Lake Park Declarations.

BK 7612PG0207 DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM Filed for Record on the 21st day of August, 1997 000147 REGISTRATION FOR PRESENTED WAKE COUNTY REGISTER OF DEEDS LAURA 11. RIDDICK 97 AUG 21 AM 10: 36 PREPARED BY AND HOLD FOR: David A. Raynes James G. Wallace Perry, Patrick, Farmer & Michaux, P.A.

3716 National Drive, Suite 100 Raleigh, NC 27612 16000 BK 7612PG0208 INDEX TO DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM ARTICLE I.

Definitions 1.1 Act 1.2 Association 1.3 Board 1.4 Bylaws.

1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Common Elements Common Expenses Condominium Declarant Declarant Control Period.

First Mortgage and First Mortgagee.

Limited Common Elements Occupant.

Person.

1.14 Plans 1.15 Plat.

1.16 Property.

1.17 1.18 Rules and Regulations Special Declarant Rights.

1.19 Units .

1.20 Unit Boundaries 1.21 Unit Owner.

1.22 CHA122222233MMMMM + Additional Real Estate.

ARTICLE II Submission of Property to the Act Submission.

Division of Property into Separately Owned Units.

Alterations of Units.

Limited Common Elements 2.1 2.2 Name.

2.3 2.4 2.5 2.6 Unit Allocations.

2.7 Encumbrances.

2.8 2.9 3.1 3.2 3.3 Condominium Ordinances.

Reservation of Special Declarant Rights ARTICLE III Additional Real Estate Declarant's Right to Add Additional Real Estate Maximum Number of Additional Units; Units Restricted to Residential Use.

Compatibility of Style, Etc..

455555555 5 06 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 4.5 4.6 BK 7612 PG0209 Applicability of Restrictions, Etc.

Other Improvements and Common Elements.

Applicability of Assurances if Additional Real Estate Added.

Allocation of Interest in Common Elements and Common Expenses.

ARTICLE IV Easements Encroachments Easements through Walls Easements to Repair, Maintain, Restore and Reconstruct.

nal Real Estate Added.

Allocation of Interest in Common Elements and Common Expenses.

ARTICLE IV Easements Encroachments Easements through Walls Easements to Repair, Maintain, Restore and Reconstruct.

Easements for Utilities Declarant's Easement.

Easements to Run With Land.

ARTICLE V Restrictions, Conditions and Covenants Compliance with Declaration, Bylaws and Rules and Regulations.

Administration of Condominiums.

Use Restricted; Use by Declarant.

Hazardous Use and WasteAlterations of Common Elements.

Prohibition of Renting for Transient or Hotel Purposes Rules and Regulations 5.1 5.2 5.3 .5.4 5.5 5.6 5.7 Pets.

5.8 5.9 5.10 5.11 5.12 5.13 Nuisances 5.14 Lawful Use.

5.15 Access to Units Restrictions, Conditions and Covenants to Run With Land.

Storage and Parking of Vehicles Exterior and Visible Interior Improvements.

Prohibitions on Use of Common Area and Facilities 7 7 7189 9 9 9 10 10 11 11 11 11 11 11 12 12 13 13 ARTICLE VI Assessments 6.1 Assessment Liens.

13 6.2 Personal Liability of Transferees; Statement; Liability of First Mortgagee 13 6.3 6.4 6.5 BK7612PG0210 Prohibition of Exemption from Liability for Contribution Toward Common Epenses Date of Commencement of Annual Assessments.

Capitalization of Association ARTICLE VII Management, Maintenance, Repairs, Replacements, Alterations and Improvements Common Expenses Associates with Limited Common Elements or Benefitting Less Than All Units.

7.1 7.2 Common Elements 7.3 7.4.

7.5 Units .

Waiver of Claims.

Right of Entry.

ARTICLE VIII Insurance Casualty Insurance.

Public Liability Insurance.

Fidelity Coverage Insurance Unavailable 8.1 8.2 8.3 8.4 8.5 Other Insurance 8.6 Insurance Trustee 8.7 Individual Policy for Unit Owners 14 14 14 14 15 15 15 15 16 17 17 17 17 17 18 ARTICLE IX Casualty Damage 18 ARTICLE X

surance Unavailable 8.1 8.2 8.3 8.4 8.5 Other Insurance 8.6 Insurance Trustee 8.7 Individual Policy for Unit Owners 14 14 14 14 15 15 15 15 16 17 17 17 17 17 18 ARTICLE IX Casualty Damage 18 ARTICLE X Condemnation.

18 ARTICLE XI Termination 18 ARTICLE XII Amendment 18 ARTICLE XIII Rights of First Mortgagees; FNMA and FHLMC Provisions 13.1 Amendments During Declarant Control Period.

19 13.2 13.3 13.4 Rights of Action.

13.5 13.6 Right of First Refusal.

13.7 BK 7612PG0211 Availability of Condominium Documents, Books, Records and Financial Statements Successors' Personal Obligation for Delinquent Assessments Management and Other Agreements Consent of First Mortgagees 19 19 19 20 20 20 13.8 13.9 13.10 Consent of First Mortgagees or Unit Owners.

Notice.

21 22 Assessments 22 13.11 Rights of First Mortgagee; Insurance Proceeds or Condemnation Awards.

22 13.12 Additional Real Estate: Consent of Administrator Common Element Interests; Reallocation.

23 ARTICLE XIV 14.1 Conflict with the Act; Severability 14.2 Interpretation of Declaration 14.3 Captions.

14.4 Exhibits.

14.5 Invalidity.

14.6 Waiver.

14.7 Law Controlling 23 23 23 333 24 24 24 24 BK 7612PG0212 DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM THIS DECLARATION is made this 20th day of August, 1997, by Lake Park Condominium, LLC, a North Carolina limited liability company ("Declarant"), pursuant to the North Carolina Condominium Act, Chapter 47C, North Carolina General Statutes ("Act").

WITNESS ETH: WHEREAS, Declarant is the owner in fee simple of certain real estate situated in the City of Raleigh, County of Wake and State of North Carolina, more particularly described on Exhibit "A" attached hereto and made a part hereof, together with all buildings and improvements now or hereafter constructed or

nty of Wake and State of North Carolina, more particularly described on Exhibit "A" attached hereto and made a part hereof, together with all buildings and improvements now or hereafter constructed or located thereon, and all rights, privileges, easements and appurtenances belonging to or in any way pertaining to said real estate; and WHEREAS, Declarant desires to submit all of said property to the Act.

NOW, THEREFORE, Declarant, as the owner of said property, hereby declares as follows: ARTICLE I Definitions Definitions. As used herein, the following words and terms shall have the following meanings: 1.1 Act. The North Carolina Condominium Act, Chapter 47C, North Carolina General Statutes.

1.2 Association. Lake Park Condominium Homeowners Association, Inc., a nonprofit corporation organized under Section 47C-3-101, North Carolina General Statutes. The Articles of Incorporation the Association are attached hereto as Exhibit "D".

1.3 1.4 Board. The Executive Board of the Association.

Bylaws. The Bylaws of the Association which are incorporated herein and made a part hereof by this reference, and attached as Exhibit "E".

1.5 Common Elements. All portions of the Condominium except the Units. Limited Common Elements are Common Elements.

All water lines not located in street rights-of-way which serve the Property and all sewer lines not. located in either street rights-of-way or City of Raleigh sanitary sewer easements which serve the Property are Common Elements. Any amenities constructed on the Property, including, but not limited to, basketball court, volleyball courts, pool and adjacent patio and BK 7612 PG0213 decks, picnic tables, barbecue grills, gazeboes, and play areas, are Common Elements.

1.6 Common Expenses. Expenditures made or liabilities

olleyball courts, pool and adjacent patio and BK 7612 PG0213 decks, picnic tables, barbecue grills, gazeboes, and play areas, are Common Elements.

1.6 Common Expenses. Expenditures made or liabilities incurred by or on behalf of the Association, together with any allocations to reserves and any ad valorem taxes, public assessments or governmental liens (except liens relating to payment of water and sewer bills for individual Units, as noted below) levied on Common Elements. (NOTE: There will be an individual water meter installed for each Unit, and each Unit Owner shall be responsible for making direct payment of the water and sewer bills for their Unit to the appropriate public utility.

The condominium created by this 1.7 Declaration.

1.8 1.9 Condominium.

Declarant. Lake Park Condominium, LLC, a North Carolina limited liability company and (i) any other owner who has executed this Declaration, except First Mortgagees and except persons whose interests in the Property will not be conveyed to Unit Owners and (ii) any person who succeeds to any Special Declarant Rights as defined in Section 47C-1-103 (23) of the Act.

Declarant Control Period. The period commencing on the date hereof and continuing until the earlier of (i) the date two (2) years after Declarant has ceased to offer Units for sale in the ordinary course of business, or (ii) the date upon which Declarant surrenders control of the Condominium, or (iii) the date one hundred twenty (120) days after the Declarant has conveyed seventy-five percent (75%) of the maximum number of Units which Declarant may create on the Phase 1A, 1B, 2A and 2B property, and on the Additional Real Estate, to Unit Owners other than a Declarant, or (iv) the date two (2) years after any

m number of Units which Declarant may create on the Phase 1A, 1B, 2A and 2B property, and on the Additional Real Estate, to Unit Owners other than a Declarant, or (iv) the date two (2) years after any development right to add New Units was last exercised by Declarant.

1.10 First Mortgage and First Mortgagee. A First Mortgage is a mortgage or deed of trust which has been recorded so as to give constructive notice thereof, and which is a first lien on the Unit or Units described therein. A First Mortgagee is the holder, from time to time, of a First Mortgage as shown by the records of the Office of the Register of Deeds for Wake County, North Carolina, in which the First Mortgage is recorded, including the Federal National Mortgage Association and including a purchaser at foreclosure sale upon foreclosure of a First Mortgage until expiration of the mortgagor's period of redemption. If there be more than one holder of a First Mortgage, they shall be considered as, and act as, one First Mortgage for all purposes under this Declaration and the Bylaws.

1.11 Limited Common Elements. Those portions of the Common Elements allocated by this Declaration, the Plans or by operation of Section 47C-2-102 (2) or (4) of the Act for the exclusive use of one but fewer than all of the Units including, but not limited to, any deck, balcony, porch or patio appurtenant 2 BK7612PG0214 to a Unit and any attic storage areas appurtenant to a Unit.

That portion of the property upon which heating and air conditioning equipment serving a Unit is located shall constitute a Limited Common Element allocated specifically to the Unit served by such equipment.

1.12 Occupant. Any person or persons in possession of a Unit, including Unit Owners, the family members, lessees,

a Limited Common Element allocated specifically to the Unit served by such equipment.

1.12 Occupant. Any person or persons in possession of a Unit, including Unit Owners, the family members, lessees, guests and invitees of such person or persons, and family members, guests and invitees of such lessees.

1.13 Person. A natural person, corporation, partnership, trust or other legal or commercial entity, or any combination thereof..

1.14 plans. The plans of the Condominium, including, but not limited to, the survey entitled "Additional Property of Lake Park Condominium, LLC" identified in Exhibit "A-1", recorded in Unit Ownership File No. 179 in the Office of the Register of Deeds for Wake County, North Carolina, and by the Act made a part of this Declaration.

1.15 Plat. The survey plat depicting the Condominium and the location of the buildings on the property, recorded in Unit Ownership File No. 179 in the Office of the Register of Deeds for Wake County, North Carolina, and by the Act made a part of this Declaration.

1.16 Property. The real estate described on Exhibit "A", and the real estate described on Exhibit "A-1", if added by Declarant pursuant hereto, together with all buildings, amenities and other improvements now or hereafter constructed or located thereon, and all rights, privileges, easements and appurtenances belonging to or in any way pertaining to said real estate.

1.17 Rules and Regulations. The rules and regulations of the Condominium promulgated by the Executive Board from time to time.

1.18 Special Declarant Rights. The rights as defined in Section 47C-1-103 (23) of the Act for the benefit of a Declarant, including but not limited to the following: to complete the improvements indicated on the Plans; to maintain

The rights as defined in Section 47C-1-103 (23) of the Act for the benefit of a Declarant, including but not limited to the following: to complete the improvements indicated on the Plans; to maintain sales offices, management offices, models and signs advertising the Condominium; to exercise any development right as defined in Section 47C-2-110 of the Act; to use easements through the Common Elements; to elect, appoint or remove members of the Board during the Declarant Control period; and to withdraw any portion of the Property from the Condominium. Declarant shall have no right to subdivide or convert Units owned by Declarant.

Further, for a period of ten (10) years from the date of this Declaration, Declarant reserves the right, at any time, and in any order: to add all or any portion of the Additional Real Estate, together with any buildings, amenities or other 3 BK 7612PG0245 improvements now existing or constructed thereon, to the Condominium; to construct, or not to construct, at Declarant's option, any or all of the buildings, amenities or other improvements shown on a survey entitled "Additional Property of Lake Park Condominium, LLC", which survey is identified in Exhibit "A-1", is being recorded herewith and is a part of the plan for the Condominium; and to construct any other improvements on the Additional Real Estate. The addition of any or all of the Additional Real Estate to the Condominium, and the construction of any buildings, amenities (swimming pool, clubhouse, basketball court, volleyball courts, etc.) or other improvements on the Additional Real Estate, shall, however, be at the sole discretion of Declarant, and any or all of the buildings, amenities or other.

improvements shown on the above-referenced survey of Additional

the Additional Real Estate, shall, however, be at the sole discretion of Declarant, and any or all of the buildings, amenities or other.

improvements shown on the above-referenced survey of Additional Property Of Lake Park Condominium, LLC, "NEED NOT BE BUILT".

1.19 Unit. A portion of the Condominium, whether or not contained solely or partially within a building, together with its percentage of undivided interest in the Common Elements as set forth on Exhibit "B". Each Unit is designated and delineated on the Plans.

1.20 Unit Boundaries. The boundaries of each Unit, both as to vertical and horizontal planes, as shown on the Plans, are the undecorated surfaces of the perimeter walls, exterior doors and exterior windows facing the interior of the Unit, the undecorated surfaces of the ceiling facing the interior of the Unit, and the topmost surfaces of the subflooring, and include the decoration on all such interior and topmost surfaces, including, without limitation, all panelling, tiles, wallpaper, paint, finished flooring and any other materials constituting any part of the decorated surfaces thereof, and also includes all spaces, interior partitions and other fixtures and improvements within such boundaries. Also included as a part of the Unit shall be those portions of the heating and air conditioning system for the Unit which are located within the perimeter walls of the Unit and those portions of the heating and air conditioning system located in the Common Elements, wherever located.

1.21 Unit Owner. The person or persons, including the Declarant, owning a Unit in fee simple.

1.22 Additional Real Estate. The real estate described in Exhibit "A-1", together with all buildings and improvements now or hereafter constructed or located thereon, and all rights,

it in fee simple.

1.22 Additional Real Estate. The real estate described in Exhibit "A-1", together with all buildings and improvements now or hereafter constructed or located thereon, and all rights, privileges, easements and appurtenances belonging to or in any way pertaining to said real estate.

ARTICLE II Submission of Property to the Act 2.1 Submission.

Declarant hereby submits the Property 4 2 to the Act.

BK 7612 PG026 2.2 Name. The Property shall hereafter be known as University Commons Lake Park, A Condominium.

2.3 Division of Property into Separately Owned Units.

Declarant, pursuant to the Act, and to establish a plan of condominium ownership for the Condominium, does hereby divide the Property into four phases (Phases 1A, 1B, 2A, 2B, with such phases hereby divided into fifty-six (56) Units, and does hereby designate all such Units for separate ownership, subject however, to the provisions of Section 2.4 hereof.

2.4 Alterations of Units. Subject to the provisions of the Bylaws, a Unit may be altered pursuant to the provisions of Section 47C-2-111 and 47C-2-112 of the Act.

2.5 Limited Common Elements. The Limited Common elements serving or designed to serve each Unit are hereby allocated solely and exclusively to each such Unit.

2.6 Unit Allocations. The allocations to each Unit of ´a percentage of undivided interest in the Common Elements and of a percentage of the Common Expenses are as stated on Exhibit "B".

The allocation of undivided interest in the Common Elements and of the Common Expenses has been determined by a ratio formulated upon the relation that each Unit bears to the total number of Units. The votes are equally allocated to all Units with each Unit Owner having one (1) vote for each Unit owned.

2.7 2.8

ratio formulated upon the relation that each Unit bears to the total number of Units. The votes are equally allocated to all Units with each Unit Owner having one (1) vote for each Unit owned.

2.7 2.8 Encumbrances. The liens, defects and encumbrances affecting the Property to which the rights of Unit Owners and Occupants are hereby made subject are set out on Exhibit "C".

Condominium Ordinances. The Condominium is not subject to any code, real estate use law, ordinance, charter provisions, or regulation (i) prohibiting the condominium form of ownership, or (ii) imposing conditions or requirements upon a condominium which are not imposed upon physically similar developments under a different form of ownership. This statement is made pursuant to Section 47C-1-106 of the Act for the purpose of providing marketable title to the Units in the Condominium.

2.9 Reservation of Special Declarant Rights.

Declarant hereby reserves all Special Declarant Rights, as defined in Article 1.18.

ARTICLE III Additional Real Estate 3.1 Declarant's Right to Add Additional Real Estate.

Declarant expressly reserves the right to add the Additional Real Estate to the Condominium. All or part of the Additional Real Estate identified and described on Exhibit "A"-1 may be added to 5 BK 7612PG0217 the Condominium at different times, but no assurances are made in regard to the order in which such portions may be added.

Declarant shall have no duty or obligation of any kind to add any or all of the Additional Real Estate. The method of adding the Additional Real Estate to the Condominium shall be pursuant to Section 47C-2-110 of the Act.

3.2 Maximum Number of Additional Units: Units Restricted to Residential Use. The maximum number of additional

ditional Real Estate to the Condominium shall be pursuant to Section 47C-2-110 of the Act.

3.2 Maximum Number of Additional Units: Units Restricted to Residential Use. The maximum number of additional Units that may be created within the Additional Real Estate is one hundred eighty-four (184) Units. All of such Units will be restricted exclusively to residential use.

3.3 Compatibility of Style, etc. It is Declarant's present intent that any buildings, amenities and Units that may be erected upon the Additional Real Estate, or a portion thereof, will be compatible with the other buildings and improvements in the Condominium in terms of architectural style, quality of construction, and size. However, Declarant expressly reserves the right to change the architectural style, size and location of any buildings, amenities and Units that may be erected upon the Additional Real Estate.

3.4 Applicability of Restrictions, Etc. All restrictions in this Declaration and the Bylaws affecting use, occupancy and alienation of Units will apply to any and all additional Units that may be created within the Additional Real Estate.

3.5 In Other Improvements and Common Elements.

addition to the buildings and Units that may be erected upon the Additional Real Estate or a portion thereof, the other improvements and Common Elements that may be made or created upon or within the Additional Real Estate or each portion thereof which may be added to the Condominium will be generally similar in quality and quantity to the improvements and Common Elements located in the Condominium.

3.6 Applicability of Assurances if Additional Real Estate Not Added. The assurances made in this Article III will not apply with respect to any Additional Real Estate that is not

d in the Condominium.

3.6 Applicability of Assurances if Additional Real Estate Not Added. The assurances made in this Article III will not apply with respect to any Additional Real Estate that is not added to the Condominium. In the event that Declarant shall not expand the Condominium by the use of any portion of the Additional Real Estate, Declarant shall have the right to develop all or any portion of the Additional Real Estate without restriction.

3.7 Allocation of Interest in Common Elements and Common Expenses. If Declarant adds the Additional Real Estate, or portions thereof, to the Condominium, the percentage interest of each Unit Owner in the Common Elements and the Common Expenses will be determined by a ratio formulated upon the relation that each Unit bears to the total number of Units in the Condominium.

ARTICLE IV 6 BK 7612PG0218 4.1 Easements Encroachments. In the event that, by reason of the construction, reconstruction, rehabilitation, alteration or improvement of the buildings or improvements comprising a part of the Property, any part of the Common Elements now or hereafter encroaches upon any part of any Unit, or any part of Common Elements, or upon any part of another Unit, an easement for the continued existence and maintenance of each such encroachment is hereby declared and granted and shall continue for so long as each such encroachment exists; provided that in no event shall an easement for such encroachment be created if such encroachment is detrimental to or interferes with the reasonable use and.

enjoyment of the Common Elements or Units so encroached upon.

4.2 Easements Through Walls. Easements are hereby declared and granted to the Association and to such persons as are authorized by the Association, to install, lay, maintain,

Units so encroached upon.

4.2 Easements Through Walls. Easements are hereby declared and granted to the Association and to such persons as are authorized by the Association, to install, lay, maintain, repair and replace any chutes, flues, ducts, vents, pipes, wires, conduits and other utility installations, and structural components running through the walls of the Units, whether or not such walls lie in whole or in part within the boundaries of any Unit.

4.3 Reconstruct.

Easements to Repair, Maintain, Restore and Wherever in, and whenever by, this Declaration, the Bylaws or the Act, a Unit Owner, the Association, the Board or any other person, is authorized to enter upon a Unit or the Common Elements to inspect, repair, maintain, restore or reconstruct all or any part of a Unit or the Common Elements, such easements as are necessary for such entry and such repair, maintenance, restoration or reconstruction are hereby declared and granted.

4.4 the Easements for Utilities. The Units and Common Elements shall be, and are hereby, made subject to easements in favor of the Declarant (until Declarant shall have satisfied all of its obligations under the Declaration and Bylaws and all commitments in favor of any Unit Owner and the Association), Association, appropriate utility and service companies and governmental agencies or authorities for such utility and service lines and equipment as may be necessary or desirable to serve any portion of the Property. The easements provided for by this Section 4.4 shall include, without limitation, rights of Declarant, the Association, any providing utility, any service company, and any governmental agency or authority and any of them to install, lay, maintain, repair, relocate and replace gas

, rights of Declarant, the Association, any providing utility, any service company, and any governmental agency or authority and any of them to install, lay, maintain, repair, relocate and replace gas lines, pipes and conduits, water mains and pipes, sewer and drain lines, telephone wires and equipment, television and equipment facilities (cable or otherwise), electrical wires, conduits and equipment and ducts and vents and any other appropriate equipment and facilities over, under, through, along and on the Units and Common Elements. Notwithstanding the foregoing provisions of this Section 3.4, unless approved in writing by the Unit Owner or Unit Owners affected thereby, any such easement through a Unit 7 BK7612PG0219 shall be located either in substantially the same location as such facilities or similar facilities existed at the time of first conveyance of the Unit by the Declarant to a grantee other than the Declarant, or so as not to materially interfere with the use of occupancy of the Unit by its Owners.

4.5 (a) Declarant's Easement.

Declarant hereby reserves such easements through the Common Elements as may be reasonably necessary for the purposes of discharging its obligations, exercising Special Declarant Rights, and completing the development and construction of the Condominium, which easements shall exist as long as.

reasonably necessary for such purpose.

(b) Declarant, its successors, transfers and assigns, owning the Additional Real Estate, or any portion thereof, and the mortgagees of Declarant, its successors, transfers and assigns, owning the Additional Real Estate, or any portion thereof, shall have and does hereby reserve a perpetual nonexclusive right and easement of use of those portions of the

essors, transfers and assigns, owning the Additional Real Estate, or any portion thereof, shall have and does hereby reserve a perpetual nonexclusive right and easement of use of those portions of the Common Elements of the Condominium used as driveways, including the Driveway Entrances from Crab Orchard Drive and Lake Dam Road, and of use of any and all water lines; sewer lines; lift station; storm water detention ponds; drainage easements; storm drains; electric, telephone, or cable television wires or conduits; gas.

lines; or similar utilities facilities that are a part of the Common Elements, to the extent reasonably necessary for Declarant, or such other owner of the Additional Real Estate, or a portion thereof, to have ingress and egress to and from the Additional Real Estate over the Common Elements, and to provide drainage facilities and utility services including sewer lines, the use of the lift station and the use of the storm water detention ponds drainage easements, storm drains and other drainage facilities, to the Additional Real Estate. Provided, however, the owner of the Additional Real Estate exercising such rights and easements shall contribute a reasonable pro-rata share of the cost of the operation and maintenance of the lift station and other utility facilities and other portions of the Common Elements so utilized. These easements and rights may not be changed without the prior written consent of all parties entitled to the exercise of such easements and rights. Any easements rights of the mortgagees of Declarant, its successors, transfers and assigns, provided for herein, shall terminate upon satisfaction and cancellation of that mortgagee's deed of trust.

(c) Declarant, its successors, transfers and assigns,

its successors, transfers and assigns, provided for herein, shall terminate upon satisfaction and cancellation of that mortgagee's deed of trust.

(c) Declarant, its successors, transfers and assigns, owning the Additional Real Estate, or any portion thereof, and the mortgagees of Declarant, its successors, transfers and assigns, owning the Additional Real Estate, or any portion thereof, shall have and does hereby reserve a perpetual nonexclusive right and easement of use of those portions of the Common Elements that may be constructed as recreational amenities of the Condominium (basketball court, volleyball courts, pool and adjacent patio and decks, and clubhouse), 8 BK 7612PG0220 provided, however, the owner of the Additional Real Estate exercising such rights and easements shall contribute a reasonable prorata share of the cost of the operation and maintenance of such amenities so utilized. These easements and rights may not be changed without the prior written consent of all parties entitled to the exercise of such easements and rights. Any easements rights of the mortgagees of Declarant, its successors, transfers and assigns, as provided for herein, shall terminate upon satisfaction and cancellation of the mortgagee's deed of trust.

4.6 Easements to Run With Land. All easements and rights described in this Article IV are appurtenant easements running with the land, and except as otherwise expressly provided in this Article IV shall be perpetually in full force and effect, and shall inure to the benefit of and be binding upon Declarant, its successors and assigns owning the Additional Real Estate, or any portion thereof Declarant's mortgagees, the Association, Unit Owners, Occupants, First Mortgagees and any other person having

rant, its successors and assigns owning the Additional Real Estate, or any portion thereof Declarant's mortgagees, the Association, Unit Owners, Occupants, First Mortgagees and any other person having any interest in the Condominium or any part thereof. The Condominium and every part thereof shall be conveyed and encumbered subject to and together with all easements and rights described in this Article IV, whether or not specifically mentioned in any such conveyance or encumbrance.

ARTICLE V Restrictions, Conditions and Covenants 5.1 Compliance with Declaration, Bylaws and Rules and Regulations. Each Unit Owner and Occupant shall comply with all applicable provisions of the Act, this Declaration, the Bylaws, the Articles of Incorporation of the Association, and the Rules and Regulations promulgated by the Board or the Association, as amended. Failure to comply shall be grounds for an action by the Association, an aggrieved Unit Owner, or any person adversely affected, for recovery of damages, injunction, or other relief.

5.2 Administration of Condominium. The Condominium shall be administered in accordance with the provisions of the Act, this Declaration and the Bylaws.

5.3 (a) Use Restricted; Use by Declarant.

Lease Except as may be otherwise expressly provided in this Declaration, each unit shall be used for residential purposes only and shall be occupied by no more than four (4) unrelated persons or six (6) related persons on a permanent basis. No trade or business of any kind may be conducted.

or rental of a unit for residential purposes shall not be considered to be a violation of this Covenant, so long as the lease is in compliance with the provisions of this Declaration, the Bylaws and reasonable Rules and Regulations adopted by the Board.

9 (b) BK 7612PG0221

e a violation of this Covenant, so long as the lease is in compliance with the provisions of this Declaration, the Bylaws and reasonable Rules and Regulations adopted by the Board.

9 (b) BK 7612PG0221 Except as reserved by Declarant, no advertising signs (except one "For Rent" or "For Sale" sign per Unit of not more than 1' x 2' placed only inside the Unit), billboards, unsightly objects, or nuisances shall be erected, placed or permitted to remain on the property subject to this Declaration.

(c) The foregoing provisions of this Section or any other provision of this Declaration or the Bylaws notwithstanding, Declarant shall have an easement to maintain sales offices (sales offices may be located in one or more Units and/or the clubhouse, if constructed) and models for sales of Units throughout the Condominium. Declarant shall have the right to relocate, from time to time, and to discontinue and reestablish, from time to time, within the Condominium, until all of the Units have been conveyed to a Unit Owner other than a Declarant, any one or more of such offices or models. Declarant also shall have the right to change the use or combination of uses of such offices or models, provided that such offices or models shall be used only for sales offices or models. The total number of such offices or models maintained at any time by a Declarant shall not exceed four (4), and the size of any such relocated or re-established office or model shall not exceed the size of the largest Unit in the Condominium.

(d) Declarant shall also have an easement to maintain signs on the Common Elements advertising the Condominium until all of the Units have been conveyed to Unit Owners other than a Declarant. Declarant shall remove all such signs not later than

maintain signs on the Common Elements advertising the Condominium until all of the Units have been conveyed to Unit Owners other than a Declarant. Declarant shall remove all such signs not later than one (1) year after all of the Units have been conveyed to Unit Owners other than Declarant and shall repair or pay for the repair of all damage done by removal of such signs.

(e) The foregoing provisions of this Section or any other provision of this Declaration or the Bylaws notwithstanding, the Association may maintain an office in the Condominium for management of the Condominium, which office may be located in one or more Units or the clubhouse (if constructed).

5.4 Hazardous Use and Waste. Nothing shall be done to or kept in any Unit or the Common Elements that will increase any rate of insurance maintained with respect to the Condominium without the prior written consent of the Board. No Unit Owner or Occupant shall permit anything to be done to or kept in his Unit or the Common Elements that will result in the cancellation of insurance maintained with respect to the Condominium, or that would be in violation of any law, or that will result in the commitment of waste (damage, abuse, or destruction) to or in his Unit or the Common Elements.

5.5 Alterations of Common Elements. No Unit Owner or Occupant, except Declarant during the Declarant Control Period, shall alter, construct anything upon, or remove anything from, the Common Elements, or paint, decorate, landscape or adorn any portion of the Common Elements, without the prior written consent 10 of the Board.

BK 7612PG0222 5.6 Prohibition of Renting for Transient or Hotel Purposes.

No Unit Owner shall rent his Unit for transient or hotel purposes, which, for the purposes of this Declaration shall

he Board.

BK 7612PG0222 5.6 Prohibition of Renting for Transient or Hotel Purposes.

No Unit Owner shall rent his Unit for transient or hotel purposes, which, for the purposes of this Declaration shall be defined as either a rental for any period less than thirty (30) days or any rental if the lessee of the Unit is provided customary hotel services. Each permitted lease shall be in writing and shall be subject to this Declaration, the Bylaws, and the Rules and Regulations adopted hereunder and any failure of the lessee to comply with the terms of such documents shall be a default under the lease. Other than the foregoing restrictions, each Unit Owner shall have the full right to lease all or any portion of his Unit.

5.7 Pets. With the exception of domesticated fish and birds (which may be kept inside a Unit provided that they do not become a nuisance to any other Unit Owner), no pets, animals, livestock, or poultry of any kind shall be raised, bred, or kept on the property.

5.8 Rules and Regulations. In addition to the foregoing restrictions, conditions and covenants concerning the use of the Condominium, reasonable rules and regulations not in conflict therewith and supplementary thereto may be promulgated and amended from time to time by the Board or the Association, as more fully provided in the Bylaws.

5.9 Restrictions, Conditions and Covenants to Run With Land. Each Unit Owner and Occupant shall be subject to all restrictions, conditions and covenants of this Declaration, and all such restrictions, conditions and covenants shall be deemed to be covenants running with the land, and shall bind every person having any interest in the Property, and shall inure to the benefit of every Unit Owner.

5.10 Storage and Parking of Vehicles. No motor vehicle

nants running with the land, and shall bind every person having any interest in the Property, and shall inure to the benefit of every Unit Owner.

5.10 Storage and Parking of Vehicles. No motor vehicle (other than private passenger vehicles including motorcycles and pick-up and small trucks which shall be currently licensed andinspected) including commercial vehicle, truck (other than pick-up and small truck), tractor, mobile home or trailer (either with or without wheels), camper, camper trailer, boat or other water craft, boat trailer, or any other transportation device of any kind, shall be parked or stored in or upon the Common Elements except in any area provided by the Association for such storage and subject to rules, regulations and fees charged by the Association, or parked or stored within any street right-of-way.

Each Unit Owner shall be entitled to the use of four (4) parking spaces which may be designated by the Board. No Unit Owner or Occupant shall repair or restore any vehicle of any kind upon the property, except for emergency repairs, and then only to the extent necessary to enable movement thereof to a proper repair facility.

5.11 Exterior and Visible Interior Improvements.

11 2 (a) BK 7612PG0223 No awnings, shades, screens or other item shall be attached to, hung or used on the exterior of any window or door of a unit or on the exterior of any building without the prior written consent of the Board of Directors. All shades, blinds, drapery linings and other window treatments visible from the exterior of a unit on any window or door shall be white or off-white. Outside clothes lines or other outside facilities for drying or airing clothes are specifically prohibited and shall not be erected, placed or maintained on any portion of the

l be white or off-white. Outside clothes lines or other outside facilities for drying or airing clothes are specifically prohibited and shall not be erected, placed or maintained on any portion of the Condominium, nor shall any clothing, rugs, or any other item be hung on any railing or fence enclosing any balcony, porch, patio or deck.

(b) No unit owner shall install any electrical or telephone wire, television antenna, air conditioning unit, or other machine anywhere on the Condominium in such a fashion that it is visible anywhere outside of a Unit.

5.12 Prohibitions on Use of Common Elements. Except with the specific written approval of the Board, the Common Elements, including Limited Common Elements, shall not be used for temporary or permanent storage or supplies, personal property, trash or refuse of any kind, other than in common trash receptacles placed at the discretion of the Board, nor shall such areas be used in any way for the drying or airing of clothing, rugs or other fabrics. Entrances, sidewalks, yards, driveways, parking areas and stairways shall not be obstructed in any way.

No activities shall be carried on nor condition maintained by any Unit Owner, either in his Unit or upon the Common Elements, if such activities should despoil, or tend to despoil, the appearance of the Property. No "garage", "attic sales" or "yard sales" shall be permitted outside of a Unit. It is expressly acknowledged and agreed by all parties concerned that this section is for the mutual benefit of all Unit Owners of the Property and is necessary for the protection of the Unit Owners and is enforceable by the Board or by any one or more Unit Owners through the Board of Directors.

5.13 No Nuisances. No nuisances shall be allowed upon the

essary for the protection of the Unit Owners and is enforceable by the Board or by any one or more Unit Owners through the Board of Directors.

5.13 No Nuisances. No nuisances shall be allowed upon the Property and no person shall engage in any use, practice or activity upon the Property which is noxious, offensive or a source of annoyance to Unit Owners or their tenants or which reasonably interferes with the peaceful possession and proper use of the Condominium Property by any Unit Owner and/or tenants.

exterior speakers, horns, whistles, bells or other sound devices except security devices used exclusively for security purposes, shall be located, used or placed on the Property. All parts of the Property shall be kept in a clean and sanitary condition, and no rubbish, refuse or garbage shall be allowed to accumulate and no fire hazard shall be allowed to exist. Any Unit Owner who shall dump or place (or permit his family, tenants, guests or agent to do so) any trash or debris upon any portion of the Property shall be liable to the Association for the actual cost of removal thereof or the sum of $100.00, whichever is greater, and the same shall be added to and become a part of the 12 BK 7612PG0224 assessment next coming due to which the Unit Owner of his Unit is subject. No Unit Owner shall permit any use of a Unit or of the Common Elements which will increase the rate of insurance upon the Property. The Association and its Agent shall have the right to remove any item or items left outside a Unit on the Common Elements or hanging from a balcony.

5.14 Lawful Use. No immoral, improper or unlawful use shall be made of the Condominium Property or any part thereof.

All valid laws, zoning ordinances and regulations of governmental

g from a balcony.

5.14 Lawful Use. No immoral, improper or unlawful use shall be made of the Condominium Property or any part thereof.

All valid laws, zoning ordinances and regulations of governmental bodies having jurisdiction thereof shall be observed.

5.15 Access to Units. The Association and its agent shall have access to each Unit from time to time during reasonable working hours, upon oral or written notice to its Unit Owner or occupant of the Unit, as may be necessary for the maintenance, repair or replacement of any of the Common Elements.

The Association and its agents shall also have access to each Unit at all times without notice, as may be necessary to make emergency repairs to prevent damage to Common Elements.

6.1 ARTICLE VI Assessments Assessment Liens. The Board has the power to levy assessments against the Units for Common Expenses. Such assessments, together with interest at the rate of ten percent (10%) per annum, costs and reasonable attorney's fees shall be a lien on the Units against which they are assessed, and if any payment thereof becomes delinquent, the lien may be foreclosed and the Unit sold, or a money judgment obtained against the persons liable therefor, all as set forth in the Bylaws.

6.2 Personal Liability of Transferees; Statement; Liability of First Mortgage.

(a) The personal obligation for assessments which are delinquent at the time of transfer of a Unit shall not pass to the transferee of said Unit unless said delinquent assessments are expressly assumed by said transferee.

(b) Any transferee referred to in (a) above shall be entitled to a statement from the Board, pursuant to Section 6.2 of the Bylaws, and such transferee's Unit shall not be subject to a lien for any unpaid assessments against such Unit in excess of

ll be entitled to a statement from the Board, pursuant to Section 6.2 of the Bylaws, and such transferee's Unit shall not be subject to a lien for any unpaid assessments against such Unit in excess of the amount therein set forth.

(c) Where a First Mortgagee, or other person claiming through such First Mortgagee, pursuant to the remedies provided in a mortgage or deed of trust, or by foreclosure or by deed, or assignment, in lieu of foreclosure, obtains title to a Unit, the liability of such First Mortgagee or such other person for assessments shall be only for the assessments, or installments thereof, that would become delinquent, if not paid, after 13 BK 7612 PG0225 acquisition of title.

For purposes hereof, title to a Unit shall .

be deemed acquired by foreclosure upon expiration of the applicable period of redemption.

(d) Without releasing the transferor from any liability therefore, any unpaid portion of assessments which is not a lien under (b) above, or, resulting, as provided in (c) above, from the exercise of remedies in a mortgage or deed of trust, or by foreclosure thereof or by deed, or assignment, in lieu of such foreclosure, shall be a Common Expense collectible from all Unit Owners, including the transferree under (b) above and the First Mortgagee of such other person under (c) above who acquires ownership by foreclosure or by deed, or assignment , in lieu of foreclosure.

6.3 Prohibition of Exemption from Liability for Contribution Toward Common Expenses.

No Unit Owner may exempt himself from liability for his share of the Common Expenses assessed by the Association by waiver or the use or enjoyment of any of the Common Elements or by abandonment of his Unit or otherwise.

6.4 The Date of Commencement of Annual Assessments.

mon Expenses assessed by the Association by waiver or the use or enjoyment of any of the Common Elements or by abandonment of his Unit or otherwise.

6.4 The Date of Commencement of Annual Assessments.

annual assessments provided for herein shall commence as to all Units on the first day of the month following the conveyance of The first annual assessment the first Unit by the Declarant.

shall be adjusted according to the number of months then The initial monthly assessment remaining in that fiscal year.

for the first calendar year shall not exceed ninety dollars ($90.00) per month with the Board reserving the right to charge a lesser amount for the first year.

6.5 Capitalization of Association. Upon acquisition of record title to a Unit, each Owner shall contribute to the capital of the Association an amount equal to one-sixth (1/6) of the amount of the annual assessment for that Unit as determined by the Board. This amount shall be paid by the buyer at the closing of the purchase of the Unit and shall be disbursed to the Association.

7.1 (a) ARTICLE VII Management, Maintenance, Repairs Replacements, Alterations and Improvements Common Elements.

By the Association. The management, replacement, maintenance, repair, alteration, and improvement of the Common Elements shall be the responsibility of the Association , and subject to the provisions of Section 7.2 hereof, the cost thereof shall be a Common Expense to the extent not paid by Unit Owners All damage caused to a Unit pursuant to Section 7.1(b) hereof.

by any work on or to the Common Elements done by or for the Association shall be repaired by the Association, and the cost 14 2 BK 7612PG0226 thereof shall be a Common Expense.

(b) By Unit Owners. Each Unit Owner shall pay all

ommon Elements done by or for the Association shall be repaired by the Association, and the cost 14 2 BK 7612PG0226 thereof shall be a Common Expense.

(b) By Unit Owners. Each Unit Owner shall pay all costs to repair and replace all portions of the Common Elements that may become damaged or destroyed by reason by his intentional acts or the intentional acts of any Occupant of his Unit.

payment shall be made upon demand made by the Association.

7.2 Such Common Expenses Associated with Limited Common Elements or Benefitting Less Than All Units.

(a) Any Common Expenses associated with the maintenance, repair, or replacement of a Limited Common Element shall be assessed against the Unit, or in equal shares to the Units, to which such Limited Common Element was allocated at the time the expense was incurred.

(b) In addition, the Association may assess any Common Expense benefitting less than all of the Units against the Units benefitted in proportion to their Common Expense liability.

7.3 Units. Each Unit Owner shall maintain his Unit, and any limited Common Elements appurtenant thereto, at all times in a good and clean condition, and repair and replace, at his expense, all portion of his Unit; shall perform his responsibilities in such manner as not to unreasonably disturb other Occupants; shall promptly report to the Board, or its agents, any defect or need for repairs the responsibility for which is that of the Association; and, to the extent that such expense is not covered by the proceeds of insurance carried by the Association, shall pay all costs to repair and replace any portion of another Unit that has become damaged or destroyed by reason of his own acts or omissions, or the acts or omissions of the any Occupant of his Unit. Such payment shall be made upon

place any portion of another Unit that has become damaged or destroyed by reason of his own acts or omissions, or the acts or omissions of the any Occupant of his Unit. Such payment shall be made upon demand by the Unit Owner of such other Unit. Nothing herein contained shall modify any waiver by insurance companies of rights of subrogation.

7.4 Waiver of Claims. Except only as provided in Section 7.5(a) and (b), the Association agrees that it shall make no claim against a Unit Owner or Occupant, and each Unit Owner and Occupant agrees that he shall make no claim against the Association, the members of the Board, officers of the Association, or employees or agents of any thereof, or against any manager retained by the Board, or his or its officers, directors, employees or agents, or other Unit Owners or Occupants, for any loss or damage to any of the Property, or to a Unit of personal property therein, even if caused by the omission or neglect of any one or more of such persons and all such claims are hereby waived and released; provided, that this waiver shall not apply to any such loss or damage due to intentional acts.

7.5 (a) Right of Entry.

By the Association.

The Association, and any 15 1.

BK 7612PG0227 person authorized by the Association, may enter any Unit or any of the Limited Common Elements in case of any emergency or dangerous conditions or situation originating in or threatening The that Unit or any of the Limited Common Elements.

Association, and any person authorized by the Association, after reasonable notice to a Unit Owner or Occupant, may enter that Unit or any of the Limited Common Elements for the purposes of performing any of the Association's powers under the Act, this Declaration or the Bylaws with respect to that or any other Unit, Notwith-

Unit or any of the Limited Common Elements for the purposes of performing any of the Association's powers under the Act, this Declaration or the Bylaws with respect to that or any other Unit, Notwithany Limited Common Elements, or the Common Elements .

standing Section 7.4, the Association shall be responsible for the repair of any damage caused by the Association or its authorized person to the entered Unit, and the cost thereof shall be a Common Expense. All such entries shall be made and done so as to cause as little inconvenience as possible to the Unit Owner and Occupant of the entered Unit or any portion of the Limited Common Elements allocated to the Unit Owner.

(b) By Unit Owners. Each Unit Owner and Occupant shall allow other Unit Owners and Occupants, and their representatives, to enter his Unit, or Limited Common Elements allocated to his Unit, when reasonably necessary for the purpose of altering, maintaining, repairing or replacing the Unit, or performing the duties and obligations under the Act, this Declaration or the Bylaws, of the Unit Owner or Occupant making such entry, provided that requests for entry are made in advance and that such entry is at a time convenient to the Unit Owner or Occupant whose Unit or Limited Common Element is to be entered.

In case of an emergency or dangerous condition or situation, such Notwithstanding Section 7.4, right of entry shall be immediate.

the person making such entry shall be responsible for repair of any damage caused by such person to the entered Unit or Limited Common Element.

8.1 ARTICLE VIII Insurance Casualty Insurance. The Association shall maintain, to the extent available, casualty insurance upon the Property in the name of, and the proceeds thereof shall be payable to, the Association as trustee for

ty Insurance. The Association shall maintain, to the extent available, casualty insurance upon the Property in the name of, and the proceeds thereof shall be payable to, the Association as trustee for all Unit Owners and First Mortgagees as their interest may appear, and be disbursed Such insurance shall be in an amount equal pursuant to the Act.

to not less than one hundred percent (100%) of the full insurable value of the Property on a replacement cost basis exclusive of land, excavations, foundations and other items normally excluded from property policies, and shall insure against such risks and contain such provisions as the Board from time to time shall determine, but at a minimum shall conform in all respects to the requirements of the Act, and shall provide that, notwithstanding any provision thereof that gives the insurer an election to restore damage in lieu of making a cash settlement, such option shall not be exercisable if such restoration is prohibited pursuant to Section 47C-3-113 (h) of the Act.

16 8.2 BK7612PG0228 Public Liability Insurance. The Association shall maintain public liability insurance for the benefit of the Unit Owners, Occupants, the Association, the Board, the managing agent, if any, the Declarant, and their respective officers, directors, agents and employees, in such amounts and with such coverage as shall be determined by the Board; provided that the public liability insurance shall be for at least One Million Dollars ($1,000,000.00) per occurrence for death, bodily injury and property damage. Said insurance shall comply in all respects with the requirement of the Act and shall contain a severability-of-interest endorsement precluding the insurer from denying liability because of negligent acts of any insured;

comply in all respects with the requirement of the Act and shall contain a severability-of-interest endorsement precluding the insurer from denying liability because of negligent acts of any insured; insure all of such benefited parties against such liability arising out of or in connection with the use, ownership or maintenance of the Common Elements, and the streets, sidewalks and public spaces adjoining the Condominium; and insure the Association, the Board, the managing agent, if any, and their respective officers, directors, agents and employees against such liability arising out of or in connection with the use or maintenance of the Units.

8.3 Fidelity Coverage. If available at reasonable cost, fidelity coverage shall be maintained by the Association in commercial blanket form covering each director and officer of the Association, any employee or agent of the Association and any other person handling or responsible for handling funds of the Association in the face amount of at least the greater of (i) one and one-half (1 1/2) times the estimated annual operating expenses and reserves of the Association, or (ii) the sum of three months' aggregate assessments on all Units plus the Association's reserve funds. Such bonds shall contain an appropriate endorsement to cover persons who serve without compensation. The premium on such bonds shall be a Common Expense.

8.4 Insurance Unavailable.

If the insurance described in Sections 8.1, 8.2, or 8.3 is not reasonably available, the Association shall promptly cause notice of such fact to be hand-delivered or sent prepaid by United States mail to all Unit Owners.

8.5 Other Insurance. The Association may procure such other insurance, including worker's compensation insurance, as it

t to be hand-delivered or sent prepaid by United States mail to all Unit Owners.

8.5 Other Insurance. The Association may procure such other insurance, including worker's compensation insurance, as it may from time to time deem appropriate to protect the Association or the Unit Owners. If at least one Unit is subject to mortgage financing, the Association shall obtain and keep in force such insurance as such mortgagee shall reasonably require from time to time.

8.6 Insurance Trustee. The Board may engage, and pay as a Common Expense, any appropriate person to act as an insurance trustee to receive and disburse insurance proceeds upon such terms as the Board shall determine, consistent with the provisions of the Act and this Declaration.

17 8.7 BK 7612PG 0229 Individual Policy for Unit Owners. Each Unit Owner may obtain insurance, at his own expense, affording personal property, additional living expense, condominium assessment, personal liability, and any other coverage obtainable, to the extent and in the amounts such Unit Owner deems necessary to protect his own interest; provided that any such insurance shall contain waivers pursuant to Section 7.4 and shall provide that it is without contribution as against the insurance purchased by the Association. If a casualty loss is sustained and there is a reduction in the amount of the proceeds that would otherwise be payable on the insurance purchased by the Association due to the proration of the insurance purchased by a Unit Owner under this Section, such Unit Owner shall be liable to the Association to the extent of such reduction and shall pay the assigns the proceeds of his insurance, to the extent of such reduction, to the Association.

ARTICLE IX Casualty Damage If all or any part of the Property shall be damaged or

eduction and shall pay the assigns the proceeds of his insurance, to the extent of such reduction, to the Association.

ARTICLE IX Casualty Damage If all or any part of the Property shall be damaged or (1) destroyed, the same shall be repaired or replaced unless: the Condominium is terminated, (2) repair or replacement would be illegal under any State or local health or safety statute or ordinance, or (3) the Unit Owners elect not to rebuild or replace by an ninety percent (90%) vote, including one hundred percent (100%) approval of owners of Units not to be rebuilt or owners assigned to Limited Common Elements not to be rebuilt.

proceeds of insurance shall be used and applied in accordance with the provisions of Section 47C-3-113 (e) and (h) of the Act.

ARTICLE X Condemnation All In the event of a taking by eminent domain, or by a conveyance in lieu thereof, of all or any part of the Property, the awards paid on account thereof shall be applied in accordance with Section 47C-1-107 of the Act and Section 9.2 of the Bylaws.

ARTICLE XI Termination The Condominium may be terminated only in strict compliance with Section 47C-2-118 of the Act and Section 9.4 of the Bylaws.

ARTICLE XII Amendment This Declaration may be amended only in strict compliance with the Act, including, without limitation, Sections 47C-2-105 and 47C-2-117 of the Act, except that no amendment altering or 18 • BK 7612PG0230 impairing Special Declarant Rights may be made without the written consent of Declarant.

In the event the Declarant has arranged for and provided purchasers of Units with VA and/or FHA insured mortgage loans, then as long as Declarant owns twenty-five percent (25%) of the Units in all Phases of the Condominium, the following actions

nd provided purchasers of Units with VA and/or FHA insured mortgage loans, then as long as Declarant owns twenty-five percent (25%) of the Units in all Phases of the Condominium, the following actions will require the prior written approval of the Federal Housing Amendment of Administration and/or the Veterans Administration: the Declaration or merger or consolidation with another condominium.

ARTICLE XIII Rights of First Mortgagees; FNMA and FHLMC Provisions The following provisions shall take precedence over all other provisions of this Declaration and Bylaws: 13.1 Any Amendments During Declarant Control Period.

amendments to this Declaration or to the Bylaws during the Declarant Control Period shall be subject to the prior approval of all First Mortgagees, provided, however, that, if any First Mortgagee fails to respond to a written request for approval within thirty (30) days of said request, approval shall be deemed to have been given by such First Mortgagee.

13.2 Availability of Condominium Documents, Books, The Association shall, upon Records and Financial Statements.

request and during normal business hours, make available for inspection by Unit Owners and the First Mortgagees and the insurers and guarantors of a First Mortgage on any Unit, current copies of the Declaration, the Bylaws, other rules and regulations governing the Condominium and the books, records and financial statements of the Association. The Association shall provide a financial statement for the preceding fiscal year if requested in writing by a First Mortgagee or insurer or guarantor of a First Mortgage. The Association shall, upon request and during normal business hours, make available for inspection by prospective purchasers of Units, current copies of the

insurer or guarantor of a First Mortgage. The Association shall, upon request and during normal business hours, make available for inspection by prospective purchasers of Units, current copies of the Declaration, Bylaws, the Rules and Regulations governing the Condominium, and the most recent annual financial statement.

13.3 Successor's Personal Obligation for Delinquent Assessments. The personal obligations for assessments which are delinquent at the time of transfer of a Unit shall not pass to the successors in title or interest to said Unit unless said delinquent assessments are expressly assumed by them.

13.4 Rights of Action. The Association and any aggrieved Unit Owner shall have a right of action against Unit Owners and any aggrieved Unit Owner shall have a right of action against the Association for failure to comply with the provisions of this Declaration, the Bylaws and the Rules and Regulations, 19 BK 7612 PG023 and decisions of the Association made pursuant to authority granted to the Association in this Declaration and the Bylaws.

13.5 Management and Other Agreements. Any management agreement between the Declarant or the Association and a professional manager or any other agreement providing for services of the sponsor or Declarant shall be terminable by either party thereto without cause and without payment of a termination fee upon not more than thirty (30) days' prior written notice and shall not exceed a term of three (3) years, subject to renewal by the consent of both parties.

13.6 Right of First Refusal. The right of a Unit Owner to sell, transfer, mortgage or otherwise convey his interest in his Unit shall not be subject to any right of first refusal.

13.7 Consent of First Mortgagees. This Section 13.7

e right of a Unit Owner to sell, transfer, mortgage or otherwise convey his interest in his Unit shall not be subject to any right of first refusal.

13.7 Consent of First Mortgagees. This Section 13.7 shall be effective only if, at the time this Section would apply, at least one Unit is subject to mortgage financing.

Any decision to terminate the Condominium for reasons other than substantial destruction or condemnation of the property shall require the prior written consent of Eligible Mortgage Holders, as defined in Section 13.9 hereof, representing at least 67% of the votes allocated to Units subject to First Mortgages held by Eligible Mortgage Holders, or such greater requirements specified by the Act.

Any amendment to the Declaration or Bylaws which materially changes any of the following shall require the prior written consent of Unit Owners holding at least 67% of the total votes in the Association and of Eligible Mortgage Holders representing at least 51% of the votes allocated to Units subject to First Mortgages held by Eligible Mortgage Holders, or such greater requirements specified by the Act or hereunder: (a).

(b) such liens; voting rights; assessments, assessment liens or subordination of reserves for maintenance, repair and replacement (c) of Common Elements; (d) responsibility for maintenance and repairs; (e) reallocation of interests in the Common Elements or Limited Common Elements or rights to their use; (f) (g) boundaries of any Unit; convertibility of Units into Common Elements or Common Elements into Units; 20 (h) BK7612PG0232 expansion or contraction of the Condominium or the addition, annexation or withdrawal of property to or from the Condominium; (i) (j) (k) right to sell, (1) insurance or fidelity bonds; leasing of Units;

ansion or contraction of the Condominium or the addition, annexation or withdrawal of property to or from the Condominium; (i) (j) (k) right to sell, (1) insurance or fidelity bonds; leasing of Units; imposition of any restrictions on a Unit Owner's transfer or otherwise convey his Unit; a decision by the Association to establish self-management when professional management had been required previously by any Eligible Mortgage Holder; (m) restoration or repair of the Condominium (after damage or destruction or partial condemnation) in a manner other than that specified in this Declaration or the Bylaws; (n) any action to terminate the legal status of the Condominium after substantial damage or destruction or condemnation; or (0) any provisions that expressly benefit First Mortgagees or insurers or guarantors of First Mortgages.

An addition or amendment to the Declaration or Bylaws shall not be considered material if it is for the purpose of correcting technical or typographical errors, or for clarification only.

13.8 Consent of First Mortgagees or Unit Owners. This Section 13.8 shall be effective only if, at the time this Section would apply, at least one Unit is subject to mortgage financing.

Unless First Mortgagees holding at least 66 2/3% of the votes allocated to First Mortgagees except higher percentages as are required by law, of the First Mortgagees (based upon one vote for each First Mortgage owned) and Unit Owners (other than a Declarant) holding at least 66 2/3% of the total votes in the Association have given their prior written approval, or such greater requirements specified in the Act or hereunder have been satisfied, the Association shall not be entitled to: (a) by act or omission, seek or abandon or terminate the Condominium; (b)

or such greater requirements specified in the Act or hereunder have been satisfied, the Association shall not be entitled to: (a) by act or omission, seek or abandon or terminate the Condominium; (b) change the pro-rata interest or obligations of any Unit for the purpose of: (i) Levying assessments or charges or allocating distributions of hazard insurance proceeds or condemnation awards, or (ii) determining the pro-rata share of ownership of each Unit in the Common Elements; 21 (c) (d) BK 7612PG0233 partition or subdivide any Unit; except in the case of any addition of the Additional Real Estate pursuant to the provisions hereof, by act or omission, seek to abandon, partition, subdivide, encumber, sell or transfer the Common Elements. (The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Elements shall not be deemed a transfer within the meaning of this clause.); (e) use hazard insurance proceeds for losses to any part of the Condominium (whether to Units or to Common Elements) for other than repair, replacement, or reconstruction thereof subject to Article IX and Section 6.1 of Article VIII hereof.

13.9 Notice. Each first. Mortgagee and each insurer or guarantor of a First Mortgage, upon written request stating its name and address and describing the Unit encumbered by the First Mortgage, held, insured or guaranteed, shall be entitled to timely written notification by the Association of (i) any proposed action which requires consent of a specified percentage of First Mortgagees; (ii) any condemnation or casualty loss that affects either a material portion of the Condominium or the Unit securing its First Mortgagee; (iii) any 60-day delinquency in the

tage of First Mortgagees; (ii) any condemnation or casualty loss that affects either a material portion of the Condominium or the Unit securing its First Mortgagee; (iii) any 60-day delinquency in the payment of assessments or charges owed by the Unit Owner of the Unit on which the First Mortgagee held its First Mortgage or in the performance of any obligation under this Declaration or the Bylaws by said Unit Owner; or (iv) any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association. Each First Mortgagee who has requested the Association to notify it of any proposed action that requires the consent of a specified percentage of Eligible Mortgage Holders shall be considered an "Eligible Mortgage Holder." With respect only to non-material amendments (which excludes items (a) to (o) of Section 13.7), such as for the correction of technical errors or for clarification, any First Mortgagee who receives a written request by the Association, or any Unit Owner, to approve an addition or amendment to the Declaration or Bylaws who does not deliver or post to the requesting party a negative response within 30 days shall be deemed to have approved such request.

13.10 Assessments. Assessments shall be due and payable in monthly installments. As provided in Article VI of the Bylaws and as legally required by Section 47C-1-115 of the Act, Declarant shall pay all accrued expenses of the Condominium until assessments are levied against the Units. An assessment shall be deemed levied against a Unit upon the giving of notice by the Board to a member of the Association who is a Unit Owner of that Unit. Unit Owners shall have no obligation to pay monthly assessments until an assessment is levied.

13.11

the giving of notice by the Board to a member of the Association who is a Unit Owner of that Unit. Unit Owners shall have no obligation to pay monthly assessments until an assessment is levied.

13.11 Rights of First Mortgagee; Insurance Proceeds or Condemnation Awards. With respect to First Mortgages held by or for the benefit of First Mortgagees, no provision of this 22 BK7612PG0234 Declaration or the Bylaws shall be deemed to give a Unit Owner or any other party, priority over any rights of a First Mortgagee pursuant to its First Mortgage on said Unit Owner's Unit, in the case of a distribution to said Unit Owner of insurance proceeds or condemnation awards for losses to or a taking of Units and/or Common Elements.

13.12 Additional Real Estate: Consent of Administrator; In the event any First Common Element Interests; Reallocation.

Mortgages are guaranteed by the Veterans Administration, the Additional Real Estate may not be added to the Condominium without the prior written consent of the Administrator of the Veterans Administration. If the Additional Real Estate is added, the ownership interest in the Common Elements and the liability for Common Expenses for each Unit shall be reallocated on the basis of equality in proportion to each Unit relationship to the total number of Units and each Unit shall continue to have one vote. The effective date for said reallocation shall be the date of recordation of the amendment to this Declaration, which The document shall comply with the provisions of the Act.

effective date for the assignment of assessments to the Units added to the Condominium shall be the date the Board levies an assessment against said Units. All improvements intended to be located within any portion of the Additional Real Estate added to

he Units added to the Condominium shall be the date the Board levies an assessment against said Units. All improvements intended to be located within any portion of the Additional Real Estate added to the Condominium shall be substantially completed prior to the addition of said portion of the Additional Real Estate.

14.1 ARTICLE XIV General Provisions Conflict With the Act; Severability. Should any of the terms, conditions, provisions, paragraphs, or clauses of this Declaration conflict with any provisions of the Act, the provisions of the Act shall control unless the Act permits the Declaration to override the Act, in which event the Declaration shall control. The invalidity of any covenant, restriction, condition, limitation, provision, paragraph or clause of this Declaration, or of any part of the same, or the application thereof to any person or circumstance, shall not impair or affect in any manner the validity, enforceability or effect of the rest of this Declaration, or the application of any such covenant, restriction, condition, limitation, provision, paragraph or clause to any other person or circumstance.

14.2 Whenever Interpretation of Declaration.

appropriate singular may be read as plural, plural may be read as singular, and the masculine gender may be read as the feminine or neuter gender. Compound words beginning with the prefix "here" shall refer to this entire Declaration and not merely to the part in which they appear.

14.3 Captions. The captions herein are only for convenience and reference and do not define, limit or describe the scope of this Declaration, or the intent of any provision.

23 14.4 BK 7612PG0235 Exhibits.

Exhibits "A", "A-1", "B", "C", "D" and "E" attached hereto are hereby made a part hereof.

14.5

r describe the scope of this Declaration, or the intent of any provision.

23 14.4 BK 7612PG0235 Exhibits.

Exhibits "A", "A-1", "B", "C", "D" and "E" attached hereto are hereby made a part hereof.

14.5 Invalidity. The invalidity of any provision of this Declaration shall not be deemed to impair or affect in any manner the validity or enforceability or effect of the remainder of this Declaration, and in such event, all of the other provisions of this Declaration shall continue in full force and effect as if such invalid provision had never been included herein.

14.6 Waiver. No provision of this Declaration shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.

14.7 Law Controlling. This Declaration shall be construed and controlled by and under the laws of the State of North Carolina.

24 BK 7612 PG0236 IN WITNESS WHEREOF, Declarant hereby executes this Declaration by and through its authorized representatives on the day and year first above written.

Lake Park Condominium, LLC, a North Carolina limited liability company STATE OF NC (SEAL) (SEAL) By: Robert N. Bradley Manager COUNTY OF Wake I, Tamela B. Gilmore a Notary Public for the County and State aforesaid, do hereby certify that Robert N.

Bradley, Manager of Lake Park Condominium, LLC, a North Carolina limited liability company, personally appeared before me this day and acknowledged the execution of the foregoing instrument.

WITNESS my hand and official seal this 20th day of august 1997.

TAMELA B. GILMORE NOTARY PUBLIC WAKE COUNTY, N.C.

My Commission Expires February 17 2002 My Commission Expires mela B. more Notary Public NORTH CAROLINA - WAKE COUNTY The foregoing certificate _ of Jamela B. Gilmore

RE NOTARY PUBLIC WAKE COUNTY, N.C.

My Commission Expires February 17 2002 My Commission Expires mela B. more Notary Public NORTH CAROLINA - WAKE COUNTY The foregoing certificate _ of Jamela B. Gilmore Notar(y)(les) Public is (are) certified to be correct. This instrument and this certificate are duly registered at the date and time and in the book and page shown on the first page hereof.

By LAURA M. RIDDICK, Register of Deeds Panne Redd Asst./Deputy Register of Deeds BK 7612PG0237 EXHIBIT "A" Those certain two tracts of real property lying in Wake County, North Carolina, and being more particularly described as follows: Tract 1: "ING at a point marked by an iron pipe in the western right of way of Lake Dam Road, said pipe being the northern most point of a parcel identified as "City of Raleigh Greenway as shown on that BOM 1997, Page 948", certain plat System and from identified running thence said of below, point to a point commencement South 40 degrees 13' 52'' East 132.81 feet in the eastern right of way of Lake Dam Road; thence South 82 degrees 04' 00'' East 293.37 feet along the southern boundary of property now or formerly owned by Avent Properties Associates to the true POINT OF BEGINNING; thence from said beginning point continuing along the said Avent Properties line South 82 degrees 04' 00'' East 396.15 feet to a point in an abandoned tennis court; thence South 34 degrees 48' 19'' East 317.17 feet to a point marked by an iron pipe in the northern line of the right of way of Crab Orchard Drive; thence with the right of way of the Crab Orchard Drive cul-de-sac along a curve of a circle to the left having a radius of 50.00 feet (chord bearing and distance South 18 degrees 37' 11'' East 80.62 feet) and an arc length of 220.40 feet to a

rchard Drive cul-de-sac along a curve of a circle to the left having a radius of 50.00 feet (chord bearing and distance South 18 degrees 37' 11'' East 80.62 feet) and an arc length of 220.40 feet to a point marked by an iron pipe; thence continuing along the right of way of the Crab Orchard Drive cul-de-sac following the curve of a circle to the right having a radius of 35.00 feet (chord bearing and distance South 45 degrees 43' 57'' West 12.91 feet) and an arc length of 12.99 feet to a point marked by an iron pipe; thence continuing along the said cul-de-sac right of way following the curve of a circle to the right having a radius of 477.56 feet (chord bearing and distance North 55 degrees 46' 43'' East 9.73 feet) and an arc length of 9.74 feet to a point marked by an iron pipe; thence leaving the Crab Orchard Drive right of way along a line South 34 degrees 48' 19'' East 16.52 feet to a point; thence South 55 degrees 11' 41'' West 52.21 feet to a point; thence South 80 degrees 25' 23'' West 208.80 feet to a point; thence North 80 degrees 45' 12'' West 114.21 feet to a point; thence North 69 degrees 01' 56'' West 157.65 feet to a point; thence North 76 degrees 08' 05'' West 173.58 feet to a point; thence North 83 degrees 25' West 9.73 feet to a point; thence along the East western line of Phase 2B thence North 10 degrees 14' 35'' 343.10 feet to the POINT AND PLACE OF BEGINNING; being the same property shown as Phases 1A, 1B, 2A and 2B on that certain plat entitled "FINAL PLAT PHASES 1A, 1B, 2A & 2B OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM", prepared by Aiken & Yelle Associates, PA, dated August 20, 1997, and recorded in Condominium File No.

$179 (the "Plat"), to which Plat reference is hereby made for a more particular description of same; and 07''

Aiken & Yelle Associates, PA, dated August 20, 1997, and recorded in Condominium File No.

$179 (the "Plat"), to which Plat reference is hereby made for a more particular description of same; and 07'' BOM 1997, BK 7612PG0238 Tract 2: COMMENCING at a point marked by an iron pipe in the western right of way of Lake Dam Road, said pipe being the northern most point of a parcel identified as "City of Raleigh Greenway System Page 948", as shown on that certain plat identified below, and running thence from said point of commencement South 40 degrees 13' 52'' East 132.81 feet to a point in the eastern right of way of Lake Dam Road; thence along the eastern right of way of Lake Dam Road the following courses and distances: (1) South 13 degrees 17' 03'' East 144.70 feet to a point; (2) South 08 degrees 27' 13'' East 130.79 feet to a point; (3) South 00 degrees 59' 22 East 16.57 feet to the POINT AND PLACE OF BEGINNING; thence (4) South 00 degrees 59' 22'' East 44.69 feet to an iron pipe; and (5) South 00 degrees 59' 22'' East 31.53 feet to a point; thence leaving the eastern right of way of Lake Dam Road along the northern boundary of additional property belonging.

now or formerly to Lake Park Condominium, L.L.C. as shown on that certain plat identified below North 89 degrees 00' 38'' East 38.35 feet to a point; thence South 83 degrees 25' 07'' East 138.04 feet to a point; thence along the western line of Phase 2B as shown on that certain plat identified below North 10 degrees 14' 35'' East 70.64 feet to a point; thence North 83 degrees 25' 07'' West 190.61 feet to the POINT AND PLACE OF BEGINNING; being the same property shown as "Common Area" on that certain plat identified below and

t 70.64 feet to a point; thence North 83 degrees 25' 07'' West 190.61 feet to the POINT AND PLACE OF BEGINNING; being the same property shown as "Common Area" on that certain plat identified below and being bounded as follows: to the west by Lake Dam Road, to the east by Phase 2B, to the north by Additional Property belonging now or formerly to Lake Park Condominium, L.L.C., containing 1.50 acres as shown in BOM 1997, Page 948, and to the south by additional property belonging now or formerly to Lake Park Condominium, L.L.C.

containing 11.14 acres as shown on BOM 1997, Page 948, according to that certain plat entitled "FINAL PLAT PHASES 1A, 1B, 2A & 2B OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM", prepared by Aiken & Yelle Associates, PA, dated August 20, 1997, and recorded in Condominium File No. 179 (the "Plat"), to which Plat reference is hereby made for a more particular description of same.

Easements: The above-described parcel of property is subject to a "Variable Width Ingress/Egress Easement" recorded in Book 7569, as and such other easements are shown on Page 686, the above referenced plat in the Wake County or are otherwise recorded Registry.

Improvements: Buildings 1A, 1B, 2A and 2B, service utilities and of real related parking within the above-described two tracts property, as shown on the Plat, and the plans for Phases 1A, 1B, 2A filed and 2B of University Commons Lake Park, A Condominium, herewith, "MUST BE BUILT". Any other improvements shown on such Plat or Plans "NEED NOT BE BUILT".

BK 7612PG0239 EXHIBIT "A-1" Those certain two tracts of real property lying in Wake County, North Carolina, and being more particularly described as follows: Tract 1: Commencing at a point marked by an iron pipe in the said

A-1" Those certain two tracts of real property lying in Wake County, North Carolina, and being more particularly described as follows: Tract 1: Commencing at a point marked by an iron pipe in the said point being the western right of way of Lake Dam Road, northern most point of a parcel identified as "City of Raleigh Greenway System BOM 1997, Page 948", as shown on that certain Plat identified below, thence from said point of commencement South 40 degrees 13' 52'' East 132.81 feet to a point in the eastern right of way of Lake Dam Road being the true POINT OF BEGINNING; thence from said beginning point along the southern line of property belonging now or formerly to Avent Properties Associates South 82 degrees 04' 00'' East 293.37 feet to a point; thence South 10 degrees 14' 35'' West 272.46 feet to a point; thence North 83 degrees 25' 07'' West 190.61 to a point in the eastern right of way of Lake Dam Road; thence along the eastern right of way of Lake Dam Road the following courses and distances: (1) North 00 degrees 59' 22 West 16.57 feet (2) North 08 degrees 27' 13'' West 130.79 feet to a point, and (3) North 13 degrees 17' 03'' West 144.70 feet to the POINT AND PLACE OF BEGINNING; being the same 1.50 acres of property, more or less, lying immediately adjacent to and west of N/F LAKE PARK Phase 2B, and identified as "ADDITIONAL PROPERTY CONDOMINIUM, L.L.C. 1.50 ACRES" on that certain Plat entitled "FINAL PLAT PHASES 1A, 1B, 2A & 2B OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM", prepared by Aiken & Yelle Associates, PA, dated August 20, 1997, and recorded in Condominium File No. 179 more particular to which plat reference is hereby made for a description of same; and Tract 2: Commencing at a point marked by an iron pipe in the Dam Road, said point being the

ndominium File No. 179 more particular to which plat reference is hereby made for a description of same; and Tract 2: Commencing at a point marked by an iron pipe in the Dam Road, said point being the western right of way of Lake northern most point of a parcel identified as "CITY OF RALEIGH GREENWAY SYSTEM BOM 1997, PG 948", as shown on that certain plat identified below; thence from said point of commencement South 40 degrees 13' 52'' East 132.81 feet to a point in the eastern right of way of Lake Dam Road; thence along the eastern right of way of Lake Dam Road the following courses and distances: (1) South 13 degrees 17' 03'' East 144.70 feet to a point, (2) South 08 degrees 27' 13'' East 130.79 feet to a point, (3) South 00 degrees 59' 22'' East 61.26 feet to a point, and (4) South 00 degrees 59' 22 '' East OF thence to the true POINT BEGINNING; 31.53 feet 38'' East 38.35 feet to a beginning point North 89 degrees 00' 07'' East 147.77 feet to a point; thence South 83 degrees 25' 05'' East 173.58 feet to a point; thence South 76 degrees 08' 56'' East 157.65 feet to a point; thence South 69 degrees 01' East 114.21 feet to a point; thence South 80 degrees 45' point; thence North 80 degrees 25' 12'' 23'' from said East 208.80 feet to a BK 7612 PG0240 2 point; North 55 degrees 11' 41'' East 52.21 feet to a point; thence along a common line with the property belonging now or formerly to Clarion Crossing Limited Partnership South 34 degrees 48' 19' East 402.37 to a point marked by an iron pipe; thence continuing along the said Clarion Crossing line South 58 degrees 29' 08'' East 154.20 feet to a point marked by an iron pipe; thence along a common line with property belong to the City of Raleigh

nce continuing along the said Clarion Crossing line South 58 degrees 29' 08'' East 154.20 feet to a point marked by an iron pipe; thence along a common line with property belong to the City of Raleigh Greenway System as shown on BOM 1997, Page 948, the following courses and distances: (1) South 31 degrees 32' 30'' West 116.15 feet to a point, (2) South 78 degrees 27' 14'' West 467.23 feet to an iron pipe and (3) North 61 degrees 16' 28''West 830.85 feet to an iron pipe in the eastern right of way of Lake Dam Road; thence along the eastern right of way of Lake Dam Road the following courses and distances: (1) North 09 degrees 24' 38'' East 34.28 feet to a point, (2) North 06 degrees 37' 18'' East 167.38 feet to a point and (3) North 00 degrees 59' 22'' West 72.21 feet to the POINT AND PLACE OF BEGINNING; being the same 11.14 acres referenced on that certain plat entitled "FINAL PLAT PHASES 1A, 1B, 2A & 2B OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM" identified above, and shown as "PHASES 3A, 3B, 4A, 4B, 5A, 5B, 6A, 6B, 7A, 7B, 8A, 8B, 9A & 9B, and "COMMON AREA" within such 11.14 acres, as shown on that certain survey entitled "Additional Property Of Lake Park Condominium, L.L.C., a North Carolina Limited Liability Company" prepared by Aiken & Yelle Associates, PA, dated August 20, 1997, recorded in Condominium File No.

179 to which such plat and survey reference is hereby made for a more particular description of the same.

(NOTE: The buildings, amenities and other improvements shown on the survey entitled "Additional Property Of Lake Park Condominium, L.L.C., a North Carolina Limited Liability Company" identified above "NEED NOT BE BUILT". (See "Declaration of University Commons Lake Park, A Condominium" filed herewith.)

North Carolina Limited Liability Company" identified above "NEED NOT BE BUILT". (See "Declaration of University Commons Lake Park, A Condominium" filed herewith.)

BK7612PG0241 EXHIBIT "B".

ΤΟ DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM PERCENT INTEREST CHART Bldg.

No.

Unit No.

on Plans Address Unit LOCATION Percent INTEREST 1A 1A 1A 1A 1A 1A 1A 1A 1A 1A 1A 1A 1A 1A ABCDEEUHUKAMIN L Y Z 1221-102 University Court 1221-101 University Court 1221-103 University Court 1221-104 University Court 1221-202 University Court 1221-201 University Court 1221-203 University Court 1221-204 University Court 1221-302 University Court 1221-301 University Court 1221-303 University Court 1221-304 University Court 1221-002 University Court 1221-001 University Court Main Level 1.7857 Main Level 1.7857 Main Level 1.7857 Main Level Mid Level 1.7857 1.7857 Mid Level 1.7857 Mid Level 1.7857 Mid Level 1.7857 Penthouse 1.7857 Penthouse 1.7857 Penthouse 1.7857 Penthouse Terrace Level Terrace Level 1.7857 1.7857 1.7857 1B 1B 1B 1B 1B 1B 1B 1B 1B 1B 1B 1B 1B 1B ABCDEFGHIKAMIN 1231-103 University Court 1231-104 University Court 1231-102 University Court Main Level 1231-101 University Court 1231-203 University Court 1231-204 University Court 1231-202 University Court Main Level Main Level 1.7857 1.7857 1.7857 Main Level 1.7857 Mid Level Mid Level 1.7857 1.7857 Mid Level 1.7857 1231-201 University Court Mid Level 1.7857 1231-303 University Court Penthouse 1.7857 1231-304 University Court Penthouse 1.7857 L Y Ꮓ 1231-302 University Court 1231-301 University Court 1231-002 University Court 1231-001 University Court Penthouse 1.7857 Penthouse 1.7857 Terrace Level 1.7857 Terrace Level 1.7857 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A ABCDEGURUKUNIN с F H J L

Court 1231-002 University Court 1231-001 University Court Penthouse 1.7857 Penthouse 1.7857 Terrace Level 1.7857 Terrace Level 1.7857 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A 2A ABCDEGURUKUNIN с F H J L M Y 1241-102 University Court 1241-101 University Court 1241-103 University Court 1241-104 University Court 1241-202 University Court 1241-201 University Court 1241-203 University Court 1241-204 University Court 1241-302 University Court 1241-301 University Court 1241-303 University Court 1241-304 University Court 1241-002 University Court Main Level Main Level Main Level Main Level Mid Level 1.7857 1.7857 1.7857 1.7857 1.7857 Mid Level 1.7857 Mid Level 1.7857 Mid Level 1.7857 Penthouse 1.7857 Penthouse 1.7857 Penthouse 1.7857 Penthouse 1.7857 Terrace Level 1.7857 Z 1241-001 University Court Terrace Level 1.7857 2B 2B 2B 2B 2B 2B 2B 2B 2B 2B 2B 2B 2B 2B ABCDELUISKAMEN Y Z BK 7612PG0242 (EXHIBIT"B"/CONT'D) 1251-103 University Court 1251-104 University Court 1251-102 University Court 1251-101 University Court 1251-203 University Court 1251-204 University Court 1251-202 University Court 1251-201 University Court 1251-303 University Court 1251-304 University Court 1251-302 University Court 1251-301 University Court 1251-002 University Court 1251-001 University Court WP RAYNES LAKEPARK\DECLEXHB (8/8/97) Main Level Main Level 1.7857 1.7857 Main Level 1.7857 Main Level 1.7857 Mid Level Mid Level 1.7857 1.7857 Mid Level 1.7857 Mid Level 1.7857 Penthouse 1.7857 Penthouse 1.7857 Penthouse.

1.7857 Penthouse 1.7857 Terrace Level 1.7857 Terrace Level 1.7857 BK 7612PG0243 Exhibit "C" ΤΟ DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM ENCUMBRANCES UPON TITLE The Condominium is subject to: (a) Terms, conditions and restrictions of the Declaration,

K 7612PG0243 Exhibit "C" ΤΟ DECLARATION OF UNIVERSITY COMMONS LAKE PARK, A CONDOMINIUM ENCUMBRANCES UPON TITLE The Condominium is subject to: (a) Terms, conditions and restrictions of the Declaration, the Bylaws, the Plans and the Rules and Regulations, if any, as each may be amended from time to time.

(b) General utility easements to Carolina Power and Light Company and any other public utilities.

(c) Unrecorded easements, discrepancies or conflicts in boundary lines, shortages in area encroachments which an accurate and complete survey would disclose, including any easements and encroachments as shown on the Plat and Plans.

(d) Easements and restrictions described in Articles IV.

and V of the Declaration including: (i) Easements in favor of the appropriate utility companies to serve the Condominium Property and all appurtenances thereto; (ii) Easements in favor of the Association and to such persons as authorized by the Association for utility installations within the walls of the Units; (iii) An easement in favor of the Association, a Unit Owner, the Executive Board or any other person as permitted under the Condominium Documents to inspect, maintain, repair and replace the Common Elements; (iv) Easements in favor of the Declarant, the Association, appropriate utility and service companies and governmental agencies and authorities for such utility and service lines and equipment as may be necessary or desirable over the Units and the Common Elements to serve any portion of the Condominium Property; (v) Easements reserved by the Declarant through the Common Elements as reasonably necessary for discharging its obligations under the Condominium Documents and completion of construction of the Condominium; (vi) Easements reserved by the Declarant to maintain

Elements as reasonably necessary for discharging its obligations under the Condominium Documents and completion of construction of the Condominium; (vi) Easements reserved by the Declarant to maintain sales offices or models in the Condominium on the condominium property; (e) BK7612PG0244 (vii) Easements reserved by the Declarant and Declarant's mortgagee to provide access and utilities to the Additional Property; and (viii) Easements reserved by the Declarant, its successors, transfers and assigns, and their respective mortgage lenders, for the use of those portions of the Common Elements that may be constructed as recreational amenities in the Condominium, by the owners of all, or any portion of, the Additional Real Estate identified in Exhibit "A-1" of this Declaration, whether or not such property is added to the Condominium.

Rights of others thereto entitled to the continued uninterrupted flow of Walnut Creek located on the Property.

(f) Easement (s) to Southern Bell Telephone and Telegraph Company (Bk 3404, Pg 832, WCR).

(g) Easement (s) to Carolina Power and Light Company (Bk 3419, Pg 971, WCR).

(h) WCR).

(i) Easement (s) for a 20' sanitary sewer (Bk 6102, Pg 747, Easement (s) to the City of Raleigh and UDRT of North Carolina (Bk 7203, Pg 154, WCR).

(j) General Public Access Easement (Bk 7569, Pg 686, WCR).

(k) All easements and other matters of record that appear on that certain map entitled "PRELIMINARY PLAT OF LAKEPARK CONDOMINIMUM", prepared by Aiken & Yelle Associates, PA, dated 1/9/97, and/or that certain map entitled "LAKE PARK CONDOMINIUM PRELIMINARY PHASING PLAN", prepared by Aiken & Yelle Associates, PA, dated 1/8/97, including but not limited to the following: (i) Walnut Creek Sanitary Sewer Outfall, 40' City of

AKE PARK CONDOMINIUM PRELIMINARY PHASING PLAN", prepared by Aiken & Yelle Associates, PA, dated 1/8/97, including but not limited to the following: (i) Walnut Creek Sanitary Sewer Outfall, 40' City of Raleigh Easement (BOM 1960, Pg 251, WCR); (ii) 20' City of Raleigh Sanitary Sewer Easement (BOM 1994, Pg 1134, WCR); (iii) 20' Sanitary Sewer Easement (BOM 1985, Pg 209, WCR); (iv) Recreation Area Easement (D.B. 2284, Pg 463, WCR); (v) Orchards Drive (BOM 1972, Pg 476, WCR); (vi) 20' Private Sanitary Sewer Easement (BOM 1985, Pg 209, WCR); (vii) 60' Public Right of Way for Lake Dam Road; (viii) Lake Dam Road Sight Triangle; (ix) Wetlands areas; and BK 7612PG0245 (x) Floodway boundary.

WP/RAYNES/LAKEPARK (8/20/97) 2129013 BK7612PG0246 ARTICLES OF INCORPORATION OF C-0433647 FILED 10113am HU 31 1997 EFFECTIVE LAKE PARK CONDOMINIUM HOMEOWNERS ASSOCIATION, INELAINE MARSHALL SECRETARY OF STATE NORTH CAROLINA In compliance with the requirements of Chapter 55A of the North Carolina General Statutes, the undersigned, who is a resident of Wake County, North Carolina and is of the age of eighteen (18) years or more, does hereby make and acknowledge these Articles of for Incorporation for the purpose of forming a corporation not profit and does hereby certify: ARTICLE I Naine The name Homeowners "Association").

the of Association; corporation Inc.

is Lake Park Condominium (hereinafter called the It ARTICLE II Duration The corporation shall have perpetual duration.

ARTICLE III Non-Profit Qualifications ав an This corporation does not contemplate pecuniary gain or profit to the members thereof and it is organized for non-profit purposes.

is except intended that this corporation qualify organization under the provisions of Chapter 55A of the North

uniary gain or profit to the members thereof and it is organized for non-profit purposes.

is except intended that this corporation qualify organization under the provisions of Chapter 55A of the North Carolina General Statutes, and as a homeowners association under No the provisions of Section 528 of the Internal Revenue Code.

party of the net earnings of this corporation shall inure to the benefit of any private member or individual.

ARTICLE IV Registered/Principal Office and Agent the The principal and registered office of the Association is located at 2508 Avent Ferry Road, Raleigh, Wake County, North of the 27606, and initial registered agent Carolina Association, whose address is 2508 Avent Ferry Road, Raleigh, Wake County, North Carolina 27606, is Judith M. Wilson.

ARTICLE V Purposes and Powers The Association does not contemplate pecuniary gain or EXHIBIT "D" BK 7612 PG0247 benefit, direct or indirect, to its members. In way of explanation and not of limitation, the purposes for which it is formed are: (a) to be and constitute the Association to which reference is made in the Declaration of University Commons Lake Park, A Condominium, ав amended (hereinafter the "Declaration"); recorded or to be recorded in the office of the Register of Deeds of Wake County, North Carolina, to perform all obligations and duties of the Association and to exercise all rights and powers of the Association, as specified therein, in the Bylaws, and as provided by law; and (b) to provide an entity for the furtherance of the interests of the owners of units in the development.

In furtherance of its purposes, the Association shall have the following powers, which, unless indicated otherwise by the Declaration or Bylaws, may be exercised by the Executive Board of the Association; (a) (b)

ce of its purposes, the Association shall have the following powers, which, unless indicated otherwise by the Declaration or Bylaws, may be exercised by the Executive Board of the Association; (a) (b) all the powers conferred upon non-profit corporations by common law and the Statutes of the State of North Carolina in effect from time to time; all the powers necessary or desirable to perform the obligations and duties and to exercise the rights and powers set out in these Articles, the Bylaws, or the Declaration, including without limitation the following: (i) to fix and to collect assessments or other charges to be levied against the properties; or any (ii) to manage, control, operate, maintain, repair and improve the common elements, and any property subsequently acquired by the Association, property owned by another, for which the Association, by rule, regulation, Declaration, contract, has a right or duty to provide such services; or (iii) to enforce covenants, conditions, or restrictions affecting any property to the extent the Association may be authorized to do so under the Declaration or Bylaws; (iv) to engage in activities which will actively foster, promote and advance the common interests of all owners of units at the development; 2 BK 7612 PG0248 (v) to buy or otherwise acquire, sell, or otherwise dispose of, mortgage, or otherwise encumber, exchange, lease, hold, use, operate and otherwise deal in and with real, personal and mixed property of all kinds and any right or interest therein for any purpose of the Association; (vi) to borrow money for any purpose except as may be limited by law, the Declaration, or Bylaws; in (vii) to enter into, make, perform, or enforce contracts of every kind and description and to do all other

borrow money for any purpose except as may be limited by law, the Declaration, or Bylaws; in (vii) to enter into, make, perform, or enforce contracts of every kind and description and to do all other acts necessary, appropriate or advisable in carrying out any purpose of the Association, with or association with any other Association, corporation, or other entity or agency, public or private; (ix) to adopt, alter, and amend or repeal such Bylaws as may be necessary or desirable for the proper management of the affairs of the Association; provided, however, Buch Bylaws may not be inconsistent with or contrary to any provisions of (x) the Declaration; .

to provide any and all supplemental services as may be necessary or proper; municipal (xi) the foregoing enumeration of powers shall not limit or restrict in any manner the exercise of other and further rights and powers which may now or hereafter be allowed or permitted by law; and the powers specified in each of the paragraphs of this Article V are independent powers, not to be restricted by reference to or inference from the terms of any other paragraph or provisions of this Article V.

ARTICLE VI Membership The Association shall be a membership corporation without certificates or shares of stock. All unit owners, by virtue of their ownership of units in the condominium, are members of the Association. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation.

3 : ARTICLE VII Executive Board an The affairs of this be managed by Association shall Executive Board of three (3) directors who need not be members of the Association. The number of directors may be changed by The names and amendment of the Bylaws of the Association.

Association shall Executive Board of three (3) directors who need not be members of the Association. The number of directors may be changed by The names and amendment of the Bylaws of the Association.

addresses of the persons who will serve as members of the Executive Board until the selection of their successors are: Name Robert N. Bradley Frank E. Koehler' Alma R. Martin Address 210 First Street, Suite 240 Roanoke, Virginia 24011 210 First Street, Suite 240 Roanoke, Virginia 24011 210 First Street, Suite 240 Roanoke, Virginia 24011 The method of election and term of office, removal and filling The Executive of vacancies shall be as set forth in the Bylaws.

Board may delegate such operating authority to such companies, individuals, or committees as it, in its discretion, may determine.

ARTICLE VIIL Dissolution ав provided in the The Association may be dissolved only Declaration, Bylaws and by the laws of the State of North Carolina; shall be and upon such dissolution, the corporation's assets distributed as provided in N.C. General Statutes Section 55A-14-03.

ARTICLE IX Amendments These Articles may be amended as provided by the provisions of Chapter 55A of the North Carolina General Statutes, provided that the North no amendment shall conflict with the Declaration or Carolina Condominium Act, Chapter 47C of the North Carolina General Statutes.

4 BK 7612PG0250 ARTICLE X Incorporator The name and address of the incorporator is as follows: David A. Raynes Perry, Patrick, Farmer & Michaux, P.A.

3716 National Drive, Suite 100 Raleigh, North Carolina 27612 IN WITNESS WHEREOF, for the purpose of forming this corporation under the laws of the State of North Carolina, I, the undersigned, being the incorporator of this Association, have executed these

27612 IN WITNESS WHEREOF, for the purpose of forming this corporation under the laws of the State of North Carolina, I, the undersigned, being the incorporator of this Association, have executed these Articles of Incorporation this 30th day of July, 1997.

Diddi Reyes David A. Raynes INAPORATOR STATE OF NORTH CAROLINA COUNTY OF WAKE I, Tamela B. Gilmore a Notary Public for said State and County, do hereby certify that David A. Raynes personally appeared before me this day and acknowledged the due execution of the foregoing instrument.

WITNESS my hand and notarial seal, this 30th day of July 1991.

TAMELA B. GILMORE NOTARY PUBLIC WAKE COUNTY, N.C.

My Commission Experus February 17 2002 My commission expires: Jamela B. Gimore Notary Public (NOTARIAL SEAL) : WP/RAYNES/LAKEPARK/ARTOFINC (7/30/97) 5 BK 7612 PG0251 EXHIBIT "E" BYLAWS OF LAKE PARK CONDOMINIUM HOMEOWNERS ASSOCIATION, INC.

BK 7612 PG0252 INDEX TO BYLAWS OF LAKE PARK CONDOMINIUM HOMEOWNERS ASSOCIATION, INC.

ARTICLE I.

Name, Membership, Applicability and Definitions 1.1 1.2 1.3 Name Membership Definitions ARTICLE II.

Meetings, Quorum, Voting, Proxies Association: 2.1 Place of Meetings 2.2 Annual Meeting 2.3 Substitute Annual Meetings 2.4 Special Meeting 2.5 Notice of Meetings 2.6 Quorum 2.7 Voting Rights 2.8 Majority Vote 2.9 Proxies 2.10 2.11 Waiver of Notice Informal Action by Unit Owners ARTICLE III.

Executive Board 3.1 Number 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Initial Members Election Term and Qualification Removal Vacancies Compensation Executive Committees 3.9 Power and Duties 3.10 Managing Agent 3.11 Duties of Declarant ARTICLE IV.

Meetings of Directors Organizational Meeting 4.1 4.2 Regular Meeting ARTICLE IV. (continued) 1 1 1.

1 1 12222233 3345556.6600 9 9 11 11 BK 7612PG0253 Meetings of Directors 4.3

of Declarant ARTICLE IV.

Meetings of Directors Organizational Meeting 4.1 4.2 Regular Meeting ARTICLE IV. (continued) 1 1 1.

1 1 12222233 3345556.6600 9 9 11 11 BK 7612PG0253 Meetings of Directors 4.3 Special Meetings 11 4.4 Notice of Meetings 11 4.5 Waiver of Notice 11 4.6 Quorum 12 4.7 Manner of Acting 12 4.8 Organization .

12 4.9 Informal Action of Board 12 4.10 4.11 Minutes 12 Liability of the Board and officers 12 ARTICLE V.

Officers 5.1 Number 13 5.2 Election and Term 13 5.3 Removal 13 5.4 Compensation 13 5.5 Chairman of the Board 13 5.6 Vice Chairman 13 5.7 Secretary 14 5.8 Treasurer 14 5.9 Assistant Secretaries and Treasurers 14 ARTICLE VI.

Operation of the Property 6.1 Initial Assessment 14 6.2 6.3 Assessment and Determination of Common Expenses.

Payment of Assessments 14 15 6.4 Special Assessments 16 6.5 Collection of Assessments 17 6.6 Default in Payment of Assessment 17 6.7 Lien and Personal Obligation 17 6.8 Priority of Assessment Lien 18 6.9 Foreclosure of Liens for Unpaid Assessments 18 6.10 Statement of Common Expenses 18 6.11 Abatement and Enjoinment of Violations by Unit Owners 18 6.12 Maintenance and Repair 19 6.13 Restrictions on Unit Owners 20 6.14 Duty to Report 20 8960 6.15 Additions, Alterations or Improvements by the Association.

20 ARTICLE VI. (continued) 6.16 6.17 6.18 6:19 6.20 6.21 BK 7612PG0254 Operation of the Property Additions, Alterations or Improvements by Unit Owners .

Use of Common Elements and Facilities Right of Access Rules of Conduct Remedies Cumulative Nonwaiver of Remedies ARTICLE VII.

Records and Audita 7.1 7.2 7.3 Reports Common Expense Funds Audits ARTICLE VIII.

20 21 21 21 21 222222 22 23 23 232 Amendments to Bylaws 23 8.1 Notice 8.2 Adoption 8.3 Limitation 8.4 Execution and Recording 24 24 24 9.1 General 9.2

Reports Common Expense Funds Audits ARTICLE VIII.

20 21 21 21 21 222222 22 23 23 232 Amendments to Bylaws 23 8.1 Notice 8.2 Adoption 8.3 Limitation 8.4 Execution and Recording 24 24 24 9.1 General 9.2 Common Elements 9.3 Units 9.4 Termination 10.1 10.2 10.3 10.4 ARTICLE IX.

Condemnation ARTICLE X.

Ad Valorem Taxes Miscellaneous Notification to Mortgagees Severability Successors Bound ARTICLE X. (continued) 24 25 25 25 26 26 26 26 BK 7612PG0255 Miscellaneous 10.5 Gender, Singular, Plural 10.6 10.7 Principal Office--Registered Office Other Offices 10.8 Seal 10.9 Fiscal Year 26 27 27 27 27 BK 7612PG0256 BYLAWS OF LAKE PARK CONDOMINIUM HOMEOWNERS ASSOCIATION, INC.

1.1 ARTICLE I.

Name, Membership, Applicability and Definitions Name. The name of the Association shall be Lake Park Condominium Homeowners Association, Inc. (hereinafter sometimes referred to as the "Association").

1.2 Membership. All Unit Owners, ag that term is defined in the Declaration Of Lake Park Condominium, shall be members of the Association and the terms of the above referenced Declaration which pertain to membership are specifically incorporated herein by reference.

1.3 Definitions. The words used in these Bylaws shall have the same meaning as set forth in said Declaration, unless the context shall prohibit.

2.1 Association: ARTICLE II.

Meetings, Quorum, Voting, Proxies Place of Meetings. Meetings of the Association shall be held at the principal office of the Association or at such other suitable place convenient to the members as may be designated by the Board either in Lake Park Condominium or as convenient thereto as possible and practical.

2.2 Annual Meeting. An annual meeting of the Unit Owners shall be held at 7:00 o'clock p.m. on the third Tuesday in

either in Lake Park Condominium or as convenient thereto as possible and practical.

2.2 Annual Meeting. An annual meeting of the Unit Owners shall be held at 7:00 o'clock p.m. on the third Tuesday in March of each year, provided, however, that if the third Monday in March is a legal holiday, then the meeting shall be held at the same time on the second business day following the legal holiday, for the purpose of electing members of the Board and for the transaction of such other business as may be properly brought before the meeting.

2.3 Substitute Annual Meetings. If the annual meeting shall not be held on the day designated by the Bylaws, a substitute annual meeting may be called in accordance with the provisions of Section 2.4 of this Article. A meeting so called shall be designated and treated for all purposes as the annual meeting.

2.4 Special Meetings. Special meetings of the Unit Owners may be called at any time by the Board, the chairman or upon the written request of the Unit Owners owning at least fifty percent (50%) in common interest in the Common Elements other than those Units held by the Declarant.

2.5 Notice of Meetings. Written or printed notice stating the place, day and hour of any meeting shall be delivered BK 7612PG0257 or mailed not less than ten (10) days nor more than fifty (50) days prior to the date thereof, either personally or by postage prepaid mail, at the direction of the Board, the chairman or Unit Owners such calling the meeting, to each person entitled to vote at meeting, and, to all Eligible Mortgage Holders so requesting under the provisions of Section 13.9 of the Declaration, who may request a representative to attend the meeting of Unit Owners.

The notice of any meeting must state the time and place of the

equesting under the provisions of Section 13.9 of the Declaration, who may request a representative to attend the meeting of Unit Owners.

The notice of any meeting must state the time and place of the meeting and the items on the agenda, including the general nature of any proposed amendment to the Declaration or these Bylaws, and to and any proposal remove Board members or budget changes, officers.

When a meeting is adjourned for less than thirty (30) days in any one adjournment, it is not necessary to give any notice of the adjourned meeting, other than by announcement at the meeting at which the adjournment is effective.

2.6 Quorum. The presence in person or by proxy at any meeting of the Voting members (as defined in Section 2.7 of this Article) having five percent (5%) or more of the total votes shall constitute a quorum . If there is no quorum at the opening of the meeting of Unit Owners, such meeting may be adjourned from time to time by the vote of a majority of the Voting Members present, either in person or by proxy; and at any adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the original meeting.

The Voting Members at a meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Voting Members to leave less than a quorum.

2.7 Voting Rights. There shall be one person with respect to each Unit ownership who shall be entitled to vote at any The Voting meeting of the Unit Owners (the "Voting Member").

Member may be the Owner, or one of a group composed of all of the Owners of a Unit, or may be some other person designated by such Owner(s) to act as proxy on his or their behalf, and who need not

").

Member may be the Owner, or one of a group composed of all of the Owners of a Unit, or may be some other person designated by such Owner(s) to act as proxy on his or their behalf, and who need not be an Owner. Each Owner or group of Owners (including the Board, if the Board or its designee shall then hold title to one or more Units) shall be entitled to one (1) vote for each Unit owned.

2.8 Majority Vote. The vote of a majority of the Voting Members present at a meeting at which a quorum shall be present shall be binding upon all Unit Owners for all purposes where except higher percentage required by Declaration, these Bylaws or by law.

2.9 a vote is the Proxies. The Voting Members may vote either in person or by agents duly authorized by written proxy executed by A proxy such Unit Owner or his duly authorized attorney-in-fact.

2 1 BK 7612PG0258 shall be valid only for the particular meeting designated therein, unless the person executing it specifies therein the length of time for which it is to continue in force, which time shall not extend Unless a beyond eleven months from the date of its execution.

proxy otherwise provides, any proxyholder may appoint in writing a In order to be effective, all substitute to act in his place.

proxies must be filed with the secretary or duly acting secretary of the Association, either during or prior to the meeting in question.

2.19 Any Voting Member may, at any Waiver or Notice.

time, waive notice of any meeting of the Association in writing, and such waiver shall be deemed to be equivalent to the giving of such notice. Attendance by a Voting Member at any meeting of the Association shall constitute a waiver of notice by him of the time and place thereof, except where a Voting Member attends a meeting

of such notice. Attendance by a Voting Member at any meeting of the Association shall constitute a waiver of notice by him of the time and place thereof, except where a Voting Member attends a meeting for the express purpose of objecting to the transaction of any If all of business because the meeting was not lawfully called.

the Voting Members are present at any meeting of the Unit Owner, no notice shall be required, and any business may be transacted at said meeting.

2.11.

Informal Action by Unit Owners. Any action which may be taken at a meeting of the Association may be taken without a meeting if a consent in writing , setting forth the action so taken, shall be signed by all of the Voting Members and filed with the secretary of the Association to be kept in the Association's minute book.

ARTICLE III.

Executive Board and 3.1 of the business The property Number.

Condominium shall be managed and directed by the Executive Board (the "Board"), composed of three (3 ) persons, or by such executive the Bylaws; committees ag the board may establish pursuant to provided, however, that the initial Board shall be composed of three persons.

3.2 Initial Members. The initial members of the Board (referred to as "directors" herein) shall be selected by the Such initial directors Declarant, and need not be Unit Owners.

shall serve at the election of the Declarant from the date upon is recorded in the Wake County Public which the Declaration Registry, until such time as their successors are duly elected and qualified.

The names of the persons who shall serve on the initial Board from the date upon which the Declaration is recorded in the Wake County Public Registry until such time as their successors are duly elected and qualified, are as follows : 3 3.3 BK 76 2PG0259

l Board from the date upon which the Declaration is recorded in the Wake County Public Registry until such time as their successors are duly elected and qualified, are as follows : 3 3.3 BK 76 2PG0259 Robert N. Bradley Kevin M. Meredith Alma R. Martin Election. Except as provided herein, the directors shall be elected at the annual meeting of the Association, and those persons who receive the highest number of votes shall be deemed to have been elected. Notwithstanding anything herein to the contrary, the Board shall consist of three (3) directors during the period that Declarant is entitled to appoint a majority of the directors. The Declarant shall have the right to appoint all of the directors until the earlier of the following four dates: (a) the date one hundred twenty (120) days after the Declarant has conveyed seventy-five percent (75%) of the maximum number of Units which Declarant may create on the Phase I property and on the Additional Real Estate to Unit Owners other than a Declarant, or (b) the date upon which Declarant surrenders control of the Condominium to the Unit Owners, or (c) the date two (2) years after Declarant has ceased to offer Units for sale in the ordinary course of business, or (d) the date two (2) years after any development right to add Additional Units under the Act was last exercised by Declarant.

The Declarant may turn over control of the Association to such Unit Owners other than the Declarant prior to such dates in its sole discretion by causing all or part of its appointed directors to resign, whereupon it shall be the affirmative obligation of Unit Owners other than the Declarant to elect directors and assume control of the Association. Provided at least thirty (30) days'

ectors to resign, whereupon it shall be the affirmative obligation of Unit Owners other than the Declarant to elect directors and assume control of the Association. Provided at least thirty (30) days' notice of Declarant's decision to cause it appointees to resign is given to Unit Owners, neither the Declarant, nor such appointees, shall be liable in any manner in connection with such resignations even if the Unit Owners other than the Declarant refuse or fail to assume control.

Within sixty (60) days after conveyance of twenty-five percent (25%) of the maximum number of Units which Declarant may create on the Phase I property and on the Additional Real Estate to Unit Owners other than the Declarant, at least one director and not less than twenty-five percent (25%) of the directors of the Board shall be elected by Unit Owners other than the Declarant. Within sixty (60) days after conveyance of fifty percent (50%) of said maximum number of Units to Unit Owners other than the Declarant, not less than thirty-three percent (33%) of the directors of the Board shall be elected by Unit Owners other than the Declarant.

Within sixty (60) days after the Unit Owners other than the Declarant are entitled to elect such director or directors, or sooner if the Declarant has elected to accelerate such event as 4 BK 7612PG0280 aforesaid, the Association shall call, and give not less than ten (10) days' nor more than fifty (50) days' notice of a meeting of the Unit Owners to elect such director or directors of the Board. The meeting may be called and the notice given by any Unit Owner if the Association fails to do so.

The size of the Board may be increased or decreased from time to time upon the affirmative vote of three-fourths (3/4) of all

and the notice given by any Unit Owner if the Association fails to do so.

The size of the Board may be increased or decreased from time to time upon the affirmative vote of three-fourths (3/4) of all Unit Owners, provided that said Board shall not be less than three (3) in number.

3.4 the Term and Oualification: Each director shall hold office for the term for which he was elected, or until his death, resignation, retirement, removal, disqualification or until his successor is elected At the meeting of and qualified.

are entitled to elect a Association in which the Unit Owners majority of the directors, the directors of the Board shall be divided into three (3) classes; the first class to consist of one (1) director. The second class to consist of one (1) director, and The director of the third class to consist of one (1) director.

the first class shall initially hold office for a term of three (3) years; the director of the second class shall initially hold office for a term of two (2) years; and the director of the third class At all shall initially hold office for a term of one (1) year.

annual elections thereafter, one director shall be elected by the voting members to succeed the director whose terms then expires.

So long Each such director shall serve for a three (3) year term.

as Declarant shall own one (1) or more Units, the director of the Board which Declarant has the right to designate shall be a member of the third class. Nothing herein contained shall be construed to director to succeed himself. Each prevent the election of a director, except those selected by the Declarant pursuant to the Bylaws, shall be one of the Unit Owners or co-owners, or a spouse of a Unit Owner or co-owner provided, however, that in the event a trust or other legal

hose selected by the Declarant pursuant to the Bylaws, shall be one of the Unit Owners or co-owners, or a spouse of a Unit Owner or co-owner provided, however, that in the event a trust or other legal Unit Owner is a corporation, partnership, entity other than a natural person or persons, then an officer or director of such such corporation, partner of partnership, beneficiary of such trust or manager of such other legal entity, shall be eligible to serve as a director.

3.5 so Removal. Directors may be removed from office with or without cause by the affirmative vote of at least sixty-seven percent (67%) of the Voting Members. If any directors are removed, new Board members may be elected at the same meeting; provided, however, that the person(s) selected by Declarant cannot be removed without the prior written consent of Declarant.

3.6 Vacancies. A vacancy occurring in the Board may be filled by a majority of the remaining directors, though less than a quorum, or by the sole remaining director; but a vacancy created by an increase in the authorized number of directors shall be filled only by election at an annual meeting or a special meeting 5 BK 7612 PG0261 ་ The Voting Members may of Unit Owners called for that purpose.

elect a director at any time to fill any vacancy not filled by the Board.

In the event that Declarant, in accordance with the rights herein established, selects any person to serve on any Executive Board of the Association, Declarant shall have the absolute right at any time, in its sole discretion, to replace such person with Replacement of any person another person to serve on any Board.

on the Board shall be made by designated by Declarant to serve written instrument delivered to any officer of the Association, to of the person name be

any person another person to serve on any Board.

on the Board shall be made by designated by Declarant to serve written instrument delivered to any officer of the Association, to of the person name be which instrument shall specify the replaced and the name of the person designated as successor to the The removal of any such Board person so removed from the Board .

member and the designation of his successor shall be effective immediately upon delivery of such written instrument by Declarant to any officer of the Association .

3.7 Compensation. The Board Members shall receive no compensation for the services unless expressly allowed by the Board at the direction of the Unit Owners other than the Declarant having two-thirds (2/3) of the total votes.

3.8 Executive Committees. The Board may, by resolution adopted by a majority of the number of directors fixed by these or more of its members to constitute an Bylaws, designate two executive committee, which committee, to the extent provided in such resolution, shall have and may exercise all of the authority of the Board in the management of the Condominium.

The Board may, in like manner, create such other committees as it deems necessary and appropriate in aiding the Board to carry out its duties and responsibilities with respect to the management of the Condominium.

3.9 Powers and Duties.

The Board shall have the powers and duties necessary for the administration of the affairs of the Condominium, and may do all such acts and things , except such acts not be as by law or the Declaration or by these Bylaws may delegated to the Board. Such powers and duties of the Board shall include, but shall not be limited to, the following: (a) Determining the Common Expenses required for the

ation or by these Bylaws may delegated to the Board. Such powers and duties of the Board shall include, but shall not be limited to, the following: (a) Determining the Common Expenses required for the affairs of the Condominium, including, without limitation, the operation and maintenance of the Property.

(b) Collecting the Common Expenses from the Unit Owners.

(c) Supervising the operation, care, upkeep and maintenance of the Common Elements .

6 BK 7612PG0262 (d) Employing and dismissing the personnel necessary for the maintenance and operation of the Common Elements.

(e) Adopting and amending such reasonable rules and regulations as it may deem advisable for the maintenance, conservation and beautification of the Property, and for the health, comfort, safety and general welfare of the owners and occupants of the Property. Written notice of such rules and regulations shall be given to all Unit Owners and occupants, and the entire Property shall at all times be maintained subject to such rules and regulations.

(f) bank Opening of behalf Condominium and designating the signatories required therefor..

accounts on the votes.

Selling, (g) mortgaging, voting the appurtenant to or otherwise dealing with Units acquired by the Association, or its designee, corporate or otherwise, on behalf of all Unit Owners, subject to the Declaration.

and other applicable and restrictions, organizing corporations to act as designees of the Board in acquiring title to Units on behalf of all Unit Owners.

(h) Maintaining and repairing any Unit, if such maintenance or repair is necessary in the discretion of the Board or by operation of applicable restrictions to protect the Common Elements, or any other portion of the and a Property, Unit Owner has failed or refused to

r is necessary in the discretion of the Board or by operation of applicable restrictions to protect the Common Elements, or any other portion of the and a Property, Unit Owner has failed or refused to perform such maintenance or repair within a reasonable time after written notice of the necessity of said maintenance or repair has been delivered or mailed by the Board to said Unit Owner; provided, that the Board shall levy a specific assessment against such Unit Owner for the costs of said maintenance or repair, including a reasonable amount of supervision.

(i) Entering any Unit when necessary in connection with any maintenance or construction for which the Board is responsible; provided, that except in the event of emergencies, such entry shall be made during reasonable hours with as little inconvenience to the Unit Owner as practical, and any damage caused thereby shall be repaired by the Board, with such expenses being treated as a Common Expense.

deeds and and other (j) Signing all agreements, contracts, for vouchers the of payment expenditures instruments in such manner as from time to time shall be However, determined by written resolution of the Board.

of the any contracts or leases executed on behalf Association prior to the passage of control of the 7 BK7612PG0263 Board to the Association must be terminable by the Association without penalty on not more than ninety (90) days written notice. In the absence of such determination by the Board, such document shall be signed by the treasurer and countersigned by the President.

(k) Obtaining insurance for the Property, including the Units, pursuant to the applicable provisions of the Declaration.

the (1) Making or contracting for repairs, additions and improvements to or alterations or restoration of

r the Property, including the Units, pursuant to the applicable provisions of the Declaration.

the (1) Making or contracting for repairs, additions and improvements to or alterations or restoration of property in accordance with the other provisions of these bylaws and the Declaration, after damage or destruction by fire or other casualty, or as a result of condemnation or eminent domain proceeding.

(m) Contracting for all goods, services and insurance, payment for which is to be made from the Common Expense fund.

intervening in (n) Instituting, defending, or litigation or administrative proceedings in the name or of on behalf of the Association or two or more Unit mers on matters affecting the Condominium.

(0) Borrowing money on behalf of the Condominium when required in connection with the operation, care, or Common Elements the upkeep and maintenance of the acquisition of property, and granting mortgages on and/or security interests in Association owned property; provided, however, that the consent of the Unit Owners of at least two-thirds (2/3rds) of the Units represented at meeting in at which a been attained quorum has accordance with the provisions of these Bylaws shall be any sum in excess of required for the borrowing of $10,000.00.

a (p) Imposing charges for late payment of assessment and, after notice and an opportunity to be heard, levy reasonable fines for violations of the Declaration, the Bylaws, or rules and regulations established by the Association, all in accordance with Sections 47C-3-107 and 47C-3-107A of the Act.

(q) At its discretion, authorizing Unit Owners or other persons to use portions of the Common Elements for private parties and gatherings and imposing reasonable charges for such private use.

the Act.

(q) At its discretion, authorizing Unit Owners or other persons to use portions of the Common Elements for private parties and gatherings and imposing reasonable charges for such private use.

(r) Exercising (i) all powers specifically set forth in the Declaration, the Articles of Incorporation, these 8 BK7612PG0264 3.10 Bylaws and in the Act, (ii) all powers incidental thereof, and (iii) all other powers of a non-profit North Carolina corporation.

(s) Suspending the right of any Unit Owner to vote as long as said Unit Owner is delinquent in the payment of Common Expenses or is otherwise in violation of the Declaration or any exhibits thereto or applicable rules and regulations.

Managing Agent. The Board may engage the services of any person, firm, or corporation to act as managing agent at a compensation established by the Board, to perform such duties and services as the Board shall authorize, other than the powers set forth in subdivisions (a), (e), (g), (h), (i), (p), and (q) of Section 3.9 of this Article III. Any management agreement for the Condominium shall be terminable by either party without cause and without payment of a termination fee or penalty upon 90 days or less written notice thereof and the terms of such agreement may not exceed one year, renewable by agreement of the parties for successive one year periods. Any management agreement shall be terminable by either party for cause upon the giving of not more than thirty (30) days written notice. When professional management has been previously required, any decision to establish self-management by the Association shall require the prior consent of sixty-seven (67%) percent of the Unit Owners, and in addition, when professional management has been previously required by any

sh self-management by the Association shall require the prior consent of sixty-seven (67%) percent of the Unit Owners, and in addition, when professional management has been previously required by any Eligible Mortgage Holder the decision to establish self-management by the Association shall require the approval of fifty-one percent.

(51%) of the Eligible Mortgage Holders, counting one vote for each first mortgage owned.

3.11 Duties of Declarant. Within a reasonable time after Unit Owners other than the Declarant elect a majority of the members of the Board (but not more than sixty (60) days after such event), the Declarant shall deliver control of the Association and shall deliver to the Association all property [noted in Subsection (a) through (o)] of the Unit Owners and of the Association held or controlled by the Declarant, including, if applicable: (a) The original or a photocopy of the recorded Declaration of Condominium, and all amendments thereto.

If a photocopy is provided, the Declarant must certify by affidavit that it is a complete copy of the actual recorded Declaration.

(b) A copy of the Articles of Incorporation of the Association.

(c) A copy of the Bylaws of the Association.

(d) The minute books, including all minutes, and 9 BK 7612PG0265 other books and records of the Association.

(e) Any rules and regulations which have been adopted.

(f) Resignations of resigning officers and Board members.

(g) Association funds or the control thereof.

(h) A copy of the plans and specifications utilized in the construction or remodeling of improvements on the Property and the supplying of equipment; and for the construction and installation of all mechanical components servicing the improvements and the Condominium, with a

remodeling of improvements on the Property and the supplying of equipment; and for the construction and installation of all mechanical components servicing the improvements and the Condominium, with a certificate, in affidavit form, of an officer of the Declarant or an architect or engineer authorized to practice in North Carolina, that such plans and specifications represent, to the best of their knowledge and belief, the actual plans and specifications utilized in the construction or improvement of the Condominium and the construction or installation of the mechanical components servicing the Improvements and the Condominiums.

(i) Insurance policies.

(j) Copies of any Certificates of Occupancy which may have been issued for the Condominium.

(k) Any other permits issued by governmental bodies applicable to the Condominium in force or issued within one (1) years prior to the date the Unit Owners take control of the Association.

(1) All written warranties of contractors, subcontractors, suppliers and manufacturers, if any, that are still effective.

(m) A roster of Unit Owners and their addresses and telephone numbers, if known, as shown on the Declarant's records.

(n) Employment contracts or service contracts in which the Association is one of the contracting parties, or service contracts in which the Association or Unit Owners have an obligation or responsibility, directly or indirectly, to pay some or all of the fee or charge of the person or persons performing the service.

(0) All other contracts to which the Association is 10 a party.

BK 7612 PG0266 ARTICLE IV.

Meetings of Directors 4.1 Organizational Meeting. The first meeting of the initial Board designated in these Bylaws shall be held at such time as the Declarant shall determine, but in no event later than The

s of Directors 4.1 Organizational Meeting. The first meeting of the initial Board designated in these Bylaws shall be held at such time as the Declarant shall determine, but in no event later than The one year from the date of incorporation of the Association.

first meeting of a newly elected Board shall be held within fifteen (15) days following the meeting of the Unit Owners at which the Board was elected. No notice shall be necessary to the newly elected members of the Board in order to legally constitute such meeting, providing that a quorum is present.

4.2 the In Regular Meeting. A regular meeting of the Board - shall be held immediately after, and at the same place as, annual meeting or substitute annual meeting of the Unit Owners.

addition, the Board may provide by resolution the time and place, either within or without the State of North Carolina, for the holding of a regular meeting of the Board, with such meeting to be held as decided by the Board during each fiscal year.

4.3 Special Meetings. Special meetings of the Board may be called by or with the request of the chairman, or by any two (3) directors. Such meetings may be held either within or without the State of North Carolina.

4.4 Notice of Meetings. Regular meeting of the Board may be held without notice. The person(s) who called a special meeting of the directors shall, at least two (2) days prior to said meeting, give notice thereof by any usual means of communication.

Such notice need not specify the purpose for which the meeting is called.

Attendance by a director at a meeting shall constitute a waiver of notice of such meeting except where a member attends the meeting for the express purpose of objecting to the transaction of any business because the meeting was not lawfully called. Meeting of

iver of notice of such meeting except where a member attends the meeting for the express purpose of objecting to the transaction of any business because the meeting was not lawfully called. Meeting of the Board shall be open to all Unit Owners and notices of meeting shall be posted conspicuously for the attention of Unit Owners in advance of the meeting, except for regular meeting of the Board; which may be held without notice.

4.5 Waiver of Notice. Any member of the Board may at any time waive notice of any meeting of the Board in writing, and such waiver shall be deemed equivalent to the giving of such notice.

Attendance by a director at any meeting of the Board shall constitute a waiver of notice by him of the time and place thereof.

If all of the directors are present at any meeting of the Board, no notice shall be required, and any business may be transacted at 11 BK 7612PG0267 BK 7612PG0268 such meeting.

4.6 Quorum. A majority of the number of directors fixed by these Bylaws shall be required for and constitute a quorum for the transaction of business at any meeting of the Board.

4.7 Manner of Acting. Except as otherwise provided in this section, the act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board. A vote of a majority of the number of directors fixed by these Bylaws shall be required to adopt a resolution constituting an executive committee. Vacancies in the Board may be filled as provided in Section 3.6 of these Bylaws.

4.8 Organization. Each meeting of the Board shall be presided over by the Chairman, and in the absence of the Chairman, by a person selected to preside by vote of the majority of the Board members present. The secretary, or in his absence,

oard shall be presided over by the Chairman, and in the absence of the Chairman, by a person selected to preside by vote of the majority of the Board members present. The secretary, or in his absence, assistant secretary, or in the absence of both the secretary and the assistant secretary, any person designated by the chairman of the meeting shall act as secretary of the meeting.

4.9 Informal Action of Board.

an Action taken by a majority of the directors without a meeting is nevertheless Board action if written consent to the action in question is signed by all of the directors and filed with the minutes of the proceedings of the Board, whether done before or after the action so taken.

Minutes.

4.10 The Board shall keep minutes of its proceedings, which shall be available for inspection by the Unit Owners during reasonable business hours.

4.11 of Liability of the Board and Officers. The directors and the officer provided for in Article IV hereof shall not be liable to the Unit Owners for any mistake of judgment, negligence or otherwise, except for their own individual willful misconduct or bad faith. The Unit Owners shall indemnify and hold harmless each of the directors and the officers against all contractual liability to others arising out contracts made by the Board or the officers on behalf of the Condominium, unless any such contract shall have been made in bad faith or contrary to the provisions of the Declaration or these Bylaws. It is intended that the directors or any officer shall have no personal liability with respect to any contract made by them on behalf of the Condominium, except to the It is extent that they are Unit Owners and have liability as such.

also intended that the liability of any Unit Owner arising out of

y contract made by them on behalf of the Condominium, except to the It is extent that they are Unit Owners and have liability as such.

also intended that the liability of any Unit Owner arising out of any contract made by the Board or the officers, or out of the aforesaid indemnity in favor of the directors of the officers, shall be limited to such proportion of the total liability thereunder as his interest in the Common Elements bears to the interests of all the Unit Owners in the Common Elements. Every agreement made by the Board, by the managing agent or by the 12 BK 7612P60269 officers on behalf of the Condominium shall provide that the members of the Board, the managing agent or the officers, as the case may be, are acting only as agents for the Unit Owners, and shall have no personal liability thereunder.

5.1 ARTICLE V.

Officers Number. The principal officers of the Condominium shall consist of a Chairman of the Board, a secretary, a treasurer, and such vice chairmen, assistant secretaries, assistant treasurers and other officers as the Board may from time to time elect. Any two or more offices may be held by the same person, except the offices of chairman and secretary.

5.2 Election and Term. The officers of the Condominium shall be elected by the Board. The chairman, vice chairman, secretary and treasurer shall be elected from among the Board and The all other officers, if any, need only be a Unit Owner.

officers elected by the initial Board are not required to be Unit Owners. The election of officers may be held at the regular annual meeting of the Board.

until his Each officer shall hold office for a period of one year or death, resignation, retirement, removal, disqualification, or until his successor is elected and qualifies.

l meeting of the Board.

until his Each officer shall hold office for a period of one year or death, resignation, retirement, removal, disqualification, or until his successor is elected and qualifies.

Removal. Any officer or agent elected or appointed by the Board may be removed by the Board, with or without cause; but such removal shall be without prejudice to the contract rights,.

if any, of the person so removed.

5.3 5.4 Compensation.

No officer shall receive any compensation from the Condominium for acting as such.

5.5 Chairman of the Board. The Chairman of the Board shall be the principal executive officer of the Condominium; and, subject to the control of the Board, shall supervise and control The chairman shall, when the management of the Condominium.

present, preside at all meetings of the Board and of the Unit Owners and, in general, shall perform all duties incident to the office of chairman of the Board, and such other duties as may be prescribed from time to time by the Board.

5.6 Vice Chairman. The vice chairman, and if there be more than one, the vice chairmen, designated by the Board, shall, in the absence or disability of the chairman, have the powers and perform the duties of said office. In addition, each vice chairman shall perform such other duties and have such other powers as shall be prescribed by the Chairman of the Board.

13 5.7 BK7612PG0270 Secretary. The secretary shall keep accurate records of the acts and proceedings of all meeting of the Unit Owners and directors. He shall give, or cause to be given, all notice required by law and by these Bylaws. He shall have general charge of the minute books and records of both the Association and the board. .He shall sign such instruments as may require his

, all notice required by law and by these Bylaws. He shall have general charge of the minute books and records of both the Association and the board. .He shall sign such instruments as may require his signature, and, in general, shall perform all duties incident to the office of secretary, and such other duties as may be assigned from him from time to time by the chairman of the Board or by the Board.

to be 5.8.

Treasurer. The treasurer shall have custody of all Condominium funds and securities, and shall receive, deposit or disburse the same under the direction of the Board. He shall keep full and accurate accounts of the finances of the Condominium in books especially provided for that purpose. He shall cause a true statement of its assets and liabilities as of the close of each fiscal year, and of the results of its operations and changes in surplus for each fiscal year, all in reasonable detail, prepared and distributed to all Unit Owners and members of the Board on or before the 15th day of the second month following the close of each fiscal year. The statement so filed shall be kept available for inspection by an Unit Owner for a period of three (3) ! years. The treasurer shall also prepare and file all reports and returns required by federal, state or local law, and shall generally perform all other duties as may be assigned to him from time to time by the chairman of the Board.

5.9 Assistant Secretaries and Treasurers. The assistant secretaries and assistant treasurers, if any, shall, in the absence of the secretary and treasurer, respectively, have all the powers and perform all of the duties of those officers, and they shall in general perform such other duties as shall be assigned to them by the secretary or the treasurer, respectively, or by the chairman of

and perform all of the duties of those officers, and they shall in general perform such other duties as shall be assigned to them by the secretary or the treasurer, respectively, or by the chairman of the Board or the Board.

6.1 ARTICLE VI.

Operation of the Property Initial Assessment. At its organizational meeting the Board shall adopt a proposed budget for the Condominium and shall levy assessments against the Units for Common Expenses based upon said budget, which assessments shall commence in accordance with the provisions of Section 6.4 of the Declaration. The assessments BO levied shall remain in effect until future assessments are determined in accordance with the provisions of Section 6.2 of these Bylaws.

6.2 Assessment and Determination of Common Expenses. The Board shall from time to time, and at least annually, prepare a budget for the Condominium, for the purpose of determining the 14 BK 7612PG0271 amount of the Annual Assessments to be collected from the Unit Owners in order to provide for the Common Expenses of the Condominium, and allocate and assess such Common Expenses amount to the Unit Owners, according to their Percentage of Interest in the Common Elements as set forth in the Declaration, taking into consideration any expected income and any surplus from the prior year's operation. The Common Expenses shall include , without limitation, the expenses, costs and charges incurred in connection and of the with the management administration, operation Condominium property; the cost of maintenance, repair, replacement and restoration of the Common Elements, or any part thereof; the insurance all policies of cost of all insurance premiums required to be or which have been obtained by the Board pursuant to

eplacement and restoration of the Common Elements, or any part thereof; the insurance all policies of cost of all insurance premiums required to be or which have been obtained by the Board pursuant to the provisions of the Declaration; such amounts as the Board may deem proper for the convenience, comfort and wellbeing of the Unit Owners, and for the operation, management and maintenance of the an amount for working Property, including, without limitation, on capital of the Condominium, for a general operating reserve, for a reserve fund for replacements, and to make up any deficit in the Common Expenses for any prior year; in proper cases, the cost of administration and of maintenance and repair of the Limited Common Elements; and any other expenses lawfully agreed upon.

In establishing a reserve fund for replacements, the board shall of replaceable take into account the number and nature assets, the expected life of each asset, and the expected repair of replacement cost. The Board shall then set the required capital contribution amount sufficient to permit meeting the projected capital needs of the Association with respect to both amount and timing by equal annual installments over the applicable period.

in an Within thirty (30) days after adoption by the Board of any proposed budget for the Condominium, the Board shall provide a summary of the budget to all Unit Owners and shall give notice of a date for a meeting of the Unit Owners to consider ratification of the budget not less than fourteen (14) nor more than thirty (30) days after mailing of the summary and notice. A quorum need not be present at the meeting. The budget is ratified unless at the meeting a majority of all the Unit Owners votes to reject the

hirty (30) days after mailing of the summary and notice. A quorum need not be present at the meeting. The budget is ratified unless at the meeting a majority of all the Unit Owners votes to reject the budget. In the event the proposed budget is rejected, the periodic budget last ratified shall be continued until such time as the Unit Provided , Owners ratify a subsequent budget proposed by the Board.

however, the requirements of this Section relating to budget adoption shall not be applicable to the adoption of the initial budget or the levy of the initial assessment by the Board at its organizational meeting as provided for in Section 6.1 hereof.

6.3 Payment of Assessments. All Unit Owners shall be obligated to pay (1) Annual Assessments to Common Expenses assessed by the Board pursuant to the provisions of this Article VI; (2) special assessments to be established and collected as provided 15 BK 7612PG0272 herein, and (3) specific assessments against any Unit which are established pursuant to the terms of these Bylaws. Annual Assessments shall be due and payable in monthly installments on the first day of every month. A later payment charge in an amount to be determined by the Board shall be assessed for any installment not paid by the tenth of the month. Any installment not paid during the month in which it is due shall be subject to the late payment charge and shall accrue interest as provided in Section 6.5, and shall constitute a lien on the Unit as provided in Section 6.6 of this Article VI.

No Unit Owner shall be liable for the payment of any part of the Common Expenses assessed against his Unit subsequent to a sale, transfer or other conveyance by him (made in accordance with the provisions of the Declaration and applicable restrictions of

art of the Common Expenses assessed against his Unit subsequent to a sale, transfer or other conveyance by him (made in accordance with the provisions of the Declaration and applicable restrictions of record) of such Unit, together with his interest in the Common Elements. A purchaser of a Unit shall be jointly and severally liable with the seller for the payment of Assessments assessed against such Unit prior to the acquisition by the purchaser of such Unit only if the purchaser expressly assumes such obligation in writing; provided; however, the lien assessed against such unit shall remain in full force and effect. Any such purchaser shall be entitled to a statement from the Board setting forth the amount of the unpaid Assessments against the seller, and the Unit -conveyed shall not be subject to a lien for any unpaid assessments in excess of the amount shown on the statement. Provided, however, that a First Mortgagee or other purchaser of a Unit at a foreclosure sale of such Unit or a First Mortgagee who takes a deed in lieu of foreclosure shall not be liable for, and such Unit shall not be subject to, a lien for the payment of Common Expenses assessed prior to the foreclosure sale or deed in lieu of foreclosure. Such unpaid Common Expenses shall be deemed to be Common Expenses collectible from all of the Unit Owners, including such purchaser, his successors or assigns.

6.4 Special Assessments.

The Association may levy Special Assessments for Common Expenses not covered by the Annual Assessment, applicable to that 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 Elements, including fixtures and personal property

rpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Elements, including fixtures and personal property related thereto, provided that any such Assessment shall have the assent of two-thirds (2/3) of the Voting Members at a meeting duly called for this purpose. Such Special Assessments shall be charged to the Units according to their Percentage Interest in the Common Elements. In addition, the Board may levy Special Assessments against one or more, but less than all, of the Units to cover repairs or maintenance for which such Unit Owner or Owners are responsible and which they have failed to make, or for repairs or maintenance required of a Unit Owner or Unit Owners which impair the value of the Common Elements or the Unit or Units, or expenses which are incurred in the abatement of or as a result of a 16 BK7612PG0273 violation by a Unit Owner or Owners of the provisions of the Declaration, the Bylaws or the rules, regulations, or for fines levied for said violations, or where the Board has purchased a Unit on behalf of one or more Unit Owners. The period of assessment and manner of payment of such assessment shall be determined by the Board.

6.5 Collection of Assessments. The Board shall determine Common Expenses against the Unit Owners from time to time, at least annually, and may, as the Board shall determine, take prompt action to collect any Assessments due from any Unit Owner which remain unpaid for more than thirty (30) days from their due date.

The Board shall notify Eligible Mortgage Holders pursuant to the provisions of the Declaration for which any amount assessed pursuant to these Bylaws remains unpaid for more than sixty (60)

due date.

The Board shall notify Eligible Mortgage Holders pursuant to the provisions of the Declaration for which any amount assessed pursuant to these Bylaws remains unpaid for more than sixty (60) days from their due date, and in any other case where the Unit Owner of such Unit is in default with respect to the performance of any obligation hereunder for a period in excess of sixty (60) days.

as 6.6.

Default in Payment of Assessment. In the event of default by any Unit Owner in paying to the Board any amounts assessed by the Board, such Unit Owner shall be obligated to pay a late payment charge of fifteen ($15.00) dollars or such rate established by the Board from time to time, and interest at the initial rate of ten percent (10%) per annum on such amounts from their due date or at a rate as established by the Board; together with all fees including reasonable attorneys' expenses, (if permitted by law), incurred by the Board in collecting such unpaid in payment of sums. If a Unit Owner shall be in default installment of an Assessment, including but not limited to, the monthly installment based on the annual budget, the Board may accelerate the remaining installments upon ten (10) days' written notice to such Unit Owner, whereupon the entire unpaid balance of such Assessment shall become due upon the date dated in such notice.

an Assessment Lien and 6.7 Each Personal Obligation.

provided for in this Article, together with late payment charges, interest and expenses, including attorneys' fees (as permitted by law), shall be a charge on and a continuing lien upon the Unit against which the Assessment is made when a notice of such lien has been filed of record in the Office of the Clerk of Superior Court of Wake County, North Carolina, in the manner provided by Article

against which the Assessment is made when a notice of such lien has been filed of record in the Office of the Clerk of Superior Court of Wake County, North Carolina, in the manner provided by Article 8, Chapter 44, of the North Carolina General Statutes, provided such notice of lien shall not be recorded until such sums assessed remain unpaid for a period of thirty (30) days after the same shall become due. Said notice of lien shall also secure all Assessments against the Unit becoming due thereafter until the lien has been satisfied. Said lien may be foreclosed in the manner as a deed of trust on real property. In addition, each Unit Owner shall be 17 BK7612PG0274 personally liable for any Assessment against his Unit becoming due and payable while he is the Owner of such Unit.

6.8 Priority of Assessment Lien. The lien of the Assessments provided for in this Article shall be prior and superior to all other liens except (a) ad valorem taxes, and (b) all sums unpaid on first lien deeds of trust, mortgages or other encumbrances against the Unit prior to the docketing of the Assessment lien. The sale or transfer of any Unit shall not affect the Assessment lien against such Unit. Provided, however, the sale of a Unit pursuant to the foreclosure sale or execution sale instituted by a superior lien holder or conveyance to First Mortgagee by deed in lieu of foreclosure shall extinguish the inferior Assessment lien against the subject Unit but no such sale or transfer shall relieve each Unit from liability for any Assessments thereafter becoming due or for any future lien in connection therewith. The Association shall share in the excess, if any, realized by the sale of any Unit pursuant to a foreclosure or action instituted by a superior lien holder, to the extent or its lien.

tion therewith. The Association shall share in the excess, if any, realized by the sale of any Unit pursuant to a foreclosure or action instituted by a superior lien holder, to the extent or its lien.

6.9 Foreclosure of Liens for Unpaid Assessments.

Following the institution of any action by the Board to foreclose on a Unit because of unpaid Assessments, the Unit Owner shall pay a reasonable rental for the use of his Unit, and the plaintiff in such foreclosure action shall be entitled to the appointment of a receiver to collect the rental. The Board, acting on behalf of the Association, on behalf of any one or more individual Unit Owners, of so instructed, shall have the power to purchase such Unit at the foreclosure sale and to acquire, hold, lease, mortgage, vote the votes appurtenant to, convey or otherwise deal with the same, subject, however, to applicable restrictions of record. A suit to recover a money judgment for unpaid Assessments shall be maintainable without foreclosing or waiver or the Assessment lien.

Where a First Mortgagee or the purchaser of a Unit obtains title to the Unit as a result of foreclosure of the First Mortgage, such purchaser, its successors and assigns, shall not be liable for the share of the Common Expenses or Assessments by the Board chargeable to such Unit which become due prior to the acquisition of title to such Unit by such purchaser. Such unpaid share of Common Expenses or Assessments shall be deemed to be a Common Expense collectible from all Unit Owners, including such purchaser, its successors and assigns.

6.10 Statement of Common Expenses. The Board shall promptly provide any Unit Owner so requesting the same in writing with a written statement of all unpaid charges due from such Unit

sors and assigns.

6.10 Statement of Common Expenses. The Board shall promptly provide any Unit Owner so requesting the same in writing with a written statement of all unpaid charges due from such Unit Owner, for which it may institute a reasonable charge at its discretion.

6.11 Abatement and Enjoinment of Violations by Unit Owners. The violation of any rule or regulation adopted by the 18 BK 7612PG 0275 Board or the breach of any bylaw contained herein, or the breach of any provision of the Declaration, shall give the Board the right, in addition to any other rights set forth in these Bylaws: (a) to enter the Unit in which, or as to which, such violation or breach exists, and to make any repairs, and to summarily abate and remove, at the expense of the defaulting Unit Owner, any structure, thing or condition which may exist therein contrary to the intent and meaning of the provisions hereof, and the Board shall not thereby be deemed guilty in any manner of trespass; or, (b) to enjoin, abate, or remedy by appropriate legal proceedings, either at law or in equity, the continuance of any such breach at the expense of the defaulting Unit Owner; (c) in any case of flagrant or repeated violation by a Unit Owner, to require such Unit Owner to give sufficient sureties for his future compliance with such condominium documents; or (d) after notice and an opportunity to be heard, to levy reasonable assessments and fines in accordance with Sections 47C-3-107 and 47C-3-107A of the Act for such violations. The failure of the Board to so act with respect to any such violation or breach shall not be deemed a waiver of the Board's right to act with respect to the same or any other breach or violation.

6.12 Maintenance and Repair.

(a) Each Unit Owner shall maintain, repair and

r breach shall not be deemed a waiver of the Board's right to act with respect to the same or any other breach or violation.

6.12 Maintenance and Repair.

(a) Each Unit Owner shall maintain, repair and replace, at his sole cost and expense, all portions of his Unit which may become in need thereof, including the components of the heating and air conditioning system within and appurtenant to each Unit, if any, all bathroom and kitchen fixtures and appliances, light fixtures, interior, non-loadbearing walls, doors, floors, ceilings, carpeting, drapes and other items within the Unit, whether structural or non-structural, ordinary or extraordinary (other than maintenance of and repairs to any Common Elements not specifically set forth herein contained therein and not necessitated by the negligence, misuse or neglect of the Unit Owner, his family guest, agents, servants, lessees, employees or contractors). Each Unit Owner shall clean the Limited Common Elements appurtenant to his Unit and replace all light bulbs in fixtures (if any) located in such Limited Common Elements. Each Unit Owner shall be responsible for replacing all heating and air conditioning filters, if any, required the in his Unit. Each Unit Owner shall further be responsible for all damages to any and all other Units and/or to the Common Elements which his failure to undertake his maintenance responsibility may engender. All damages to Common Elements or other Units intentionally or negligently caused by the Unit Owner, his family, guests, agent, servants, lessees, employees or contractors shall be promptly repaired by the Unit Owner at his sole cost and expense; provided that there is excluded from the provisions contained in this section such repairs 19 6.13 BK 7612PG0276 necessitated by casualties

tly repaired by the Unit Owner at his sole cost and expense; provided that there is excluded from the provisions contained in this section such repairs 19 6.13 BK 7612PG0276 necessitated by casualties insured against by the Association to the extent the Association receives insurance proceeds for such repairs. In such event, the Unit Owner shall be required to pay such portion of the costs of such maintenance, repair and replacement as shall exceed the amount of the applicable insurance proceeds.

If the Unit Owner does not make those repairs to be made by him within thirty (30) days from written demand by the Board, the same may be repaired by the Board, and the cost thereof shall be assessed against the Unit owned by the subject Unit Owner.

(b) The Association, through its Board, shall maintain, repair and replace all portions of the Common Elements and Limited Common Elements (except as provided in Section 6.12(a) above) which shall require same, whether located inside or outside of the Units (unless necessitated by the negligence, misuse or neglect of a Unit Owner, his family, guests, agents, servants, lessees, employees or contractors, in which case such expense shall be charged to such Unit Owner, or unless herein provided to the contrary), and the cost thereof shall be charged to all the Unit Owners as a Common Expense.

Restrictions on Unit Owners. No Unit Owner shall perform or cause to be performed any maintenance, repair or replacement work which disturbs the rights of the other Unit Owners, jeopardizes the soundness or the safety of the Condominium property, or reduces the value thereof. Each Unit Owner shall cause any work so performed or being performed on the Unit, which, in the sole opinion of the board, violates the terms of this

ondominium property, or reduces the value thereof. Each Unit Owner shall cause any work so performed or being performed on the Unit, which, in the sole opinion of the board, violates the terms of this section, to be immediately corrected, and he shall refrain from recommencing or continuing any such work without written consent of the Board.

6.14 Duty to Report. Each Unit Owner shall promptly report to the Board or its agent any defect or need for repairs or replacement the responsibility for which is that of the Association.

6.15 Additions, Alterations or Improvements by the Association. Whenever in the judgment of the Board the Common Elements shall require additions, alterations or improvements, the Board shall proceed with such additions, altérations or improvements, and shall assess all Unit Owners for the costs thereof, as a Common Expenses, subject, however, to the provisions of Sections 6.2 and 6.3 of this Article.

6.16 Additions, Alterations or Improvements by Unit Owners. No Unit Owner shall make any addition, alteration or improvement in or to his Unit, which impairs the structural integrity or mechanical systems or lessens the support of any part 20 BK 7612 PG0277 of the Condominium. No Unit Owner shall make any addition, alteration or improvement which affects the exterior portion or outward appearance of such Unit, without the prior written consent thereof of the Board. The Board shall have the obligation to answer any written request by a Unit Owner for approval of a proposed addition, alteration or improvement in or to such Unit Owner's Unit within thirty (30) days after such request, and failure to do so within the stipulated time shall constitute a consent by the Board to the proposed addition, alteration or improvement.

6.17

ner's Unit within thirty (30) days after such request, and failure to do so within the stipulated time shall constitute a consent by the Board to the proposed addition, alteration or improvement.

6.17 Use of Common Elements and Facilities. A Unit Owner shall not interfere with the use of the Common elements by the remaining Unit Owners and their guests.

6.18 Right of Access. A Unit Owner shall grant a right of access to his Unit to the managing agent and/or any other person authorized by the Board or the managing agent, for the purpose of making inspections or for the purpose of correcting any condition originating in his Unit and threatening another Unit or a Common Element, or for the purpose of performing installations, alterations or repairs to the mechanical or electrical services or other Common Elements in his Unit or elsewhere in the building, or to correct any condition which violates the provisions of any mortgage covering another Unit, provided that requests for entry are made in advance, and that any such entry is at reasonably convenient to the Unit Owner. In the case of an emergency, such right of entry shall be immediate, whether or not the Unit Owner is present at the time such request for entry is made, or such entry is at a time reasonably convenient to the Unit Owner.

6.19 a time Rules of Conduct. Rules and regulations concerning the use of the Units and the Common Elements may be promulgated and amended by the Board. Such rules and regulations shall be equally applicable to all Unit Owners similarly situated and shall be uniform in their application and effect. Copies of such rules and regulations shall be furnished by the Board to each Unit Owner prior to their effective date.

6.20 Remedies Cumulative.

All right, remedies and

n their application and effect. Copies of such rules and regulations shall be furnished by the Board to each Unit Owner prior to their effective date.

6.20 Remedies Cumulative.

All right, remedies and privileges granted to the Association or the Owner or Owners of a Unit pursuant to any terms, provisions, covenants or conditions of the Declaration or other above-mentioned documents, shall be cumulative, and the exercise of any one or more shall not constitute an election of remedies, nor shall it preclude the party thus exercising the same from exercising such other and additional rights, remedies or privileges as may be available to such party at law or in equity.

21 6.21 7.1 BK 7612PG 0278 Nonwaiver of Remedies.

(a) The failure of the Association or any Unit Owner to enforce any right, provision, covenant or condition the other which may be granted by the Declaration or above-mentioned documents shall not constitute a waiver of Owner to the right of the Association or of the Unit enforce such rights, provision, covenant or condition in the future.

. (b) The failure of Declarant to enforce any rights, privilege, covenant or condition which may be granted to it by the Declaration or other above-mentioned documents shall not constitute a waiver of the right of Declarant to thereafter enforce such right, provisions, covenant or condition in the future.

(c) The failure of a First Mortgagee to enforce any right, provisions, privilege, covenant or condition which may be granted to it or them by the Declaration or other above-mentioned documents, shall not constitute a waiver thereafter of the right of said party or parties to enforce such right, privilege, covenant or condition in the future.

ARTICLE VII.

Records and Audits Reports. The Board shall keep detailed records of

hereafter of the right of said party or parties to enforce such right, privilege, covenant or condition in the future.

ARTICLE VII.

Records and Audits Reports. The Board shall keep detailed records of the actions of the Board and the managing agent, minutes of the meeting of the Board, minutes of the meetings of the Association, and financing records and books of account of the Condominium , including a chronological listing of receipts and expenditures, as for each Unit, which, among other well as a separate account things, shall contain the amount of each Assessment against each Unit, the date when due, the amounts paid and the balance remaining shall be unpaid. The financial records and books of account available for examination by all Unit Owners, their duly authorized agents or attorneys, and all lien holders, their attorneys and set and that shall be authorized agents, convenient hours A written annual summary of all announced for general knowledge.

receipts and expenditures of the Condominium shall be rendered by the Board to all Unit Owners on or before the 15th day of the In addition, second month following the close of each fiscal year.

and of expenditures the of annual the receipts report Condominium shall be rendered by the Board to all Unit Owners and to all Eligible Mortgage Holders who have requested the same , promptly after the end of each fiscal year.

an at 22 : BK 7612 PG0279 7.2 Common Expense Funds. All sums collected by the Association, either as Assessments for the Common Expenses or Special Assessments may be commingled in a single fund, but they shall be held for the Owners for the purposes for which they are paid, and shall, subject to the right of withdrawal or refund provided herein, be credited to accounts from which shall be paid

ut they shall be held for the Owners for the purposes for which they are paid, and shall, subject to the right of withdrawal or refund provided herein, be credited to accounts from which shall be paid the charges for which the Assessments are made. Such accounts shall include the following, or such other and further accounts as the Board from time to time shall determine.

(a) General Common Expense Account--to which shall be credited collection of that portion of the Common Expense Assessments received for defraying the costs of operating the Condominium on a day-to-day basis, including normal maintenance and repairs, insurance and related charges.

(b) Capital Reserve Account--to which shall be credited, all sums collected which are to be allocated for capital expenditures for the reconstruction, repair and replacement of Common Elements at a future date.

All sums collected by the Association, either as assessments of the Common Expenses or special assessments, during any fiscal year and allocated to the General Common Expense Account or to any other account from which non-capital expenditures may be made, in excess of expenditures during such fiscal year made from or chargeable to said account or accounts shall be deemed contributions to capital at the end of said fiscal year, and shall be transferred to the Capital Reserve Account. All amounts credited to said Capital Reserve Account shall be contributions to capital, and shall be held in trust by the Association for future expenditures of a capital nature, and shall serve to reduce the Assessments required for said capital expenditures..

7.3 Audits. All books of account and financial records shall be kept in accordance with generally accepted accounting practices. The Board shall have a review of the books of account

al expenditures..

7.3 Audits. All books of account and financial records shall be kept in accordance with generally accepted accounting practices. The Board shall have a review of the books of account and financial records of the Association made by an independent accountant immediately following the close of each fiscal year and the report of such accountant shall be received by the Board and made available for inspection upon request by all Units owners and all eligible Mortgage Holders on or before the 15th day of the third month following the close of each fiscal year.

8.1 ARTICLE VIII.

Amendments to Bylaws Notice. Notice of the subject matter of a proposed amendment shall be included in the notice of a meeting at which a proposed amendment is to be considered.

23 8.2 Adoption.

BK 7612PG 0280 A resolution for the adoption of a proposed amendment may be proposed either by a majority of the Board or by not less than one-third (1/3) of the members of the Association. Directors and members of the Association not present in person or by proxy at the meeting considering the amendment may express their approval in writing, provided that such approval is delivered to the Secretary at or prior to the meeting. The approval must be by not less than a majority of the votes of all members of the Association represented at a meeting at which a quorum has been attained.

8.3 Limitation. No amendment may be adopted which would eliminate, modify, prejudice, abridge or otherwise adversely affect any rights, benefits, privileges or priorities granted or reserved to the Declarant or eligible Mortgage Holders without the consent of said Declarant and Eligible Mortgage Holders in each instance.

No amendment shall be made that is in conflict with the Articles of of the Incorporation

eligible Mortgage Holders without the consent of said Declarant and Eligible Mortgage Holders in each instance.

No amendment shall be made that is in conflict with the Articles of of the Incorporation Association or Declaration without satisfaction of the requirements therein contained. So long as the Declarant controls the Association and the Veterans Administration holds or insures any first Mortgage on a Unit in the condominium, the Veterans Administration shall have the right to veto any amendment to the Bylaws. No amendment to this Section shall be valid.

8.4 Execution and Recording. A copy of each amendment shall be attached to a certificate certifying that the amendment was duly adopted as an amendment to the Declaration and bylaws, which certificate shall be executed by the Chairman or vice chairman and attested by the Secretary or Assistant Secretary of the Association with the formalities of a deed, or by the Declarant alone if the amendment has been adopted consistent with the provisions of the Declaration allowing such action by the Declarant. The amendment shall be effective when the certificate and a copy of the amendment is recorded in the Register of Deeds for Wake County, North Carolina.

9.1 ARTICLE IX.

Condemnation General. Whenever all or any part of the condominium Property shall be taken by any authority having the power of condemnation or eminent domain, each Unit Owner and all Eligible Mortgage Holders shall be entitled to notice thereof and to participate in thereto other the proceedings incident unless prohibited by law. The award made for such taking shall be payable to the Association. Unless otherwise provided by law at the time of such taking, any award made therefor shall be disbursed by the Association as provided in this Article IX.

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aking shall be payable to the Association. Unless otherwise provided by law at the time of such taking, any award made therefor shall be disbursed by the Association as provided in this Article IX.

24 BK 7612PG 0281 9.2 Common Elements. If the taking is confined to the Common Elements (general or limited) on which improvements shall have been constructed, and at least eighty (80%) percent of the total vote of the members of the Association entitled to vote shall vote within sixty (60) days after such taking to replace the improvements, or any part thereof, on the remaining land included in the Common Elements (general or limited) and according to the plans therefor first approved by the Association, then the Board shall arrange for such replacement and the Association shall disburse the proceeds of such award in the same manner as they are required to disburse insurance proceeds where damage or destruction to the Common Elements (general or limited) is to be repaired or to the reconstructed as provided for herein; subject, however, right hereby reserved to the Association by a majority vote of the Voting Members, to provide for the disbursement by the Association of the remaining proceeds held by it (after the payment of all costs incident to such replacement) to the Unit Owners or any one or more of them or to their First Mortgagees as their interest may in appear amounts to disproportionate their of percentages undivided interest in the Common Elements (general or limited) established herein, which disproportionate amounts shall correspond with the disproportionate damage sustained by the Unit Owners or If at any one or more of them as the Association may determine.

least eighty (80%) percent of the Voting Members shall not decide

spond with the disproportionate damage sustained by the Unit Owners or If at any one or more of them as the Association may determine.

least eighty (80%) percent of the Voting Members shall not decide within sixty (60) days after such taking to replace said improvements of if the taking is confined to the Common Elements (general or limited) on which no improvements shall have been constructed, then the Association shall disburse the proceeds of the award in the manner hereinabove provided for the disbursement of the remaining proceeds of an award after payment of all costs incident to the replacement of improvements taken has been made, including the right reserved to the Association to provide for the disbursement of the remaining proceeds held by it to the Unit Owners in disproportionate amounts. All disbursements made under this Section 9.2 shall be in strict compliance with Section 47C-1-107 of the Act.

9.3 Units. If the taking includes one or more Units, or any part or parts thereof, whether or not there is included in the taking any part of the Common Elements (limited or general), then the award shall be disbursed and all related matters shall be handled pursuant to and in accordance with the consent of all Unit Owners and First Mortgagees affected and the Executive Board of the Association thereafter, expressed in a duly recorded Amendment to the Declaration of Condominium, all in accordance with Section 47C-1-107 of the Act.

9.4 Termination. The Board shall call a meeting of all Unit Owners at least forty-five (45) days prior to any final taking by the condemning authority to determine the action to be taken pursuant to Sections 9.2 and 9.3 above. Except in the event of a the Units by eminent domain, in the taking of all event the 25 BK 7612PG0282-

condemning authority to determine the action to be taken pursuant to Sections 9.2 and 9.3 above. Except in the event of a the Units by eminent domain, in the taking of all event the 25 BK 7612PG0282condemnation involves more than ten (10%) percent of the value of the Common Elements (limited or general) and/or more than fifteen (15%) percent of the total value of all Units, the Condominium may be terminated at such meeting by written approval of not less than eighty (80%) percent of the Voting Members. Any termination agreement shall be in compliance with 47C-2-118 of the Act.

10.1 ARTICLE X.

Miscellaneous All Ad Valorem Taxes. Each Unit shall be deemed to be a separate parcel and shall be separately assessed and taxed. Each Unit Owner shall be liable solely for the amount of tax assessed against his Unit and shall not be affected by the consequences resulting from the tax delinquency of other Unit Owners.

tangible personal property owned by the Association in connection with the maintenance, upkeep and repair of the Common Elements shall be listed for said taxes in the name of and paid by the Association. Each Unit Owner is also responsible for his pro rata share of taxes assessed on his portion of the Common Elements, if any.

10.2 Notification to Mortgagees. Any Owner who mortgages his Unit shall notify the Association of the name and address of the Mortgagee, and the Association shall maintain such information in a book entitled "Mortgagees of Condominiums". In addition to any other notification provided for in the Declaration or these Bylaws, the Association, may, at the written request of a Mortgagee of any such Unit, report any unpaid assessments due from the Owner of such Unit. The Association shall notify each Mortgagee

r these Bylaws, the Association, may, at the written request of a Mortgagee of any such Unit, report any unpaid assessments due from the Owner of such Unit. The Association shall notify each Mortgagee appearing in said book the name of each company insuring the Condominium Property under the master policy and the amounts of the coverage thereunder.

Severability.

10.3 Invalidation of any covenant, condition, restriction or other provision of the Declaration or these Bylaws shall not affect the validity of the remaining portions thereof which shall remain in full force and effect.

10.4 Successors Bound. The rights, privileges, duties and responsibilities set forth in the Declaration of these bylaws, as amended from time to time, shall run with the ownership of the Condominium Property and shall be binding upon all persons who own or hereafter acquire any interest in the Condominium Property.

10.5 Gender, Singular, Plural. Whenever the context so permits, the use of the singular or plural shall be interchangeable in meaning and the use of any gender shall be deemed to include all genders.

26 10.6 BK7612PG0288 Principal Office--Registered Office. The initial principal office and registered office of the Association shall be located at 2508 Avent Ferry Road, Raleigh, North Carolina 27606.

10.7 Other Offices. The Association may have other offices at such other places within North Carolina as the Board may from time to time determine or as the affairs of the Association may require.

10.8 Seal. The seal of the Association shall contain the coname of the Association, the word "Seal", the year of incorporation and such other words and figures as is desired by the Board of Directors.

When obtained, the seal shall be impressed in the margin of this Section of the Bylaws.

1997

"Seal", the year of incorporation and such other words and figures as is desired by the Board of Directors.

When obtained, the seal shall be impressed in the margin of this Section of the Bylaws.

1997 ☑10.9 Fiscal Year.

shall be the calendar year.

The fiscal year of the Association PARK CERTIFICATION I, the undersigned, do hereby certify: THAT I am the duly elected and acting secretary of Lake Park Condominium Homeowners Association, Inc., a North Carolina nonprofit corporation, and THAT the foregoing Bylaws constitute the original Bylaws of said Association, as duly adopted at a meeting of the initial Executive Board thereof held on the 1st day of August 19_97 IN WITNESS WHEREOF, I have hereunto subscribed my name and 1st affixed the seal of said Association, this day of 19 97 August THEY LAKE PARK CENDOMINIUM E Народния Uma L. Martin Allma Secretary WP/RAYNES/LAKEPARK/BYLAWS (7/30/97).

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