith effort to resolve the dispute through negotiations. In the event the parties are unable to resolve the dispute through negotiations, such matter shall be submitted to and settled by such form of extra-judicial dispute resolution as the parties may

Page 31

ons. In the event the parties are unable to resolve the dispute through negotiations, such matter shall be submitted to and settled by such form of extra-judicial dispute resolution as the parties may mutually agree. To the fullest extent allowed by law, this clause shall be specifically enforceable under applicable laws to mandate the parties’ use of a means of resolving disputes other than formal judicial proceedings. In the event the parties are unable to agree on another such form of dispute resolution, any dispute, controversy or claim arising out of any provision of this Declaration shall be submitted to binding arbitration following these procedures: 8.10.1 The arbitration shall take place in Hidalgo County, Texas.

8.10.2 Pending the outcome of arbitration, there shall be no changes made in the language of this Declaration.

8.10.3 The arbitration shall be initiated by any party to the dispute, claim or controversy giving written notice requesting arbitration to the other party or parties thereto, which notice shall include a precise statement of the matter to be arbitrated.

8.10.4 Within five days of receiving notice of the written request for arbitration, the 29 Recorded On-2011-Nov-15 As-2257582 4 6 ’ ° 8.10.5 8.10.6 8.10.7 8.10.8 receiving party or parties shall designate in writing to the initiating party the name of an arbitrator (“Arbitrator 1") who meets the requirements set forth herein. The receiving party shall give a copy of the notice to Arbitrator 1. The initiating party shall have five days to object to Arbitratorl by designating in writing to the receiving party the name of another arbitrator (“Arbitrator 2") by giving written notice to the initiating party, Arbitrator 1, and Arbitrator 2. Within five days after receipt of the

n writing to the receiving party the name of another arbitrator (“Arbitrator 2") by giving written notice to the initiating party, Arbitrator 1, and Arbitrator 2. Within five days after receipt of the written objection from the initiating and receiving parties, Arbitrator 1° and Arbitrator 2 shall designate an arbitrator (“Arbitrator”) by giving written notice of their choice to the receiving and initiating parties.

The Arbitrator shall designate the time and place of the hearing which must occur within 30 days of the Arbitrator’s selection. The Arbitrator shall give 20 days written notice of the hearing to the parties to the dispute, claim or controversy. The parties may be represented by attorneys at the hearing. The Arbitrator shall make a decision within seven days after the hearing and communicate that decision in writing to each party who participated in the hearing.

The request for arbitration must be make within a reasonable time after the dispute, claim or controversy has arisen. In no event may the request for arbitration be made after the date when institution of legal or equitable proceedings based on such dispute, claim or controversy would be barred by the applicable statute of limitations.

Anyone designated as an Arbitrator (i) must be an impartial third party who has the training or qualifications required by the laws of the State of Texas and (ii) must not be personally acquainted with any of the parties to the dispute, claim or controversy.

The parties to the dispute, claim or controversy shall share equally the Arbitrator’s fees and other costs of the arbitration unless the Arbitrator assesses such costs against the party or parties who do not prevail.

CONSTRUCTION 8.11.1 8.11.2 8.11.3

Page 32

hall share equally the Arbitrator’s fees and other costs of the arbitration unless the Arbitrator assesses such costs against the party or parties who do not prevail.

CONSTRUCTION 8.11.1 8.11.2 8.11.3 The provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity of any provision or portion thereof shall not affect the validity or enforceability of any other provision or portion thereof.

Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular; and masculine, feminine or neuter shall each include the masculine, feminine and neuter.

All captions and titles used in this Declaration are intended solely for convenience of reference and shall not enlarge, limit or otherwise affect that which is set forth in any of the paragraphs, sections or articles hereof.

30 IN WITNESS WHEREOF, Declarant has executed this Declaration on September 8, 2011.

ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF HIDALGO : This instrument was acknowledged before me on September SF — , 2011, by Juan Manuel Garcia Cafiamar, Manager of Empire Home Development, L.L.C., a Texas limited liability company, on behalf of said limited liability company.

nay Pu, KATHLEEN £. CARLSON Notary Public STATE OF TRIAS Notary Public. ‘State of Texas — AFTER RECORDING RETURN TO: David Crook 100 Savannah, Suite 380 McAllen, Texas 78503-1253 31