BOOK PACE 2003 0340 STATE OF NORTH CAROLINA COUNTY OF MEN HANOVER RECORDED AND VERIFIED MARY SUE 0OTS REGISTER OF DEEDS NEW HANOVER CO. NC *96 MAR 20 PM 2 51 DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS от GREENWAY VILLAGE TOMBOMES, SECTION 1, PHASE I THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF GREMMAY VILLAGE TOMMBORES, SECTION 1, PHASE I, made and entered into this 5th day of January, 1996, by BOYCE QUI, INC., a North Carolina Corporation, to and with and on behalf of all persons hereafter owning or acquiring any of the numbered lots shown upon that map of GREENWAY VILLAGE TOWNHOMES, SECTION 1, PHASE I, recorded in Map Book 35 at Page 321, of the New Hanover County Registry.
000115 WITNESSETH: WHEREAS, the undersigned Corporation is the owner and developer of all of the numbered lots in GREENWAY VILLAGE TOWNHOMES, SECTION 1, PHASE I, as shown on that map recorded in Map Book 35, at Page of the New Hanover County Registry; and 321 WHEREAS, the undersigned Corporation desires to provide a uniform plan of development of said property for residential purposes, for the benefit of itself and all future owners of any of the numbered lots shown upon the said map; NOW THEREFORE, the undersigned Corporation does declare that each of the lots described above shall be owned, held, sold, and conveyed subject to the following covenants, conditions, restrictions, and easements which are for the purpose of protecting the value and desirability of, and which shall run with, the real property herein described, and be binding on all parties having any right, title, or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof.
DRAWN BY To Driel D. Maw 1 412621 BOOK PAGE
tle, or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof.
DRAWN BY To Driel D. Maw 1 412621 BOOK PAGE 2003 034 ARTICLE I.
DEFINITIONS Section 1.
"Association" and HOẠT shall be used interchangeably to mean and refer to GREENWAY VILLAGE HOMEOWNERS' ASSOCIATION, INC., a private non-profit corporation formed or to be formed by the Declarant primarily as a Homeowners Association for the lot owners in GREENWAY VILLAGE TOWNHOMES, all of whom shall be members of the Association.
Section 2. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any lot or unit which is a part of the Properties, but excluding those having such interest merely as security for the performance of an obligation.
Section 3. "Properties" shall mean and refer to that certain property hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.
Section 4. *Common Area" shall mean all real property (including the improvements thereto) owned by the Association for the common use and enjoyment of the Owners. The Common Area to be owned by the Association at the time of the conveyance of the first lot is set forth in the plat of GREENWAY VILLAGE TOWNHOMES, SECTION 1, PHASE I, as recorded in Map Book 35 at Page 321 of the New Hanover County Registry.
Section 5. "Lot" or "Unit" shall mean and refer to any of the lot or units, as shown on the plat of GREENWAY VILLAGE TOWNHOMES, SECTION 1, PHASE I, recorded in Map Book 35 at Page 321 of the New Hanover County Registry, and any lot or unit located on lands annexed pursuant to Article XI of this Declaration, together with
OMES, SECTION 1, PHASE I, recorded in Map Book 35 at Page 321 of the New Hanover County Registry, and any lot or unit located on lands annexed pursuant to Article XI of this Declaration, together with the structure or dwelling thereon which structure may be separately referred to as a "Townhouse" "Townhouse Unit", "Townhome", or "Unit".
Section 6. "Declarant" shall mean and refer to BOYCE QUINN, INC., or its successor in interest if such successor should acquire more than one undeveloped lot from the Declarant for the purpose of development.
Section 7. "Declaration" shall mean this instrument as it may be from time to time amended or supplemented.
2 BOOK 2003 PACE 0342 Section 8. "Eligible Mortgage Holder" or "Eligible Holders" is defined as a holder of a first mortgage or lien on a lot or unit who has requested notice of certain matters from the Association.
Section 9. "Limited Common Areas" and "facilities* shall mean and include those common areas and facilities which are reserved for the use of a certain unit or units to the exclusion of other units, as might be more specifically defined herein and as shown on the plat of GREENWAY VILLAGE TOWNHOMES, SECTION 1, PHASE I, as recorded in Map Book 35 at Page 321 of the New Hanover County Registry.
Section 10. "Mortgagee shall mean a beneficiary under a mortgage or Deed of Trust.
Section 11. "Developer shall mean the buyer of a lot who builds a townhouse unit thereon for sale to an Owner but which Developer does not occupy the unit.
ARTICLE II.
PROPERTY RIGHTS Section 1. Owners' Easements of Enjoyment. Every Owner shall have a right and easement of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to every lot or unit, subject to the following provisions:
very Owner shall have a right and easement of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to every lot or unit, subject to the following provisions: a. The right of the Association to limit the number of guests of members.
b.
The right of the Association to suspend the voting rights and right to the use of the recreational facilities by an Owner for any period during which any assessment against his lot or unit remains unpaid; and for a period not to exceed sixty (60) days for any infraction of its published rules and regulations.
C. The rights of the Declarant (as set forth in Article XI).
d.
e.
The right of the Association to impose regulations for the use and enjoyment of the Common Area and improvements thereon, which regulations may further restrict the use of the Common Area.
The right of the Association to mortgage or convey all or part of the common area subject to such conditions as may be agreed to by the Association. No such dedication or transfer shall be effective unless an instrument creating 3 f.
BOOK PACE 0343 2003 such a dedication or transfer is signed by two-thirds (2/3) of each class of members (which votes may be cast in person or by proxy) and properly recorded. No such conveyance or encumbrance shall be valid unless it is made subject to each member's right of ingress and egress over said common area and, so long as there is a Class B membership, HUD, FHA, or VA approval is required. Nothing in this section shall limit Declarant's rights under Article XI herein.
The right of individual owners to the exclusive use of parking spaces as provided in this article.
Section 2. Delegation of Use. Owner may delegate, in accordance with the By-Laws, his right of enjoyment to the Common
vidual owners to the exclusive use of parking spaces as provided in this article.
Section 2. Delegation of Use. Owner may delegate, in accordance with the By-Laws, his right of enjoyment to the Common Area and facilities to the members of his family, his tenants, or contract purchasers who reside on the property.
Section 3. Parking Rights. Ownership of each lot shall entitle the owner or owners thereof to the use of not more than two (2) automobile parking spaces, which shall be as near and convenient to said lot as reasonably possible, together with the right of ingress and egress in and upon said parking area. Lot owners may use additional spaces so long as such use does not infringe on the parking rights of other lot owners.
ARTICLE III.
EASEMENTS Section 1. Easements are reserved and may be granted by Declarant or the Association as necessary in the Common Areas for installation and maintenance of underground utilities and drainage facilities.
Section 2. The Association, acting through its officers, agents, servants, and/or employees shall have the right of unobstructed access at all reasonable times to all properties as may be reasonably necessary to perform the exterior maintenance called for in Article X of this Declaration.
Section 3. Easements are reserved over those portions of the Common Areas, Limited Common Areas and facilities that may be necessary or required to accommodate overhanging eaves or other cantilevered construction which may encroach upon the Common Areas or Limited Common Areas or the air and light space above such Common Areas.
BOOK 2003 PAGE 0344 Section 4. Each lot or unit and all common areas and facilities and limited common areas and facilities are hereby subjected to an easement for landscape maintenance and for the
s.
BOOK 2003 PAGE 0344 Section 4. Each lot or unit and all common areas and facilities and limited common areas and facilities are hereby subjected to an easement for landscape maintenance and for the repair, maintenance, expansion, reduction, inspection, removal, relocation or other service of ΟΙ to all gas, electricity, television, telephone, water, plumbing, sewer, utility, drainage, or other common areas and facilities, whether or not the cause of any or all of those activities originates on the lot or unit in which the work must be performed.
A Section 5. Each lot or unit, and the property included in the Common Area, shall be subject to an easement for encroachments created by construction, settling and overhangs for all buildings constructed by Declarant, including sidewalks, walks, paths, patios, decks, fences, and other such similar appurtenances.
valid easement for said encroachments and for the maintenance of same, so long as such encroachments stand, shall and does exist.
In the event that any structure containing two or more townhouses is partially or totally destroyed and then rebuilt, the owners of the townhouses so affected and other adjacent units agree that minor encroachments of or on parts of the adjacent townhouse units or Common Areas due to construction shall be permitted, and that a valid easement for said encroachment and the maintenance thereof shall exist.
Section 6. Ingress and egress is reserved for pedestrian traffic over, through, and across sidewalks, paths, walks, and lanes as the same from time to time may exist upon the common areas and facilities; and, for vehicular traffic over, through and across all driveways and streets as from time to time may be constructed and intended for such purposes, for all lot or unit owners in all
and facilities; and, for vehicular traffic over, through and across all driveways and streets as from time to time may be constructed and intended for such purposes, for all lot or unit owners in all sections and phases of GREENWAY VILLAGE TOWNHOMES, their guests, families, invitees, and lessees, the Association, the Declarant, their successors and assigns. Declarant hereby reserves alienable easements over all streets and common areas as necessary to provide access for future development by Declarant or its successors and assigns of any properties adjoining the Project.
Section 7. An easement is hereby granted to all police, fire protection, ambulance and all similar persons, companies or agencies performing emergency services to enter upon the lots or units and common area in the performance of their duties.
Section 8. In case of an emergency originating in or threatening any unit or lot or the common areas and facilities, regardless of whether the unit or lot owner is present at the time of such emergency, the Board of Directors or any other person authorized by it, shall have the right to enter any unit for the purpose of remedying or abating the causes of such emergency and making any other necessary repairs not performed by the unit owners, and such right of entry shall be immediate.
5 BOOK PAGE 2003 0345 Section 9. All easements and rights described herein are easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the undersigned, its successors and assigns, and any owner, purchaser, mortgagee and other person having an interest in said land, or any part or portion thereof, regardless of whether or not reference to said easement is made in the respective deeds of conveyance, or in any mortgage or trust
rson having an interest in said land, or any part or portion thereof, regardless of whether or not reference to said easement is made in the respective deeds of conveyance, or in any mortgage or trust deed or other evidence of obligation, to the easements and rights described in this Declaration.
ARTICLE IV.
MEMBERSHIP AND VOTING RIGHTS Section 1. Every Owner of a lot or unit which is subject to assessment shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any lot or unit which is subject to assessment.
Section 2. The Association shall have two classes of voting membership: a.
b.
CLASS "A". Class A members shall be all Owners with the exception of the Declarant and shall be entitled to one vote for each lot or unit owned. When more than one person holds an interest in any lot or unit, all such persons shall be members. The vote for such lot or unit shall be exercised as they among themselves determine, but in no event shall more than one (1) vote be cast with respect to any lot or unit.
CLASS "B*. Class B member(s) shall be the Declarant or Developer and Declarant or Developer shall be entitled to three (3) votes for each lot or unit owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (1) when the total votes outstanding in Class A membership equals the total votes outstanding in the Class B membership, or (2) on July 31, 2005.
BOOK PACE 2003 0346 Section 1.
ARTICLE V.
COVENANTS FOR ASSESSMENTS CREATION OF THE LIEN AND PERSONAL OBLIGATION OF ASSESSMENT. The Declarant, for each lot or unit owned within the Properties, hereby covenants, and each Owner of any lot or unit by
ANTS FOR ASSESSMENTS CREATION OF THE LIEN AND PERSONAL OBLIGATION OF ASSESSMENT. The Declarant, for each lot or unit owned within the Properties, hereby covenants, and each Owner of any lot or unit by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: a. Annual assessments or charges, and b.
Special assessments for capital improvements, such assessments to be established and collected as hereinafter provided; The annual and special assessments, together with interest, costs and reasonable attorney's fees, shall be a charge on the land and shall be a continuing lien upon the property against which each assessment is made. Each such assessment, together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.
Section 2. PURPOSE OF ASSESSMENTS. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvements and maintenance of the Common Area, specifically including, but not limited to, the maintenance, repair, and replacement of all streets, driveways, parking areas, access easements, and any other area intended for vehicular access and parking as shown on the recorded plats of all sections and phases of GREENWAY VILLAGE TOWNHOMES, maintenance and repair of all stormwater retention and drainage facilities as herein provided, maintenance and repair of the sanitary sewer collection system,
and phases of GREENWAY VILLAGE TOWNHOMES, maintenance and repair of all stormwater retention and drainage facilities as herein provided, maintenance and repair of the sanitary sewer collection system, maintenance and repair of all water supply lines and pipes from the water meters into the units, maintenance and repair of all other utility facilities and utility equipment not otherwise maintained and repaired by municipal, public, or private utility authorities, landscape maintenance, maintenance and operation of all lighting, fencing, and refuse collection facilities, and of the townhouses situated upon the Properties, including the prompt and full payment of all ad valorem property taxes and insurance for said common area(s).
Section 3. ANNUAL ASSESSMENTS. Lots or units shall not be subject to annual assessments until a unit is sold by the Declarant or Developer to an Owner. A unit shall become subject to annual assessments from the day following the day of conveyance by the 7 BUVA 1234 0347 2003 Developer to the owner. The annual assessments shall be determined as follows: b.
C.
d.
Until January 1 of the year immediately following the conveyance of the first lot to an Owner, the annual assessments shall be in an amount determined to be fair and reasonable by the Directors of the Association to carry out the responsibilities of the Association.
From and after January 1 of the year immediately following the conveyance of the first lot to an Owner, the maximum annual assessment may be increased each year not more than five (5%) percent above the maximum assessment for the previous year without a vote of the membership.
From and after January 1 of the year immediately following the conveyance of the first lot to an Owner,
5%) percent above the maximum assessment for the previous year without a vote of the membership.
From and after January 1 of the year immediately following the conveyance of the first lot to an Owner, the maximum annual assessment may be increased above five (5%) percent by vote of two-thirds (2/3) of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose.
The Board of Directors may fix annual assessments in an amount not in excess of the maximum.
Section 4. SPECIAL ASSESSMENTS FOR CAPITAL IMPROVEMENTS. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to the year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose.
Section 5. NOTICE AND QUORUM FOR ANY ACTION AUTHORIZED UNDER SECTIONS 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Section 3 or 4 shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or proxies entitled to cast sixty percent (60%) of all of the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting
of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.
8 3333 2003 0348 Section 6. UNIFORM RATE OF ASSESSMENT. Both annual and special assessments must be fixed at a uniform rate for all lots or units and may be collected on a monthly or quarterly basis.
Section 7. DATE OF COMMENCEMENT OF ANNUAL ASSESSMENTS AND DUE DATES. The annual assessments provided for herein shall commence as to all lots or units on the first day following the day of conveyance of the unit to an Owner, except that annual assessments shall not commence for any unit until a certificate of occupancy has been issued for such unit. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year.
The Board of Directors shall fix the amount of the annual assessment against each unit at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto.
The due dates shall be established by the Board of Directors and the Board of Directors shall have the authority to require the assessments to be paid in pro rata monthly installments. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified unit have been paid.
Section 8. EFFECT OF NONPAYMENT OF ASSESSMENTS AND REMEDIES OF THE ASSOCIATION. Any assessment not paid within thirty (30)
ion setting forth whether the assessments on a specified unit have been paid.
Section 8. EFFECT OF NONPAYMENT OF ASSESSMENTS AND REMEDIES OF THE ASSOCIATION. Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the maximum legal rate, together with all costs and reasonable attorney's fees associated with their collection, and all such sums shall become a lien upon the Owner's lot. The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the lot. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his unit.
Section 9.
SUBORDINATION OF THE LIEN TO MORTGAGES. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any unit shall not affect the assessment lien. However, the sale or transfer of any unit pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale ΟΙ transfer shall relieve such unit from liability for any assessments thereafter becoming due or from the lien thereof.
Section 10. RIGHTS OF ELIGIBLE MORTGAGE HOLDERS. To the extent permitted by law, an eligible mortgage holder, upon written request to the Association, identifying the name and address of the owner and the holder, will be entitled to timely written notice of: 9 BOOK PAGE 2003 0349 a.
Any condemnation, loss or casualty loss which affects a material portion of the project or any units on which there is a mortgage held by such eligible mortgage holder.
ce of: 9 BOOK PAGE 2003 0349 a.
Any condemnation, loss or casualty loss which affects a material portion of the project or any units on which there is a mortgage held by such eligible mortgage holder.
b. Any delinquency in payment of assessments or charges owed by an owner of the unit subject to a first mortgage held by such Eligible Holder which remains uncured for a period of sixty days.
C.
d.
e.
Any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association.
Any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders.
In addition to the foregoing rights, the Eligible Mortgage Holders shall be afforded the following rights subject to the extent permitted by law and as allowed by the North Carolina General Statutes as they now exist or as may be amended from time to time.
(1) Any election to terminate the legal status of the project after substantial destruction or a substantial taking in condemnation of the project property must require the approval of at least 51% of the votes of the unit estates subject to Eligible Mortgage Holders.
(2) Unless otherwise provided in the Declaration or ByLaws, no reallocation of interest in the common areas resulting from a partial condemnation or partial destruction of the project may be affected without the prior approval of Eligible Holders holding mortgages on all remaining unit estates whether existing whole or in part, and which have at least 51% of the votes of such remaining unit estates subject to Eligible Holders of mortgages.
Section 11.
INSURANCE.
the It shall be the duty of Association to maintain in effect casualty and liability insurance as follows: a. Amount and Scope of Insurance: The Association shall
of mortgages.
Section 11.
INSURANCE.
the It shall be the duty of Association to maintain in effect casualty and liability insurance as follows: a. Amount and Scope of Insurance: The Association shall obtain insurance on the Properties including but not limited to the common areas and improvements thereon, the limited common areas, and the lots (including the buildings thereon with the exception of personal property, furnishings, appliances whether built in or not, decorations, window treatments, floor coverings, wall coverings, and ceiling fans. In addition, all wiring 10 2003 0350 b.
is excepted from coverage other than basic electrical.
and wiring for two phone and two television cable jacks).
All insurance policies shall be secured by the Board of Directors or its designee on behalf of the Association with full authority, which shall obtain such insurance against (1) loss or damage by fire or other hazards normally insured against, and (2) such other risks, including public liability insurance, for projects similar in construction. However, such liability coverage shall be for at least $1,000,000.00 for bodily injury, including deaths of persons and property damage arising out of a single occurrence. Coverage under this policy shall include, without limitation, legal liability of the insureds for property damage, bodily injuries, and deaths of persons in connection with the operation, or maintenance or use of the common and limited common areas and legal liability arising out of lawsuits relating to employment contracts of the Association.
Insurance Provisions. The Board of Directors shall make diligent efforts to ensure that said insurance policies provide for the following: (1) A waiver of subrogation by the insurer as to any
ciation.
Insurance Provisions. The Board of Directors shall make diligent efforts to ensure that said insurance policies provide for the following: (1) A waiver of subrogation by the insurer as to any claims against the Association, any officer, director, agent or employee of the Association, the lot owners and their employees, agents, tenants and invitees.
(2) A waiver by the insurer of its right to repair and reconstruct instead of paying cash.
(3) Coverage may not be canceled or substantially modified (including cancellation for nonpayment of premium) without at least thirty days prior written notice to the named insured.
(4) Coverage will not be prejudiced by act or neglect of the lot owners when said act or neglect is not within the control of the Association.
(5) The policy on the common area cannot be canceled, invalidated or suspended on account of the conduct of any one or more individual lot owners.
(6) The policy on the common area cannot be canceled, invalidated or suspended on account of any officer or employee of the Board of Directors without prior demand in writing that the Board of Directors cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured by the Association.
11 C.
d.
e.
BOOK 2003 PAGE 0351 Premiums. All insurance premiums on the common area for the benefit of the Association purchased by the Board of Directors or its designee and any deductibles payable by the Association upon loss shall be a common expense and the Association shall levy against the Owners equally as an additional annual assessment, (herein called "Insurance Assessment") which shall be in addition to the amounts provided for under Section 3 above, an amount sufficient to pay the annual cost of all such insurance premiums.
ssment, (herein called "Insurance Assessment") which shall be in addition to the amounts provided for under Section 3 above, an amount sufficient to pay the annual cost of all such insurance premiums.
Proceeds. All insurance policies purchased pursuant to these provisions shall provide that all proceeds shall be payable to the Board of Directors as insurance trustee or to such attorney at law or institution with trust powers as may be approved by the Board of Directors.
Policies. All insurance policies purchased by the Board of Directors shall be with a company or companies permitted to do business in the State of North Carolina and holding a rating of "A" or better by the current issue of Best's Insurance Reports. All insurance policies shall be written for the benefit of the Board of Directors and the lot owners and their mortgagees as their respective interests may appear, and shall provide that all proceeds thereof shall be payable to the Board of Directors and duplicates of said policies and endorsements and all renewals thereof, or certificates thereof, together with proof of payment of premiums, shall be delivered to the Owners at least ten (10) days prior to the expiration date with respect to the then current policies.
Section 12. DISTRIBUTION OF INSURANCE PROCEEDS. Proceeds of insurance policies shall be distributed to or for the benefit of the beneficial owners in the following manner: a. Expenses of Trust. All reasonable expenses of the insurance trustee shall be first paid or provisions made therefor.
b.
Reconstruction or Repair. The remaining proceeds shall be used to defray the cost of repairs for the damage or reconstruction for which the proceeds are paid.
Any proceeds remaining after defraying such cost shall be
r Repair. The remaining proceeds shall be used to defray the cost of repairs for the damage or reconstruction for which the proceeds are paid.
Any proceeds remaining after defraying such cost shall be distributed to the beneficial owners, including lienholders of record, or retained by the Association for such common expenses or purposes as the Board shall determine.
12 BOOK 2003 PAGE 035 ARTICLE VI.
FIDELITY BONDS Section 1. GENERAL. The Association shall maintain blanket fidelity bonds for all officers, directors, employees and all other persons handling or responsible for funds of the Association. If the Association shall delegate some or all the responsibility for the handling of its funds to a management agent, such fidelity bonds shall be maintained by such management agent for its officers, employees and agents handling or responsible for funds of or administered on behalf of the Association.
Section 2. AMOUNT OF COVERAGE. The total amount of fidelity bond coverage required shall be based upon best business judgment and shall not be less than the estimated maximum of funds.
including reserve funds, in the custody of the Association or the management agent, as the case may be, at any given time during the term of each bond. However, in no event may the aggregate amount of such bonds be less than a sum equal to three months aggregate assessments on all units plus reserve funds.
Section 3. OTHER REQUIREMENTS. Fidelity bonds required herein must meet the following requirements: a.
b.
C.
d.
Fidelity bonds shall name the Association as an obligee.
The bonds shall contain waivers by the issuers of the bonds of all defenses based upon the exclusion of persons serving without compensation from the definition of "employees", or similar terms or expressions.
shall contain waivers by the issuers of the bonds of all defenses based upon the exclusion of persons serving without compensation from the definition of "employees", or similar terms or expressions.
The premiums on all bonds required herein for the Association (except for premiums on fidelity bonds maintained by a management agent for its officers, employees and agents) shall be paid by the Association as a common expense.
The bonds shall provide that they may not be canceled or substantially modified (including cancellation for non-payment of premium) without at least ten (10) days prior written notice to the Association, to any insurance trustee and each Eligible Mortgage Holder.
13 BOOK 2003 PAGE 0353 ARTICLE VII.
ARCHITECTURAL CONTROL Section 1. No building, fence, wall or other structure shall be commenced, erected, or maintained upon the Properties, nor shall any exterior addition to or change or alteration therein (including color of paint or finish) be made until the plans and specifications showing the nature, kind, shape, heights, caterials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Board of Directors of the Association, or by an architectural committee composed of three (3) or more representatives appointed by the Board.
In the event said Board, or its designated committee, fails to approve or disapprove such design and location within thirty (30) days after said plans and specifications have been submitted to it, approval will not be required and this Article will be deemed to have been fully complied with, provided that such addition, change, or alteration is in general conformity with the overall
tted to it, approval will not be required and this Article will be deemed to have been fully complied with, provided that such addition, change, or alteration is in general conformity with the overall plan, design, and appearance of the Townhouse project in general.
Section 2. All duties and responsibilities conferred upon the Board of the Architectural Control Committee by this Declaration or the Bylaws of the Association shall be exercised and performed by the Declarant or its designee, so long as Declarant shall own any lot in the Properties or any additions annexed thereto by Supplemental Declaration or Amendment to this Declaration.
ARTICLE VIII.
PARTY MALLS Section 1. GENERAL RULES OF LAW TO APPLY. Each wall which is built as a part of the original construction of the townhouses upon the Properties and placed on the dividing line between the lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and of liability for property damage due to negligence or willful acts or omissions shall apply thereto.
Section 2. SHARING OF REPAIR AND MAINTENANCE. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use.
14 BOOK PAGE 2003 0354 Section 3. DESTRUCTION BY FIRE OR OTHER CASUALTY.
If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful
of restoration thereof without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omission.
Section 4.
WEATHERPROOFING. Notwithstanding any other provision of this Article, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such element.
Section 5. RIGHT TO CONTRIBUTION RUNS WITH LAND. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's successors in title.
Section 6. ARBITRATION. In the event of any dispute arising concerning a part wall, or under the provisions of this Article, each party shall choose one arbitrator, and such arbitrators shall choose one additional arbitrator, and the decisions shall be by a majority of all of the arbitrators.
ARTICLE D.
EXTERIOR MAINTENANCE In addition to maintenance upon the Common Area, the Association shall provide exterior maintenance upon each lot or unit which is subject to assessment hereunder as follows: paint, repair, replace and care of roofs, gutters, downspouts, exterior building surfaces, decks, trees, shrubs, grass, walks, and other exterior improvements. Such exterior maintenance shall not include glass surfaces.
In the event that the need for maintenance, repair or replacement is caused through the willful or negligent act of the Owner, his family, guests or invitees, the cost of such maintenance, replacement, or repairs, shall be added to and become a part of the assessment to which such lot or unit is subject.
15