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BOOK FAGE 1934 0161 STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF PLANTERS WALK THIS DECLARATION, made the 3rd day of October, 1995, by DLH DEVELOPMENT CO., LLC, a North Carolina limited liability company, hereinafter referred to as "Declarant"; Whereas, Declarant is the owner of certain property in New North Carolina, which is more particularly Hanover County, described as follows: BEING all of PLANTERS WALK, thereof recorded in Map Book 35, Page 107 in the Office of the as the same is shown on a map Register of Deeds of New Hanover County, North Carolina, reference to which is hereby made for a more particular description.

NOW, THEREFORE, Declarant hereby declares that all of the properties described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants, conditions, which are for the purpose of protecting the value and desirability of, and which shall run with the real property and be binding on all parties having any right, title or interest in the and described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof.

000055 ARTICLE I.

DEFINITIONS As used herein, the following terms shall mean: Section 1.

HOA, INC., a North Carolina non-profit corporation, its successors ASSOCIATION shall mean and refer to PLANTERS WALK and assigns, the owners' benefit and protection of the Properties.

association organized for the mutual lots in PLANTERS WALK and any adjoining areas hereafter developed and subjected to this Declaration, if any, shall be members of the All property owners of Association, which membership shall be appurtenant to and may not

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and any adjoining areas hereafter developed and subjected to this Declaration, if any, shall be members of the All property owners of Association, which membership shall be appurtenant to and may not be separated from the ownership of such single family or multifamily lot.

Section 2.

whether one or more persons or entities, of fee simple title to any OWNER shall mean and refer to the record owner, lot which is a part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 3.

WALK as described above, and any of the additional properties that PROPERTIES shall mean and refer to all of PLANTERS may hereafter be brought within the jurisdiction of the Association as herein provided.

Section 4.

lands adjoining the Properties or within a one mile radius thereof ADDITIONAL PROPERTIES shall mean and refer to any which are now owned or may be hereafter acquired or developed by the Declarant and annexed to and made a part of the Properties by the Declarant and subjected to this Declaration without the assent vote of the owners of lots annexation of such Additional Properties shall become effective by the recording by the Declarant of an amended declaration for each as hereinafter provided.

new section annexed.

The or Section 5.

property owned by the Association for the common use and enjoyment COMMON AREA shall mean of the owners.

and refer to all real the time of the conveyance of the first lot shall be all the area The Common Area to be owned by the Association at designated as "Common Area" on the plat of PLANTERS WALK, if any, recorded or to be recorded in the New Hanover County Registry.

390313 BOOK PASE 0162 1934 Section 6. LOT shall mean and refer to any numbered lot shown

mmon Area" on the plat of PLANTERS WALK, if any, recorded or to be recorded in the New Hanover County Registry.

390313 BOOK PASE 0162 1934 Section 6. LOT shall mean and refer to any numbered lot shown upon the recorded plat of any section of PLANTERS WALK, now or hereafter recorded in the New Hanover County Registry.

Section 7. DECLARANT shall be used interchangeably with Developer (which designations shall include singular, plural, masculine and neuter as required by the context) to mean and refer to DLH DEVELOPMENT CO., LLC, and its successors and assigns, if such successors and assigns should acquire undeveloped property from the Declarant for the purpose of development.

Section 8.

DECLARATION shall mean this instrument as it may be from time to time amended or supplemented.

Section 9. MEMBERSHIP shall mean and refer to the rights, privileges , benefits, duties and obligations which shall inure to the benefit of and burden each member of the Association.

Section 10. MEMBER shall mean and refer to every person or entity who has a membership in the Association .

Section 11. LIMITED COMMON AREA AND FACILITIES shall mean and include those common areas and facilities which are reserved for the use of a certain unit or units to the exclusion of other units, as more specifically defined herein.

ARTICLE II.

PROPERTY RIGHTS Omers' Easements of Enjoyment.

Every owner shall have a right and easement of enjoyment in and to the Common Area, if any, which shall be appurtenant to and shall pass with the title to every lot, subject to the following provisions: a.

b.

c.

The right of the Association to suspend the voting rights and privileges of an owner assessment against his lot remains unpaid and for a period not for any period during which any to exceed sixty (60) days for any

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the Association to suspend the voting rights and privileges of an owner assessment against his lot remains unpaid and for a period not for any period during which any to exceed sixty (60) days for any infraction of its published rules and regulations; The right of the Association to mortgage or convey the Common Area, or to dedicate or transfer all or part of the Common Area, if any, to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the members. No such dedication or transfer shall be effective until approved by a vote of at least two-thirds (2/3) of the members, excluding the developer, as indicated in an instrument executed by the corporation and recorded in the New Hanover County Registry; The right of the Association to impose regulations for the use and enjoyment of the Common Area, if any, and improvements thereon, which regulations may further restrict the use of the Common Area.

ARTICLE III.

EASEMENTS Section 1. Perpetual, alienable easements are reserved as necessary in the Properties and the Common Areas thereof for installation and maintenance of underground facilities and drainage facilities.

Section 2. The Declarant reserves unto itself, its successors and assigns, a perpetual, alienable and releasable easement and right of way, on, over and under the ground for men and equipment to erect, maintain, inspect, repair and use electric and telephone poles, wires, cables, conduits, sewers , water mains and other 2 BOOK 34 PAGE 0163 suitable equipment for the conveyance and use telephone equipment, gas , sewer, water or other public conveniences of electricity, or utilities on, in or over each lot and such other areas as are shown on the plat of the Properties recorded or to be recorded in the

, gas , sewer, water or other public conveniences of electricity, or utilities on, in or over each lot and such other areas as are shown on the plat of the Properties recorded or to be recorded in the office of the Register of Deeds of provided further, that the Declarant may cut drainways for surface New Hanover County: water whenever such action may appear to the Developer to be necessary in order to maintain reasonable standards of health, safety and appearance. These easements and rights of way expressly include the right to cut any trees, bushes or shrubbery, make any grading of the soil, or to take any other similar action reasonably necessary to provide economical and safe utility installation and to maintain reasonable standards of health, safety and appearance.

The Declarant further reserves the right to locate wells, pumping stations , and tanks within residential areas on any walkway, or on any residential lot now or subsequently designated for such use or to locate same upon any lot with the permission of the owner of such lot . Such rights may be exercised by any licensee of the Declarant, but this reservation shall obligation of the Declarant to provide or maintain any such utility not be considered an or service.

Section 3. The Developer reserves the right to subject the real property in this subdivision to a contract with Carolina Power and Light for the installation of street lighting, which requires a continuing monthly payment to Carolina Power and Light by each residential customer.

Section 4. Sewer Service All lots will be connected to the New Hanover County Sewer System.

service will be the responsibility of each individual lot owner.

All monthly charges for sewer Water will be provided by New Hanover County , and no private wells shall

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ew Hanover County Sewer System.

service will be the responsibility of each individual lot owner.

All monthly charges for sewer Water will be provided by New Hanover County , and no private wells shall be permitted on any lot except for irrigation purposes, then only with the consent of the utility company, its successors or assigns.

Section 1.

ARTICLE III.

MEMBERSHIP AND VOTING RIGHTS and Every owner of a lot shall be a member of the Association.

Membership shall be appurtenant to and may not be separated from ownership of any lot.

Section 2. Each member shall be entitled to one vote in the affairs of the Association for each lot owned.

person holds an interest in any lot, all such persons shall be When more than one members. The vote for such lot shall be exercised as the owners of such lot among themselves determine, but in no event shall more than one (1) vote be cast with respect to any lot.

ARTICLE V.

MANAGEMENT AND CONTROL Management of the affairs of the Association shall be the right and responsibility of its Board of Directors in accordance with the Declaration and the By-Laws; PROVIDED, HOWEVER, that all of the powers and duties of the Board of Directors may be exercised by the Declarant until such time as 75% of the lots have been sold and conveyed by the Declarant to purchasers or until December 31, 1999, whichever occurs first.

transferred to the lot owners at any time but no later than 120 Management and control may be days after the happening of the earlier of the above events.

3 BCOK PAGE 1934 0164 ARTICLE VI COVENANTS FOR ASSESSMENTS the Section 1. Creation of the Lien and Personal Obligation for Assessments. The Declarant, properties, hereby covenants and agrees to pay and each owner of for each lot owned within

S FOR ASSESSMENTS the Section 1. Creation of the Lien and Personal Obligation for Assessments. The Declarant, properties, hereby covenants and agrees to pay and each owner of for each lot owned within any lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: a.

b.

c.

d.

Annual assessments or charges in the initial sum of $150.00 per year to be paid quarterly, or yearly at owners' option, or otherwise as determined from time to time by the Board of Directors, and Special assessments for capital improvements, such assessments to be established and collected as hereinafter provided, and Insurance assessments as hereinafter provided, and To the appropriate governing taxing authority, a pro rata share of ad valorem taxes levied against the Common Area, if any.

The annual, special and insurance assessments, together with interest, costs, and reasonable attorney's fees, shall be a charge on the land and shall be a continuing lien upon the property against which each assessment is made.

together with interest, costs and reasonable attorney's fees, shall Each such assessment, also be the personal obligation of the person who was the owner of such property at the time when the assessment fell personal obligation for delinquent assessments shall not pass to the lot owner's successors in title unless expressly assumed by due. The then.

Section 2. Purpose of Assessments.

the Association shall be used exclusively to promote the health, The assessments levied by safety and welfare of the residents in the properties and for the improvement and maintenance of all easements, utilities and the Common Area. The funds arising from said assessments or charges

ied by safety and welfare of the residents in the properties and for the improvement and maintenance of all easements, utilities and the Common Area. The funds arising from said assessments or charges may be used for any or all of the following purposes: and improvement of the common areas, streets, roads, lakes, ponds, drainage and utility easements and rights of way and enforcing Maintenance these restrictions; and, necessary or desirable in the opinion of the Association to keep in addition, doing any other things the property in neat and good order and to provide for the health, welfare and safety of owners and residents of PLANTERS WALK.

Section 3. Annual Assessments.

Annual assessments shall be in an amount to be fixed from year to year by the Board of Directors which may establish different rates from year to year as it may deen necessary for the purposes set forth in Section 2 above. The amount of the annual assessment against each lot for any given year shall be fixed at least 30 days in advance of the annual assessment period; provided, however, that the first annual assessment shall be set prior to the conveyance of the first lot to an owner and written notice to the owners to be subjected thereto shall be delivered to the owners at or prior to the closing of their lots. Written notice of each annual assessment thereafter shall be sent to every owner subject thereto. The due date shall be established by the Board of Directors and the Board of Directors shall have the authority to require the assessments to be paid in pro rata monthly installments.

and for a reasonable charge furnish a certificate signed by an The Association shall, upon demand, officer of the Association setting forth whether the assessments on a specified lot have been paid.

a.

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nd for a reasonable charge furnish a certificate signed by an The Association shall, upon demand, officer of the Association setting forth whether the assessments on a specified lot have been paid.

a.

From and after January 1 of the year immediately following the conveyance of the first lot to an owner, the annual assessment 4 b.

c.

BCOX PAGE 0165 1934 may be increased each year not more than ten per cent (10%) above the assessment for the previous year without a vote of the membership, except as herein provided .

From and after January 1 of the year immediately following the conveyance of the first lot to an owner, the maximum annual assessment may be increased each year above ten per cent (10%) by a vote of two-thirds (2/3) of the members who are voting in person or by proxy at a meeting duly called for this purpose.

The Board of Directors may fix the annual assessment at an amount not in excess of the assessment for the previous year plus an increase of ten percent (10% ).

assessments In the Section 4. Special Assessments for Capital Improvements.

addition to the annual Association may levy, in any assessment year, a special assessment authorized above, applicable to the year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital including fixtures and personal property related thereto, provided improvement upon the Common that any such assessment shall have the assent of two-thirds (2/3) Area, of the votes of the members who are voting in person or by proxy at a meeting duly called for this purpose.

Section 5. Insurance.

the Association, as a common expense, shall at all times keep the The Board of Directors on behalf of property of the Association, if any, insured

g duly called for this purpose.

Section 5. Insurance.

the Association, as a common expense, shall at all times keep the The Board of Directors on behalf of property of the Association, if any, insured against loss or damage by fire or other hazards and other such risks , including, but not limited to, directors' liability and public liability insurance, upon such terms and for such amounts as may be reasonably necessary from time to time to protect the Properties and Common Area, which insurance shall be payable in case of loss to the Association for all members.

The Association shall have the sole authority to deal with the insurer in the settlement of claims.

shall be obtained without prejudice to the right of each member to Such insurance insure his personal property for his own benefit at his expense. In no event shall the insurance coverage obtained by the Association be brought into contribution with insurance purchased by members or their mortgagees.

own All insurance policy Section 6. Insurance Assessments.

premiums on the Common Area for the benefit of the Association purchased by the Board of Directors or deductibles payable by the Association upon loss shall be a common its designee and any expense and the Association shall levy against the owners equally as an additional annual Assessment" ) which shall be in addition to the amounts provided for assessment, (herein called "Insurance under Section 3 above, an amount sufficient to pay the annual cost of all such insurance premiums and deductibles .

Section 7. Notice and Quorum for any action authorized under Sections 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Sections 3 and 4 shall be sent to all members not less than thirty (30) days nor more

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under Sections 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Sections 3 and 4 shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting.

such meeting called, the presence of members or of proxies entitled At the first to cast sixty per cent (60%) of all the votes of each class of membership shall constitute a quorum.

Section 8. Uniform Rate of Assessment.

special assessments must be fixed at a uniform rate for all lots Both annual and and may be collected on a quarterly basis .

Assessments for Section 9. Commencement of Assessments.

each lot shall commence upon the date of acceptance by an owner of a deed from Declarant.

maintenance assessments on unsold lots retained by the Declarant, Declarant shall not be required to pay except for those lots retained for rental purposes for which 5 BCOX PAGE Declarant shall pay mintenance assements which shall commence upon the date the same are occupied by a tenant.

Section 10.

of the Association.

Effect of Nonpayment of Assessments and Remedies days after the due date shall bear interest from the due date at Any assessment not paid within thirty (30) the highest rate allowable by law.

action at law against the owner personally obligated to pay the same, and/or foreclose the lien against the property and may pursue The Association may bring an any other legal or equitable remedy available. No owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of the Common Area or by abandoning his Lot.

Section 11.

The lien of the assessments provided for herein shall be subordinate to the Subordination of the Lien to Mortgage.

lien of any first mortgage.

affect the assessment lien.

andoning his Lot.

Section 11.

The lien of the assessments provided for herein shall be subordinate to the Subordination of the Lien to Mortgage.

lien of any first mortgage.

affect the assessment lien.

Sale or transfer of any lot shall not lot pursuant to mortgage foreclosure or any proceeding in lieu However, the sale or transfer of any thereof, shall extinguish the lien of such assessments payments which became due prior to such sale or transfer.

or transfer shall assessments thereafter becoming due or from the lien thereof.

relieve such lot from liability for as to No sale any to Section 12. Working Capital Assessment. At the time title is conveyed to an Association as a working capital reserve an amount equal to a three owner, each owner months shall contribute (quarterly) estimated ($37.50).

the Such funds shall be used solely for initial operating homeowners' and capital expenses of dues or assessments insurance, supplies, repairs and improvements of the common areas the Association, and facilities, furnishings and equipment, etc.

such as the working capital fund are pre-paid payment of not to be considered Amounts paid into regular remaining at the end of the first full operating year shall be assessments.

transferred to Any working capital advance Association, at the discretion of the Board of Directors.

and become part of the funds general funds of the as ARTICLE VII.

ARCHITECTURAL CONTROL and Section 1.

responsibilities conferred upon the Architectural Review Committee Developer's Rights.

by this Declaration or the By-Laws of the Association shall be All duties exercised and performed by the Declarant or its designee, so long as Declarant shall own any lot in the Properties or any additions annexed thereto by Supplemental Declaration or Amendment to this

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ies exercised and performed by the Declarant or its designee, so long as Declarant shall own any lot in the Properties or any additions annexed thereto by Supplemental Declaration or Amendment to this Declaration.

Building and Site Improvements.

Section 2.

or other structure shall be commenced, erected, or maintained upon any lot in the Properties, nor shall any exterior addition to or No dwelling, wall change in or alteration therein (including painting or repainting of exterior surfaces) be made until the plans and specifications showing the nature, kind, shape, heights, materials, colors, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Declarant, or its designee, or after the sale of all lots by Declarant, by the Board of Directors of the Association, or by an Architectural Review Committee composed of three (3) or more representatives appointed by the Board.

applicable, the Board, In the event the Declarant, or its designee, or, if approve or disapprove such design and location within thirty (30) or its designated committee, days after said plans and specifications have been submitted to it, fails to approval will not be required and this Article will be deemed to have been fully complied with.

plans, location or specification may be based upon any ground, Refusal of approval of any such including purely aesthetic and environmental considerations, that in the sole and uncontrolled discretion of the Declarant or 6 200K 1934 PAGE 0167 One Architectural Review Committee shall be deemed sufficient.

copy of all plans and related data shall be furnished to the Declarant or Architectural Review Committee, as the case may be,

4 PAGE 0167 One Architectural Review Committee shall be deemed sufficient.

copy of all plans and related data shall be furnished to the Declarant or Architectural Review Committee, as the case may be, for its records.

Review Committee shall be responsible for any structural or other Neither the Declarant nor the defects in plans or specifications submitted to it or any structure Architectural erected according to such plans and specifications.

a.

b.

c.

d.

f.

Section 3. Approval of Plans.

No house plans will be approved unless the proposed house shall have a minimum of 1,000 square feet of enclosed dwelling area. The term "enclosed dwelling area" as used in the minimum requirement shall be the total enclosed area within a dwelling; provided, however, that such term does not include terraces, decks, open porches, and like areas; provided, further, that shed-type porches, even though attached to the house are specifically excluded from the definition of the aforesaid tera enclosed dwelling area".

Since the establishment of inflexible building setback lines for location of houses on lots tend to force construction of houses directly to the side of other homes with detrimental effects on privacy, view, preservation of important trees and other vegetation, ecological and related considerations, no specific front, rear established.

or side In order to assure, however, that the foregoing setback lines considerations are given maximum effect, the site and location shall be of any house or dwelling or other structure upon any lot shall be controlled by and must be approved absolutely by the Declarant or Architectural Review Committee, as the case may be.

Provided, however, that no dwelling shall be constructed closer than five (5) feet to any dwelling on any adjoining

d absolutely by the Declarant or Architectural Review Committee, as the case may be.

Provided, however, that no dwelling shall be constructed closer than five (5) feet to any dwelling on any adjoining lot. That is to say, side line restrictions may be waived by Declarant so long as there is maintained a separation of at least five (5) feet between buildings constructed on adjoining lots.

The exterior of all houses and other structures must be completed within twelve (12) months after the construction of same shall have commenced, except where such completion is impossible or would result in great hardship to the owner or builder, due to strikes, fires, national emergency or natural calamities.

be No structure, except erected, altered, placed or permitted to remain on any lot as hereinafter provided, shall except one single family dwelling not to exceed one (1) story in height (unless the Declarant Committee, as the case may be, approves in writing a structure or Architectural Review of more than one (1) story).

the All service utilities, fuel tanks, clothes lines, and wood piles are to be enclosed within a wall or plant screen of a type and size approved by the Declarant or Architectural Review Committee, so as to preclude the same from causing an unsightly view from any highway, street or way within the subdivision, or from subdivision. All mail and newspaper boxes shall be uniform in any other residence within design. Design for mail furnished by Declarant.

and newspaper boxes or permitted to remain on any lot without approval of the No fences shall at any time be placed shall be Declarant or Architectural Review Committee.

Landscaping and off street parking for not less than two (2) automobiles must be provided on occupancy of any dwelling constructed on each lot

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ced shall be Declarant or Architectural Review Committee.

Landscaping and off street parking for not less than two (2) automobiles must be provided on occupancy of any dwelling constructed on each lot parking areas and the driveways thereto shall be constructed prior to the said lot.

of concrete or such other material as may be approved by Such Declarant.

7 BOOK PAGE 1934 0168 Section 4.

Maintenance by Association.

those its expense, shall be responsible for maintaining, repairing and replacing the planting easement areas, the storm water drainage The Association, at system, including the retention pond, all drainage lines, pipes and ditches which constructed by individual lot owners and located within individual are located on the properties, lots. The Association shall have the right to go onto the lots at except reasonable times for the purpose of maintaining, repairing and replacing all utility and drainage lines and pipes which might be located on such lots; and each owner hereby grants permission to the Association to enter his lot for such purposes.

In the event that replacement (other than such being caused by fire, lightning, such need for maintenance, repair or windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles, and smoke, as the foregoing are defined and explained in North Carolina Standard Fire and Extended Coverage Insurance Policies) is caused through the willful, or negligent act of the owner, his family, guests or invitees, the cost of such maintenance, replacement, or repair, shall be added to and become a part of the assessment to which such lot is subject.

Notwithstanding the foregoing, the Association shall have the right to recover through legal action the cost of such maintenance,

d to and become a part of the assessment to which such lot is subject.

Notwithstanding the foregoing, the Association shall have the right to recover through legal action the cost of such maintenance, replacement or repair, including interest, reasonable attorney's fee, from those persons legally responsible for causing damage to the property of the Association.

court costs and a The Association shall maintain all Common Areas, including roadways only to the extent that they are not maintained by the State, plantings and shrubbery, boardwalks or walkways, located thereon, and lighting fixtures and shall pay all costs of operation thereof including premiums associated with general liability insurance insuring the Association from liability arising from ownership and operation thereof.

In order to enable the Association to accomplish the foregoing there is hereby unobstructed access over, on, upon, through and across each lot and reserved to the Association the structures and improvements thereon and its limited common the right to area, if any, and repair required under this Article.

at all reasonable times to perform the maintenance In the event that any maintenance or repair of the lot, and any structures and improvements thereon, is required to be done or performed as a result of the negligent or willful acts of the Owner, as determined by the Board of Directors of the Association, or the family, tenants, contract purchasers, guests or invitees of the owner, or is caused by fire, wind, rain, blowing water, lightning, smoke or other hazard or casualty, then, in the sole discretion of the Board of Directors the costs of such maintenance or repairs, not fully covered by insurance, may be levied as a special assessment against only the lot sustaining such damage

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he sole discretion of the Board of Directors the costs of such maintenance or repairs, not fully covered by insurance, may be levied as a special assessment against only the lot sustaining such damage which the owner shall pay to the Association within fifteen (15) days of the date of written notice to Association requesting such payment. Ordinary wear and tear is not contemplated as being within the coverage of this paragraph.

the owner from the ARTICLE VIII.

USE RESTRICTIONS Section 1.

Section 14 below, no lot in PLANTERS WALK shall be used for any Land Use and Building Type. Except as provided in purposes except residential purposes.

as "single family lots") shall be restricted for construction of All lots (herein referred to single family dwellings only. Any building erected, altered, placed or permitted to remain on any lot shall be subject to the provisions of Article VII of this Declaration relating to architectural control.

8 BOOK PAGE 0169 1934 Section 2. Nuisances.

be carried on upon any lot, nor shall anything be done thereon No noxious or offensive activity shall which may be or neighborhood.

may become an No one shall maintain any plants or animals, nor annoyance or nuisance to the device or thing of any sort whose normal activities or existence or other nature may diminish property in the neighborhood by the owners thereof.

or destroy the enjoyment of the responsibility of each lot owner to prevent the development of other any unclean, unsightly, or unkept condition of buildings or grounds It shall be on such lot which would tend substantially to decrease the beauty of the neighborhood as a whole or the specific area.

Section 3. Temporary Structures. No structure of a temporary character, trailer, basement, tent, shack, garage, barn or other

o decrease the beauty of the neighborhood as a whole or the specific area.

Section 3. Temporary Structures. No structure of a temporary character, trailer, basement, tent, shack, garage, barn or other outbuilding shall be used on any lot at any time as a residence either temporarily or permanently without the written consent of the Association or its designee. Except that the Declarant has the right to erect or maintain any type of temporary structure to facilitate sales and/or construction.

Section 4. Recreational Vehicles.

camper, trailer, motor or mobile homes, or similar type vehicle, No boat, motor boat, shall be permitted to remain on any portion of a lot so as to be seen from the street without the written consent of the Association or its designee.

Section 5.

kind shall be kept or maintained on any lot or in any dwelling Animals. No animals, livestock or poultry of any except that dogs, cats or other household pets may be kept or maintained provided that they are not kept or commercial purposes and provided further that they are not allowed maintained for to run free and are at all times properly leashed.

not permitted and pets are not to be left unattended out-of-doors at any time.

Dog runs are Section 6. Television Satellite Dishes and Outside Antennas.

No television satellite signal receiving dishes will be permitted on any lot and no outside radio or television antennas shall be erected on any lot or dwelling unit within the Properties unless and until permission for the same has been granted by the Board of Directors of the Association or its Architectural Review Committee.

Section 7.

similar materials hung at windows, or Window Coverings. All drapes, curtains, or other visible from the outside, of any building erected upon any lot in any manner

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ectural Review Committee.

Section 7.

similar materials hung at windows, or Window Coverings. All drapes, curtains, or other visible from the outside, of any building erected upon any lot in any manner shall be of a white or neutral background material.

as to be Section 8. Exterior Lights.

lights installed in any fixture located on the exterior of any All light bulbs and other building or any lot shall be clear, white or non-frost lights.

no Section 9. Junk Vehicles and Tractor Trailers. No inoperable vehicle or vehicle without current registration and insurance, and tractor-trailers will be permitted on Association shall have the right to have all such vehicles towed the premises.

away at the owner's expense.

The Section 10. Vehicle Repairs.

be made in driveways, No repairs to any vehicle may activities shall not be visible from the street.

but only in garages and those repair immobile vehicle, whether or not containing current registration, No inoperable or shall be permitted to remain in any driveway or on any street.

Section 11. Signs. The Declarant may maintain a sales office and may erect and display such signs as appropriate as aids to such development and marketing, provided the Declarant deens that such signs do not violate any applicable laws.

signs shall be placed in the approximate center of a lot and six feet from the road curb.

All permitted owner shall erect a sign to advertise a business.

No sign shall be nailed to trees. No lot Only "For Sale" 9 200K 1934 PAGE 0170 signs are permitted and are not to exceed four (4) square feet in size.

Section 12. Alterations.

or allow any alteration of construction in or upon any portion of No person shall undertake, cause, the Common Area except at the direction or with the express written consent of the Association.

ons.

or allow any alteration of construction in or upon any portion of No person shall undertake, cause, the Common Area except at the direction or with the express written consent of the Association.

Section 13. Subdividing. No lot shall be subdivided, or its boundary lines changed, except with the prior written consent of the Declarant during the period of Association and thereafter of the Board.

Declarant control of the hereby expressly reserves unto itself, its successors and assigns, However, the Declarant the right to replat any two (2) or more lots shown on the plat of any subdivision of the Property in order to create one or more modified lots; to further subdivide tracts shown on subdivision plat into two or more lots; to recombine one or more any such tracts or lots or a tract and lots to create a larger tract; to eliminate from this Declaration lots buildable or are needed for access to any area of the Property or that are not otherwise are needed for use as private roads or access areas, and to take such steps as are reasonably necessary to make such replatted lots or tracts suitable and fit as a building site or access area or roadway, said steps to include, but not to be limited to, the relocation of easements, walkways, and rights of way to conform to the new boundaries of the said replatted lots .

ARTICLE IX.

RIGHTS OF INSTITUTIONAL LENDERS Section 1. "Institutional Lender" or "Institutional Lenders", as the terms are used herein, shall savings and loan associations, savings banks, insurance companies, mean and refer to banks, the Veterans Administration, the Federal Housing Authority, the Federal National Mortgage Association and other reputable mortgage lenders and guarantors and insurers of such first mortgages.

long as any Institutional Lender or

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, the Federal Housing Authority, the Federal National Mortgage Association and other reputable mortgage lenders and guarantors and insurers of such first mortgages.

long as any Institutional Lender or Institutional Lenders shall hold any mortgage upon any lot, or shall be the owner of any lot, such Institutional Lender or Institutional Lenders shall have the following rights: So a. To be furnished with at least one copy of the Annual Financial Statement and Report of the Association , including a detailed statement of annual carrying charges or income collected and operating expenses, such financial statement and report to be furnished by April 15 of each calendar year.

b.

c.

d.

To be given notice by the Association of the call of any meeting of the membership to be held for the purpose of considering any proposed Amendment to the Declaration, or the Articles of Incorporation and By -Laws of the Association, which notice shall state the nature of the amendment being proposed, and to be representative to attend all such meetings.

given permission to designate a To be given notice of default in the payment of assessments by any owner of a lot encumbered by a mortgage held by the Institutional Lender or Institutional Lenders, such notice to be given in writing and to be sent to the principal office of such Institutional Lender or Institutional Lenders, or to the place which it or they may designate in writing to the Association.

To inspect the books and records of the Association and the Declaration, By-Laws and any Rules and Regulations during normal business hours, and to obtain copies thereof.

10 BOOK PAGE j f.

1934 0171 To be given notice by the Association of any substantial damage to any part of the Common Area.

and Regulations during normal business hours, and to obtain copies thereof.

10 BOOK PAGE j f.

1934 0171 To be given notice by the Association of any substantial damage to any part of the Common Area.

To be given notice by the Association if any portion of the Common Area is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought acquired by a condemning authority.

to be Section 2.

insurer desires the benefits of the provisions of this section Whenever any Institutional Lender, guarantor or requiring notice to be given or to be furnished a financial statement, such lender shall serve written notice of such fact upon the Association by registered mail or certified mail addressed to the Association and sent to its address stated herein, or to the address of the property, identifying the lot upon which any such Institutional Lender or Institutional Lenders hold any mortgage or mortgages, or identifying any lot owned by them, or any of them, together with sufficient pertinent facts to identify any mortgage or mortgages which may be held by it or them, and which notice shall designate the place to which notices are to be given by the Association to such Institutional Lender.

Section 1.

ARTICLE X.

ANNEXATION OF ADDITIONAL PROPERTIES of additional property shall require the assent of two-thirds (2/3) Except as provided in Section 2 below, annexation of the members at a meeting called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting.

Section 2. If the Declarant, its successors or assigns shall develop all or any portion of the Additional Properties, said Additional Properties or any portion thereof may be annexed to said

meeting.

Section 2. If the Declarant, its successors or assigns shall develop all or any portion of the Additional Properties, said Additional Properties or any portion thereof may be annexed to said Properties without the assent of the members. Annexation provided for in this section shall become effective upon the filing by the Declarant of a supplemental or amended declaration in the office of the Register of Deeds of New Hanover County.

Section 1.

ARTICLE XI.

GENERAL PROVISIONS have the right to enforce, by any proceeding at law or in equity, Enforcement. The Association, or any owner, shall all restrictions, covenants, conditions, reservations liens and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Association or by an owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2.

The State of North Carolina is hereby made a beneficiary of this Enforcement of Storm Water Runoff Regulations.

Declaration to the extent necessary to enforce its storm water runoff regulations as the same may be amended from time to time.

Section 3.

covenants or restrictions by judgment or court order shall in no Severability. Invalidation of any one of these wise affect any other provisions which shall remain in full force and effect.

Section 4.

future owners, tenants and occupants of lots and their guests or Lots Subject to Declaration.

invitees, shall be subject to, and shall comply with the provisions All present and of the Declaration, and any amendments.

of conveyance or the entering into of a lease or the entering into The acceptance of a deed occupancy of any lot shall constitute provisions of the Declaration are accepted and ratified by such

Page 12

ments.

of conveyance or the entering into of a lease or the entering into The acceptance of a deed occupancy of any lot shall constitute provisions of the Declaration are accepted and ratified by such owner, tenant or occupant.

agreement that the The covenants and restrictions of this an 11 BOOK PAGE 1934 0172 Declaration shall inure to the benefit of and be enforceable by the Association, or the owner of any lot, their respective legal representatives, heirs, successors and assigns, and shall run with and bind the land and shall bind any person having at any time any interest or estate in any lot, as though such provisions were made a part of each and every deed of conveyance or lease, for a tern of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years.

Section 5.

Article XI, Section 2 above, Section 6 below, and elsewhere herein, Amendment of Declaration. Except as provided in the covenants and restrictions of this Declaration may be amended only by an instrument duly recorded in the office of the Register of Deeds of New Hanover County executed by the duly authorized officers of the Association upon the vote of not less than twothirds (2/3) of the Lot Owners; provided that no amendment shall alter any obligation to pay ad valorem taxes or assessments for public improvements, as herein provided, or affect any lien for the payment thereof Declaration be amended so as to deprive the Declarant of any rights established herein.

herein granted or reserved unto Declarant.

no event may the Section 6.

In Amendments by the Declarant.

amendments may be effected by the Declarant, or the Board, as the case may be, without consent of the members: The following a.

b.

c.

d.

e.

no event may the Section 6.

In Amendments by the Declarant.

amendments may be effected by the Declarant, or the Board, as the case may be, without consent of the members: The following a.

b.

c.

d.

e.

Prior to the sale of the first lot, this Declaration may be amended by the Declarant.

Declarant may amend this Declaration upon additional lands herein.

annexation of as specified in Article XI, Section 2, The Board may amend this Declaration to correct any obvious error or inconsistency in drafting, typing or reproduction.

or The Declarant, so long as it shall retain control of the Association, shall have the right to amend this Declaration for the purpose of clarification, to correct any oversights or omissions, or to conform to the requirements of any law or governmental Property agency having or to legal jurisdiction improvements thereon for mortgage or improvement loans made, qualify the Property over the insured or guaranteed by a governmental agency or to comply any lots and with the requirements of law or regulations of any corporation or agency belonging to, sponsored by, or under the substantial control of the United States Government or the State of North Carolina, regarding purchase improvements, or mortgage interests therein, as well as any or sale of other law or regulation relating to the control of property, such lots and including, without construction standards, aesthetics, and matters affecting the limitation, ecological public health, safety and general welfare.

controls, official of any such corporation or agency, limitation, the Veterans Administration, the United States A letter from an Department of Housing and Urban Development, the Federal Hone including, without Loan Mortgage Corporation, the Government National Mortgage

Page 13

Veterans Administration, the United States A letter from an Department of Housing and Urban Development, the Federal Hone including, without Loan Mortgage Corporation, the Government National Mortgage Corporation, or the Federal National Mortgage Association requesting or suggesting an amendment necessary to comply with the requirements of such corporation or agency shall be sufficient evidence of the approval of such corporation or agency, provided that the changes made substantially conform to such request or suggestion.

The Declaration, for so long as it shall retain control of the Association, and, thereafter, the Board of Directors, may amend this Declaration as shall be necessary, in its opinion, without the consent of any owner, to qualify the and 12 f.

BOOK 1934 PAGE 0173 Association or the Property, or any portion thereof, for taxexempt status.

The Declarant for so long as it has control of the Board may amend this Declaration to include any platting change of the Property as permitted herein.

IN WITNESS WHEREOF, the Grantor has caused this instrument to be signed in its name by one of its duly authorized managers and its seal to be hereunto affixed on the day and year first above written.

STATE OF NORTH CAROLINA DLH DEVELOPMENT CO., LLC [SEAL] BY: [SEAL] RODNEY Q. HARRIS, Manager COUNTY OF NEW HANOVER I, PHYLLIS E. WILLIAMS, a Notary Public in and for the state and county aforesaid, do hereby certify that Rodney Q. Harris, Manager of DLH Development Co., LLC, the North Carolina limited liability company described, and which executed the foregoing instrument; that he executed liability company name by subscribing his name thereto; and that said instrument in the limited the instrument is the act and deed of said limited liability company.

the 3rd day

ment; that he executed liability company name by subscribing his name thereto; and that said instrument in the limited the instrument is the act and deed of said limited liability company.

the 3rd day WITNESS my hand and notarial stamp or seal, this the of October 1995.

My Commission Expires: Sy Willi Notary Public PHALUSE MUN (Notarial Seal) STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER The foregoing Certificate(s) of Phi Notary Public, is certified to be correct✓ This instrument and this certificate are duly registered at the date and time and in the Book and Page shown on the first page hereof.

This the 2 REVORGES AND VERIFIED HARY SUE 00TS REGISTER OF DEEDS NEW HANOVER CO. NC '95 OCT 2 PM 12 13 day of October 1995.

MARY SUE OOTS, Register of Deeds for New Hanover County BY: Jina a Freeman Deputy 13