Document

2022 - 3580 02/08/2022 11:42AM Page 1 of 63 Prepared by and after recording return to: Jay Cain, PLLC 8150 N. Central Expwy., 10th Floor Dallas, Texas 75206 Midland County Clerk Unofficial Copy DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA ESTANCIA ESTE Midland County Clerk Unofficial Copy Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 2 of 63 Midlan DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA ESTANCIA ESTE This Declaration of Covenants, Conditi "Declaration") is made this.

day of Cuatro Amigos, LLC, a Texas corporat and Restrictions for La Estancia Este (this 2022 (the "Effective Date"), by Los eclarant").

Midland County Clerk Unofficial Copys Declaran RECITALS certain real property located in Midland County, Texas, including that real property or cularly described in Exhibit A attached hereto.

Declarant desires to establish a uniform plan of development for a master planned community own as La Estancia Este (the "Community"), which Community consists of the Property (as defined below), Additional Property (as defined below), and any other property that may be owned or acquired by Declarant or a Declarant Affiliate in the vicinity of the Property, and to establish procedures for the development, improvement, administration, maintenance and preservation of the Property, pursuant to the provisions of this Declaration.

NOW, THEREFORE, Declarant hereby declares that the Property is and will be held, used, occupied, improved, encumbered, leased, sold and conveyed subject to the covenants, conditions, restrictions, easements and other terms of this Declaration. This Declaration will run with the title to the Property and be binding on all parties having any right, title or interest in all or any portion of the

, easements and other terms of this Declaration. This Declaration will run with the title to the Property and be binding on all parties having any right, title or interest in all or any portion of the Property, and each of their respective heirs, personal representatives, successors, transferees and assigns, and will inure to the benefit of each owner of any portion of the Property.

1.1 ARTICLE 1 DEFINITIONS Definitions. Unless the context clearly specifies otherwise terms and phrases used in this Declaration shall have the following "Additional Property" means real property that subjected to this Declaration by Declarant pursuant to "ARC" or "Architectural Review following capitalized be annexed to the Property and bee" is defined in Section 7.3(c).

Midland County Clerk Unofficial Copy "Assessment(s)" means Re Assessments, and other assessmen "Association" corporation. This Annual Assessments, Special Assessments, Individual ayable to the Association under the Governance Documents.

s La Estancia Homeowners Association, Inc., a Texas non-profit ration is binding upon the Association, its successors and assigns.

1 Midlan 2022 - 3580 02/08/2022 11:42AM Page 3 of 63 "Board" means the Board of Directors of the Association.

"Bound Parties" is defined in Section 12.5(a).

"Budget” is defined in Section 5.3.

"Builder" means any Person that acquires sale to consumers in the ordinary course of "Bylaws" means the Byla for the purpose of constructing a Home for for such Person.

Midland County Clerk Unofficial Copy Amended, of the Association.

"Causes of Action is defined in Section 4.1(c).

Formation" means the Certificate of Formation establishing the Association it corporation, as amended.

Claim" is defined in Section 12.5(b).

"Claimant" is defined in Section 12.6(a).

n Section 4.1(c).

Formation" means the Certificate of Formation establishing the Association it corporation, as amended.

Claim" is defined in Section 12.5(b).

"Claimant" is defined in Section 12.6(a).

"Common Area" is defined in Section 2.3.

"Common Expenses" means the expenses that the Association incurs, or expects to incur, in connection with the ownership, maintenance and operation of the Common Maintenance Areas, operation of the Association and otherwise for the general benefit of Owners, including operating reserves and reserves for repair and replacement of capital items within the Common Maintenance Areas as the Board deems necessary or appropriate.

"Common Maintenance Area" means the Common Area and all other properties and facilities for which the Association has maintenance responsibility under the Governance Documents or for which the Association agrees to assume maintenance responsibility. The initial Common Maintenance Area is described in Section 9.3.

"Community" is defined in the recitals.

"Community Manual" means the manual for the Property Declarant and recorded in the Records, as may be amended and su accordance with the procedures for the amendment of Gover 15.2. The Community Manual may include the Bylaws Governance Documents.

"Community Wide Standard” me use, conduct, architecture, landscaping and (b) the minimum standarde itially adopted by the ated from time to time in ce Documents set forth in Section Design Guidelines and any other Midland County Clerk Unofficial Copy The standard that is the highest of (a) the standard of aesthetic matters generally prevailing in the Community, ted in this Declaration, the Design Guidelines, the Rules and any Board resolutions. The Community Wide Standard may contain objective or subjective elements

ers generally prevailing in the Community, ted in this Declaration, the Design Guidelines, the Rules and any Board resolutions. The Community Wide Standard may contain objective or subjective elements and may evolve as deve 2ent progresses and as the Community matures. The Community Wide med by the Board.

Standard shall be d 2 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 4 of 63 Midlan "Covenant to Share Costs" is defined in Section 9.6.

"Declarant" means Los Cuatro Amigos, LLC, a Texas successors and assigns pursuant to Section 15.5.

"Declarant Affiliate" means any Person that control with Declarant, and any Person that is a m ability company, and its is controlled by or is under common e of Declarant.

"Declaration" means this Detration of Covenants, Conditions and Restrictions of La Estancia Este, as it may be amended supplemented and restated from time to time.

Midland County Clerk Unofficial Copy "Design Guidelines' aesthetics for exterior means the standards for design, development, landscaping, and placed on any Lot adopted by the Association.

Dwelling Unit" will mean and refer to any building or portion of a building any Lot which is designated and intended for residential use that is not attached to the Detached Dwelling Unit will be the lesser of two thousand (2,000) square feet or thirty-five rent (35%) of the square footage of the Home. Materials used to build the Detached Dwelling Unit must match materials used in the design of the Home, as approved by the ARC. There will be only one Detached Dwelling Unit per Lot, unless authorized by the ARC. This definition will include a pool house.

"Development Period" means the period of time beginning on the date when this

will be only one Detached Dwelling Unit per Lot, unless authorized by the ARC. This definition will include a pool house.

"Development Period" means the period of time beginning on the date when this Declaration has been recorded in the Records, and ending fifty (50) years thereafter, unless earlier terminated by a Recorded instrument executed by the Declarant. The Development Period is the period of time in which Declarant reserves the right to facilitate the development, construction, and marketing of the Property and the Community, and/or the right to direct the size, shape and composition of the Property and the Community. The Development Period is for a term of years and does not require that Declarant own any portion of the Property or the Community.

"Effective Date" is defined in the introductory paragraph to this Declaration.

"Governance Documents" means all documents that have a legal and binding effect on all Owners and occupants of the Property, as well as on anyone that may now or in the future have an interest in any portion of the Property.

"Home" means a residential dwelling.

"Improvement” is defined in Section 7.2.

"Individual Assessments" is defined "Lot" is defined in Section 2.2 hon 5.6.

Midland County Clerk Unofficial Copy "Management Agent is defined in Section 4.1(g).

"Members each Person that holds membership privileges in the Association. Each Owner is a M by virtue of ownership of a Lot.

3 Midlan 2022-3580 02/08/2022 11:42AM Page 5 of 63 Midlan "Mortgage" means a deed of trust on a Lot securing payment of indebtedness.

"Mortgagee" or "Mortgagees" means the beneficiary of a "Notice" is defined in Section 12.6(a).

"Other Properties" is defined in Section "Owner" means the record owner, Lot. "Owner" does not include holds (such as a Mortgagee).

" means the beneficiary of a "Notice" is defined in Section 12.6(a).

"Other Properties" is defined in Section "Owner" means the record owner, Lot. "Owner" does not include holds (such as a Mortgagee).

obtrust or Mortgage.

bether one or more Persons, of fee simple title to any tle merely as security for the performance of an obligation Midland County Clerk Unofficial Copy "Party Structure is defined in Section 8.4(a).

or "Persons" means an individual, corporation, partnership, limited liability ust or other legal entity.

"Private Street" is defined in Section 11.12(a).

"Property" means that certain real property described in Exhibit "A", attached hereto and incorporated herein by reference, subject to such additions thereto and deletions therefrom as may be made pursuant to Section 10.2, Section 10.3, and Section 10.4 of this Declaration.

"Records" means the Official Public Records of Midland County, Texas.

"Regular Annual Assessments" is defined in Section 5.3.

"Respondent" is defined in Section 12.6(a).

"Resale Certificate" is defined in Section 6.4.

"Reviewer" is defined in Section 7.3(a).

"Rules" means the rules and regulations of the Association adopted by the Declarant and as may be amended and/or supplemented in accordance with Section 6.9 of this Declaration.

"Special Assessments" is defined in Section 5.4.

"Supplement" is defined in Section 10.2.

"TBOC" means the Texas Business amended and supplemented from time to tim DESCRIPTION OF zations Code, and any successor statute, as erk Unofficial Midlandt ble al Copy 4 2.1 exclusive use PROPERTY AND PROPERTY DESIGNATIONS The Property is comprised of Lots and Common Area intended for the nd enjoyment of the Owners and other residents. This Article 2 will describe Midlan 2022 3580 02/08/2022 11:42AM Page 6 of 63

NATIONS The Property is comprised of Lots and Common Area intended for the nd enjoyment of the Owners and other residents. This Article 2 will describe Midlan 2022 3580 02/08/2022 11:42AM Page 6 of 63 the various designations to be used for the Property, features of the Property and the scope and applicability of the Governance Documents.

2.2 Lots. A "Lot" is a portion of the Property designator that will be designated, as a separately identified lot or parcel of land in any recorded pla and conveyed and is zoned or otherwise intended ord as a Home. The term "Lot" does not include if Common Area is described as a separa intended for construction of a Home, ich Lot may be independently owned ted for development, use, and occupancy Area for purposes of this Declaration, even on a recorded subdivision plat and was originally property dedicated to the public. The term Lot refers to the land as well as to any Homet Lot. A portion of the Property intended for development as one or more Lots shall be treated as a single Lot until a subdivision plat is recorded in the Records dividing such Property more than one Lot. The creation and combination of Lots is governed by Section 6.5.

Midland County Clerk Unofficial Copy Common Area. "Common Area" is any and all portions of the Property (including ements thereon and related personal property and fixtures) that the Association owns or Own, or otherwise holds possessory or use rights, for the common use and enjoyment of some or of the Members. Declarant may establish and convey Common Areas to the Association as provided in Article 9.

2.4 Other Properties. In addition to the property designations set forth above, land dedicated to the public and property owned or controlled by governmental or quasi-governmental

ovided in Article 9.

2.4 Other Properties. In addition to the property designations set forth above, land dedicated to the public and property owned or controlled by governmental or quasi-governmental entities (collectively "Other Properties") may be subject to this Declaration. Unless otherwise provided in this Declaration or any Supplement, the Other Properties shall not be subject to Assessment by the Association for Common Expenses and the owners of Other Properties shall have no membership or voting rights in the Association by virtue of ownership of such Other Properties.

2.5 Scope and Applicability of the Governance Documents; Compliance. The Community has been established and is administered pursuant to the Governance Documents, which have a legal and binding effect on all Owners and occupants of property within the Property. All Owners and occupants of Homes, as well as their tenants, guests and invitees, are required to comply with the Governance Documents. All Owners shall be held accountable and liable for their own actions and the actions of their tenants, guests and invitees, including any damage to Common Areas caused by such Persons.

3.1 ARTICLE 3 DESCRIPTION OF THE ASSOCIATION / Purpose. The Association is respons with the Governance Documents and is a me governance and administration of the Proper Owners to allow them to participate outcome of major decisions.

VOTING RIGHTS I administering the Property in accordance rough which each Owner can participate in the Membership and voting rights are vested in the the administration of the Property and to influence the ughout the Development Period, Declarant may adopt the Governance Documents either its capacity as Declarant or in the name of the Association.

Midland County Clerk Unofficial Copy 3.2

o influence the ughout the Development Period, Declarant may adopt the Governance Documents either its capacity as Declarant or in the name of the Association.

Midland County Clerk Unofficial Copy 3.2 TBOC by the Zaton. The Association is a Texas nonprofit corporation created under the of the Certificate of Formation. The Association is charged with the duties and 5 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 7 of 63 vested with the powers of a Texas nonprofit corporation. In addition, the Association will have such rights, duties and powers as set forth in the Certificate of Formation, the TBOC and the Texas Property Code. The Association shall contin accordance with the TBOC.

3.3 (a) Governance.

The Association is gover s, this Declaration, the st until it is terminated in Midland County Clerk Unofficial Copy the Board, which facilitates the day-to-day management and operation of the Astiation. Except as the Governance Documents or TBOC specifically provide otherwise, rd acts in all instances on behalf of the Association without approval of the Members. The Board may exercise all rights and powers that the Governance Documents, TBOC and as Property Code expressly grant to it, as well as any rights and powers that may be reasonampiled under the Governance Documents. The Board may also take any essary to effectuate any such rights and powers.

action reason The Board of Directors will consist of at least three (3) persons elected at the annual g of the Association, or at a special meeting called for such purpose. Notwithstanding the regoing provision or any provision in the Governance Documents to the contrary, Declarant will have the sole right to appoint and remove all members of the Board until the 10th anniversary of the

the regoing provision or any provision in the Governance Documents to the contrary, Declarant will have the sole right to appoint and remove all members of the Board until the 10th anniversary of the date this Declaration is recorded in the Records. Not later than the 10th anniversary of the date this Declaration is recorded in the Records, or sooner as determined by Declarant, the Board shall hold a meeting of Members of the Association for the purpose of electing one-third of the Board (the "Initial Member Election Meeting"), which Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and remove two-thirds of the Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period.

3.4 Membership.

(a) Owners as Members. Any Person automatically becomes a Member of the Association upon becoming an Owner. If more than one Person owns a Lot, then the vote for such Lot will be exercised by the Person that the Owner designates in writing to the Association.

Membership rights of a legal entity may be exercised by any officer, director, partner, member or other individual that the Owner designates in writing to the Association. Membership is appurtenant to and runs with the ownership of a Lot. Membership may not be severed from wnership of the Lot or transferred, pledged or mortgaged, except together with the title Ah Lot. Membership of an Owner terminates upon such Owner's divestment of its Lot Unofficial Copy (b) Declarant as Member. Until Period, the Declarant shall be a Member of the upon ownership of all or any portion of the (c) Consent Merk ation or expiration of the Development ation and membership shall not be conditioned

. Until Period, the Declarant shall be a Member of the upon ownership of all or any portion of the (c) Consent Merk ation or expiration of the Development ation and membership shall not be conditioned Electronic Meetings. By acquiring title to a Lot, each Owner consents to any meetings of the Association, in which such Owner is entitled to participate, being held in any manner permitted Midland County Clerk Unoffic er the Bylaws.

Allocation.

6 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 8 of 63 Midlan (a) Owners. Each Lot will be allocated one (1) vote to be exercised by the Owner of such Lot in accordance with Section 3.4 and the Bylaws. If a Lot is redivided into two (2) or more Lots, each Lot resulting from the re-subdivision will be entitled e vote, and each Lot will be subject to separate Assessments. If two (2) or more Lots are consolidated for any purpose including construction of a single residence thereon, then the Lot resul from the consolidation will continue Wssessments according to the number of to be entitled to the number of votes and be subje original Lots contained in such consolidated Lor (b) Midland County Clerk Unofficial Copy Declarant. In ation to the votes to which Declarant is entitled by reason of Section 3.5(a), for every one (1) ye standing in favor of any Person or entity other than Declarant, Declarant will have four (4) additonal votes until the date Declarant no longer owns any portion of the Property.

ARTICLE 4 ASSOCIATION OPERATIONS Rights and Powers of the Association. In addition to other rights set forth in this eclaration and the other Governance Documents, the Association, acting through the Board unless a vote of the Members is otherwise specified, will have all the rights of a Texas non-profit corporation,

claration and the other Governance Documents, the Association, acting through the Board unless a vote of the Members is otherwise specified, will have all the rights of a Texas non-profit corporation, including the following rights and powers: (a) Assessments. Levy and collect Assessments pursuant to Article 5 below.

(b) Recreational Facilities. Establish and impose reasonable membership requirements and charge reasonable use or other fees for any recreational facilities within the Property, and permit the use of recreational facilities by Persons other than Owners.

(c) Enforcement. Impose sanctions and take such other actions as the Board may deem necessary for violations of the Governance Documents. Such action by the Association shall be taken in accordance with, and subject to, applicable procedures set forth in the Governance Documents and applicable law, including Chapter 209 of the Texas Property Code. Sanctions and other actions that may be taken by the Association shall include all remedies available at law, in equity and/or under this Declaration, including the following: (i) (ii) Suspend a Member's voting rights (except a Suspend an Owner's right to use th recreational facilities located thereon, provided that restrict or limit ingress and egress to and from ohibited by law).

Common Areas, including any er no circumstance shall the Board (iii) Suspend any sees the Association provides to the Owner's Lot.

Imp (iv) Midland County Clerk Unofficial Copy reasonable monetary fines against an Owner, for each separate violation, which fine wstitute a lien upon the Owner's Lot until the fine is paid in full.

If any occupant, nt, guest or invitee of a Lot violates the Governance Documents and a

ner, for each separate violation, which fine wstitute a lien upon the Owner's Lot until the fine is paid in full.

If any occupant, nt, guest or invitee of a Lot violates the Governance Documents and a fine is impose ne may be assessed against either the violator or the Owner, provided is first assessed against the violator but not paid within the time period set by the Owner shall pay the fine upon written notice from the Board.

that if 7 Midlan 2022 3580 02/08/2022 11:42AM Page 9 of 63 (v) Require an Owner, at the Owner's expense, to remove or remedy any Improvement on the Owner's Lot in violation of the Governance uments. If the Owner fails to remove or remedy such violation in the time required e Board, the Association will have the right to enter upon the Lot and any Improvements thereon after twenty-four (24) hours written notice (or without notice in the an emergency) for the purpose of enforcing this Declaration or abating any vicard the Governance Documents, including the repair or maintenance of any Improve. Such entry will be made by the Association without any liability to the Owner and not be deemed a trespass. The expense incurred by the Association in connection with any such entry on a Lot and other actions to bring a Lot and any Improvemesreon into compliance with the Community Wide Standard or other requirements ne he Governance Documents will be a personal obligation of the Owner of such ill be deemed an Individual Assessment against such Lot, will constitute a lien agains unde Midland County Clerk Unofficial Copy h Lot and will be enforced in the same manner as for other Assessments (vi) Require an Owner, at the Owner's expense, to reimburse the Association for any damage and resulting loss to the Common Areas arising from the conduct

d in the same manner as for other Assessments (vi) Require an Owner, at the Owner's expense, to reimburse the Association for any damage and resulting loss to the Common Areas arising from the conduct of the Owner or any occupant, tenant, guest or invitee. If the Owner fails to reimburse the Association in the time required by the Board, such reimbursement will be deemed an Individual Assessment against the Owner's Lot, will constitute a lien against the Lot and will be enforced in the same manner as for other Assessments under Article 5.

(vii) Area.

(viii) (ix) Exercise self-help or take action to abate any violation on the Common Preclude any contractor, subcontractor, agent, employee or invitee of an Owner who fails to comply with the provisions of Governance Documents, including Article 6 or Article 7 of this Declaration, from performing any further activities in the Property.

Commence and maintain actions and suits to (1) enforce, restrain and enjoin, by mandatory injunction, specific performance or otherwise, any violation or threatened violation of the Governance Documents and/or (2) recover monetary damages.

(x) Record a notice of any violation of the Governance Documents against the applicable Lot in the Records.

The decision to take any enforcement action under don 4.1(c) with respect to any particular matter (including deciding whether to file a lavsu ake other legal action) will be made by the Board, on behalf of the Association; provide ever, that the Board shall not act in an arbitrary or capricious manner in any enforcement ons; and provided further, however, that under no circumstances will the Board or Association ever expend any of the Association's funds for the

in an arbitrary or capricious manner in any enforcement ons; and provided further, however, that under no circumstances will the Board or Association ever expend any of the Association's funds for the purpose of bringing suit against Declar its successors or assigns. The Board has no legal duty to institute litigation or any other p ling on behalf of or in the name of the Association or the Members. A decision to not en onte a particular requirement of the Governance Documents shall not enforcing the same requirement at a later time, and no Board member the Association will be liable to any Owner for failure to enforce any of the ents at any time.

Midland County Clerk Unofficial Copy prevent the Association or officer or Governance 8 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 10 of 63 Midlan EACH OWNER SHALL INDEMNIFY, HOLD HARMLESS AND, UPON THE ELECTION OF THE BOARD, DEFEND THE ASSOCIATION, ITS RECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES AND AGENTS FROM A AINST ANY AND ALL LOSS, COSTS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION, INCLUDING WITHOUT LIMITATION REASONE FIE ATTORNEYS' FEES AND AMOUNTS PAID IN SETTLEMENT (COLLECT "CAUSES OF ACTION") ARISING FROM OR IN CONNECTION WITH THE SOCIATION'S ACTIONS UNDER THIS SECTION 4.1(c), EXCEPT TO THE EXT SUCH CAUSES OF ACTION ARE CAUSED BY THE NEGLIGENCE OR WILLFUL MISCONDUCT OF THE ASSOCIATION.

Midland County Clerk Unofficial Copy (d) Legal and Accounting Services. Retain and pay for legal, accounting and other professional services nesry for the proper operation of the Association.

Construction.

nth the Common Areas.

Construct new improvements or additions to existing (f) Contracts and Property Services. Enter into contracts on such terms as the

per operation of the Association.

Construction.

nth the Common Areas.

Construct new improvements or additions to existing (f) Contracts and Property Services. Enter into contracts on such terms as the may determine for services relating to operations of the Association or for the benefit of the Property, including contracts for water, gas, sewer, electricity, cable television, internet service, garbage removal, street cleaning and other services for all or any portions of the Property.

(g) Management Agent. Retain the services of a third party manager or agent (the "Management Agent") to manage and operate the Association, with the compensation and other contract terms for a Management Agent to be determined by the Board. The Board may delegate such powers as are necessary for the Management Agent to perform the Management Agent's assigned duties but shall not delegate policy-making authority or ultimate responsibility for the duties specifically assigned to the Board in the Governance Documents. The powers, duties and services delegated to the Management Agent may include, but are limited to (1) provide for the collection of Assessments and the enforcements of liens consistent with the terms of this Declaration, (2) provide for the care, upkeep, maintenance, repair and surveillance of the Common Maintenance Areas, (3) hire, dismiss and replace such personnel as may be required for the efficient operation of the Common Maintenance Areas, (4) enforce Rules, and (5) provide such other services (including tax, legal and accounting services) as the Board desires. The Board may employ Declarant or its affiliate as Management Agent. The Board may delegate to one of its members the authority to act on its behalf

egal and accounting services) as the Board desires. The Board may employ Declarant or its affiliate as Management Agent. The Board may delegate to one of its members the authority to act on its behalf on all matters relating to the duties of the Management Agent which arise between Board meetings.

officia Copy (h) Transfer of Common Areas.

imitation to the rights set forth in Section 9.8, sell or transfer all or any part of the Comer Areas upon the affirmative vote of at least sixty-seven percent (67%) of the total number votes of the Association, voting in person or by proxy at a meeting duly called for such (i) Loans.

accordance with Section 5.12 a 4.2 accordance with purp money and encumber all or any part of the Common Areas in Midland County Cler ComAreas. The Association shall operate and maintain the Common Areas in 9 Midlan 2022 - 3580 02/08/2022 11:42AM Page 11 of 63 4.3 Insurance. The Association shall obtain and maintain in effect the following minimum insurance coverage, to the extent such insurance is reasonably available at sonable cost: (a) Property Insurance. Blanket all-risk propert improvements on the Common Maintenance Area to the maintenance responsibility, and all Improvements o (b) General Liability In hsurance covering all insurable that the Association has assumed the Association.

Commercial general liability insurance covering bodily injury and property damage resulting from the operation and use of the Common Areas with limits of coverage deemed necess desirable by the Board.

Midland County Clerk Unofficial Copy (c) insurance, errors and tors and Officers Liability Insurance. Directors and officers liability sions insurance, indemnity bonds or other similar insurance covering the

County Clerk Unofficial Copy (c) insurance, errors and tors and Officers Liability Insurance. Directors and officers liability sions insurance, indemnity bonds or other similar insurance covering the Association's Bonembers, officers, managers and committee members against liability for any act or omissi in rrying out such party's duties in its applicable capacity, with limits of coverage deemed desirable by the Board.

In addition to the required insurance coverage set forth above, the Association may obtain and maintain any insurance policies and bonds deemed necessary or desirable by the Board for the benefit and protection of the Association, the Members, Board members, and officers, employees and agents of the Association.

If a loss under any insurance policy is due wholly or partly to an act or omission of an Owner or its invitee, the Board may require the Owner to reimburse the Association for the amount of any deductible that is attributable to such act or omission.

4.4 Books and Records. The Association shall prepare and maintain books, records and financial statements of the Association's affairs. The Association shall make copies of such books, records and financial statements, and copies of the Governance Documents, available for inspection by Members in accordance with the Bylaws and the requirements of the TBOC and Texas Property Code.

4.5 Services Provided by the Association. Without limiting the general right of the Association to enter into contracts under Section 4.1(f), the Association shall have the authority to enter into bulk service agreements at any time and from time to time. The ociation may enter into bulk service agreements with any service providers chosen by the Boar luding Declarant, and/or

rity to enter into bulk service agreements at any time and from time to time. The ociation may enter into bulk service agreements with any service providers chosen by the Boar luding Declarant, and/or any entities in which Declarant, or the owners or partners of echant, are owners or participants either directly or indirectly). The bulk service agreements be entered into on such terms and provisions as the Board may determine. The Asso may, at its option and election, add the charges payable by such Owner benefiting from bulk service agreements to the Assessments (Regular, Special, or Individual, as the cas be) against such Owner's Lot. The bulk service agreements may include such services able television, telecommunications, internet access, security monitoring, trash and recycling c on, utilities, landscape maintenance and pest control, and the Association will have no obligation to utilize any particular service provider.

Any Associat Midland County Clerk Unofficial Copy agreements with contract for services may require Owners or occupants to enter into separate service providers in order to obtain the specified services or to provide access to 10 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 12 of 63 the Lot or Home. Such agreements may contain terms and conditions so that the services will be terminated or suspended upon a default of the Owner or occupant, provided.

will not relieve the Owner of the continuing obligation to pay Asses assessed against the Lot.

t any such termination for the services that are The Board may discontinue offering particules and may modify or cancel agreements for existing services, subject to the terms of the set 4.6 Actions and Decisions agreement.

Midland County Clerk Unofficial Copy

may discontinue offering particules and may modify or cancel agreements for existing services, subject to the terms of the set 4.6 Actions and Decisions agreement.

Midland County Clerk Unofficial Copy he board. Except as otherwise provided in the Governance Documents, any judgment, decision sent, approval or action made, given or withheld by the Board in exercising its powers, autho or duties shall be made, given or withheld in the Board's sole and absolute discretion and s be final so long as such judgment, decision or action is exercised in good faith. The Association directors, and officers shall not be liable to any Person for any error in judgment or y Chon or inaction of the Board, except that nothing in this Section 4.6 shall relieve ability for gross negligence or willful misconduct.

5.1 ARTICLE 5 ASSESSMENTS AND ASSOCIATION FINANCES Purpose. The Association will use Assessments to enhance and manage the Property, including the maintenance of improvements to, and operations of, real and personal property, management and operation of the Association, and any expense reasonably related to the purposes for which the Property was developed.

Obligation for Assessments.

5.2 (a) Commencement. Except as set forth in Section 5.2 (c) or this Section 5.2(a), Assessments on a Lot commence on the first day of the month following the date on which the Lot is made subject to this Declaration. With respect to a Lot that is considered exempt pursuant to Section 5.2(c) or this Section 5.2(a), Assessments on such Lot will commence on the first day of the month following the date on which the Lot loses its exempt status. During the Development Period, Developer may, by written instrument signed by Developer, (i) exempt certain Lots owned by certain

the month following the date on which the Lot loses its exempt status. During the Development Period, Developer may, by written instrument signed by Developer, (i) exempt certain Lots owned by certain Builders from the payment of Assessments while owned by such Builder or (ii) defer the commencement of Assessments with respect to certain Lots owned by cer which case such Lots will have exempt status during the deferral period so lo the applicable Lots).

(b) Personal Obligation. By acce agrees to pay Assessments authorized in the interest (computed from its due date establish, subject to the limitations of costs, and reasonable attorneys happlicable Builder owns tle to a Lot, each Owner covenants and ce Documents. All Assessments, together with 10% per annum or such rate as the Board may Midland County Clerk Unofficial Copuilders (in as law), late charges as determined by Board resolution, all be the personal obligation of each Owner and a lien upon each Lot until paid in full; provide, an Owner shall not be liable for fees of a collection agent retained by the Association excer Lot, the grantee sh time of transf provided in Tex. Prop. Code $209.0064. Upon a transfer of title to a jointly and severally liable for any Assessments and other charges due at the 11 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 13 of 63 The Board's failure to fix Assessment amounts or rates or to deliver an Owner an Assessment notice shall not be deemed a waiver, modification, or a release of any from the obligation to ents on the same basis as pay Assessments. In such event, each Owner shall continue to pay s during the last year for which an Assessment was made, if any una new Assessment is levied, at which time the Association may retroactively assess any sh

such event, each Owner shall continue to pay s during the last year for which an Assessment was made, if any una new Assessment is levied, at which time the Association may retroactively assess any sh No Owner may exempt himself or hers Common Areas, abandonment of his or he Midland County Clerk Unofficial Copy Association or Board to tak inconvenience or discon from liability for Assessments by non-use of non-use of a service or otherwise. The obligation to pay Assessments is a separate and incendent covenant on the part of each Owner. No diminution or abatement of Assessments ft shall be claimed or allowed for any alleged failure of the me action or perform some function required of it, or for arising from the making of repairs or improvements, or otherwise.

Exempt Property. The following portions of the Property shall be exempt from the aynent of Assessments: Affiliate; (iii) All Common Areas; All portions of the Property owned by Declarant or a Declarant that is unplatted or unimproved; and If Declarant so determines, any Lot or other portion of the Property (iv) Any portion of the Property dedicated to and accepted by any governmental authority or public utility.

In addition, Declarant or the Association may grant exemptions to certain Persons qualifying for tax exempt status under Section 501(c) of Internal Revenue Code.

5.3 Regular Annual Assessments. The amount of Regular Annual Assessments (as defined below) to be levied against Lots subject to Assessments during the first year following the Effective Date shall be equal to the greater of (i) $.20 per square foot of such Lot, or (ii) $8,500 per year. Thereafter, prior to the beginning of each year, the Board will prepare a budget based on an estimate of the Common Expenses to be incurred by the Association

oot of such Lot, or (ii) $8,500 per year. Thereafter, prior to the beginning of each year, the Board will prepare a budget based on an estimate of the Common Expenses to be incurred by the Association performing its functions and exercising its powers under this Decl to, the cost of all management, repair and maintenance of Comman as, the cost of providing street and other lighting, the cost of administering and enforcing herein, and the cost of otherwise managing the Prop a reasonable provision for contingencies, an appr the Board to be sufficient to cover the Clerk Unoffi g the coming year in cuding, but not limited ovenants and restrictions contained the general benefit of Owners, including operating reserve (at a level determined by of operational or maintenance emergencies or contingencies) and an appropriate replacement reserve (at a level that anticipates scheduled replacement or major repair rovements for which the Association is responsible) (the "Budget”). The Budget will gene consideration to any expected income and any surplus from the prior year's funds. The to mount of expected expenditures set forth in the Budget will be allocated among all Lots subje Assessments by Declarant, in Declarant's sole discretion, based on the percentage of dividing (x) the number of square feet of land in each individual Lot by (y) the Midland Co 12 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 14 of 63 Midlan total number of square feet of land in all of the Lots in the Community (the "Pro Rata Share") and will be levied as "Regular Annual Assessments" by the Board. All Regule nnual Assessments will be due and payable to the Association at the beginning of the year of the year in equal monthly

are") and will be levied as "Regular Annual Assessments" by the Board. All Regule nnual Assessments will be due and payable to the Association at the beginning of the year of the year in equal monthly installments on or before the first day of each month, or in such other manner as the Board may designate.

(a) Supplemental Increases to of a year the Board determines that the R ar Annual Assessments. If during the course Annual Assessments are insufficient to cover the estimated Common Expenses for the hainder of the year, the Board may increase Regular Annual Assessments for the remainder ear in an amount that covers the estimated deficiency.

Midland County Clerk Unofficial Copy Property expenses expenses al 5.4 Special sments. The Association may levy "Special Assessments" to cover ale non-routine, unanticipated, or in excess of those anticipated in the Budget.

Except as other specifically provided in this Declaration, any Special Assessments for Property allocated among all Lots subject to Assessments based on the Pro Rata Share. In during the Development Period, any Special Assessments shall also be subject to Declarant's consent. Special Assessments shall be payable in the manner and at the times as the Board Petermines and may be payable in installments extending beyond the year in which the Special Assessments are approved.

5.5 Notice of Budgets and Assessments; Budget Revisions. The Board shall send a copy or summary of the Budget, together with notice of the amount of Regular Assessments to be levied pursuant to such budget to each Owner at least 30 days prior to the due date of the Assessments to be levied pursuant to such budget. The Board may revise the Budget any time (including if sums

levied pursuant to such budget to each Owner at least 30 days prior to the due date of the Assessments to be levied pursuant to such budget. The Board may revise the Budget any time (including if sums collected prove inadequate for any reason, including for nonpayment of any Assessment), subject to the same notice requirements set forth in this Section 5.5.

5.6 Individual Assessments. In addition to the Assessments set forth above, the Board may levy "Individual Assessments" against a Lot and its Owner for the following purposes: (a) Interest, late charges, and collection costs of delinquent Assessments, each as determined by the Board, subject only to the maximum amounts permitted under applicable law; (b) Reimbursement for costs incurred in bringing an compliance with the Governance Documents; or for damage or loss caus or occupant of a Lot, or their agents, contractors, employees, licens incurred for any damages and resulting loss to the Comm Owner or his Lot into the acts of an Owner vitees or guests; or costs Areas in accordance with Section Atten notice and an opportunity for a 4.1(c)(vi), provided that the Board must give the Ownerplal hearing in accordance with the Bylaws; Midland County Clerk Unofficial Copy (c) To cover fines for tons of the Governance Documents and costs incurred in bringing the Lot or Other perues into compliance with the Governance Documents, or costs incurred as a conseque he conduct of the Owner or occupants of the Lot, their agents, contractors, employees, licenses invitees or guests, provided that the Board shall give the Owner or Person responsible for atenance of the Lot or Other Properties prior written notice and an opportunity for a in accordance with the Bylaws before levying any Individual Assessment under this 13 Midlan

Person responsible for atenance of the Lot or Other Properties prior written notice and an opportunity for a in accordance with the Bylaws before levying any Individual Assessment under this 13 Midlan 2022 - 3580 02/08/2022 11:42AM Page 15 of 63 (d) To cover transfer-related fees and Resale Certificate fees requested by an Owner in accordance with Section 6.4; (e) pursuant to Section 4.3; (f) To cover the amount of any insurance deducible assessed against an Owner To cover the costs, includiverhead and administrative costs, of providing services to a Lot upon an Owner's requestsuant to any menu of optional services that the Association may offer; Midland County Clerk Unofficial Copy (8) agreement entered into charges for services provided to a Lot pursuant to any service Association; and To cover any other amounts that the Governance Documents authorize the Association to harge to a particular Owner or levy against a particular Lot.

Individual Assessments are due and payable to the Association on the date stated in notice of Individual Assessment or, if no date is stated, within ten (10) days after notice of the Assessment is given.

5.7 Intentionally Deleted.

5.8 Use and Consumption Fees. The Board may charge fees related to use and/or consumption to any Person using Association services or facilities and may determine the amount and method of determining such fees. Different fees may be charged to different classes of users (e.g., Owners and non-Owners).

5.9 Priority of Payments. Payments received from an Owner by the Association shall be applied to the amounts owed by such Owner in the following order of priority: Midlan (c) (a) First, to delinquent Assessments; (b) Then, to any current Assessments; Then, to any attorneys' fees or third-party collect

mounts owed by such Owner in the following order of priority: Midlan (c) (a) First, to delinquent Assessments; (b) Then, to any current Assessments; Then, to any attorneys' fees or third-party collect costs (to the extent pleats or any other charge (d) Scurred by the Association that the permitted by law) incurred by the Association associated solely with that could provide the basis for foreclosure; Then, to any other attorneys Association is entitled to charge to such Owner's (e) occupants of such Owner's Lot; and (f) Then, to any fires acessed by the Association against such Owner or the Midland County Clerk Unoffic toy other amount owed by such Owner to the Association.

standing the above, if the Owner is in default under a payment plan entered into pursuant to section 5.10 below at the time the Association receives a payment from such Owner, 14 Midlan 2022 - 3580 02/08/2022 11:42AM Page 16 of 63 then the Association is not required to apply the payment in the order of priority specified herein, provided that a fine assessed by the Association may not be given priority any other amount due.

5.10 Payment Plans.

(a) Eligibility for Payment Plan.

any Regular Annual Assessments or Special Association, including costs of collection inc Oner who is delinquent in the payment of ments, or any other amounts owed to the by the Association (collectively, an "Assessment Delinquency"), shall be entitled to er into an installment payment plan with the Association providing for an alternative paym hedule by which the Owner may make partial payments to the Association for the Assessment Delinquency (each, a "Payment Plan Agreement"), except as provided below. Each Payment Plan Agreement shall be in accordance with the terms of this

rtial payments to the Association for the Assessment Delinquency (each, a "Payment Plan Agreement"), except as provided below. Each Payment Plan Agreement shall be in accordance with the terms of this Section 5.10 and th irements of Section 209.0062 of the Texas Property Code.

Midland County Clerk Unofficial Copy hstanding the foregoing, or any provision herein to the contrary, (i) an Owner shall to pay his Assessment Delinquency under a Payment Plan Agreement if the Owner has to honor the terms of a previous Payment Plan Agreement with the Association and it has been ess than two (2) years since the Owner's default under the previous Payment Plan Agreement, (ii) the Association is not required to allow a Payment Plan Agreement that allows a payment plan for any amount that extends more than eighteen (18) months from the date of the owner's request for a payment plan, and (iv) the Association is not required to allow an Owner to enter into a Payment Plan Agreement more than once in any twelve (12) month period or under any other circumstances as may be permitted by Texas law.

(b) Payment Plan Administrative Charges and Interest. In addition to the Assessment Delinquency, an Owner who enters into a Payment Plan Agreement shall be required to pay to the Association reasonable costs associated with preparing the Payment Plan Agreement and administering the Owner's compliance with the Payment Plan Agreement (collectively, the "Payment Plan Administrative Charges"). An Owner who enters into a Payment Plan Agreement with the Association shall also be required to pay all interest due and payable on the Assessment Delinquency in accordance with applicable provisions of the Governance Documents, which interest shall continue

Association shall also be required to pay all interest due and payable on the Assessment Delinquency in accordance with applicable provisions of the Governance Documents, which interest shall continue to accrue on the Assessment Delinquency during the term of Payment Plan Agreement.

(c) Available Payment Plan Schedules. The Association has established three alternative installment payment plan schedules (each, a "Repayment Scene"). Any Owner who is eligible to enter into a Payment Plan Agreement with the Associal any of the Repayment Schedules that the Owner qualifies for w of the Assessment Delinquency owed by the Owner entered into. The three available Repayment Sched (i) be entitled to select from shall be based on the total amount me the Payment Plan Agreement is as follows: County Unofficial Copy Six-Month ayment Schedule: Any Owner who owes the Association an Assessment Dequency totaling $600 or less shall be qualified to select the Six-Month Repayment pay the Assessment Under the Six-Month Repayment Schedule, the Owner shall interest, in equaothly installments over a period of six (6) months.

Midlandency, plus any Payment Plan Administrative Charges and accrued 15 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 17 of 63 Twelve-Month Repayment Schedule: Any Owner who owes the Association an Assessment Delinquency totaling $601 - $1,200, either the Six-Month Repayment Schedule or the Twelve-Mont the Twelve-Month Repayment Schedule, the Owner plus any Payment Plan Administrative Charges installments over a period of twelve (12) mos (iii) Eighteen-M Copy be qualified to select Payment Schedule. Under the Assessment Delinquency, accrued interest, in equal monthly epayment Schedule: Any Owner who owes the

period of twelve (12) mos (iii) Eighteen-M Copy be qualified to select Payment Schedule. Under the Assessment Delinquency, accrued interest, in equal monthly epayment Schedule: Any Owner who owes the Association an Assessment Dequency totaling $1,201 or more shall be qualified to select the Six-Month Repaymen dule, the Twelve-Month Repayment Schedule or the EighteenMonth Repayment Schedule. Under the Eighteen-Month Repayment Schedule, the Owner shall pay the ment Delinquency, plus any Payment Plan Administrative Charges and Midland County Clerk Unofficial accrued inter n equal monthly installments over a period of eighteen (18) months.

Payment Plan Agreement. Each Payment Plan Agreement shall be evidenced nd executed by both the Owner and a duly authorized representative of the Association.

ayment Plan Agreement shall specify the total amount of Assessment Delinquency owed, the otal amount of Payment Plan Administrative Charges and interest to be paid under the Payment Plan Agreement, and the term of the Repayment Schedule.

(e) Default of Payment Plan Agreement. Each payment due under any Payment Plan Agreement shall be due and payable on or before the first (1) day of each month during the term of the Payment Plan Agreement. Time is of the essence with respect to payments under a Payment Plan Agreement and the obligation to pay each monthly payment on or before the first (1) day of each month must be strictly complied with. If a monthly payment made pursuant to a Payment Plan Agreement is returned for insufficient funds and/or if a payment is received after the due day thereof, it shall constitute a material breach of the Payment Plan Agreement. In such event all unpaid

an Agreement is returned for insufficient funds and/or if a payment is received after the due day thereof, it shall constitute a material breach of the Payment Plan Agreement. In such event all unpaid amounts subject to the Payment Plan Agreement shall automatically, without any further notice from the Association, be accelerated and shall be immediately due and payable in full to the Association.

If an Owner fails to timely make a payment under a Payment Plan Agreement in sufficient funds, the Owner shall be considered in default of the Payment Plan Agreement until the Owner pays the full amount of the Assessment Delinquency, Payment Plan Administrative Charges and accrued interest subject to the Payment Plan Agreement to the Association (the "Payment Plan Default Period”). In addition, the defaulting Owner shall be liable for all reasonable attorneys' fees, incurred by the Association to collect an subject to the Payment Plan Agreement, which shall be added Delinquency that must be paid by the defaulting Owner to th Agreement. Any payments received by the Associa Payment Plan Agreement during a Payment Plan or account in the following order of priority (i) collection, including maining unpaid amounts nd mcluded within the Assessment ssociation under such Payment Plan from an Owner who is in default under a ult Period shall be applied to the Owner's debt Clerk Unofficial Copy Cle Association in connection County Midland County neys' fees or third party collection costs incurred by the with collection of the Owner's debt; any other fees and expenses reimbursable to the Association in connection with collection of the Owner's debt; 16 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 18 of 63 5.11 conspicuously (iii) any late charges and interest due by the Owner; (iv)

sociation in connection with collection of the Owner's debt; 16 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 18 of 63 5.11 conspicuously (iii) any late charges and interest due by the Owner; (iv) any delinquent Assessment; (v) any current Assessment; (vi) any other amount of the Association (excluding fines); and (vi) any fine assed by the Association.

County Clerk Unofficial Declarant Subay Declarant may, but is not obligated to, reduce the Assessments that would otherwise be levied against Lots for any year by payment of a subsidy. Any such subsidy may be treated as a con eulon, an advance against future Assessments due from Declarant, if any, or a loan, as ed by Declarant. Any such subsidy and the characterization thereof shall be sclosed as a line item in the income portion of the Budget. Payment of such subsidy vill not obligate Declarant to continue payment of any subsidy in future years, unless se provided in a written agreement between the Association and Declarant.

in any Midt 5.12 Association's Right to Borrow Money. The Association may borrow money, subject to the consent of Owners of at least a majority of Lots, except that no such consent is required if the total amount of such borrowing together with all other debt incurred within the previous twelve (12) month period would not exceed twenty (20%) of the Association's budgeted gross expenses for that fiscal year as set forth in the Budget. The Association may encumber, mortgage, pledge or deed in trust any of its real or personal property, and may assign its right to future income, as security for money borrowed or debt incurred, subject to Section 9.8. This Section 5.12 does not apply to loans by Declarant or a Declarant Affiliate to the Association.

5.13 Lien for Assessments; Assignment of Rents.

y borrowed or debt incurred, subject to Section 9.8. This Section 5.12 does not apply to loans by Declarant or a Declarant Affiliate to the Association.

5.13 Lien for Assessments; Assignment of Rents.

(a) Existence of Lien. The Association shall have a lien against each Lot to secure payment of Assessments, interest, late charges, and costs of collection (including reasonable attorneys' fees and expenses). Such lien shall be superior to all other liens except (i) the liens of all taxes, bonds, assessments and other levies which by Texas law are superior, and (ii) the lien or charge of any recorded Mortgage made in good faith and for value having priority over all other Mortgages on the Lot.

Although no further action is required to create or effect the lien, the Association may, as further evidence and notice of the lien, execute and a document setting forth as to any Lot the amount of the delinquent sums due the Asso at the time such document is executed and the fact that a lien exists to secure the repayme Thereof. However, the failure of the Association to execute and record any such document shap affect the validity, enforceability or priority of the lien.

Midland County Clerk Unofficial Copy accordance w (b) Enforcement of Lien. The Association's lien may be foreclosed through judicial foreclosure proces gs, mediation ordered by a court pursuant to Sec. 154.028 of the Civil Practice and Remedie de or, to the extent allowed by law, nonjudicial foreclosure proceedings in Prop. Code Section 51.002, as it may be amended, in like manner of any deed 17 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 19 of 63 required to pay costs, ants to the Association a Section 51.002, as it

de Section 51.002, as it may be amended, in like manner of any deed 17 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 19 of 63 required to pay costs, ants to the Association a Section 51.002, as it of trust on real property, after compliance with the procedures set forth in Chapters 51 and 209 of the Tex. Prop. Code, if applicable. In any foreclosure proceeding Owner shat expenses and reasonable attorney's fees incurred. Each Owner heef power of sale to be exercised in accordance with Tex. Prop amended. The Association shall not foreclose its lien if the del secured by the lien consists solely of (i) fines or attorneys' fees associated with fines, (ii) reproduction of information requested pursuant books and records, or (iii) charges related to The Association may be Related to the compilation, production or Owner's right to inspect the Association's cost of an election recount.

Midland County Clerk Unofficial Copy d for the Lot at the foreclosure sale and acquire, hold, lease, mortgage and convey the Lot. le a Lot is owned by the Association following foreclosure, (i) no right to vote shall be exe d on the Lot's behalf; (ii) no Assessment shall be levied on the Lot; and (iii) each other Lot be charged, in addition to its usual Assessment, its pro rata share of the Assessment I have been charged against such foreclosed Lot had it not been acquired by the at The Association may sue an Owner or other Person for unpaid Assessments and other arges authorized in the Governance Documents without foreclosing or waiving the lien securing same, in addition to pursuing any and all remedies allowed by law to enforce the lien.

(c) Effect of Sale or Transfer. Sale or transfer of any Lot shall not affect the

ing or waiving the lien securing same, in addition to pursuing any and all remedies allowed by law to enforce the lien.

(c) Effect of Sale or Transfer. Sale or transfer of any Lot shall not affect the Assessment lien or relieve such Lot from the lien for any subsequent Assessments, except that a sale or transfer pursuant to a foreclosure of a first Mortgage shall extinguish the Association's lien for Assessments that became payable prior to such sale or transfer. A purchaser at a foreclosure sale or subsequent Owner of the foreclosed Lot shall not be personally liable for Assessments on such Lot due prior to such foreclosure. Such unpaid Assessments shall be a component of Common Expenses collectible from Owners of all Lots subject to Assessment, including such acquirer. Notwithstanding the foregoing, a foreclosure of a Lot shall not extinguish the Association's claim for unpaid Assessments against the former Owner of the Lot who was the Owner at the time such Assessments became payable.

(d) Assignment of Rents. Every Owner hereby grants to the Association a continuing assignment of rents to secure the payment of Assessments to the Association. If Assessments or any other charges assessed to a Lot or an Owner of the Lot become delinquent during a period in which the Lot or any Improvement thereon is leased, the Assoc may direct the tenant to deliver rent to the Association for application of the delinquent cel provided the Association gives the Owner notice of the delinquency, a reasonable the Owner's right to a hearing before the Board. The Associa from a tenant and must remit to the Owner any rene tenant's delivery of rent to the Association under of the tenant's lease with the Owner and sh Copy nio cure the debt, and notice of must account for all monies received

st remit to the Owner any rene tenant's delivery of rent to the Association under of the tenant's lease with the Owner and sh Copy nio cure the debt, and notice of must account for all monies received ed in excess of the past-due amount. A subject the tenant to penalties from the Owner.

ARTICLE 6 PROPERTY SE RESTRICTIONS AND COVENANTS Midland County Clerk nuthority hereby granted shall not be a breach 6.1 transfer of interes This Article sets forth the basic standards regarding the use, occupancy and Lots. This Article also provides the procedure by which the Rules may be 18 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 20 of 63 expanded and modified over time to address the particular needs and desires of the Association and Community.

6.2 Residential and Related Uses. All Lots and Hones ay be used and occupied solely for residential purposes (except with respect to construc development, marketing and sales activities conducted by Declarant or a Builder) and n or business may be conducted on any Lot or from within any Home, except for business-rel activities that comply with the following: (a) outside the Home; Business activit apparent or detectible by sight, sound or smell from Midland County Clerk Unofficial Copy regulations; (b) usiness activity complies with all applicable zoning laws, ordinances and The business activity does not utilize any employees or staff other than Persons the Home and, subject to prior written approval by the Board, up to two (2) additional (d) The business activity does not involve any visitation of the Home or other Improvements on the Lot by customers, clients or suppliers, or the door-to-door solicitation of the residents of the Community; (e) The business activity does not involve an extraordinary or unreasonable

rovements on the Lot by customers, clients or suppliers, or the door-to-door solicitation of the residents of the Community; (e) The business activity does not involve an extraordinary or unreasonable number of deliveries to and from the Home, in the sole discretion of the Board; and (f) The business activity does not constitute a nuisance, hazardous or offensive use, or threat to the security and safety of the residents in the Community.

The Board will determine whether a business activity satisfies or violates the requirements set forth in this Section 6.2. Additional rules and regulations for business activities on Lots and within Homes may be adopted and included in the Rules. Any uses or activities that are prohibited uses or activities as set forth in the Rules shall not be conducted on any Lot or from within any Home.

6.3 Maximum and Minimum Floor Space. Each Home will contain, the following maximum and minimum square footage of air-conditioned floor area (excl of all porches, garages or breezeways attached to the main dwelling): (a) Maximum: (b) Minimum: 2,300.00 square feet 6.4 Noise.

(a) Noise Lits Midland unty Clerk Unofficial 12,500.00 square feet noxious or offensive noise is permitted on any Lots. If any noise or nuisance emanates from any Improvement on any Lot, the Association may (but shall not be obligated to) enter any Improvement and take such reasonable actions necessary to terminate such noise (inch Mencing any burglar or break-in alarm).

19 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 21 of 63 Midlan (b) No Exterior Speakers. No exterior speakers, horns, whistles, bells, or other sound devices (other than security devices used exclusively for security used, or placed on any of the Property; provided, however, that,

eakers. No exterior speakers, horns, whistles, bells, or other sound devices (other than security devices used exclusively for security used, or placed on any of the Property; provided, however, that, above, exterior speakers may be used for music provided that in owent may such speakers produce a sound in excess of 70 decibels during the hours of from 70 Pets.

oses) shall be located, imitation to section G-1 to 10:00 p.m. and 60 decibels from Midland County Clerk Unofficial Copy 6.5 (a) No Runn Large. Pets must be leashed at all times while not inside a dwelling on a Lot or within a darea on a Lot. An Owner may not allow a dog, fowl or other domestic or dangerous anal or reptile to run at large. The Association may restrict pets to certain areas on the Property No Noisy Animals. No Owner may keep an animal that makes frequent or ued noise that is disturbing to Owners of other Lots.

(c) Enclosure Requirements. No Owner may keep an animal, bird or reptile in an enclosure unless the enclosure is: (1) (2) securely constructed; adequately sized for the kind and number of animals, birds or reptiles housed in the structure; (3) maintained in a sanitary condition that does not allow flies to breed or cause an odor offensive to an Owner of any other Lot; and (4) in compliance with the Rules and all other Governance Documents.

(d) Household Pets. No animals, including pigs, hogs, swine, poultry, fowl, wild animals, horses, cattle, sheep, goats, or any other type of animal not considered to be a domestic household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term "domestic household pet"

household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term "domestic household pet" shall not mean or include non-traditional pets such pot-bellied pigs, miniature horses, goats, exotic snakes or lizards, ferrets, monkeys, chickens or other exotic animals Board may conclusively determine, in its sole discretion, whether a particular pet is a donc household pet within the ordinary meaning and interpretation of such words, and any approved household pets, together with dogs and cats shall be collectively referred to as ved pets." No Owner may keep more than a total of two (2) approved pets. No anima ay be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the and no kennels or breeding operation will be allowed. All pet waste will be removed and ppropriately disposed of by the owner of the pet. All pets must be registered, licensed palated as required by applicable law. If, in the opinion of the Board, any pet becomes a source of unreasonable annoyance to others, or the owner of the pet fails or refuses to comply withe hese restrictions, the Owner, upon written notice, may be required to Midland County Clerk Unofficial Copy remove the pet from roperty.

20 20 Midlan 2022 - 3580 02/08/2022 11:42AM Page 22 of 63 Midlan 6.6 Hazardous Activities. No activities may be conducted on or within the Property and no Improvements constructed on any portion of the Property which, in the Minion of the Board, are or might be unsafe or hazardous to any person or property. With ting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the Property unless

the Board, are or might be unsafe or hazardous to any person or property. With ting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the Property unless discharged in conjunction with an event approved in adva the Board and no open fires may be lighted or permitted except within safe and well-de Areplaces or in contained barbecue units while attended and in use for cooking purposes portion of the Property may be used for the takeoff, storage, or landing of aircraft (inc without limitation, helicopters) except for medical emergencies. Except in the case mmercial use approved by the Board, use of drones is prohibited.

Midland County Clerk Unofficial Copy 6.7 Mining Development Period drilling, bori Drilling. Except as approved by the Board (or the Declarant during the portion of the Property may be used for the purpose of mining, quarrying, exploring for or removing oil, gas, or other hydrocarbons, minerals of any kind, es, and, gravel, aggregate, or earth. This provision will not be construed to prevent the of rocks, stones, sand, gravel, aggregate, or earth or the storage of such material for use as ovided that such activities are conducted in conjunction with the construction of Improvements and/or the development of the Property by the Declarant.

6.8 Trash.

(a) Rubbish and Debris. As determined by the Board, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or residents in the Community. Refuse, garbage, and

rmitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or residents in the Community. Refuse, garbage, and trash must be kept at all times in covered containers, and such containers must be kept within enclosed structures or appropriately screened from view.

(b) Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (1) inside the garage of the Home constructed on the Lot; or (2) behind the Home or fence constructed on the Lot in such a manner that the trash container and recycling bin is not visible from any street, alley cent Lot.

each Owner's Lot in which trash recycling bins may be moved to the The Board shall have the right to specify additional locations containers or recycling bins must be stored. Trash contains curb only after 6:00 am on the day of garbage pick-up and shall be returned to the storage location by 10:00 pm on the same day.

6.9 Lot Maintenance Midland County Clerk Unofficial Copy the duty and responsibili good condition and The Board, (a) General Lot Mintenance. The Owners of each Lot shall jointly and severally have their sole cost and expense, to keep those yard areas within their Lot in ar and in a well-maintained, safe, clean and attractive condition at all times.

Se discretion, shall determine whether a violation of the maintenance obligations 21 Midlan 2022 - 3580 02/08/2022 11:42AM Page 23 of 63 set forth in this Section has occurred. Such maintenance includes, but is not limited to the following which shall be performed in a timely manner, as determined by the Board s sole discretion: (1) (2) (3) (4) Midland County Clerk Unoffici Prompt removal of all litter, trash, refuse an vastes; Lawn mowing;

h shall be performed in a timely manner, as determined by the Board s sole discretion: (1) (2) (3) (4) Midland County Clerk Unoffici Prompt removal of all litter, trash, refuse an vastes; Lawn mowing; Tree and shrub prunin Watering; (8) swept clean; (9) Repainting of Improvements; and (10) Repair of exterior damage, and wear and tear to Improvements.

Keeting exterior lighting and mechanical facilities in working order; Keeping lawn and garden areas of their Lot alive, free of weeds, and attractive; Keeping lawns and planting beds free of artificial turf grass; Keeping driveways in good repair and sidewalks and driveways reasonably 6.10 Landscaping Area. Each Owner will be responsible, at such Owner's sole cost and expense, for maintaining mowing, replacing, pruning, and irrigating the landscaping their Lot.

6.11 Antennas.

(a) Permitted Antennas. No exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained or placed on a Lot without the prior written approval of the Reviewer; provided, however, that the following will be permitted subject to reasonable requirements (such as to location, screening, appearance and size in order to minimize obtrusiveness as viewed from streets and property adjacent to an Owner's Lot) as may be adopted by Reviewer consistent with applicable law that do not, except as otherwise may be permitted by applicable law, (1) unreasonably delay or prevent installation, maintenance or use, (2) unreaten ly increase the cost of installation, maintenance or use, or (3) preclude reception of eptable quality signal (the following being collectively referred to herein as the "Permit Antennas"): (1) an antenna designed direct-to-home satellite services (2) multipoint dis ceive direct broadcast services, including

(the following being collectively referred to herein as the "Permit Antennas"): (1) an antenna designed direct-to-home satellite services (2) multipoint dis ceive direct broadcast services, including sone (1) meter or less in diameter; or Midland County Clerk Unofficial C designed to receive video programming services via services, including multi-channel multipoint distribution services, instructional television fixed services, and local multipoint distribution services as one (1) meter or less in diameter or diagonal measurement; or 22 22 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 24 of 63 signals.

an antenna that is designed to receive television or radio broadcast (b) Location of Permitted Antennas. A Permitted Antet may be installed solely on the Owner's Lot and shall not encroach upon any street, Co Property. A Permitted Antenna shall be installed in a quality signal can be obtained and where least visi Lot. In order of preference, the locations least visible by the Reviewer are as foll Area, or any other portion of the on the Lot from which an acceptable from the street and the Property, other than the mmitted Antenna which generally will be considered Midland County Clerk Unofficial Copy (1) Arched to the back of the Home constructed on the Lot, with no part of the armuted Antenna any higher than the lowest point of the roofline and romview of adjacent Lots and the street; then Attached to the side of the Home constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street.

may be Midlan 6.12 Signs. Unless otherwise prohibited by applicable law, no sign of kind any

na any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street.

may be Midlan 6.12 Signs. Unless otherwise prohibited by applicable law, no sign of kind any displayed to the public view on any Lot without the prior written approval of the Reviewer, except for: (a) signs which are permitted pursuant to the Design Guidelines, the Rules or elsewhere in the Governance Documents; (b) signs which are part of Declarant's overall marketing, sale, or construction plans or activities for the Property; (c) one (1) temporary "For Sale" sign placed on the Lot that complies with the following: (a) the sign will be limited to a maximum face area of five (5) square feet on each visible side and, if free standing, is mounted on a single or frame post, (b) the overall height of the sign from finished grade at the spot where the sign is located may not exceed four (4) feet, and (c) the sign must be removed within two (2) business days following the sale of the Lot; ted no earlier than the (d) political signs may be erected provided the sign: (a) is 90th day before the date of the election to which the sign relates; (b) no later than the 10th day after the date of the election to which the sign relates; and is bund-mounted. Only one sign may be erected for each candidate or ballot item. In components or characteristics described in Section prohibited; (e) permits as may be retired signs which include any of the of the Texas Property Code are legal proceedings or a governmental entity; and Midland County Clerk Unofficial Copy (f) on a Lot, provided, that Notwithstanding "security warning" sign near or on the front door to dwelling ign may not exceed twenty-five (25) square inches.

; and Midland County Clerk Unofficial Copy (f) on a Lot, provided, that Notwithstanding "security warning" sign near or on the front door to dwelling ign may not exceed twenty-five (25) square inches.

orgoing, the Declarant during the Development Period and the Board after the Development Renod may permit Builders to maintain certain signs within the Community in 23 Midlan 2022 - 3580 02/08/2022 11:42AM Page 25 of 63 accordance with signage guidelines adopted by Declarant during the Development Period or the Board after the Development Period ("Builder Signs"). The type, size, appeare and location of any Builder Signs shall require the prior written approval of Declarant.

or the Board if after the Development Period.

6.13 Swimming Pools; Spas: Hot Tubs: TË Development Period, Swimming pools, spas, and hot tubs shall be permitted only within fenced areas locate Lot. The Reviewer must approve any tank used or proposed in connection with a Lot, ning tanks for storage of fuel, water, oil, or liquefied petroleum gases, and including swimm pool filter tanks. No elevated tanks of any kind may be erected, placed or permitted on t without the advance written approval of the Reviewer. All permitted tanks must be screened from view in accordance with a screening plan approved in advance by the Reviewer. This pr on will not apply to a tank used to operate a standard residential gas grill.

Midland County Clerk Unofficial Copy worksho 6.14 porary Structures. No tent, shack, metal storage shed, dog house, gazebo, ther temporary building, improvement, or structure (collectively, the "temporary shall be placed upon the Property without the prior written approval of the Reviewer; Ged, however, that temporary structures necessary for storage of tools and equipment, and for

vely, the "temporary shall be placed upon the Property without the prior written approval of the Reviewer; Ged, however, that temporary structures necessary for storage of tools and equipment, and for office space for Builders, architects, and foremen during actual construction may be maintained with the prior approval of Declarant, approval to include the nature, size, duration, and location of such structure. The Reviewer shall not approve any temporary structure more than six (6) feet high.

Temporary structures are prohibited between a home and a street or outside of fenced areas.

6.15 Unsightly Items; Vehicles; Garages. No article deemed to be unsightly by the Board will be permitted to remain on any Lot so as to be visible from adjoining property or from public or private streets. Without limiting the generality of the foregoing, trailers, graders, trucks other than pickups, boats, tractors, campers, wagons, buses, motorcycles, motor scooters, all-terrain vehicles and garden and lawn maintenance equipment must be kept at all times except when in actual use, in enclosed structures or screened from view and no repair or maintenance work may be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household fabrics must be appropriately screened from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials, scrap, refuse or trash may be kept, stored, or allowed to accumulate on any portion of the Property except within enclosed structures or appropriately screened from view. No: (i) racing vehicles; or (ii) other vehiles (including, without

tored, or allowed to accumulate on any portion of the Property except within enclosed structures or appropriately screened from view. No: (i) racing vehicles; or (ii) other vehiles (including, without limitation, motorcycles or motor scooters) which are inoperable or do ae a current license tag will be permitted to remain visible on any Lot or to be parked nyadway within the Property.

Motorcycles shall be operated in a quiet manner.

Each Home erected on any Lot will Midland County Clerk Unofficial Copy garage space for a minimum of two (2) but no more than six (6) conventional automobiles ss otherwise specifically approved by the ARC.

Each Owner will use best efforts to path and store their automobiles within the garage. All garage doors will (a) be equipped with an aromatic and remote-controlled door opener, and (b) be closed when not in use. Any and all garage or carport plans and specifications must be submitted to the ARC for review pproval. Additionally, no garage will ever be changed, altered, reconstructed or other nverted for any purpose inconsistent with the garaging of automobiles unless approved ing by the ARC. The exterior veneer, roof pitch, and roofing materials of a garage will be decal that of the Home it serves. All garage openings must face the rear of the Lot.

24 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 26 of 63 No overhead garage door may face the street serving the front of the premises, except as specifically approved by the ARC.

Each Owner will use its best efforts to refrain from performing, permitting or allowing repair or maintenance work to any automobile or other veh outside the garage and visible to the abutting street(s). On-site parking will be subject to sonable rules and regulations as may be

allowing repair or maintenance work to any automobile or other veh outside the garage and visible to the abutting street(s). On-site parking will be subject to sonable rules and regulations as may be from time to time adopted by the Association. Wit or approval, boats (or other water-recreational vehicles) and recreational vehicles (not incl mobile trailers or camping vans) may be parked on the back of a Lot, (being the portion of e Lot farthest from the street, provided such area is fenced and such vehicles are not visible the streets) for a maximum of 3 consecutive days subject to a Midland County Clerk Unofficial Copy fine of $500.00 per day after 3 Mobile installed by e are prohibited, except that sales trailers or other temporary structures larant or expressly approved by the Reviewer shall be permitted.

Except as reasonably required for vehicular or pedestrian access, garage doors shall fully closed at all times.

6.16 are prohibited.

Basketball Goals; Sport Courts; Playscapes.

(a) Basketball Goals. Permanent and portable basketball goals and other sports goals (b) Tennis or Recreational Courts; Playscapes.

recreational or sport court or playscapes or similar recreational facilities on any Lot is prohibited.

Installation of a tennis, 6.17 Decorations and Lighting. Except as otherwise expressly permitted by the Rules, the Design Guidelines or other Governance Documents, no decorative appurtenances such as sculptures, birdbaths and birdhouses, fountains, or other decorative embellishments shall be placed on the residence or on the front yard or on any other portion of a Lot which is visible from any street, unless such specific items have been approved in writing by the Reviewer. Customary seasonal

ed on the residence or on the front yard or on any other portion of a Lot which is visible from any street, unless such specific items have been approved in writing by the Reviewer. Customary seasonal decorations for holidays are permitted without approval by the Reviewer, but shall be removed within thirty (30) days of the applicable holiday. Outside lighting fixtures on a Lot shall be placed so as to illuminate only the yard of the applicable Lot and so as not to affect or reflect into surrounding residences or yards. No mercury vapor, sodium or halogen light shall belled on any Lot which is visible from any street unless otherwise approved by the Reviewe 6.18 Clotheslines; Window Air Conditioners.

theslines and no outdoor clothes drying or hanging shall be permitted within the Pro hor shall anything be hung, painted or displayed on the outside of the windows (or inside ible from the outside) or placed on the outside walls or outside surfaces of doors of any provement on a Lot, and no awnings, canopies or shutters (except for those heretofore or reinafter installed by Declarant or a Builder) shall be affixed or placed upon the exterior walls of residences, or any part thereof, nor relocated or extended, without the prior written consent of the Reviewer. Window air conditioners are prohibited.

Midland County Clerk Unofficial Copy 6.19 EPA Apliance. The owner of each Lot agrees to comply with all EPA rules and regulations rearing erosion control and compliance with any Storm Water Pollution Prevention Plan 25 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 27 of 63 from time to time in effect affecting the Lots. Each Owner acknowledges that the Declarant and any Builder will not bear any responsibility for compliance in respect to any Lo

22 11:42AM Page 27 of 63 from time to time in effect affecting the Lots. Each Owner acknowledges that the Declarant and any Builder will not bear any responsibility for compliance in respect to any Lo by Declarant or such homebuilder to the Owner.

6.20 Water Wells, Windmills, and Wind Turbines on the sale of such Lot withstanding anything herein to the contrary, Owners of a Lots greater than .5 acres shaemitted to have up to a maximum of one (1) water well. Under no circumstances will the operating a water well have more than two (2) horsepower. Permission must be obtained her in writing from the ARC prior to the placement or drilling of any water well on a Further, all wells and associated equipment must be fully enclosed in an ARC approved stata fitting to the materials of the primary residence. Wind turbines for generating electrical power r Strictly prohibited.

Midland County Clerk Unofficial Copy 6.21 Community.

ne Tours. Garage sales, estate sales and yard sales are not allowed in the Homes in the Community as part of a tour of homes or similar type use is 6.22 Leasing.

(a) Homes. The leasing of any Home by an Owner (other than Declarant) is subject to the following requirements: (i) The Home must be leased in its entirety; the leasing of separate rooms, floors or other areas within the Home is prohibited.

(ii) The leasing of multiple Homes by (i) a single Owner, (i) two or more Owners related by blood, adoption or marriage, (iii) Owners with a common ownership interest, or (iv) a group of Owners under the control or direction of a single Owner, is prohibited, provided that this subsection does not restrict a Mortgagee from leasing multiple Homes upon taking title to such Homes following foreclosure or acceptance of a deed in lieu of foreclosure.

(iii)

ted, provided that this subsection does not restrict a Mortgagee from leasing multiple Homes upon taking title to such Homes following foreclosure or acceptance of a deed in lieu of foreclosure.

(iii) Signs advertising the Home for rent or lease are prohibited (unless approved by the Reviewer in advance and in writing).

(iv) All leases must be in writing and provide for minimum initial term of at least six (6) months. The Home may not be subleased not lease be assigned during the initial term. If the lease is terminated after the tenth taken occupancy and prior to the expiration of a six month initial term, the Qv not enter into a new lease with a term commencing prior to the date on which ginal six month term would have expired without the prior written approval of the (v) Midland County Clerk Unofficial Copy the leased Home are bout Governance Documents regardless of whe All lease must include a provision that all tenants and occupants of and obligated to comply with the Governance Document. The apply to the leased Home and the tenants and occupants such provision is included in the lease.

26 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 28 of 63 Midlan (vi) Within three (3) business days of a lease being signed for a Home, the Owner shall notify the Association of the lease, the names of the tent including their phone numbers and e-mail addresses, and provide an alternate mailing ss for the Owner, a copy of the lease (provided that any sensitive information information the Board may reasonably require.

(b) Improvements other than ay be redacted) and any additional Clerk Unofficial Copy lease or advertise for lease any Improvement No Owner (other than Declarant) may a lot other than a Home without the Board's prior

s other than ay be redacted) and any additional Clerk Unofficial Copy lease or advertise for lease any Improvement No Owner (other than Declarant) may a lot other than a Home without the Board's prior written consent. If the Board provides Owner (other than Declarant) with consent for the leasing of an Improvement on a Lot other na Home, the leasing of such Improvement by the Owner must comply with all requirements for the leasing of a Home as set forth in Subsections 6.3(a)(i)-(vi) above.

6.23 Declarant Midland County ver of Title and Resale Certificates. Any Owner (other than Declarant or a desiring to sell or otherwise transfer title to such Owner's Lot and/or Home shall ssociation's secretary in writing at least seven (7) days prior to a scheduled sale and provide One and address of the purchaser, the date of title transfer, and other information the Board may asonably require. Within three (3) business days following the transfer of a Lot and/or Home to a new Owner other than Declarant, Declarant Affiliate or a Builder, such new Owner shall provide the Association's secretary with (1) written notice of the name, address, e-mail address and phone number for the new Owner and all adult residents, the date the title transfer occurred, and other information the Board may reasonably require; and (ii) the name and address of any Mortgagee.

No Owner shall transfer title to a Lot unless and until the Owner has requested and obtained a resale certificate signed by a representative of the Association as described in Section 207.003(b) of the Texas Property Code (a "Resale Certificate") indicating (a) all Assessments (or installments thereof) and other charges against the Lot due and payable through the date of the Resale

207.003(b) of the Texas Property Code (a "Resale Certificate") indicating (a) all Assessments (or installments thereof) and other charges against the Lot due and payable through the date of the Resale Certificate have been paid in full, (b) there are no violations of the Governance Documents that have not either been cured or waived in writing by the Association, and (c) all other matters described in Section 207.003(b) of the Texas Property Code.

In the manner and to the extent required by Section 207.003 of the Texas Property Code, the Association shall deliver a Resale Certificate, along with a current copy of the Governance Documents, within 10 business days after the Association's receipt of a written request from an Owner, an Owner's agent, a purchaser of a Lot and/or Home or the aser's agent, or a title insurance company or its agent acting on behalf of the Owner or r of a Lot and/or Home.

If the Resale Certificate indicates any known conditions on ot that violate the Governance Documents, or any amounts due and unpaid to the Associatio ✓ account of the Lot, then the Owner shall cure any such violations and pay any such amout or to transfer of title and, upon doing so, may request an update to the Resale Certificate ect such action.

In the manner and to, Code, within 7 business days af Midland County Clerk Unofficial Copy extent required by Section 207.003 of the Texas Property Association's receipt of a written request for an updated Resale Certificate, which request for anu date complies with Section 207.003(g) of the Texas Property Code, the Association shall del updated Resale Certificate containing the matters described in Section 207.003(f) of the T Toperty Code.

27 Midlan 2022 - 3580 02/08/2022 11:42AM Page 29 of 63

Property Code, the Association shall del updated Resale Certificate containing the matters described in Section 207.003(f) of the T Toperty Code.

27 Midlan 2022 - 3580 02/08/2022 11:42AM Page 29 of 63 The Association may charge a reasonable fee to prepare, assemble, copy and deliver a Resale Certificate and accompanying information and any update to a ReCertificate. The Resale Certificate shall be binding upon the Association as to Persons who 6.24 Subdivision and Combination of Lots Period, the platting, replatting, subdivision, and cont reon in good faith.

the expiration of the Development of any Lots by any Owner other than Declarant must be approved by Declarant. After nation of the Development Period, the platting, replatting, subdivision and combination of aos must be approved by the Board. Any such action approved by the Board will be effect omy upon recording the plat or other legal instrument reflecting such action.

Midland County Clerk Unofficial Copy 6.25 Owner Improvements locat coverage in t ance. Each Owner shall be required to maintain insurance on the por such Owner's Lot, including fire and extended coverage and all other and amounts commonly required by private institutional mortgage investors for Improverentsimilar in construction, location and use. Such insurance policies shall be for the full alue of the Improvements constructed upon each Lot, shall contain extended coverage and Cement costs endorsements, if reasonably available, and shall also, if reasonably available, contain andalism and malicious mischief coverage, special form endorsement, a stipulated amount clause and a determinable cash adjustment clause.

(a) Insurance Claims. In the event of damage to or destruction of any portion of

ious mischief coverage, special form endorsement, a stipulated amount clause and a determinable cash adjustment clause.

(a) Insurance Claims. In the event of damage to or destruction of any portion of an Owner's Lot or any Improvements located thereon, or in the event of any injury to an Owner or any invitee of an Owner, such Owner (other than Declarant) shall file all available insurance claims and take all necessary steps to recover all insurance proceeds available from such claims prior to seeking recovery of any damages or seeking any other Causes of Action against the Declarant, the Association, or their respective affiliates, directors, officers, employees, representatives, agents and assigns. Even if such damage, destruction or injury is caused by the Declarant, the Association, or any of their respective affiliates, directors, officers, employees, representatives, agents and assigns, such parties will only be liable to such Owner or any invitee of such Owner, if at all, to the extent the Owner's insurance proceeds are insufficient to cover the costs of repair or reconstruction.

(b) Failure to Obtain Insurance. IF, FOR ANY REASON, AN OWNER FAILS TO OBTAIN AND KEEP IN FORCE ANY OR ALL OF THE INSURANCE POLICIES REQUIRED OF OWNER UNDER THIS SECTION 6.25 OR ANYWHERE ELSE IN THE GOVERNANCE DOCUMENTS, OWNER SHALL INDEMNIFY HOLD HARMLESS THE DECLARANT, THE ASSOCIATION, AND EACH THEIR RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES REPRESENTATIVES, AGENTS AND ASSIGNS FROM AND AGAINST ANY LOSS CURRED WHICH WOULD HAVE BEEN COVERED BY THE INSURANCE OWN IN FORCE. If Owner fails to comply with i Declarant and/or the Association may at th and require Owner, on demand, to costs incurred in procuring su were incurred, such interes Midland County Clerk Unofficial Copy 6.26

fails to comply with i Declarant and/or the Association may at th and require Owner, on demand, to costs incurred in procuring su were incurred, such interes Midland County Clerk Unofficial Copy 6.26 AILED TO OBTAIN AND/OR KEEP once requirements contained in this Section 6.25, option, purchase insurance on such Owner's behalf Muse Declarant and/or the Association (as applicable) for all tance, plus interest on such amounts from the date such costs rue at the maximum permissible legal rate.

ion. In the event of any fire or other casualty to a Lot or the Improvement thereon, the we shall promptly repair, restore and replace any damaged or destroyed structures to 28 Midlan Midlan 2022 - 3580 02/08/2022 11:42AM Page 30 of 63 Clerk Unofficial Copy their same exterior condition existing prior to the damage or destruction thereof. Such repair, restoration or replacement shall be commenced and completed in a good workmanlike manner using exterior materials identical (or, if unavailable, substantially simi Hose originally used in the structures damaged or destroyed. To the extent that the erils to commence such repair, restoration or replacement of substantial or total damage extruction within thirty (30) days after the occurrence of such damage or destruction, and there prosecute same to completion, or if the Owner does not clean up any debris resulting any damage within thirty (30) days after the occurrence of such damage, the Associa may commence, complete or effect such repair, restoration, replacement or clean-up, the Owner shall be personally liable to the Association for the cost of such work; provided, that if the Owner is prohibited or delayed by law, regulation or administrative or public boo tribunal from commencing such repair, restoration, replacement

iation for the cost of such work; provided, that if the Owner is prohibited or delayed by law, regulation or administrative or public boo tribunal from commencing such repair, restoration, replacement or clean-up, the rights Association under this Section 6.26 shall not arise until the expiration of thirty (30) days afte prohibition or delay is removed. If the Owner fails to pay such cost upon demand by t the cost thereof (plus interest from the date of demand until paid at the Midland County Cler wil rate, or if there is no such maximum lawful rate, than at the rate of one and one-half 1/2%) per month) shall be assessed against and chargeable to the Owner's Lot(s). Any amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Seclaration and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s).

EACH OWNER SHALL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION, AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY CAUSES OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 6.26, EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY REASON OF THE ASSOCIATION'S NEGLIGENCE OR WILLFUL MISCONDUCT.

6.27 Mechanic's and Materialmen's Lien. Each Owner whose Lot and/or Improvement is repaired, restored, replaced or cleaned up by the Association pursuant to the rights granted under this Article 6, hereby grants to the Association a mechanic's and materialmen's lien for the reasonable cost of such repair, restoration, or replacement of the damaged or destroyed Improvement to the extent

rticle 6, hereby grants to the Association a mechanic's and materialmen's lien for the reasonable cost of such repair, restoration, or replacement of the damaged or destroyed Improvement to the extent that the cost of such repair, restoration or replacement exceeds any insurance proceeds allocable to such repair, restoration or replacement and delivered to the Association. Upon request by the Board and before the commencement of any reconstruction, repair, restoration or replacement, Owner shall execute all documents sufficient to effectuate such mechanic's and materialn's lien in favor of the Association.

6.28 Rulemaking Authority and Procedures. The the Association website (if any), and are available from limitations set forth below, the Rules may Rules shall comply with (a) are set forth in the Records and on Association upon request. Subject to the from time to time as set forth in Section 15.2.

fwing requirements: Midland County Clerk Unofficial Copy No Rules that the Association may Association may also Owners, (ii) Interfere with the activities carried on within a Home, except activities not normally associated with residential property. The activities that (i) create monetary costs for the Association or other anger to any Person's health or safety, (iii) generate excessive smell, noise or 29 Midlan Midlan