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Ridgelake CovenantsDisclosure Package For Ridgelake Condominium Hyatt & Rhoads, P.C. Attorneys 2200 Peachtree Center Harris Tower Atlanta, Georgia 30303 (404) 659-6600 1.725 Central Savings Tower San Diego, California 92101 (619) 232-0811 1275 K Street N.W. Washington, D.C. 20006 (202) 488-4418 �me Windonv 9j5e--.Cark, Sundent -ri,*!k-- 21'x 16'6" —+fasterSuji� 28-6" . 1.2�6- �Dhd-gX- 10'x 10'6" qwroom 15' x 12'6" zyDe JVlartingale.; DECLARATION OF CONDOMINIUM FOR RIDGELAKE CONDOMINIUM HYATT & RHOADS, P.C. Attorneys 2200 Peachtree Center Harris Tower 1275 K Street, N.W. Atlanta, Georgia 30303 Washington, D.C. 20006 (404) 659-6600 (202) 488-4418 1725 Central Savings Tower San Diego, California 92101 (619) 232-0811 - TABLE OF CONTENTS - Page 1. NAME.....................................................2 2. LOCATION, PROPERTY DESCRIPTION, PLATS AND PLANS .......... 2 3. UNITS AND BOUNDARIES.....................................2 ' 4. LIMITED COMMON ELEMENTS -- ASSIGNMENT AND REASSIGNMENT.........................................3 5. COMMON ELEMENTS..........................................4 6. UNDIVIDED INTEREST IN COMMON ELEMENTS....................4 7. ASSOCIATION MEMBERSHIP AND ALLOCATION OF VOTES ........... 4 8. ALLOCATION OF LIABILITY FOR COMMON EXPENSES..............4 9. ASSOCIATION RIGHTS AND RESTRICTIONS ......................6 10. USE RESTRICTIONS.........................................7 11. ASSESSMENT LIEN.........................................11 12. AMENDMENTS..............................................12 13. SEVERABILITY............................................13 14. PREPARER................................................13 15. SALES AND LEASES........................................13 16. MORTGAGEE PROVISIONS....................................15 17. DECLARANT RIGHTS........................................17 18. EXPANSION OPTION........................................19 19. SUCCESSOR DECLARANT.....................................21 - LIST OF EXHIBITS - LEGAL DESCRIPTION OF SUBMITTED PROPERTY ....................."A" RIDGELAKE LEASE AGREEMENT..................................."B" ADDITIONAL PROPERTY........................................."C" DECLARATION OF CONDOMINIUM FOR RIDGELAKE CONDOMINIUM THIS DECLARATION is made on this day of 19 , by RIDGEWAY DEVELOPMENT CORP., a Georgia corporation, having its principal office at 2401 Lake Park Drive, Atlanta, Cobb County, Georgia, (hereinafter, together with any successors in title who come to stand in the same relation to the Condomin- ium, referred to as the "Declarant"); W I T N E S S E T H WHEREAS, the Declarant is the owner in fee simple of that property located in Land Lot 127 of the 7th District of Payette County, Georgia, which is more particularly described on Exhibit "A" attached hereto and by this reference incorporated herein; and WHEREAS, the Declarant desires to submit the property described on Exhibit "A" hereto to the provisions of the Georgia Condominium Act, pursuant to the terms and provisions of this Declaration; NOW, THEREFORE, the Declarant does hereby submit the property, ("Property"), described on Exhibit "A", which is at- tached hereto and incorporated herein by this reference, to- gether with all of the improvements located thereon, to the provisions of the Georgia Condominium Act, O.C.G.A. Section 44-3-70, et seq. (Michie 1982), ("Act"). From and after the date on which this Declaration, together with the Plat of Sur- vey and the Plans described herein, are recorded with the Clerk of the Superior Court of Fayette County, Georgia, the Property described on Exhibit "A" hereto, and all of the improvements lo- cated thereon shall be owned, held, transferred, sold, conveyed, used, occupied, mortgaged, or otherwise encumbered, subject to all of the terms, provisions, and restrictions of this Declara- tion and of the aforesaid Georgia Condominium Act. 1. NAME. The name of the condominium is Ridgelake Condominium, (hereinafter sometimes called "Ridgelake" or the "Condominium"). 2. LOCATION, PROPERTY DESCRIPTION, PLATS AND PLANS. The Condominium is located in Land Lot 127 of the 7th District of Fayette County, Georgia. The Property which is submitted by this Declaration to the Act, is described in Exhibit "A" attached hereto. A Plat of Survey has been filed in Condominium Plat Book , Page , Fayette. County, Georgia Records. Simultaneously with the recording of this Declaration in the office of the Clerk for Fayette County, Georgia, Plans of every building which contains a unit located on the Property are being filed in Condominium Cabinet File Folder No. , Fayette County, Georgia Records. The Plat of Survey and Plans are hereby incorporated herein by reference as fully as if the same were set forth in their entirety herein. 3. UNITS AND BOUNDARIES. The Property described and submitted to the Act is di- vided into (_) separate units, the limited common ele- ments and the common elements. Each unit consists of a dwelling and its appurtenant percentage of undivided interest in the com- mon elements as herein provided. Each unit shall be conveyed as a separately designated and legally described freehold estate subject to the Act and the Condominium Instruments. The units are depicted on the Plat of Survey and the Plans. Each unit in- cludes that part of the structure which lies within the following boundaries: (a) Horizontal (Upper and Lower): (i) The upper horizontal boundary of each unit located on the Property is the plane formed by the uppermost, unexposed surface of the wallboard or other material comprising a part of the ceiling enclosing the uppermost story of the unit. (ii) The lower horizontal boundary of each unit located on the Property is the plane formed by the finished sur- face of the concrete slab or subflooring on which the lowermost story of the unit is constructed. (b) Vertical (Perimetric or Lateral): The vertical boundaries of each unit located on the Property are the planes -2- formed by the unexposed surface of the wallboard or other sur- face comprising the interior walls enclosing a unit. (c) Notwithstanding the description of the boundaries set forth above, the units shall be deemed to be extended to include the following: all portions of the plumbing, heating, electrical, and air conditioning systems (including furnaces, compressors, components, pipes, wires, conduits, ducts, and the like) serving only that individual unit; all windows, glass surfaces, and doors (including window and door frames) serving the unit; and all portions of any covered deck, patio, or bal- cony serving the unit, whether or not such deck, patio, or balcony is enclosed. 4. LIMITED COMMON ELEMENTS -- ASSIGNMENT AND REASSIGNMENT. (a) The limited common elements located on the Prop- erty and the unit(s) to which they are assigned are: (i) the mailbox is assigned as a limited common element to the unit it serves; (ii) to the extent that a deck, patio, or balcony serving a unit is not part of the unit, the deck, patio, or bal- cony which is appurtenant to each unit is assigned as limited common element to the unit having direct access to such deck, patio, or balcony; (iii) the doorsteps or stoops leading as access to a deck, patio, or balcony are assigned as limited common ele- ment to the unit to which is assigned as limited common element the deck, patio, or balcony served by such doorsteps or stoops; (iv) the portion of the common elements on which there is located any portion of the air conditioning or heat- ing system exclusively serving a particular unit or units is assigned as limited common element to the unit or units so served; (v) any gas or electric meter which serves only one unit is assigned as limited common element to the unit so served; (vi) to the extent that a garage, carport or covered parking area for golf carts is not part of the unit, the garage, carport or covered parking area for golf carts is assigned as a limited common element to the unit designated on the plats and plans; and -3- (vii) landings and stairways serving more than one and fewer than all of the units are assigned as limited common elements to the units served jointly. (b) The Declarant, during the time that the Declarant is in control of the Association pursuant to this Declaration, and thereafter the Association's Board of Directors, are hereby authorized to assign and to reassign Limited Common Elements, without need for a membership vote, provided that any such assignment or reassignment shall be'made in accordance with the provisions of Section 44-3-82(b) and (c) of the Act. 5. COMMON ELEMENTS. The common elements and facilities include all parts of the Property not located within the boundaries of a unit. 6. UNDIVIDED INTEREST IN COMMON ELEMENTS. Pursuant to Section 44-3-78 of the Act, each unit is allocated a percentage of undivided interest in the common ele- ments equal to that assigned to every other unit. 7. ASSOCIATION MEMBERSHIP AND ALLOCATION OF VOTES. All unit owners, by virtue of their ownership of a unit in the condominium, are members of the Ridgelake Condominium Association, Inc., ("Association"), and shall be entitled to vote on all matters upon which members of the Association are entitled to vote pursuant to the Declaration and in accordance with the By -Laws of the Association which are attached hereto as Exhibit "D" and are by this reference incorporated herein. Subject to the provisions of the Condominium Instruments, each owner shall be entitled to one (1) vote for each unit in which he or she holds the interest required for membership and each unit is allocated a vote equal to each other unit's vote. 8. ALLOCATION OF LIABILITY FOR COMMON EXPENSES. Each unit is hereby allocated liability for common expenses equal to that allocated to every other unit. (a) Except as provided below, or elsewhere in the Act or Condominium Instruments, the amount of all common expenses shall be assessed against all the condominium units in accord- ance with the allocation of liability for common expenses. (b) The Board of Directors shall have the power to assess specially pursuant to this Paragraph and to Section -4- 44-3-80(b) of the Act as, in its discretion, it shall deem ap- propriate. Failure of the Board'of Directors to exercise its authority under this Paragraph shall not be grounds for any action against the Association or the Board of Directors and shall not constitute a waiver of the Board's right to exercise its authority under this Paragraph in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this Paragraph. (i) Except for expenses incurred for maintenance and repair of items which are the Association's maintenance re- sponsibility, any common expenses benefitting less than all of the units may be specially assessed equitably among all of the condominium units which are benefitted according to the benefit received. (ii) Any common expenses occasioned by the con- duct of less than all of those entitled to occupy all of the units or by the licensees or invitees of any such unit or units may be specially assessed against the condominium unit or units, the conduct of any occupant, licensee, or invitee of which occa- sioned any such common expenses. (iii) Except for expenses incurred for mainte- nance and repair of items which are the Association's mainte- nance responsibility, any common expenses which significantly disproportionately benefit all units, may be assessed equitably among all units according to the benefit received. For purposes of this Paragraph, non-use shall not con- stitute significantly disproportionate benefit or benefit to less than all units unless such non-use results in an identifi- able, calculable reduction in cost to the Association. (c) Except for the painting or staining of exposed limited common elements, maintenance of stairways and landings that serve more than one unit, and paving and maintenance of automobile parking spaces, if automobile parking spaces are assigned as limited common elements, common expenses, if any, associated with the maintenance, repair, or replacement of, or provision of utilities to any limited common element, includ- ing, but not limited to, golf cart sheds, shall be assessed against the unit or units to which the limited common element was assigned at the time the expense was incurred; if the limited common element was or is assigned to more than one unit, the expense shall be equally divided among those units. The expense of the painting or staining of exposed limited common elements, maintenance of stairways and landings that serve more than one unit, and paving and maintenance of au- tomobile parking spaces, if automobile parking spaces are -5- assigned as limited common elements, shall be a general common expense allocated in accordance with subparagraph (a) of this Section. For purposes of allocating costs in accordance with this Section, an enclosed deck, patio, or balcony shall not be an exposed exterior portion of a unit. Accordingly, all costs of painting, staining, and otherwise maintaining an enclosed deck, patio, or balcony shall be the responsibility of the owner of the unit which is served by such deck, patio, or balcony. 9. ASSOCIATION RIGHTS AND RESTRICTIONS. The Association, acting through its board of directors, shall have the right, in addition to and not in limitation of all other rights it may have: (a) to enter into units for emergency, security, or safety purposes, which right may be exercised by the As- sociation's Board of Directors, officers, agents, employees, managers, and all policemen, firemen, ambulance personnel, and similar emergency personnel in the performance of their respec- tive duties. Except in an emergency situation, entry shall only be during reasonable hours and after reasonable notice to the owner or occupant of the unit; (b) to make and to enforce reasonable rules and regu- lations governing the use of the Property, including the units, limited common elements, and common elements, specifically in- cluding, but not limited to, regulation of parking on the com- mon elements; and (c) to enforce Use Restrictions, other Declaration and By -Law provisions, and rules and regulations by the imposition of reasonable monetary fines and suspension of use and voting privileges as provided in Section 44-3-76 of the Act. These powers, however, shall not be construed as limiting any oth- er legal means of enforcing the Use Restrictions or rules and regulations of the Association. Any fines so imposed shall be considered an assessment against the unit and may be collected in the manner provided for collection of other assessments. (d) to grant permits, licenses, utility easements, and other easements, permits, or licenses necessary for the proper maintenance or operation of the Condominium under, through, or over the common elements, as may be reasonably necessary to or desirable for the ongoing development and operation of the Condominium. 0M. 10. USE RESTRICTIONS. The Board of Directors may, from time to time, without consent of the members, promulgate, modify, or cancel rules and regulations applicable to the units and the common elements. This authority shall include, but shall not be limited to, the right to limit the type and size and to set the maximum and minimum speeds of vehicles on the Condominium property. The Board shall also have the authority to impose all other necessary traffic and parking regulations and to restrict the maximum noise levels of vehicles in the Condominium. Such rules and regulations as are promulgated by the Board of Directors shall be binding upon all owners, occupants and guests until and unless overruled, cancelled, or modified in a regular or special meeting by the vote of owners holding a majority of the total votes in the Association and by the vote of the Declarant, so long as the Declarant has the right to appoint the members of the Board of Directors pursuant to Paragraph 17(b) hereof. Except as otherwise provided for Declarant, use of all units is restricted as follows: (a) Residential Use. Each unit shall be used for residential purposes only, and no trade or business of any kind may be conducted in or from a unit or any part of the Condominium, including business uses ancillary to a primary residential use, except that the owner or occupant residing in a unit may conduct such business activities within the unit so long as (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from the exterior of the unit; (ii) the business activity does not involve persons coming onto the Condominium property who do not reside in the Condominium; (iii) the business activity conforms to all zoning requirements for the property; and (iv) the business activity is consistent with the residential character of the Condominium and does not constitute a nuisance or a hazardous or offensive use, as may be determined in the sole discretion of the Board of Directors. Leasing and loaning of units within the Condominium, and use of units owned by a corporation as guest houses or temporary lodging for the corporation's employees and guests, in accordance with Paragraph 10(0), shall not be considered a business activity violative of this subparagraph. (b) Subdivision of Units and Outbuildings. No unit may be subdivided into a smaller unit and no unit owner shall erect or use any structure(s) of a temporary character, trailer, tent, shack, carport, garage, barn or other outbuilding on any portion of the Property as may be subjected hereto, at any time either temporarily or permanently. -7- (c) Animals and Pets. No animals, livestock or poul- try of any kind shall be raised, bred or kept on any part of the Property or other property as may be subjected hereto, except that no more than a total of two (2) dogs, cats, or other common household pets may be kept by an owner in his or her respective unit, provided that they are not kept, bred, or maintained for any commercial purpose and do not endanger the health or unreasonably disturb the owner or occupants of any other units. Notwithstanding this provision, no pet enclosures shall be erected, placed, or permitted to remain on any property subjected to this Declaration. The keeping of pets and their ingress, egress, and travel upon the common elements shall be subject to such rules and regulations as may be issued by the Board of Directors. If an owner or occupant fails to abide by the rules and regulations and/or covenants applicable to pets, the Board of Directors may bar such pet from use or travel upon the common elements. The Board of Directors may subject ingress, egress, use, or travel upon the common elements to a user fee, which may be a general fee for all similarly situated persons or a specific fee imposed for failure of an owner or occupant to abide by the rules, regu- lations, and/or covenants applicable to pets. In addition, any pet which endangers the health of any owner or occupant of a unit or which creates a nuisance or an unreasonable disturbance, as may be determined in the sole discretion of the Board of Di- rectors must be permanently removed from the Condominium Proper- ty upon seven (7) days written notice by the Board of Directors. (d) Signs. Except as hereinafter provided for Declar- ant, no advertising signs of any kind, except one "For Rent" or "For Sale's sign per unit of not more than two feet by two feet (2' x 21) placed only inside the enclosed unit, shall be erected, placed, or permitted to remain on the Condominium Prop- erty without the written consent of the Board or its designee. The Board shall have the right to erect reasonable and appro- priate signs. (e) Rubbish, Trash, and Garbage. All rubbish, trash, and garbage shall be regularly removed from the Property and shall not be allowed to accumulate thereon. For so long as trash receptacles are used to facilitate trash, rubbish, and garbage removal, all trash, rubbish, and garbage shall be placed therein for removal from the Property. All outdoor storage facilities and trash receptacles shall be screened from the view of other units, streets and parking areas. (f) Planting, Gardening, and Fences. No planting or gardening shall be done, and no fences, hedges, or walls shall be erected or maintained upon the property subjected hereto, except such as have been installed in accordance with the ini- tial construction of the buildings located thereon or as ap- proved by the Association's Board of Directors or its designated representative. Except for the right of ingress and egress, the owners of units are hereby prohibited and restricted from using any of the Property subject to this Declaration outside of their respective units, except as may be allowed by the Association's Board of Directors. It is expressly acknowledged and agreed by all parties concerned that this paragraph is for the mutual benefit of all owners in the Condominium and is necessary for the protection of said owners. (g) Impairment of Units and Easements. An owner shall do no act nor any work that will impair the structural soundness or integrity of another unit or impair any easement or heredita- ment, nor do any'act nor allow any condition to exist which will adversely affect the other units or their owners or occupants. (h) Antennas. No exterior television or radio an- tennas of any sort shall be placed, allowed or maintained upon any portion of the improvements located upon the Property sub- ject to this Declaration nor upon any structure situated upon said Property; except that the Declarant or the Association may install and maintain an aerial or other apparatus for a master antenna or cable system, should any such master system or systems be utilized and require any such exterior antenna or apparatus. (i) Nuisance. No owner or occupant of a unit may use or allow the use of the unit or any portion of the Condominium in any way or for any purpose which may endanger the health or unreasonably annoy or disturb other owners or occupants of a portion of the Condominium; or in such a way as to constitute, in the sole opinion of the Board of Directors, a nuisance. Nothing herein, however, shall be construed to affect the rights of an aggreived homeowner to proceed individually for relief from interference with his property or personal rights. (j) Unsightly or Unkempt Conditions. The pursuit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly and dis- assembly of motor vehicles and other mechanical devices, which might tend to cause disorderly, unsightly, or unkempt condi- tions, shall not be pursued or undertaken in any part of the Condominium. (k) Parking. All parking shall be governed by the Association as set forth in the By -Laws. f (1) Number of Residents. There shall be no more than two (2) permanent residents for each bedroom located within a unit. For purposes of this paragraph, anyone who resides at the Condominium for more than four (4) consecutive weeks or for more C than eight (6) weeks in any calendar year shall be deemed a per- manent resident.! (m) Window Coverings. All curtains, drapery mater- ials, window shades, or other window treatments visible from the exterior of a unit shall be white or off-white in color and shall not be of a reflective material. All windows of a unit shall have interior window coverings or treatments which meet this requirement. (n) Heating of Units in Colder Months. In order to prevent breakage of water pipes during colder months of the year resulting in damage to units and common elements, increased common expenses, and increased insurance premiums or cancellation of insurance policies due to numerous damage claims, the thermostats within all units shall be maintained with the heat in an "on" position and at a minimum of fifty (500) degrees Farenheit (except during power failures or periods when heating equipment is broken) during the months of October, November, December, January, February, March, and April whenever the temperature is forecasted to or does reach thirty-two (320) degrees Farenheit or below. Owners and occupants of units shall take all steps possible on a timely basis to keep heating equipment, including, but not limited to, the thermostat, in good working order and repair. At any time during the months specified above when the heating equipment is not working the unit owner shall immediately inform the Board of Directors of this failure of the equipment and of the time needed in order to repair the equipment. Notwithstanding any provision in this Declaration or in the By -Laws to the contrary, including, but not limited to, Article VII of the By -Laws, any owner or occupant may be fined up to Five Hundred ($500.00) Dollars for violation of this requirement by the Board of Directors, in addition to any other remedies of the Association, without a prior warning, demand, or hearing. Any fine imposed pursuant to this Paragraph shall be deemed an assessment against the unit and may be collected in the same manner as provided for collection of assessments. (o) Loaning of Units. Notwithstanding any provision to the contrary contained in this Declaration or the By -Laws, including but not limited to Paragraph 15 hereof, during any period of time while the owner or lessee of a unit is not occupying the unit the owner or lessee of such unit shall have -10- the right to apply for use of the unit as a loaned unit. An owner or lessee of a unit shall be deemed to have loaned a unit when such owner or lessee makes the unit available, with or without compensation, for temporary occupancy to a person or persons not normally residing in the unit. An owner or lessee of a unit who desires to loan a unit for periods of time when the owner or lessee is not in residence shall apply in writing to the Board of Directors for approval to use the unit as a loaned unit. The Board of Directors shall consider each such application for approval of the unit as a loaned unit and shall make a decision, in its sole and absolute discretion, on each such application and notify the applicant of the decision within forty-five (45) days of receipt of the application. Any application not acted upon within such forty-five (45) day period shall be deemed approved. The Board shall issue to all owners or lessees of units approved as loaned units a written statement of such approval (all units approved by the Board as loaned units are hereinafter referred to as "Loan Unit(s)" and :all owners or lessees which receive such approval and their successors or assigns who continue to loan the unit within consecutive twelve (12) month periods as provided below are hereinafter referred to as "Approved Party(ies)"). All such Loan Units may be loaned for any period of time with no miniumum period of occupancy and shall continue to retain their status as Loan Units so long as the Approved Party remains as the owner or lessee of the unit. The status of a unit as a Loan Unit is transferrable to the successors and assigns of the Approved Party provided that the status as a Loan Unit shall terminate in the hands of any successors and assigns if the unit is not actually loaned during any period of twelve (12) consecutive months. This subparagraph 10(o) shall not be amended nor the use of Loan Units further restricted unless the amendment or_ restriction is consented to in writing by all Approved Parties as required in Paragraph 12 below. 11. ASSESSMENT LIEN. The Association shall have the power to impose as- sessments as provided in these Condominium Instruments. Such assessments are the personal obligation of the owner against whom they are assessed and are a lien against the unit. The obligation and the lien for assessment shall also include: a late or delinquency charge in the amount of the greater of Ten ($10.00) Dollars or ten (100) percent of the amount of each as- sessment or installment not paid when due, or such higher amount as may be authorized by the Act; interest on each assessment or installment not paid when due and on any delinquency fee or late charge appertaining thereto from the date the charge was first -11- due and payable at the rate of eight (8%) percent per annum, or such higher rate as may be authorized by the Act; the cost of collection, including court cost, the expenses of sale, any ex- pense required for the protection and preservation of the unit, and reasonable attorney's fees actually incurred; and the fair rental value of the unit from the time of institution of suit until the sale at foreclosure or other satisfaction of any judg- ment. All rights provided for and to the Association by this Section shall be exercised as provided in the By -Laws. 12. AMENDMENTS. Except in the case of an amendment to this Declaration by the Association to assign or reassign limited common ele- ments, or by the Declarant to relinquish its right to appoint and remove Directors of the Association, or by the Declarant to expand the Condominium all of which are provided for in other sections of this Declaration, or as a result of condemnation or substantial damage and destruction as provided for in this Dec- laration and in the Act this Declaration may be amended only as follows: (a) All amendments to this Declaration, other than as specified above, may be made only by the affirmative vote, writ- ten consent, or any combination thereof, of the members of the Association holding at least seventy-five (75%) percent of the total votes thereof. (b) In addition, the approval of all parties shall.be obtained who are required to approve an amendment pursuant to the terms of Section 16 below entitled "Mortgagee Provisions." (c) So long as the Declarant has the right to control the Association under Paragraph 17(b) of this Declaration or an unexpired option to expand the Condominium, no amendment to the Declaration or By -Laws shall be effective until approved in writing by the Declarant. So long as Declarant has the right to maintain sales or leasing activity within the Condominium, no amendment limiting or restricting that right shall be effec- tive until approved in writing by Declarant. (d) No amendment to subparagraph 10(o), of this Declaration or further restrictions on the use of Loan Units shall be effective unless consented to in writing by all Approved Parties as defined in subparagraph 10(o). (e) Notice of any meeting at which a proposed amend- ment will be considered shall state the fact of consideration -12- and the Subject matter of the proposed amendment. Any member may evidence consent to any amendment in writing without the necessity of a meeting or to supplement votes received at a meeting. (f) No amendment shall be effective until it is cer- tified by the officers of the Association and a copy is filed in the office of the Clerk of Superior Court of Fayette County, Georgia. Any amendment so certified (and signed by the De- clarant, if required) and recorded shall be conclusively pre- sumed to have been duly adopted. 13. SEVERABILITY. Invalidation of any one of these covenants or restric- tions by judgment or court order or otherwise shall in no way affect the application of such provision to other circumstance or any other provision(s) which shall remain in full force and effect. 14. PREPARER. This Declaration was prepared by D. R. Sloan, Jr., of Hyatt and Rhoads, 2200 Peachtree Center Harris Tower, 233 Peach- tree Street, N.E., Atlanta, Georgia, 30303. 15. SALES AND LEASES. In order to assure a community of congenial owners and thus protect the value of the units, the sale or leasing of a unit by any owner (other than as herein provided for certain mortgagees and Declarant) shall be subject to the following provisions so long as the property shall be owned in accordance with the terms and conditions of this Declaration and the Act. Loan of a unit in accordance with Paragraph 10(o) of this Dec- laration shall not constitute leasing for purposes of this paragraph. (a) Any owner intending to sell or lease his or her unit shall give notice in writing to the Board of Directors of such intention, stating the name and address of the intended purchaser or lessee, the terms of the proposed transaction and such other information as the Board may reasonably require. The Board of Directors shall have authority to make and to enforce reasonable rules and regulations in order to enforce this provi- sion, including the right to impose fines constituting a lien upon the unit sold or leased pursuant to Sections 44-3-76 and 44-3-109 of the Act. (b) Units may be rented only in their entirety; no fraction or portion may be rented. No transient tenants may be accommodated therein. All leases and lessees are subject to the -13- provisions of the Declaration and By -Laws. All rentals must be for an initial term of no less than one (1) year. The unit owner must make available to the tenant copies of the Condominium Instruments including the Declaration, By -Laws, and rules and regulations. Any lease of a unit in the Condominium shall be deemed to contain the following provisions, whether or not expressly therein stated, and each owner covenants and agrees that any lease of a unit shall contain the following language and agrees that if such language is not expressly contained therein, then, such language shall be incorporated ¢ into a lease by existence of this covenant on the unit. A' lease that complies with this covenant and that may be used by owners in compliance herewith is attached hereto as Exhibit "B", which is incorporated herein by this reference. Any lessee, by occupancy in a unit, agrees to the applicability of this covenant and incorporation of this covenant and the following language into the lease: (i) Lessee acknowledges that the provisions of subparagraphs (ii), (iii) and (iv) hereof are made for the benefit of the Association for the purpose of discharging Lessor's duties to the Association through Lessee's performance. In order to enforce the provisions of this Agreement made for the Association's benefit, the Association may bring an action against Lessee to recover sums due for damages or injunctive relief or may impose any other sanction authorized by the Declaration and By -Laws, as they may be amended from time to time, or available at law or equity, in- cluding, but not limited to, all remedies available to a land- lord upon breach or default of a lease agreement by the Lessee. Failure by the Association to enforce any of its rights shall in no event be deemed a waiver of the right to do so thereafter. (ii) Lessee shall comply strictly with all provi- sions of the Declaration, By -Laws, and with the administrative rules and regulations adopted pursuant thereto, as any of the foregoing may be lawfully amended from time to time. Lessee shall control the conduct of his or her family and guests in order to assure compliance with the foregoing and shall indem- nify and hold Lessor and the Association harmless for any such person's failure to comply. Lessee acknowledges that the vio- lation by Lessee or any occupant or person living with Lessee of any provision of the Declaration, By -Laws, or rules and regu- lations adopted thereunder shall constitute a default under this lease. (iii) Upon request by the Association, Lessee shall pay to the Association all unpaid annual assessments and special assessments, as lawfully determined and made payable -14- during and prior to the term of this Agreement and any other period of occupancy by Lessee; provided, however, that Lessee need not make such payments to the Association in excess of or prior to the due dates for monthly rental payments unpaid at the time of the Association's request. All payments made to the Association shall reduce by the same amount Lessee's obligation to make monthly rental payments to Lessor under the Lease. if Lessee fails to comply with the Association's request to pay assessments, Lessee shall pay to the Association all late or delinquent charges, fines, interest, and costs of collection, including, but not limited to, reasonable attorney's fees ac- tually incurred, to the same extent Lessee would be required to make such payments to the Association if Lessee were the owner of the Premises during the term of this Agreement and any other period of occupancy by Lessee. (iv) Lessee's rights shall be subject to all rights of the Association and any bona fide mortgage or deed to secure debt which is now or may hereafter be placed upon the Premises by Lessor. (c) In the event the Association proceeds to evict the Lessee, any costs, including attorney's fees and court costs, associated with the eviction shall be specially assessed against the unit and the owner thereof, such being deemed hereby as an expense which benefits the leased unit and the owner thereof. (d) Any Lessee charged with a violation of the Dec- laration, By -Laws, or rules and regulations is entitled to the same rights to which the owner is entitled as provided in the - Association's By -Laws. (e) Notwithstanding anything to the contrary herein contained, the provisions of this Article shall not apply to impair the right of any first mortgagee to: (i) foreclose or take title to a unit pursuant to remedies contained in any mortgage; (ii) take a deed or assignment in lieu of fore- closure, or (iii) sell, lease, or otherwise dispose of a unit acquired by the mortgagee. 16. MORTGAGEE PROVISIONS. (a) Notwithstanding any other provision herein to the contrary, unless at least two-thirds (2/3) of the mortgagees or -15- f'. owners other than Declarant shall have given their prior written approval, neither the Association nor any unit owner shall: (i) by act or omission seek to abandon or ter- minate the Condominium; (ii) except as provided herein and in the Act for condemnation, substantial damage and destruction, and expansion of the Condominium, change the percentage interest in the common elements, or obligations for common expenses or votes in the As- sociation of any unit; (iii) subdivide, partition, or relocate the boundaries of any unit; (iv) by act or omission, withdraw the submission of the subjected property to the Act, except as provided by the Condominium Instruments or the Act or abandon, subdivide, par- tition, encumber, sell, or transfer the common elements (The granting of easements for public utilities or for other public purposes, including cable television in the community, consis- tent with the intended use of the common elements by the Asso- ciation or the Declarant shall not be deemed a transfer.); or (v) use hazard insurance proceeds for losses to any condominium property for other than the repair, replacement, or reconstruction of such property, except as provided by stat- ute for substantial loss to the units and/or common elements. The provisons of this subparagraph shall not be construed to reduce the percentage vote that must be obtained from mortgagees or unit owners where a larger percentage vote is otherwise required by the Act or the Condominium instruments for any of the actions contained in this subparagraph. (b) Any person who obtains title to a unit pursuant to the remedies provided in the mortgage or foreclosure of mort- gage is not liable for such unit's unpaid dues or charges which accrue prior to the acquisition of title to such unit by such person, but such person shall be responsible for all charges which occur subsequent to the passage of title, including, but not limited to, all charges for the month in which title is passed. (c) Upon written request to the Association, identify- ing the name and address of the holder and the unit number or address, any mortgage holder, (herein referred to as "Eligible Mortgage Holder"), will be entitled to timely written notice of: -16- (i) any condemnation loss or any casualty loss which affects a material portion of the Condominium or any unit on which there is a first mortgage held by such Eligible Mort- gage Holder; (ii) any delinquency in the payment of assess- ments or charges owed by an owner of a unit subject to a first mortgage held by such Eligible Mortgage Holder which remains un- cured for a period of sixty (60) days; and any holder of a first mortgage, upon request, is entitled to written notice from the Association of any default in the performance by an individual unit owner of any obligation under the Condominium Instruments which is not cured within sixty (60) days; (iii) any lapse, cancellation, or material modi- £ication.of any insurance policy or fidelity bond maintained by the Association; or (iv) any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders, as specified herein. (d) Any holder of a first mortgage shall be entitled, upon written request, to receive within a reasonable time after request, an audited financial,statement of the Association for the immediately preceding fiscal year, free of charge to the mortgagee so requesting. (e) Notwithstanding anything to the contrary herein contained, the provisions of Article 15 governing sales and leases shall not apply to impair the right of any first mort- gagee to: (i) foreclose or take title to a unit pursuant to remedies contained in any mortgage; or (ii) take a deed or assignment in lieu of fore - closure; or (iii) sell, lease, or otherwise dispose of a unit acquired by the mortgagee. 17. DECLARANT RIGHTS. Notwithstanding anything to the contrary contained elsewhere in this Declaration, any other Condominium Instrument, or the Articles of Incorporation of Ridgelake Condominium Association, Inc., in accordance with the Act and this Dec- laration, the Declarant shall have the following rights: -17- (a) The Declarant and its duly authorized agents, representatives, and employees shall have, and there hereby is reserved unto the Declarant, its agents, representatives, and employees, an easement over, across, and to the Condominium for construction of units or common facilities, provision of war- ranty services to owners, maintenance of sales or leasing offices, signs, and/or model units on the Condominium property, and sales and marketing activities in connection with the Condominium or any other property at any time owned by the Declarant and located in Fayette County, Georgia, for a period of seven (7) years from the date of recording of this Declaration, unless sooner relinquished in writing signed by the Declarant. This subparagraph shall not be amended, nor shall Declarant's rights hereunder be further restricted without the prior written consent of Declarant in accordance with Paragraph 12(c) hereof. (b) The Declarant shall have the right to appoint and remove any member or members of the Board of Directors of the Association. The Declarant's authority to so appoint and remove members of the Board of Directors of the Association shall ex- pire on the first to occur of the following: (i) the expiration of five (5) years after the date upon which this Declaration is recorded in the Clerk's Of- fice of Fayette County, Georgia, or (ii) unless there is an unexpired option to expand, the date as of which seventy-five (75%) percent of the units shall have been conveyed by the Declarant to unit owners other than a person or persons constituting the Declarant; or (iii) the date on which the Declarant voluntar- ily relinquishes such right by executing and recording a written declaration of intent which shall become effective as specified in such declaration. (c) Notwithstanding anything to the contrary contained herein, Declarant shall have the right to sell or lease units and to erect and maintain signs to facilitate such sales or leases as it, in its sole discretion, deems appropriate and shall not be required to comply with the provisions of this Declaration regarding signs and Sales and Leases. (d) The Declarant and its duly authorized agents, representatives, and employees as well as its successors, assigns, licensees and mortgagees, shall have and there is hereby reserved an easement over the common elements of the -18- Condominium for the purposes of enjoyment, use, access and development of the Additional Property described in Exhibit "C" of this Declaration which is by this reference incorporated herein. This easement includes but is not limited to ingress and egress over the common elements for construction of roads and other improvements and for installation of utilities on the Additional Property described in Exhibit "C", whether or not the Additional Property is submitted to this Declaration. Declarants agree that they, their successors and assigns, shall be responsible for any damages caused to the common elements as a result of vehicular traffic connected with development of the Additional Property described in Exhibit "C". Declarants further agree that if the Additional Property is not submitted to this Declaration and the easement is exercised for permanent access to the Additional Property, the Declarants, their successors, or assigns shall enter into a reasonable agreement with the Association to share the cost of maintenance of any access roadway to the Additional Property, such cost -share agreement to be based on the square footage of improvements on each parcel. (e) Any notice required to be given Declarant shall be effective on receipt and shall be sent registered or certi- fied mail, return receipt requested, or personally delivered, addressed as follows: Ridgeway Development Corp. 2401 Lake Park Drive Atlanta, Georgia 30080 - with a copy to: D. R. Sloan, Jr. Hyatt & Rhoads, P.C. 2200 Peachtree Center Harris Tower Atlanta, Georgia 30303 18. EXPANSION OPTION. The Declarant expressly reserves the option and right, but not the obligation, to expand the Condominium; and, subject to this Declaration and the Act, to submit to the Condominium all or any portion of the Additional Property described on Ex- hibit "C" attached hereto and by this reference incorporated herein, including any improvements thereon. Except as contained in this Section, ther.e are no limitations upon this option to expand. -19- (a) This option to expand shall expire seven (7) years from the date of recording this Declaration, unless all of the Additional Property shall have been added to the Condominium before that time; provided that the time may be extended by the affirmative vote or written consent, or any combination of af- firmative vote and written consent, of two-thirds (2/3) of the total vote of the Association, excluding any votes held by De- clarant at any time during the year preceding the time the op- tion would otherwise expire. (b) The Property may be developed in (_) Phases. Phase I consists of (_) units located upon the property described on Exhibit "A" hereof. The Additional Property shall be developed in (_) phases, designated Phases _-_ The boundaries of Phases _ _ are described re- spectively on Exhibits "C -211-1'C-411, attached hereto and by this reference incorporated herein. The Additional Property within any Phase may be added as a whole at one time or in one or more portions at different times, or it may never be added, and there are no limitations upon the order of addition or boundaries thereof. The parcels submitted to the Condominium need not be contiguous and the exercise of the option as to any portion of the Additional Property shall not bar the further exercise of the option as to any other portions of the Additional Property. (c) There are no limitations on the locations or dimensions of improvements to be located on the Additional Property. No assurances are made as to what, if any, further improvements will be made by Declarant on any portion of the Additional Property. (d) The maximum number of units that may be created in the Condominium is seventy (70), and the maximum number of units that may be created on the Additional Property is ( ). The maximum average number of units per acre that may be created on the Additional Property is (e) The Additional Property, when and if added to the Condominium, shall be subject to the use restrictions contained in this Declaration or subsequently promulgated in accordance herewith. (f) Any structures and improvements placed, con- structed, replaced, or reconstructed on the Additional Proper- ty, if added to the Condominium, will be compatible with and the same as or similar to the existing units in the Condomin- ium as to quality of construction and architectural style. No -20- assurances are made with respect to materials to be used in improvements placed on the Additional Property. (g) No assurances are made that units constructed on the Additional Property will be substantially identical to those in the Condominium. (h) The Declarant shall have the unlimited right to assign some of the Additional Property as limited common elements. (i) If the option to expand the Condominium is exer- cised, the undivided interest in the common elements, the lia- bility for common expenses, and votes in the Association shall all be reallocated so that the interest, liability, and vote of each unit is equal to that of every other unit in the Condomin- ium, as expanded. (j) This option reserved shall be exercisable unilaterally by the Declarant and the consent of unit owners shall not be required. Declarant shall have the unilateral right to reallocate percentages of undivided interests in the common elements, liability for payment of common expenses, and allocation of votes in the Association, all to be done in accordance with the limitations above described. The Declarant shall exercise the option by its adoption, execution, and recordation of an amendment to this Declaration and by recording such plats, certifications, and plans as may be required by the Act. 19. SUCCESSOR DECLARANT. No successor to Declarant by operation of law or through purchase of Declarant's interest in the property, or any part thereof, at foreclosure shall be liable for any act, omission, or matter occurring prior to the time such successor succeeded to the interest of Declarant. IN WITNESS WHEREOF, Ridgeway Development Corp., as the Declarant, hereby executes this Declaration by and through its authorized representatives on the day and year first above written. RIDGEWAY DEVELOPMENT CORP. am JOHN A. STRAMA, President Attest: JUDI ROSS, Assistant Secretary -21- Signed, sealed, and delivered in the presence of: WITNESS NOTARY PUBLIC 0943g -22- EXHIBIT "A" Leal Description of Submitted Property ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 127 of the 7th District of Fayette County, Georgia and being more particularly described as follows: STATE OF GEORGIA COUNTY OF FAYETTE EXHIBIT "B" RIDGELAKE LEASE AGREEMENT THIS AGREEMENT made this day of , 19 , by and between (hereinafter called "Lessor"), and (hereinafter called "Lessee"): W I T N E S S E T H That in consideration of the mutual covenants herein- after set forth, the parties do hereby covenant and agree as follows: 1. PREMISES LEASED AND TERM OF LEASE. Lessor does hereby rent and lease to Lessee Unit Ridgelake Condominium, as described in the Declaration of Condominium for Ridgelake Condominium recorded in Deed Book , Page , et seq., Fayette County, Georgia Records, ("Declaration"), as such Declaration may be amended from time to time, (the unit is hereinafter called the "Premises"), for a term of ,* commencing on , 19 , and ending on 19 , midnight, for occupancy by no more than persons. of 2. RENT. Lessee covenants and agrees to pay to Lessor at an annual rent equal to $ which rent shall be paid in equal month- ly installments of $ promptly on the first day of each rental month in advance during the term of this lease. 3. LATE PAYMENTS AND RETURNED CHECKS. Time is of the essence in this Agreement, and if Lessor elects to accept rent after the day of the month, a late charge of $ will be due as additional rent. Lessee agrees to tender all late rents in the form of cash, cashier's check, certified check, or money order. In the event Lessee's rent *NOTE: Paragraph 15 of the Declaration requires a minimum initial term of one (1) year. check is dishonored by the bank, Lessee agrees to pay Lessor $ as a handling charge and, if appropriate, the late charge. Returned checks must be redeemed by cash, a cashier's check, certified check, or money order. If more than one check is returned, Lessee agrees to pay all future rents and charges in the form of cash, a cashier's check, a certified check, or money order. 4. SECURITY DEPOSIT. Upon the execution of this lease, Lessee covenants and agrees to pay to Lessor a security deposit in the amount of $ as security for Lessee's fulfillment of the conditions of this Agreement. The security deposit will be returned to Lessee within thirty (30) days af- ter the unit is vacated if: (a) the lease term has expired or this Agreement has been terminated by both parties; (b) all monies due Lessor by Lessee have been paid; and (c) the Premises are not damaged and are left in the same condition as existing at the execution of this Lease, nor- mal wear and tear excepted. The deposit may be applied by Lessor to satisfy all or part of Lessee's obligations, and such application shall not prevent Lessor from claiming damages in excess of the deposit. Lessee agrees not to apply the deposit to any rent payment and also agrees to pay $ for rekeying locks, if all keys are not returned. Lessee acknowledges receipt of keys. In the event that any part of the deposit has been used by Lessor in accordance with the terms of this Agreement or ap- plicable law, Lessee shall, upon demand, immediately deposit with Lessor a sum equal to the amount so applied by Lessor so that Lessor shall have the full deposit on hand at all times during the lease term, including any extension, renewal, or holdover term. In the event of any permitted assignment or sub- lease of this Agreement by Lessee, the deposit shall be deemed to be held by Lessor as a deposit made by Lessee's assignee or sublessee, and Lessor shall have no further liability to return such deposit to the assignor or sublessor. I£ ten (10) or posit shall at Lessor has used a rental agent, or if Lessor holds more residential units for lease, the security Be- be deposited in Escrow Account No. Otherwise, an escrow account shall not be used. 5. RIGHTS OF ASSOCIATION.. Lessee acknowledges that promises made to Lessor in Paragraphs 5, 6, and 7 hereof are made for the benefit of Ridgelake Condominium Association, Inc., (hereinafter called "Association"), for the purpose of discharging Lessor's duties to the Association through Less- ee's performance. In order to enforce the provisions of this Agreement made for the Association's benefit, the Association may bring an action against Lessee to recover sums due for dam- ages or injunctive relief or may impose any other sanction au- thorized by the Declaration and the By -Laws of the Association, ("By -Laws"), as they may be amended from time to time, or avail- able at law or equity, including, but not limited to, all reme- dies available to a landlord upon breach or default of the Lease Agreement by the Lessee. Failure by the Association to enforce any of its rights shall in no event be deemed a waiver of the right to do so thereafter. 6. COMPLIANCE. Lessee shall comply strictly with all provisions of the Declaration, By -Laws, and with the administra- tive rules and regulations adopted pursuant thereto, as any of the foregoing may be lawfully amended from time to time. Lessee shall control the conduct of his or her family and guests in or- der to assure compliance with the foregoing and shall indemnify and hold Lessor and the Association harmless for any such per- son's failure to comply. Lessee acknowledges that the violation by Lessee or any occupant or person living with Lessee of any provision of the Declaration, By -Laws, or rules and regulations adopted thereunder shall constitute a default under this lease. 7. PAYMENT OF ASSESSMENTS. Upon request by the Asso- ciation, Lessee shall pay to the Association all unpaid annual assessments and special assessments, as lawfully determined and made payable during and prior to the term of this Agreement and any other period of occupancy by Lessee; provided, however, that Lessee need not make such payments to the Association in excess of or prior to the due dates for monthly rental payments unpaid at the time of the Association's request. All payments made under this Paragraph shall reduce by the same amount Less- ee's obligation to make monthly rental payments to Lessor. If Lessee fails to comply with the Association's request to pay assessments, Lessee shall pay to the Association all late or delinquent charges, fines, interest, and costs of collection, including, but not limited to, reasonable attorney's fees ac- tually incurred, to the same extent Lessee would be required to make such payments to the Association if Lessee were the owner of the Premises during the term of this Agreement and any other period of occupancy by Lessee. 8. POSSESSION. Lessor shall not be liable for damages to Lessee for failure to deliver possession of the Premises to Lessee at the commencement of the term if such failure is due to no fault of the Lessor. Lessor shall use his or her best efforts to give possession of the Premises to the Lessee at the beginning of Lessee's term. 9. MAINTENANCE AND INDEMNIFICATION. Lessee accepts Premises in the condition in.which it is now and as suited for the use intended by Lessee. Lessor shall not be required to make any repairs or improvements on the Premises, except that on written notice from the Lessee of any defect rendering the same unsafe or untenantable, Lessor shall remedy such defective condition. Lessee shall comply with all notices and other re- quirements, rules, and regulations of the Association concern- ing maintenance and repair. Lessee shall be liable for and shall indemnify and hold Lessor harmless from any damage or injury to the person or property of Lessee or any other person, if such damage or injury be due to the act or neglect of the Lessee or any other person in his or her control or employ, or if such damage or injury be due to any failure of Lessee to report in writing to Lessor any defective condition which Less- or would be required to repair under the terms hereof on notice from Lessee. Lessee releases Lessor from liability for and agrees to indemnify Lessor against all losses incurred by Less- or as a result of: (a) Lessee's failure to fulfill any condition of this Agreement; (b) any damage or injury happening in or about the Premises to Lessee's invitees or licensees or such person's property; (c) Lessee's failure to comply with any requirements imposed by any governmental authority and as provided herein; and (d) any judgment, lien, or other encumbrance filed against the Premises as a result of Lessee's action. Lessor shall not be liable for damage to Lessee's property of any type for any reason, except where such is due to Lessor's negligence. 10. USE AND OCCUPANCY. The Premises shall be used solely as a dwelling to be occupied by no more than the number of persons indicated in Paragraph 1 hereof; provided, however, that occasional visits of guests, not to exceed four (4) con- secutive weeks or eight (8) weeks during any calendar year, are permitted. Lessee shall not use or allow the Premises to be used for any disorderly or unlawful purposes or in any manner offensive to others, and Lessee shall comply with all applica- ble laws and ordinances. Lessee shall not remodel or make any structural changes to'the Premises, nor shall Lessee remove any fixture therefrom. 11. UTILITIES. All utility bills for services sepa- rately metered_ or billed to the Premises during the lease term shall be paid by Lessee. 12. PETS. Lessee shall not keep pets of any kind on the Premises without the prior written permission of Lessor. If permission is granted, Lessee agrees to maintain such pet only as long as permitted by and in compliance with the Declaration, By -Laws, and rules and regulations promulgated thereunder. 13. ASSIGNMENT AND SUBLEASING. Lessee shall not as- sign this lease or sublet the Premises or any part thereof without the written permission of Lessor. 14. CASUALTY. if the Premises are rendered untenant- able by fire, storm, earthquake, or other casualty, this lease shall terminate as of the date of such destruction or damage, and rental shall be accounted as of that date. 15. ACCESS. Lessor, its agents, and the agents or the Association shall have the right of access to the Premises, without notice to Lessee, between the hours of 8:00 a.m. and 8:00 p.m. for inspection and maintenance. In case of emergency, such parties may enter at any time to prevent damage to property and to protect life. 16. DISCLOSURE. The owner of record of the Premises or person authorized to act for and on behalf of the owner for the purpose of service of process and receiving and receipt for demands and notice is: OWNER: The person authorized to manage the Premises is: 17. HOLDOVER. Lessee shall not remain in posses- sion of the within leased Premises after the expiration of this Lease. Any holding over of the within leased Premises by Less- ee after the expiration of this Lease without a written renewal thereof or written consent from Lessor or Lessor's agents shall not constitute a tenant -at -will interest on behalf of Lessee, but Lessee shall become a tenant at sufferance. There shall be no renewal whatsoever of this Lease by operation of law. 18. SURRENDER. Whenever under the terms hereof Lessor is entitled to possession of Premises, Lessee shall at once sur- render same to Lessor in as good of a condition as at present, natural wear and tear excepted, and Lessee shall remove all of Lessee's effects therefrom, and Lessor may forthwith re-enter Premises and repossess himself or herself thereof and remove all persons and effects therefrom using such force as may be neces- sary without being guilty of forcible entry or detainer, tres- pass, or other tort. 19. ABANDONMENT. If Lessee removes or attempts to re- move property from the Premises, other than in the usual course of continuing occupancy, without first having paid Lessor all monies due, the Premises may be considered abandoned, and Lessor shall have the right, without notice, to store or dispose of any property left on the Premises by Lessee. Lessor shall also have the right to store or dispose of any of Lessee's property re- maining on the Premises after termination of this Agreement. Any such property shall be considered Lessor's property, and title thereto shall rest in Lessor. Lessor shall have the right to re -rent the Premises after Lessee abandons same. 20. DEFAULT. Any breach or violation of any provi- sion of this Agreement by Lessee shall give Lessor the right to terminate this Agreement or to take possession and hold Lessee liable for the remainder of the term. Should possession be ob- tained, Lessor, at Lessor's option, may re -rent the Premises as Lessee's agent at the risk and cost of the defaulting Lessee, whose default shall not relieve him or her of liability for the difference between the rent herein reserved and the rent actual- ly received by Lessor during the term remaining after such de- fault occurs. 21. CONDEMNATION. In the event that the Premises or any part thereof (other than common elements, the taking of which does not prevent continued occupancy of the Premises) is taken by any authority exercising the power of eminent domain, this lease shall terminate as of the date possession shall be taken by the condemnor. Lessee waives all claims against Less- or or any condemning authority by reason of the complete and partial taking of the Premises and shall not be entitled to re- ceive any part of any award which Lessor may receive, hereby quit -claiming all interest therein to Lessor. 22. MORTGAGEE RIGHTS. Lessee's rights shall be sub- ject to all rights of the Association and of the holder of any bona fide mortgage or deed to secure debt which is now or may hereafter be placed upon the Premises by Lessor. 23. ENTIRE AGREEMENT AND WAIVER. This lease contains the entire agreement of the parties, and no representation, in- ducement, promises, or agreements shall be of any force or ef- fect, unless contained herein. No failure of Lessor to exercise any power given Lessor hereunder, and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Lessor's right to demand exact compliance with the terms hereof. 24. REMEDIES CUMULATIVE. All remedies under this Agreement or by law or equity shall be cumulative. If suit for any breach of this Agreement establishes a breach by either Lessor or Lessee,'the party found in breach shall pay to the other party all expenses incurred in connection therewith, in- cluding, but not limited to, attorney's fees. 25. SPECIAL STIPULATIONS. IN WITNESS WHEREOF, the parties have executed these presents the day and year first above written. Lessee Lessor or Authorized Agent of Lessor 0945g RIDGELAKE NOTICE OF SALE OR LEASE Unit No. (Sale) (Lease) Telephone No. of Unit Purchaser or Lessee's Name: Present Address: Purchaser or Lessee's Employment and Title: Address of Employment: Name and Address of Morgagee(s) Name and Address of Owner or Rental Agent Date of Closing: _ Description of vehicles that will be parked on the premises (make, model, license no.): Description of pets (king, weight, age): 0945g EXHIBIT "C" Legal Description ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 127 of the 7th District of Fayette County. Georgia and being more particularly described as follows: LESS AND EXCEPT all that tract or parcel of property described on Exhibit "A" to this Declaration. EXHIBIT "C-2" Legal Description ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 127 of the 7th District of Fayette County, Georgia and being more particularly described as follows: EXHIBIT "C-3" Legal Description ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 127 of the 7th District of Fayette County, Georgia and being more particularly described as follows: EXHIBIT "C-4" Legal Description ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lot 127 of the 7th District of Fayette County, Georgia and being more particularly described as follows: ARTICLES OF INCORPORATION OF RIDGELAKE CONDOMINIUM ASSOCIATION INC. Article 1. Name. The name of the Corporation is Ridgelake Condominium Association, Inc. Article 2. Duration. The Corporation shall have per- petual duration. Article 3. Applicable Statute. The Corporation is organized pursuant to the provisions of the Georgia Nonprofit Corporation Code. O.C.G.A. Section 14-3-1, et seq. (Michie), Ga. Code Ann. Section 22-2101, et seq. (Harrison). Article 4. Purposes and Powers. The Corporation does not contemplate pecuniary gain or benefit, direct or indirect, to its members. In way of explanation and not of limitation, the purposes for which it is formed are: (a) to be and constitute the Association to which ref- erence is made in the Declaration of Condominium for Ridgelake Condominium Association, Inc. as may now exist and as might have already or may hereinafter be amended, in the Office of the Clerk of the Superior Court of Fulton County, Georgia, to perform all obligations and duties of the Association, and to exercise all rights and powers of the Association, as specified therein, in the By -Laws, and as provided by law; and (b) to provide an entity for the furtherance of the interests of the owners of units in the development. In furtherance of its purposes, the Corporation shall have the following powers, which, unless indicated otherwise by the Declaration or By -Laws, may be exercised by the Board of Directors: (a) all of the powers conferred upon nonprofit corpo- rations by common law and the statutes of the State of Georgia in effect from time to time; (b) all of the powers necessary or desirable to per- form the obligations and duties and to exercise the rights and powers set out in these Articles, the By -Laws, or the Declara- tion, including, without limitation, the following: (i) to fix and to collect assessments or other charges to be levied against the Properties; (ii) to manage, control, operate, maintain, re- pair, and improve the Common Area and facilities, and proper- ty subsequently acquired by the Corporation, or any property owned by another, for which the Corporation, by rule, regula- tion, Declaration, or contract, has a right or duty to provide such services; (iii) to enforce covenants, conditions, or re- strictions affecting any property to the extent the Association may be authorized to do so under any Declaration or By -Laws; (iv) to engage in activities which will actively foster, promote, and advance the common interests of all owners of units at the development; - 2 - (v) to buy or otherwise acquire, sell, or oth- erwise dispose of, mortgage, or otherwise encumber, exchange, lease, hold; use, operate, and otherwise deal in and with real, personal, and mixed property of all kinds and any right or in- terest therein for any purpose of the Corporation; (vi) to borrow money for any purpose as may be limited in the By -Laws; (vii) to enter into, make, perform, or enforce contracts of every kind and description, and to do all other acts necessary, appropriate, or advisable in carrying out any purpose of the Association, with or in association with any oth- er association, corporation, or other entity or agency, public or private; (viii) to act as agent, trustee, or other repre- sentative of other corporations, firms, or individuals, and as such to advance the business or ownership interests in such cor- porations, firms, or individuals; (ix) to adopt, alter, and amend or repeal such By -Laws as may be necessary or desirable for the proper manage- ment of the affairs of the Association; provided, however, such By -Laws may not be inconsistent with or contrary to any provi- sions of the Declaration; and (x) to provide any and all supplemental municipal services as may be necessary or proper. - 3 - (xi) The foregoing enumeration of powers shall not limit or restrict in any manner the exercise of other and further rights and powers which may now or hereafter be allowed or permitted by law; and the powers specified in each of the paragraphs of this Article 4 are independent powers, not to be restricted by reference to or inference from the terms of any other paragraph or provision of this Article 4. Article 5. Membership. The Corporation shall be a membership corporation without certificates or shares of stock. All unit owners, by virtue of their ownership of units in the development, are members of the Association. The members shall be entitled to vote for each unit in which they hold the inter- est required for membership, in accordance with the Declaration. Article 6. Board of Directors. The business and af- fairs of the Corporation shall be conducted', managed, and con- trolled by a Board of Directors. The Board shall consist of three (3) members. The initial Board of Directors shall con- sist of the following members: John A. Strama J. Michael McGwier 2401 Lake Park Drive 2401 Lake Park Drive Suite 100 Suite 100 Atlanta, Georgia 30080 Atlanta, Georgia 30080 Steve Lambert 2401 Lake Park Drive Suite 100 Atlanta, Georgia 30080 - 4 - The method of election and term of office, removal and filling of vacancies shall be as set forth in the By -Laws. The Board may delegate such operating authority to such compan- ies, individuals, or committees as it, in its discretion, may determine. Article 7. Dissolution. The Corporation may be dis- solved only as provided in the Declaration, By -Laws, and by the laws of the State of Georgia. Article 8. Amendments. These Articles may be amended as provided by the Georgia Nonprofit Corporation Code, provided that no amendment shall be in conflict with the Declaration, and provided further that no amendment shall be effective to im- pair or dilute any rights of members that are governed by such Declaration. Article 9. Incorporator. The namt and address of the incorporator is as follows: D. R. Sloan, Jr. Hyatt & Rhoads, P.C. 2400 Marquis One Tower 245 Peachtree Center Avenue, N.E. Atlanta, Georgia 30303 Article 10. Registered Agent and Office. The initial registered office of the Corporation is 2400 Marquis One Tower, 245 Peachtree Center Avenue, N.E., Atlanta, Georgia, 30303, and - 5 - the initial registered agent at such address is D. R. Sloan. Jr.. Hyatt & Rhoads. P.C. IN WITNESS WHEREOF. the undersigned incorporator has executed these Articles of Incorpo 2400 Marquis One Tower 245 Peachtree Center Avenue. N.E. Atlanta, Georgia 30303 (404) 659-6600 0663C - 6 - STATE OF GEORGIA Reference: Deed Book -1-92 COUNTY OF FAYETTE Page 425 AMENDMENT T THE WHEREAS, Ridgeway Development Corp., a Georgia corporation , filed and recorded that certain Declaration of Condominium for Ridgelake Condominium in Deed Book 392, page 425, se ., Fayette County, Georgia records on June 27, 1986 (hereinafter referred to' -as "Declaration"); and - WHEREAS, the plat for Ridgelake Condominium (hereinafter referred to as "Condominium" was recorded in Condominium Plat Book 1, page 30-31, Fayette County, Georgia records; and .J WHEREAS, the floor plans relating to the Condominium were filed in Condominium cabinet file folder No. Fayette County, Georgia records; and ' WHEREAS, the Declaration may be amended by the affirmative vote, written consent or any combination thereof of unit owners holding seventy-five (75%) percent of the total Association vote; and WHEREAS, so long as the Declarant has the right to maintain sales or leasing activities within the Condominium, no amendment limiting or restricting leasing shall be effective until approved in writing by the Declarant; and P A WHEREAS, unit owners holding seventy-five (75%) of the total Association has approved the following amendment to the .Declaration and the Declarant has approved the following amendment in writing; NOW, THEREFORE,.the Declaration of Condominium for Ridgelake Condominium is hereby amended as follows: 1. Paragraph 15 of the Declaration is hereby amended by striking that section in its entirety and substituting therefor the following: 15. SALES AND LEASES. In order to assure a community of congenial owners and thus protect the value of the units, the sale or leasing of a unit .by any owner (other than as herein provided that certain mortgagees and Declarant) shall be subject to the following provisions so long as the property shall be owned in accordance with the terms and conditions of this Declaration and the Act. Loan of a unit in accordance with Paragraph 10(0) of this Declaration shall not constitute leasing for purposes of this paragraph. (a) Sale of Units. Within seven (7) days after executing a sale contract or agreement for the sale of a unit at Ridgelake, the owner of the unit shall give notice in writing to the Board of his or her intention to sell the unit, stating the name and address of the intended purchaser, the • terms of the proposed transaction, and such other information as the Board may reasonably require. The Board shall have the power to make and enforce reasonable rules and regulations and to fine, in accordance with the Act, the Declaration and By -Laws, in order to enforce this provision. However, the right of any owner to sell his unit is not subject to any right of first refusal or similar restriction. -2- (b) Lease of Units. In order (1) to protect the equity of the individual property owners at Ridgelake Condominium; (2) to carry out the purpose for which the Condominium was formed by preserving the character of the Condominium as a homogeneous residential community of predominantly owner -occupied homes and by preventing the Condominium from assuming the character of a renter -occupied apartment complex; and (3) to comply with the eligibility requirements for financing in the secondary mortgage market in so far as such criteria provide that the project be substantially owner -occupied, leasing of units shall be governed by the restrictions imposed by subsections (i) through (v) of this Section. (i) Definitions. (A) Leasing shall mean the regular occupancy of a unit by any person other than the owner, for which the owner receives any consideration or benefit including; but not limited to, a fee, service, gratuity -'or emolument. (B) Open Leasing Status shall authorize a unit to be leased at any time. Each unit in Ridgelake which is being leased on the effective date of this Amendment shall have Open Leasing Status. The unit shall be in Open Leasing Status until such time as title is conveyed to any person or entity other than the person or entity holding record title on the effective date of this Amendment, after which conveyance of the unit shall not be leased except in cases of undue hardship as provided in subsection (iii). Open Leasing Status may be also conferred upon a unit as provided in subsection (ii) below. (C) Restricted Leasing Status shall subject a unit to the restrictions on leasing contained in subsection (ii) below. All units which are not being leased on the effective date of this Amendment shall be in Restricted Leasing Status unless converted to Open Leasing Status as provided in subsection (ii) below. (ii) General. No owner of a unit in Restricted Leasing Status may lease his unit if twenty (20%) percent or more of the units in the Condominium are in Open Leasing Status, except as provided in subsection (iii) below for cases of undue hardship. Any owner of a unit in Restricted Leasing Status may apply in writing to the Board of Directors for conversion to Open Leasing Status in accordance with rules -and regulations promulgated by -the Board of Directors. Upon receipt of such written application, the unit shall be placed at the end of a waiting list for conversion to Open Leasing Status. At such time as less than twenty (20%) percent of the units are in Open Leasing Status, the Board shall notify the owner of the'unit at the top of the waiting list of its conversion to Open Leasing Status, and such owner shall have sixty (60) days within which to lease the unit or it shall automatically revert to Restricted Leasing Status. Any unit in Open Leasing Status shall automatically be converted to Restricted Leasing Status if, for sixty -(60) or snore consecutive days, the unit -is not subject. to an approved lease, in which case the owner of such unit must apply to the Board of Directors as provided above if he wishes to..regain leasing privileges. (iii) Undue Hardship. Notwithstanding the provisions of subsection (ii) above, the Board of Directors shall be empowered to allow reasonable leasing of units upon written application if, in the sole discretion of the Board, it is determined that leasing of a unit is necessary in order to avoid undue hardship. Undue hardship may include, but need not be limited to, situations in which (a) a unit owner must relocate his or her residence and cannot, within ninety (90) days from the date that the unit was,placed on the market, sell the unit at a pri�ge reasonably approximating the current appraised market value, after having made reasonable efforts to do so; (b) the owner dies and the unit is being administered by his or her estate; and (c) the owner takes a leave of absence or temporarily relocates and intends to return -4- to reside in the unit. Notwithstanding subsection (iv)(A) below, those owners who have demonstrated that the inability to lease their unit would result in undue hardship and have obtained the requisite approval of the Board may lease their units for such duration as the Board reasonably determines is necessary to prevent undue hardship. (iv) Leasiny Such leasing R v ,7 as is permitted -t l— Win— governed b y this Section shall be Y the following provisions; shallin writing andAshalllhaveses an initialetermf not less than one (1) year. There shall be no subleasing or assignment of leases. No transient tenants shall be accommodated in a unit: Units shall be leased only in their entirety. No leased unit shall be occupied by more than two (2) unrelated adults and the children of each. All leases shall be subject to the Declaration, the By-Laws and the rules and regulations of the Association. submitted to)theo oardoofall Directors leases fo=11 be approval prior to their taking effect. The Board shall approve or-disapprove the form Of said lease. ...If the Board fails to take action to approve or disapprove any lease form within thirty (30) days of its submission, such.lease shall be deemed approved. A lease that complies with this covenant and that may be used by owners is attached as Exhibit "B" which is incorporated by this reference. Failure to submit a lease to the Board prior to the lessee taking possession may result in a fine against the owner for each day that the lessee occupies the unit until a lease is submitted. If a lessee has taken possession of the leased premises prior to the Board's approval of a submitted lease, the Board shall promptly notify the owner of any deficiencies in such lease and the owner shall have ten (10) days in which to submit a lease which complies with the Declaration, BY-Laws and rules and regulations. Thereafter, the Board may levy fines against -5- the owner each day until an acceptable lease is submitted. Nothing herein shall be; construed as giving any party the right to approve or disapprove a proposed lessee; the Board's approval or disapproval shall be limited to the form of the proposed lease. (C) Every lessee shall be personally obligated to the extent of his rental obligation for the payment of all assessments against the owner which become due during the term of the lease and any other period of occupancy by the lessee or which become due as a consequence of the lessee's activities, including, but not limited to, any fines levied for activities which violate provisions of the Act, the Declaration, the By -Laws, or the rules and regulations adopted pursuant thereto. The above provision shall not be construed to release the owner from any obligation, including the obligation for assessments, for which he or she would otherwise be responsible. Upon--•request,,by the Board, a lessee shall pay the Association all unpaid annual and special assessments, as lawfully determined and made payable during the term of the lease and any other period of occupancy by lessee; provided, however, lessee need not make such payments to the Association in excess of or prior to the due dates for monthly lease payments unpaid at the time of the Board's request. All such payments made by the lessee shall reduce, by the same amount, the lessee's obligation to make monthly lease payments to his lessor. If the lessee fails to comply with the Board's request to pay assessments, the lessee shall pay to the Association all late charges, fines, interest, and costs of collection, including, but not limited to, reasonable attorney's fees actually incurred, to`kthe same extent the lessee would be required to pay such to the Association if the lessee were the owner of the premises during the term of the agreement and any other period of occupancy by the lessee. ME (D) Every lessee shall abide by and comply with all provisions of the Declaration, By -Laws, and rules and regulations adopted pursuant thereto and shall control the conduct of all other occupants and guests of the leased unit in order to insure compliance with the foregoing. An owner shall cause all occupants of his or her unit to comply with the Declaration, By -Laws, and rules and regulations adopted pursuant thereto, and is responsible for all violations and losses caused by such occupants, notwithstanding the fact that such occupants are fully liable and may be sanctioned for any such violation. All fines imposed for violations hereunder shall be assessed against the lessee; provided; however, if the fine is not paid'by the lessee within the time period set by the Board, the owner shall pay the fine upon notice from the Board of the lessee's failure to pay the fine. Unpaid fines shall constitute a lien against the unit. Any lessee charged with a violation of the Declaration, By -Laws, or the rules and regulations adopted pursuant thereto is entitled to the same procedure to which an owner is entitled prior to the imposition of a fine or other sanction. Any violation of the Declaration, By -Laws, or rules and regulations adopted pursuant thereto by lessee, any occupant, or any person living with lessee is deemed to be a default under the lease and authorizes the owner to terminate the lease without liability and to evict the lessee in accordance with Georgia law. The owner hereby delegates and assigns to Ridgelake Condominium Association, Inc., acting through the Board, the power and authority of enforcement against the lessee for breaches resulting from the violation of the Declaration, BX -Laws, and the rules and regulations adypted pursuant thereto, including the power and authority to evict the lessee on behalf of and for the benefit of the owner, in accordance with the terms hereof. In the event the Association proceeds to evict the lessee, any costs, including attorney's fees and court costs, -7- ei I PA associated with the eviction shall be specially assessed against the unit and the owner thereof, such being deemed hereby as an expense which benefits the leased unit and the owner thereof. (E) The owner transfers and assigns to the lessee, for the term of the lease, any and all rights and privileges that the owner has to use the common elements of the'Condominium, including, but not limited to, the use of any and all recreational facilities and amenities. (F) All leases shall be deemed to include the provisions of paragraphs (C) through (E) of this subsection (iv), whether or not expressly therein stated, and each owner covenants and agrees that any lease of a unit shall contain such provisions and agrees that if such provisions are not expressly contained therein, then they shall be incorporated into the lease by existence of this covenant on the unit. Any lessee, by occupancy of a unit, agrees to the applicability of this covenant and incorporation of :the above provisions into the lease. (v) Applicabili-t� Subsections (i) through (iv) of -.this Section shall apply to all leases executed after the effective date of this Amendment. All leases executed on or before the effective date of this Amendment shall be subject to the terms of this Section as in effect at the time the lease was executed; however, any assignment, extension, renewal or modification of any such lease shall be considered a termination of the old lease and commencement of a new lease, which shall be subject hereto. Any owner leasing his unit on the effective date hereof shall promptly place on file with the Board a copy of the lease in effect. This Se�$ion shall not apply to any leasing transaction entered into by the holder of any first mortgage on a unit who becomes the owner of a unit through foreclosure or any other means pursuant to the satisfaction of the indebtedness secured by such mortgage. ME IN WITNESS WHEREOF, the undersigned officers of Ridgelake Condominium Association, Inc., hereby certify that the above Amendment to the Declaration of Condominium for Ridgelake Condominium was duly adopted by the requisite vote of the membership this 2- dayof , ' ` 19 _ RIDGELAKE CONDOMINIUM ASSOCIATION, INC. By: Attest: Signed e�A&&, and delivered this,-' ' . �cia�9 E in .$he••• ence of �� r J WIT 9 ♦, r�V !Vi7 V • r ,1 NTA g� otary . tro:Ir .Un:y. he ,'.f3 My Co,rm:;; 0n Expires uct 31. •:.'U,1 My Commission Expires: a/yz (NOTARIAL SEAL) •President Secri-tary (CONTINUED) -9— gU��t S A F.,; 4 1<3 fi IN WITNESS WHEREOF, Ridgeway Development Corp, hereby consents to the above Amendment to the Declaration of Condominium for Ridgelake Condominium this day of 190 By: RIDGE" Y DEVELOPMENT CORP., a Georgi acgkporation Presid Attest: CIVN, l �•;_-,r Secret Signed, sealed, and delivered this �V4 day of 19��- iz�,he presence of: WI SS •44T.t BLIC . t O 1 AR)' t 1. Notary Public, Georgia, State at Large My C iuis yob;'Etpires : bA„ Commission Expires November 14, 1992 G� . rGi4 P V �",�N¢TARIAL SEAL) GEORGIA, Fayette County Clerk's Office Superior Cour Filed for record -3 19 g9 � M. f Recorde5Vn Book -5Z!-Page 47 This day of 19 Clerk -lo- STATE OF GEORGIA Reference: ,>eed Book 392 Page 425 COUNTY OF FAYETTE Deed Book 551 Page 427 6MENAMF�]TO THE DECLARATION OF CONDOMINIUM FOR RIDGELAKE CONDOMINIUM WHEREAS, Ridgeway Development Corp., ("Declarant") a Georgia corporation, filed and recorded that certain Declaration of Condominium for Ridgelake Condominium in Deed Book 392, page 425, gt sea., Fayette County, Georgia records on June 27, 1986 ("Declaration"); and WHEREAS, the plat for Ridgelake Condominium ("Condominium") was recorded in Condominium Plat Book 1, page 30-31, Fayette County, Georgia records; and WHEREAS, the Declaration was amended previously by that certain Amendment recorded in Deed Book 551, Page 427 et seta., Fayette County, Georgia records on May 3, 1989; and WHEREAS, the Declaration does not clearly delineate the responsibility of either the Association or unit owners with regard to security, and WHEREAS, the Declaration may be amended by the affirmative vote, written consent or any combination thereof of unit owners holding seventy-five (75%) percent of the total Association vote; and WHEREAS, so long as the Declarant has the right to control the Association or an unexpired option to expand the Condominium, no amendment to the Declaration shall be effective until approved by the Declarant; and / r('' } Bv J G �., , � i, V `_i WHEREAS, unit owners holding seventy-five (75%) of the j! total Association has approved the following amendment to the Declaration and the Declarant has approved the following amendment in writing; NOW, THEREFORE, the Declaration of Condominium for Ridgelake Condominium is hereby amended by adding a new Paragraph 20 which reads as follows: The Association may but shall not be required to, from time to time, provide measures or take actions which directly or indirectly improve safety on the Property; however, all Owners, for themselves and their tenants, guests, licensees, and invitees acknowledge and agree that the Association is not a provider of security, cannot protect against the criminal acts of third parties which might occur on the Property, and shall have no duty to provide security on the Property. It shall be the responsibility of each Owner to protect his or her person and property and all responsibility to provide security shall lie solely with each Unit Owner. The Association shall not be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. M42 IN WITNESS WHEREOF, the undersigned officers of Ridgelake Condominium Association, Inc. hereby certify that the above Amendment to the Declaration of Condominium for Ridgelake Condominium was duly adopted by the requisite vote of the membership this �� day of tic 1990. RIDGELAKE CONDOMINIUM ASSOCIATION, INC. By: Ue—sident Attest: i �• Secretary Signed, sealed, and delivered this A day of � L , 19�L� in the presence of: TAiE�,� TJ- BLIC Notar#ublic, Payette County, Georgia Y CgrPq!j&oo Etcpires June 7, 1993 day / �!�� : ,� s �. • Berk Isle �j .9? . 6 ) B2't( t1 4 PA+ t')''t elt STATE OF GEORGIA CERTIFICATE COUNTY OF FAYETTE THIS , , F " ', r MW ED AMD iIi..i� ��3 ;i ' TI ►C. GF -1C-7 g MMENT TO THE ARTICLES OF INCOQPdt b��`�I''��� E'F STATE FOR CONDOMINIUM ASSOCIATI' _ INC -BY � 1. DATE: I 0 Rid9 elake Condominium Association, Tjfi8'VVcTION # ("Association"), is amending its Articles the purpose of adding a new provision relating to the personal liability of the members of the Association's Board of Directors to that Association or its members. 2. This Amendment was adopted by the affirmative vote of at least two-thirds (2/3) of the votes of those members present in person or by proxy who were entitled to cast at an annual meeting of the members of the Association held on /tAcAll' 1516 at?ccLZ« C. ti There were 3 0 eligible votes in attendance at the meeting represented in person or by proxy, of which there were Z votes in favor of the Amendment, (1) votes opposed to the Amendment, and 1 votes abstaining or declining to vote. 3. The Articles of Incorporation are hereby amended by adding the following provision as a new Article 11: A director of the Association shall not be personally liable to the Association or its members for monetary damages for breach of duty of care or other duty as a director; provided, however, the above provision shall not apply to the personal liability of a director of the Association: (i) For any appropriation, in violation of his duties, of any business opportunity of the Association; (ii) •For any acts or omissions not in good faith or which involve intentional misconduct or knowing violations of the law; (iii) For any transaction from which the director received an improper personal benefit. This provision shall not operate to affect the personal liability of a director for any act or omission occurring prior to the•date on which this certificate of amendment is issued by the Georgia Secretary of State. Any repeal or modification of this Article 11 by the members of the Association shall not adversely affect any right or protection of a director or the Association existing at the time of such repeal or modification. IN WITNESS WHEREOF, the Association has caused the Amendment to be executed by its duly authorized officers. This day of , 1990. RIDGELAKE CONDOMINIUM ASSOCIATION, INC. ►1 .3.(4 C) By: Notary Public, Fayette County, Georgia P es i dent Lty Commission Expires June 7. 1993 Attest:�- Secretary 1727T WEISSMAN, NOWACK, CURRY & WILCO, RC. ATTORNEYS PERIMETER OFFICE SUITE 100 5780 PEACHTREE OUNWOODY ROAD ATLANTA. GEORGIA 30342 .0 404•:47-0650 r.c• O 4•e 47.0. 20 NORTH FULTON OFFICE SUITE LOO 3800 MANSELL ROAD ALPHARETTA, GEORGIA 30022 •ct770•:40-:1590 V_ 770•:40-1:52 TWO MIDTOWN PLAZA • 15TH FLOOR 1349 WEST PEACHTREE STREET ATLANTA, GEORGIA 30309 TELEPHONE 404 • 885-9215 FACSIMILE 404 - 885-9214 October 6, 1998 Homeowners Ridgelake Condominium Association, Inc. Re: Proposed Amendments to Declaration of Condominium Dear Homeowner: COBS OFFICE SUITE 225 1200 JOHNSON FERRY ROAO MARIETTA. GEORGIA 30068 +[L 770.57:•:111 r.■ 77o•s7: •4 :Oe As requested by the Board of Directors, I am writing to you concerning several proposed amendments to the Declaration. Several of the amendments address leasing of the units at Ridgelake and one of the amendments addresses the amendment procedure. I am taking this opportunity to summarize the amendments; however, I recommend that you review the amendments in their entirety. DECLARATION 1) Leasing. In an article several years ago in the Atlanta Journal Constitution, John Adams identified things that prospective condominium owners can do to make their ownership experience better. The first statement was to 11[o]nly consider buying in a condominium that has effective controls on renting." (May 22, 1994) The Declaration for Condominium for Ridgelake Condominium currently has some controls on leasing. The existing controls provide that anyone may lease a unit at Ridgelake as long as less than twenty percent (20%) of the units are being leased. The amendment also gives the Board the authority to allow leasing in cases of undue hardship even if the leasing rate has reached twenty percent. The Board of Directors has solicited the input of members of the community and concluded that a vast majority of owners would like to further restrict leasing. However, so as not to force owners currently leasing to sell their units, the enclosed Amendment allows owners who are leasing their units on the date the amendment is adopted to continue to lease their units so long as they own their units. With this exception, the only owners who would be permitted to lease their units at Ridgelake, would be those owners who could demonstrate that failure to lease their units would create an undue hardship situation. There are several examples of undue hardship set forth in the amendment. The Board also has some concern about corporate ownership of units where the corporation allows employees or others to use the units on a short-term basis. This situation is Homeowners October 5, 1998 Page 2 currently addressed and permitted under Paragraph 10(0) of the Declaration (Loaning of Units). To address this situation, the enclosed amendments propose that if a unit is owned by a corporation, the corporation would have to designate who would occupy the unit and that designation could not be changed more than once a year. The amendment also prohibits loaning of units, whether or not for compensation. Again so as not to prejudice an owner who has an approved party who is loaning their unit, the amendment grandfathers any owner who is loaning his or her unit on the date the Amendment is adopted. 2) Amendments. The Georgia Condominium Act currently provides that the minimum amendment requirement is sixty-six and two thirds percent (66 2/3%) of the total eligible vote of the Association. The Declaration of Condominium for Ridgelake currently requires seventy-five percent of the owners to amend the Declaration. It is frequently difficult to contact all owners and even to get all owners who have been contacted to express their opinion on any particular issue. The Board believes that reducing the amendment percentage to the statutory minimum protects all members of the Association since a super majority of the owners is still required in order to amend the Declaration. BYLAWS 3) Action taken without a meeting. The Georgia Non-profit code was amended in 1990 and includes several provisions which give more flexibility to non-profit corporations. One of those provisions authorizes a non-profit corporation to take action without a meeting by distributing a ballot or obtaining written consent. The statutory procedures are incorporated in the proposed amendment. 4) Fining and Suspension Procedure. The fining and suspension procedure has been slightly revised. Under the current Bylaws, the Board is required to give notice to an alleged violator. If the violator failed to cure the violation, the Board was required to send a second notice to the violator inviting the violator to attend a hearing which the alleged violator may or may not attend. This section has been revised so that the Board remains obligated to send notice to the alleged violator.. However, the alleged violator is required to request a hearing before the Board. If the violator fails to request a hearing, the sanction set forth in the violation notice will be imposed. 5) Amendments. The only change to this section is to specify, consistent with the Georgia Condominium Act, that the vote required to amend the Bylaws is the specified percentage (2/3) of the "eligible" vote of the Association. This means that delinquent owners will not count toward the total vote required. 6) Books and Records. The 1990 amendments to the Georgia Non -Profit Code also specify books and records members of the corporation are entitled to inspect and the procedure Homeowners October 5, 1998 Page 3 for inspection. The proposed amendment to Article VIII, Section 10 sets forth the statutory procedure. If you have any questions concerning any of the enclosed amendments, you may contact any member of your Board of Directors. Sincerel , Candyce D. Cavanagh CDC:ym Enclosure F.\DOCS\03408\002Vetters\Documenu\Amendments\10.98.doc Return to: Weissman, Nowack, Curry & Wilco, P.C. Two Midtown Plaza, IP Floor 1349 West Peachtree Street Atlanta, Georgia 30309 STATE OF GEORGIA COUNTY OF FAYETTE Cross Reference: Deed Book 392 Page 425 AMENDMENT TO THE BY-LAWS OF THE RIDGELAKE CONDOMINIUM ASSOCIATION, INC. WHEREAS, Ridgeway Development Corp., a Georgia Corporation, filed and recorded a Declaration of Condominium for Ridgelake Condominium in Deed Book 392, Page 425, et seq., Fayette County, Georgia records on June 27, 1986 ("Declaration"); and WHEREAS, the By -Laws of the Ridgelake Condominium Association, Inc. are attached to the Declaration as Exhibit "D" and recorded in Deed Book 392, Page 463 et seq. ("By - Laws"); WHERAS, Article VIII, Section 9 of the By -Laws provides that the By -Laws may be amended by the affirmative vote, written consent, or any combination of affirmative vote and written consent of members holding two-thirds (2/3rd) of the total vote of the Association; WHEREAS, Unit Owners holding two-thirds (2/3rd) of the total Association vote have approved the following amendments to the By -Laws; NOW, THEREFORE, the By -Laws of the Ridgelake Condominium Association.' Inc. are hereby amended as follows: 1. Article II, Section 8 shall be amended by deleting that section in its entirety and substituting therefor the following: Section 1. Action Taken Without a Meeting. In the Board's discretion, any action that may be taken by the Association members at any annual, regular, or special meeting may be taken without a meeting if the Board delivers a written consent form or written ballot to every member entitled to vote on the matter. (a) Ballot. A written ballot shall set forth each proposed action and provide an opportunity to vote for or against each proposed action. Approval by written ballot shall be valid only when the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. All solicitations for votes by written ballot shall: (1) indicate the number of responses needed to meet the quorum requirements; (2) state the percentage of approvals necessary to approve each matter other than election of directors; and (3) specify the time by which a ballot must be received by the corporation in order to be counted. A written ballot may not be revoked. The Association shall maintain such ballots in its file for at least three (3) years. (b) Written Consent. Approval by written consent shall be valid only when the number of written consents received equals or exceeds the requisite majority of the voting power for such action. Executed written consents shall be included in the minutes or filed with the Association's records. If an action of the members is approved by written consent hereunder, the Board shall issue written notice of such approval to all members who did not sign written consents. Membership approval shall be effective ten (10) days after written notice is issued; provided, however, if the consent is to an amendment to the Declaration or Bylaws which must be recorded, the effective date shall be no earlier than the date of recording of such amendment. Q Article VII, Section 2 shall be amended by deleting that section in its entirety and substituting therefor the following: Section 2. Fining and Suspension Procedure. The Board shall not impose a fine, suspend the right to vote or suspend the right to use the Common Elements, unless and until the Association has sent or delivered written notice to the violator as provided in subsection (a) below. However, compliance with this Section 2 shall not be required for the following: (i) late charges on delinquent assessments, and (ii) voting rights if an I''! ya Owner is shown on the Association's records to be more than thirty (30) days delinquent in any payment due the Association, in which case suspension of the right to vote shall be automatic. (c) Notice. If any provision of the Declaration or Bylaws or any Association rule is violated, the Board shall send the violator written notice identifying the violation and fine(s) being imposed and advising the violator of the right to request a hearing before the Board to contest the violation or fine(s) or to request reconsideration of the fine(s). Fine(s) may be effective or commence upon the sending of such notice or such later date specified in such notice, notwithstanding the violator's right to request a hearing before the Board to challenge the fine(s). In the event of a continuing violation, each day the violation continues or occurs again constitutes a separate offense, and fines may be imposed on a per diem basis without further notice to the violator. (d) Hearin . If a written request for hearing is received from the violator within ten (10) days of the date of the violation notice provided above, then the Board shall schedule and hold in executive session a hearing affording the violator a reasonable opportunity to be heard. The minutes of the meeting shall contain a written statement of the results of the hearing. 3. Article VIII, Section 9 shall be amended by adding the word "eligible" before the word "vote" in the first sentence of that section so that the first sentence shall read as follows: These By -Laws may be amended by the affirmative vote, written consent, or a combination of affirmative vote and written consent of the members holding two-thirds of the total eligible vote of the Association. CM Article VIII, Section 10 of the By -Laws shall be amended by deleting that section in its entirety and substituting therefor the following: Section 3. Books and Records. (e) All members of the Association and any institutional holder of a f rst Mortgage shall be entitled to inspect the following records at a reasonable time and location specified by the Association, upon written request at least five (5) days before the date on which the member wishes to inspect and copy: (i) its Articles or restated Articles of Incorporation and all amendments to them currently in effect; -3- currently in effect; (ii) its Bylaws or restated Bylaws and all amendments to them (iii) resolutions adopted by either its members or Board of Directors increasing or decreasing the number of directors or the classification of directors, or relating to the characteristics, qualifications, rights, limitations, and obligations of members or any class or category of members; (iv) resolutions adopted by either its members or Board of Directors relating to the characteristics, qualification, rights, limitations, and obligations of members or any class or category of members; (v) the minutes of all meetings of members and records of all actions approved by the members for the past three (3) years; (vi) all written communications- to members generally within the past three (3) years, including the financial statements furnished for the past three (3) years; (vii) a list of the names and business or home addresses of its current directors and officers; and (viii) its most recent annual report delivered to the Secretary of State. (f)A Member may inspect and copy the following records upon written notice at Ieast five (5) business days before the date on which the member wishes to inspect and copy only if the member's demand is made in good faith and for a proper purpose that is reasonably relevant to the member's legitimate interest as a member; the member describes with reasonable particularity the purpose and the records the member desires to inspect; the records are directly connected with this purpose; and the records are to be used only for the stated purpose: (i) excerpts from minutes of any Board meeting, records of any action of a committee of the Board while acting in place of the Board on behalf of the Association, minutes of any meeting of the members, and records of action taken by the members or the Board without a meeting, to the extent not subject to inspection under subsection 9(a); (ii) accounting records of the Association; and (iii) the membership list only if for a purpose related to the member's interest as a member. Without the consent of the Board, a membership list or any part thereof may not be: used to solicit money or property unless such money or property will be used solely to solicit the votes of the members in an election to be held by the Association; used for any commercial purpose; or sold to or purchased by any person. -4- The Association may impose a reasonable charge, covering the cost of labor and material, for copies of any documents provided to the Member. Notwithstanding anything to the contrary, members shall not be entitled to inspect privileged documents or the financial records or accounts of other members. IN WITNESS WHEREOF, the undersigned officers of Ridgelake Condominium Association, Inc. hereby certify that the above Amendment to the By -Laws of Ridgelake Condominium Association, Inc. were duly adopted by the requisite vote of the membership this day of '19—. RIDGELAKE CONDOMNIUM ASSOCIATION, INC. By: President Attest: Secretary Sworn to and subscribed to before me this day of 1998. Witness Notary Public My Commission Expires: [NOTARY SEAL] F:\DOCS\03408\DO2\DOCVNS-NTBYLAwU,NENDMEN7INPC ENFORCE.DOC -5- Return to: Weissman, Nowack, Curry & Wilco, P.C. Two Midtown Plaza, 15" Floor 1349 West Peachtree Street Atlanta, Georgia 30309 STATE OF GEORGIA COUNTY OF FAYETTE Reference: Deed Book 392 Page 425 Deed Book 551 Page 427 Deed Book 624 Page 641 ANIENDMENT TO THE DECLARATION OF CONDOMINI IM FOR RIDGELAKE CONDOMNIUM WHEREAS, Ridgeway Development Corp., ("Declarant") a Georgia corporation, filed and recorded that certain Declaration of Condominium for Ridgelake Condominium in Deed Book, 392, page 425, et seq., Fayette County, Georgia records on June 27, 1986 ("Declaration"); and WHEREAS, the plat for Ridgelake Condominium ("Condominium") was recorded in Condominium Plat Book 1, page 30-31, Fayette County, Georgia records; and WHEREAS, the Declaration was amended previously by an amendment recorded in Deed Book 551, Page 427 et sem., Fayette County, Georgia records on May 3, 1989 and an amendment recorded in Deed Book 551, Page 427 on October 10, 1990; WHEREAS, the Declaration may be amended b the affirmative vote written y y consent or any combination thereof of unit owners holding seventy-five (75 %) percent of the total Association vote; .and WHEREAS, unit owners holding seventy-five (75 %) percent of the total Association has approved the following amendment to the Declaration; NOW, THEREFORE, the Declaration of Condominium for Ridgelake Condominium is hereby amended as follows: 1. Paragraph 10(a) of the Declaration shall be amended by deleting the last sentence of that Paragraph and substituting therefor the following: Leasing of units within the condominium, in accordance with Paragraph 15 shall not be considered a business activity that violates this subparagraph. 2. Paragraph 10(a) shall be further amended by adding the following subsections (i) and (ii) thereto: (i) In the event that an owner of a unit is a corporation, partnership, trust or other legal entity not being a natural person or persons, the entity shall designate in writing to the Board of Directors the name of the person or persons who shall occupy the unit. The designated person or persons to occupy the unit may not be changed more frequently than once a year. Entity members shall be subject to the leasing restrictions contained in Paragraph 15 of this Declaration. (ii) An owner whose unit is not occupied by the owner or members of the owner's family or by a lessee may not loan the unit to any other person or persons. A unit shall be deemed loaned when the unit is made available for the exclusive occupancy and use of persons not normally residing in the unit. Compensation for use of the unit is not an essential condition of a loan. -2- i 3. Paragraph 10(o) shall be amended by deleting that paragraph in its entirety; provided, however, an owner who is loaning his or her unit to an Approved Party on the date this Amendment is recorded in the Fayette County, Georgia records, may continue to loan his or her unit to an Approved Parry so long as the owner owns his or her unit. Upon conveyance of the unit to a third parry, the unit shall be subject to the Declaration as herein amended. El Paragraph 12 shall be amended by deleting that section in its entirety and substituting therefore the following: 12. AMENDMENTS. Except where a higher vote is required for action under any other provisions of this Declaration or by the Act, this Declaration may be amended by the affirmative vote, written consent, or any combination of affirmative vote and written consent of the members of the Association holding sixty-six and two-thirds (66-2/3%) percent of the total eligible vote thereof. Notice of a meeting, if any, at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. No amendment shall be effective until certified by the President and Secretary of the Association and recorded in the Fayette County, Georgia land records. In addition, the approval of all parties shall be obtained who are required to approve an amendment pursuant to the terms of Paragraph 16 below entitled "Mortgage Provisions." Notwithstanding the foregoing, the Board of Directors, without the necessity of a vote from the owners, may amend this Declaration to comply with any applicable state, city or federal law, including but not limited to, compliance with applicable guidelines of the Federal National Mortgage Association ("Fannie Mae"), the Department of Housing and Urban Development ("HUD") and the Veterans Administration ("VA"). Any action to challenge the validity of an amendment adopted under this Paragraph must be brought within one (1) year of the effective date of such amendment. No action to challenge such amendment may be brought after such time. 5. Paragraph 15 of the Declaration shall be amended by deleting that section in its entirety and substituting therefor the following: 15. LEASES AND SALES, (a) Leasing of Units. (i) Definition. "Leasing," for purposes of this Declaration, is defined as regular, exclusive occupancy of a unit by any person(s) other than the owner for which the owner receives any consideration or benefit, including, but not limited to, a fee, service, gratuity, or emolument. For purposes hereof, occupancy by a roommate of an owner occupant shall not constitute leasing. (ii) Undue Hardship. The Board shall be empowered to allow reasonable leasing of a unit upon application in accordance with this Paragraph to avoid undue hardship, including, but not limited to the following situations: (1) a unit owner must relocate his or her residence and cannot, within six (6) months from the date that the unit was placed on the market, sell the unit except at a price below the current appraised market value, after having made reasonable efforts to do so; (2) where the owner dies and the unit is being administered by his or her estate; and (3) the owner takes a leave of absence or temporarily relocates and intends to return to reside in the unit, in which case the unit owner must reapply every year for renewal of the hardship exception. Those owners who have complied with this subparagraph, have demonstrated that the inability to lease their unit would result in undue hardship, and have obtained the requisite written Board approval may lease their units for such duration as the Board reasonably determines is necessary to prevent undue hardship. Any owner who believes that he or she must lease his or her unit to avoid undue hardship shall submit a written application to the Board setting forth the circumstances necessitating the leasing, a copy of the proposed lease, and such other information as the Board may reasonably require. Leasing in the case of undue hardship shall be permitted only upon the Board's written approval of the owner's application. Any transaction that does not comply with this Paragraph shall be voidable at the Board's option. (iii) Leasing Provisions. When leasing is permitted hereunder, the following provisions shall govern such leasing: (A) Notice. At least seven (7) days prior to entering into the Iease of a unit, the owner shall provide the Board with a copy of the proposed me lease agreement. The Board shall approve or disapprove the form of said lease. In the event a lease is disapproved, the Board shall notify the owner of the requisite action to be taken in order to bring the lease in compliance with the Declaration and any rules and regulations adopted pursuant thereto. Within ten (10) days from the execution of the approved lease by both parties, the owner shall provide the Board with a copy of the executed lease and the names of all people to occupy the unit. (B) General. Units may be leased only in their entirety; no fraction or portion may be rented: There shall be no subleasing of units or assignment of leases unless approved in writing by the Board. No transient tenants may be accommodated in a unit. All leases shall be in writing and in a form approved by the Board prior to the effective date of the lease. The Board shall maintain in its files and, upon request, shall provide to any owner a form that is deemed acceptable. All leases shall be for a period of at least one year. The unit owner must make available and the lease form shall provide that the owner has made available to the tenant copies of the Declaration, Bylaws, and the rules and regulations. (C) Liability for Assessments and Compliance With Declaration. Bylaws. and Rules and Regulations. Each owner covenants and agrees that any lease of a unit shall contain the following language and agrees that if such language is not expressly contained therein, then such language shall be incorporated into a lease by existence of this covenant on the unit. Any lessee, by occupancy in a unit, agrees to the applicability of this covenant and incorporation of the following language into the lease: (1) Liabilitv for Assessments. When a unit owner who is leasing his or her unit fails to pay any annual or special assessment or any other charge for a period of more than thirty (30) days after -it is due and payable, then the delinquent owner hereby consents to the assignment of any rent received from the lessee during the period of delinquency, and, upon request by the Board, lessee shall pay to the Association all unpaid annual and special assessments and other charges payable during and prior to the term of the lease and any other period of occupancy by lessee. However, lessee need not make such payments to the Association in excess of, or prior to the due dates for, monthly rental payments unpaid at the time of the Board's request. All such payments made by lessee shall reduce, by the same amount, lessee's obligation to make monthly rental payments to lessor. If lessee fails to comply with the Board's request to pay assessments or other charges, lessee shall pay to the Association all amounts authorized under Paragraph 8 herein as if lessee were an owner. The above provision shall not be construed to release the owner from any obligation, including the obligation for assessments, for which he or she would otherwise be responsible. 511 (2) Compliance with Declaration. Bylaws, and Rules and Regulations. Lessee shall abide by and comply with all provisions of the Declaration, Bylaws,. and rules and regulations adopted pursuant thereto and shall control the conduct of all other occupants and guests in order to insure compliance with the foregoing. Lessee acknowledges that the violation by lessee or any occupant living with lessee of any provision of the Declaration, Bylaws, or rules and regulations adopted thereunder shall constitute default under the lease. Owner shall cause all occupants of his or her unit to comply with the Declaration, Bylaws, and the rules and regulations adopted pursuant thereto, and is responsible for all violations and losses caused by such occupants, notwithstanding the fact that such occupants of the unit are fully liable and may be sanctioned for any violation of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto. In the event that the lessee, or any occupant, violates the Declaration, Bylaws, or a rule and regulation for which a fine is imposed, such fine shall be assessed against the lessee; provided, however, if the fine is not paid by the lessee within the time period set by the Board, the owner shall pay the fine upon notice from the Board of the lessee's failure to pay the fine. Unpaid fines constitute a lien against the unit, pursuant to Sections 44-3-76 and 44-3-109 of the Act. Any lessee charged with a violation of the Declaration, Bylaws, or rules and regulations adopted pursuant thereto is entitled to the same procedure to which an owner is entitled prior to the imposition of a fine or other sanction. Any violation of the Declaration, Bylaws, or rules and regulations adopted pursuant thereto by lessee, any occupant, or any person living with lessee is deemed to be a violation of the terms of the lease and authorizes the owner to terminate the lease without liability and to evict the lessee in accordance with Georgia law. The owner hereby delegates and assigns to RidQelake Condominium Association, Inc., acting through the Board, the power and authority of enforcement against the lessee for breaches of the lease resulting from the violation of the Declaration, Bylaws, and the rules and regulations adopted pursuant thereto, including the power and authority to evict the lessee on behalf and for the benefit of the owner, in accordance with the terms hereof. In the event the Association proceeds to evict the tenant, any costs, including attorney's fees and court costs, associated with the eviction shall be specially assessed against the unit and the owner thereof, such being deemed hereby as an expense which benefits the leased unit and the owner thereof. (D) Use of Common Elements. The owner transfers and assigns to the lessee, for the term of the lease, any and all rights and privileges that the owner has to use the Common Elements of the Condominium, including,._ but not limited to, the use of any and all recreational facilities and other amenities. (iv) Applicability of this Paragraph 15(a). Those owners who are leasing their units upon the effective date of this Amendment may lease their units and shall not be required to demonstrate undue hardship as a prerequisite to -6- the leasing of their units. However, upon any conveyance or transfer of the unit, any grantee thereof shall be subject to the provisions of this Paragraph 15(a), in addition to all other provisions of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto. Leases executed after the date on which this Amendment is recorded in the Fayette County, Georgia records are subject to the terms of Paragraph 15(a)(iii), above. Leases existing on the date which this Declaration is recorded in the Fayette County, Georgia records shall not be subject to the terms of Paragraph 15(a)(iii); such leases may continue in accordance with the terms of the Original Declaration as it existed prior to the recording date of this Declaration. However, any assignment, extension, renewal, or modification of any lease agreement, including, but not limited to, changes in the terms or duration of occupancy, shall be considered a termination of the old lease and commencement of a new lease which must comply with this Paragraph 15(a)(iii). Any owner of a unit which is leased on the effective date of this Declaration shall place on file with the Board a copy of the lease agreement in effect within thirty (30) days of the date on which this Declaration is recorded in the Fayette County, Georgia records. (v) Inapplicability to Holders of First MortLyages. This Paragraph 15(a) shall not apply to any leasing transaction entered into by the holder of any first Mortgage on a unit who becomes the owner of a unit through foreclosure or any other means pursuant to the satisfaction of the indebtedness secured by such Mortgage. In order to protect the equity of the individual unit owners at the Condominium, to carry out the purpose for which the Condominium was formed by preserving the character of the Condominium as a homogeneous residential community of predominantly owner -occupied homes and by preventing the Condominium from assuming the character of a renter -occupied apartment complex, and to comply with the eligibility requirements for financing in the secondary mortgage market insofar as such criteria provide that the project be substantially owner -occupied, leasing of units shall be governed by the restrictions imposed by this Paragraph. Except as provided herein, the leasing of units shall be prohibited. (b) Sale of Units. A unit owner intending to make a transfer or sale of a unit or any interest in a unit shall give written notice to the Board of such intention within seven (7) days after execution of the transfer or sales documents. The owner shall furnish to the Board as part of the notice (i) the name and address of the intended grantee; and (ii) such other information as the Board may reasonably require. This Paragraph shall not be construed to create a right of first refusal in the Association or in any third party. -7- Within seven (7) days after receiving title to a unit, the purchaser of the unit shall give written notice to the Board of his or her ownership of the unit. Upon failure of an owner to give the required notice within the seven-day time period provided herein, the Board may levy fines against the unit and the owner thereof, and assess the owner for all costs incurred by the Association in determining his or her identity. IN WITNESS WHEREOF, the undersigned officers of Ridgelake Condominium Association, Inc. hereby certify that the above Amendment to the Declaration of Condominium for Ridgelake Condominium was duly adopted by the requisite vote of the membership this day of , 19_. RIDGELAKE CONDOMNIUM ASSOCIATION, INC. By: President Attest: Secretary Sworn to and subscribed to before me this day of Witness 19 Notary Public My Commission Expires: [NOTARY SEAL] i.`AK]10i�0a'.W�.O�KTMl.'R3:OEGLVIrTY►1\N�C/WEl.TM/IJ+ODIL.'T 14.98.:.P�f am BY-LAWS OF RIDGELAKE CONDOMINIUM ASSOCIATION, INC. HYATT & RHOADS, P.C. Attorneys 2200 Peachtree Center Harris Tower 1275 K Street, N.W. Atlanta, Georgia 30303 Washington, D.C. 20006 (404) 659-6600 (202) 488-4418 1725 Central Savings Tower San Diego, California 92101 (619) 232-0811 I. GENERAL II. TABLE OF CONTENTS Page 1. Applicability.................................1 2. Name..........................................1 3. Membership....................................1 4. Voting........................................1 5. Majority......................................2 6. Purpose...................................1.1.2 7. Definitions...................................2 MEETINGS OF MEMBERS 1. Annual Meetings...............................4 2. Special Meetings ..............................4 3. Notice of Meetings ............................4 4. Waiver of Notice ..............................4 5. Quorum ................................. ......5 6. Adjournment...................................5 7. Proxy.. 5 8. Consents......................................5 9. Order of Business .............................5 BOARD OF DIRECTORS A. Composition and Selection. 1. Composition...................................6 2. Term of Office................................6 3. Removal of Members of the Board of Directors..6 4. Vacancies.....................................6 5. Compensation..................................6 6. Nomination....................................7 7. Elections.....................................7 8. Interim Board During Period of DeclarantControl ...........................7 B. Meetings. P1, 9. Regular Meetings ..............................8 10. Special Meetings ..............................8 11. Waiver of Notice ..............................8 12. Conduct of Meetings ...........................8 13. Action Without a Meeting......................8 C. Powers and Duties. N 14. Powers and Duties .............................8 15. Management Agent .............................10 16. Borrowing....................................11 Page D. Committees. 12 17. Nominating Committee .........................12 18. Architectural Standards ...................... 12 19. Covenants Committee ..........................12 20. Service on Committees ........................12 21. Other Committees .............................12 E. Declarant Rights. 12 22. Board Appointed By Declarant.................12 IV. OFFICERS 1. Designation .... .............................13 2. Election of Officers .........................13 3. Removal of Officers ..........................13 22 4. President....................................13 5. Vice President...............................13 6. Secretary....................................13 7. Treasurer....................................14 8. Agreements, Contracts, Deeds, Leases, Etc .... 14 V. ASSOCIATION RESPONSIBILITIES 1. Liability and Indemnification of Officers 9. and Directors................................14 2. Insurance....................................15 26 3. Repair and Reconstruction ....................17 1. 4. Architectural Standards ...................... 19 5. Maintenance Responsibility ...................19 VI. ASSESSMENTS 1. Purpose of Assessment ........................22 2. Creation of the Lien and Personal„ Obligation For Assessments ................... 22 3. Delinquent Assessments .......................22 4. Computation of Operating Budget and Assessment. .24! 5. Special Assessments ..........................25 6. Notice of Meetings ...........................25 7. Lien for Assessments .........................25 8. Capital Budget and Contribution..............25 9. Statement of Account .........................25 10. Assessments by Declarant ..................... 26 VII. USE RESTRICTIONS AND RULE MAKING 1. Authority and Enforcement .................... 26 2. Procedure....................................27 Page 3. Additional Enforcement Rights................28 4. Parking Rules and Enforcement................28 VIII. MISCELLANEOUS 1. Notices......................................30 2. Severability.................................30 3. Captions.....................................31 4. Gender and Grammar ...........................31 5. Fiscal Year..................................31 6. Financial Review .............................31 7. Conflicts....................................31 8. Condemnation.................................31 9. Amendment....................................31 10. Books and Records ............................32 11. Mortgagees' Notice ...........................32 BY-LAWS OF RIDGELAKE CONDOMINIUM ASSOCIATION, INC. Article I General Section 1. Applicability. These By -Laws provide for the self-government of Ridgelake Condominium and Ridgelake Condominium Association, Inc., in accordance with the Articles of Incorporation filed with the Secretary of State and the Declaration of Condominium recorded in Fayette County, Georgia Records. Section 2. Name. The name of the corporation is Ridgelake Condominium Association, Inc., ("Association"). Section 3. Membership. An owner of a unit shall automatically become a member of the Association upon taking title to the unit and shall remain a member for the entire period of ownership; as may be more fully provided below, a spouse of a member may exercise the powers and privileges of the member. If title to a unit is held by more than one person, the membership shall be shared in the same proportion as the title, but there shall be only one (1) membership and one (1) vote per unit. Membership does not include persons who hold an interest merely as security for the performance of an obligation, and the giving of a security interest shall not terminate the owner's membership. Membership shall be appurtenant to the unit to which it appertains and shall be transferred automatically by conveyance of that unit and may be transferred only in connection with the transfer of title. Section 4. Voting. Each unit shall be entitled to a vote as set out in the Declaration which may be cast by the owner, the owner's spouse, or by a lawful proxy as provided below. When more than one person owns a unit, the vote for such unit shall be exercised as they between or among themselves determine, but in no event shall more than one'vote be cast with respect to any unit. If only one co-owner attempts to vote for a unit, it shall be conclusively presumed that such co-owner is authorized on behalf of all co-owners to cast the vote for the unit. In the event of disagreement among co-owners and an attempt by two or more of them to cast such vote or votes, such persons shall not be recognized and such vote or votes shall not be counted. No owner shall be eligible to vote, either in person or by proxy, or be elected to the Board of Directors, if that owner is shown on the books or management accounts of the Association to be more than sixty Article III Board of Directors A. Composition and Selection. Section 1. Composition. The affairs of the Association shall be governed by a Board of Directors. The Board shall be composed of five (5) persons. The directors shall be owners of units or spouses of such owners; provided, however, no owner and his or her spouse may serve on the Board at the same time. Section 2. Term of Office. The initial terms of the directors shall be staggered on a one (1), two (2), and three (3) year basis. One (1) director shall be elected for one (1) year, two (2) directors shall be elected for two (2) years, and two (2) directors shall be elected for three (3) years at the first annual meeting of the Association following the termination of the right of Declarant to appoint and remove directors, as set forth in the Declaration. After the initial term of each director, directors shall be elected for three (3) year terms or until their successors are elected. Section 3. Removal of Members of the Board of Directors. At any regular or special meeting of the Association duly called, any one or more of the members.of the Board of Directors may be removed with or without cause by a majority of the members and a successor may then and there be elected to fill the vacancy thus created. Any director whose removal has been proposed by the members shall be given at least ten (10) days notice of the calling of the meeting and the purpose thereof and shall be given an opportunity to be heard at the meeting. Section 4. Vacancies. Vacancies in the Board of Directors caused by any reason, including the addition of a new director or directors, but excluding the removal of a director by vote of the Association, shall be filled by a vote of the majority of the remaining directors, even though less than a quorum, at any meeting of the Board of Directors. The successor so selected shall hold office for the remainder of the term of the member being replaced. Section 5. Compensation. Directors shall not be compensated for services as such unless and to the extent the compensation is authorized by the members. Directors may be reimbursed for the expenses incurred in carrying out their duties as directors upon approval of such expenses by the Board of Directors. Nothing herein shall prohibit a director from entering into a contract and being compensated for services or supplies furnished to the Association in a capacity other than as director; provided that the director's interest is known and the contract is approved by a majority of the Board of Directors, excluding the director with whom the contract is made. Section 6. Nomination. Nomination for election to the Board shall be made by a Nominating Committee which shall consist of three (3) members appointed by the President to serve from the close of one annual meeting to the close of the succeeding annual meeting. The Nominating Committee shall be announced at the annual meeting. The Nominating Committee may nominate any number of qualified individuals, but no less than the number of directors to be elected. The nominations shall be made at least twenty-one (21) days prior to the annual meeting, and a brief statement about the qualifications of each individual so nominated shall be included with the notice of the annual meeting. Nominations shall also be allowed from the floor at the meeting. No member shall be nominated for election to the board of directors, nor permitted to run for election, if more than thirty (30) days past due in the payment of any assessment. Failure to comply with this Section shall in no way invalidate the election of directors who were not nominated in accordance with the provisions hereof. Section 7. Elections. All members of the Association eligible to vote shall be entitled to cast one vote for each directorship to be filled. There shall be no cumulative voting. The directorships for which elections are held shall be filled by that number of candidates receiving the most votes. Section 8. Interim Board During Period of Declarant Control. At such time as the Declarant shall have conveyed fifty (500) percent of the units in the Condominium to persons other than Declarant or persons constituting Declarant, the members shall be entitled to elect an interim board of advisory directors which shall consist of five (5) members elected in accordance with the procedures set forth in Section 6 and 7 of this Article. Until the expiration of the Declarant's right to appoint directors as provided in Paragraph 17(b) of the Declaration, the interim board shall serve in an advisory capacity only as a liaison between the members and the board of directors appointed by the Declarant, and may attend all regular board meetings but shall not vote. The interim board shall serve as the sole board of directors of the Association after expiration of the Declarant's right to appoint directors in accordance with Paragraph 17(b) of the Declaration until the next annual meeting of the Association, at which time all of the directors' terms shall expire and successors shall be elected. -7- B. Meetings Section 9. Regular Meetings. Regular meetings of the Board of Directors may be held at such time and place as shall be determined from time to time by the Board, but such meetings shall be held at least once every three (3) months. The newly elected Board shall meet within ten (10) days after each annual meeting of members. Section 10. Special Meetings. Special meetings of the Board of Directors may be called by the President on three (3) days' notice to each director given by mail, in person or by telephone, which notice shall state the time, place, and purpose of the meeting. Special meetings of the Board of Directors shall be called by the President, Secretary, or Treasurer in like manner and on like notice on the written request of at least two (2) directors. Section 11. Waiver of Notice. Any director may, at any time, in writing, waive notice of any meeting of the Board of Directors, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a director at any meeting of the Board of Directors shall also constitute a waiver of notice by him or her of the time and place of such meeting. if all directors are present at any meeting of the Board of Directors, no notice shall be required and any business may be transacted at such meeting. Section 12. Conduct of Meetings. The President shall preside over all meetings of the Board of Directors and the Secretary shall keep a minute book recording therein all resolutions adopted by the Board of Directors and a record of all transactions and proceedings occurring at such meetings. Roberts Rules of Order (latest edition) shall govern the conduct of the meetings of the Board of Directors when not in conflict with the Declaration, the Articles of Incorporation, or these By -Laws. A majority of directors shall constitute a quorum for the transaction of business. Section 13. Action Without a Meeting. Any action by the Board of Directors required or permitted to be taken at any meeting may be taken without a meeting if all of the directors consent in writing to such action. Such written consent or consents shall be filed with the minutes of the Board of Directors. C. Powers and Duties. Section 14. Powers and Duties. The Board of Directors shall manage the affairs of the Association and shall have all the powers and duties necessary for the administration of the Condominium and may do all such acts and things as are not by the Declaration, Articles of Incorporation, or these By -Laws directed to be done and exercised exclusively by the members. The Board shall have the power to adopt such rules and regulations as it deems necessary and appropriate and to impose sanctions for violations thereof, including, without limitation, monetary fines. In addition to the duties imposed by these By -Laws or by any resolution of the Association that may hereafter be adopted, the Board of Directors shall have the power to and be responsible for, the following, in way of explanation, but not limitation: (a) preparation and adoption of an annual budget, in which there shall be established the contribution of each Owner to the common expenses., (b) making assessments to defray the common expenses, establishing the means and methods of collecting such assessments, and establishing the period of the installment payments of the annual assessment (Unless otherwise determined by the Board of Directors, the annual assessment against the proportionate share of the common expenses shall be payable in equal monthly installments, each such installment to be due and payable in advance on the first day of each month for said month.); (c) providing for the operation, care, upkeep, and maintenance of all of the Area of Common Responsibility; (d) designating, hiring, and dismissing the personnel necessary for the maintenance, operation, repair, and replacement of the Association, its property, and the Area of Common Responsibility and, where appropriate, providing for the compensation of such personnel and for the purchase of equipment, supplies, and material to be used by such personnel in the performance of their duties; (e) collecting the assessments, depositing the proceeds thereof in a bank depository which it shall approve, and using the proceeds to administer the Association; (f) making and amending rules and regulations; (g) opening of bank accounts on behalf of the Association and designating the signatories required; (h) making or contracting for the making of repairs, additions, and improvements to, or alterations of the Common Area in accordance with the other provisions of the Declaration and these By -Laws, after damage or destruction by fire or other casualty; (i) enforcing by legal means the provisions of the Declaration, these By -Laws, and the rules and regulations adopted by it, and bringing any proceedings which may be instituted on behalf of or against the Owners concerning the Association; (j) obtaining and carrying insurance against casualties and liabilities, as provided in the Declaration, and paying the premium cost thereof; (k) paying the costs of all services rendered to the Association or its members and not chargeable to Owners; and (1) keeping books with detailed accounts of the receipts and expenditures affecting the Association and its administration, specifying the maintenance and repair expenses and any other expenses incurred. The said books and vouchers accrediting the entries thereupon shall be available for examination by the Owners and mortgagees, their duly authorized agents, accountants, or attorneys, during general business hours on working days at the times and in a manner that shall be set and announced by the Board of Directors for the general knowledge of the Owners. All books and records shall be kept in accordance with generally accepted accounting practices. Section 15. Management Agent. The Association may, but shall not be required to, hire a professional management agent -or agents, at a compensation established by the Board, to perform such duties and services as the Board of Directors shall authorize. Moreover, any management contract shall contain a termination clause permitting termination for cause upon no more than thirty (30) days written notice; provided, however, no contract shall be for more than one (1) year, and, provided, further, any contract entered by the Association during the time that Declarant has the right to appoint and remove directors shall be terminable by the Association upon ninety (90) days' written notice to the manager after the members have the right to elect directors. If a manager or agent is hired, the following management standards of performance will be followed unless the Board, by resolution, determines otherwise: (a) the accrual method of accounting shall be employed; (b) two or more persons shall be responsible for handling cash to maintain adequate financial control procedures; -10- (c) cash accounts of the Association shall not be commingled with any other accounts; (d) no remuneration shall be accepted by the managing agent from vendors, independent contractors or others providing goods or services to the Association whether in the form bf commissions, finder's fees, service fees, prizes, gifts, or otherwise; any thing of value received shall benefit the Association; (e) any financial or other interest which the managing agent may have in any firm providing goods or services to the Association shall be disclosed promptly to the Board of Directors; and (f) a quarterly financial report shall be prepared for the Association containing: (i) an Income Statement reflecting all income and expense activity for the preceding quarter; (ii) an Account Activity Statement reflecting all receipt and disbursement activity for the preceding quarter; (iii) an Account Status Report reflecting the status of all accounts in an "actual" versus "projected" (budget) format; (iv) a Balance Sheet reflecting the financial condition of the Association on an unaudited basis; (v) a Budget Report reflecting any actual or pending obligations which are in excess of budgeted amounts by an amount exceeding the operating reserves or ten (100) percent of a major budget category (as distinct from a specific line item in an expanded chart of accounts); and (vi) a Delinquency Report listing all Owners who have been delinquent during the preceding quarter in paying the monthly installments of condominium assessments and who remain delinquent at the time of the report, and describing the status of any action to collect such installments which remain delinquent. A monthly installment of the condominium assessment shall be considered to be delinquent on the tenth (10th) day of each month. Section 16. Borrowing. The Board of Directors shall have the power to borrow money for the purpose of repair or restoration of common areas and facilities without the approval of the members of the Association; provided, however, the Board -11- shall obtain membership approval in the same manner as for special assessments set forth hereinafter, in the event the proposed borrowing is for the purpose of modifying, improving, or adding amenities to the Condominium and the total amount of such borrowing exceeds or would exceed Ten Thousand ($10,000.00) Dollars outstanding debt at any one time. D. Committees. Section 17. Nominating Committee. Pursuant to Section 6 of this Article, there shall be a Nominating Committee composed of three (3) members appointed in the manner and to perform the functions specified in Section 6 of this Article. Section 18. Architectural Standards. The Board may establish an Architectural Standards Committee for the purpose of establishing and maintaining architectural standards on Condominium property as hereinafter provided. Section 19. Covenants Committee. The Board of Directors may appoint a Covenants Committee consisting of at least three (3) and no more than seven (7) members. Acting in accordance with the provisions of the Declaration, these By -Laws, and resolutions the Board may adopt, the Covenants Committee, if created by the Board, shall be the hearing tribunal of the Association. Section 20. Service on Committees. Unless otherwise provided in these By -Laws or in the resolution authorizing a particular committee, the members of the committee shall be appointed by the President and shall serve at pleasure of the President. Any committee member, except a member of the Covenants Committee, may be removed with or without cause at any time and with or without a successor being named. The appointment and removal of members of the Covenants Committee shall be governed by the provisions for the appointment and removal of directors. Section 21. Other Committees. There shall be such other committees as the Board shall determine with the powers and duties that the Board shall authorize. B. Declarant Rights. Section 22. Board Appointed By Declarant. Notwithstanding anything to the contrary herein, this Article III, Sections 1 through 7, Section 9, and Section 16 shall not apply so long as the Declarant retains the right to appoint and remove directors, as provided in the Declaration. The -12- activities of the Board during the period of Declarant control shall be governed by the Declaration and the Act. Article IV Officers Section 1. Designation. The principal officers of the Association shall be the President, the Secretary, and the Treasurer. The President and Secretary shall be elected by and from the Board of Directors. The Treasurer shall be elected by the Board of Directors, but may be either a Board or an Association member. The Board of Directors may appoint one or more Vice Presidents, Assistant Treasurers, Assistant Secretaries, and such other subordinate officers as in its judgment may be necessary. Any Vice President or assistant or subordinate officers shall not be required to be members of the Association or of the Board of Directors. Except for the offices of Secretary and Treasurer, which may be held by the same person, no person may hold more than one office. Section 2. Election of Officers. The officers of the Association shall be elected annually by the Board of Directors at the first meeting of the Board following each annual meeting of the members and shall hold office at the pleasure of the Board of Directors and until a successor is elected. Section 3. Removal of Officers. Upon the affirmative vote of a majority of the members of the Board of Directors, any officer may be removed, either with or without cause, and a successor may be elected. Section 4. President. The President shall be the chief executive officer of the Association and shall preside at all meetings of the members and of the Board of Directors. The President shall have all the general powers and duties which are incident to the office of the president of a corporation organized under the Georgia Nonprofit Corporation Code, including, but not limited to, the power to appoint committees from among the members from time to time as he or she may in his or her discretion decide is appropriate to assist in the conduct of the affairs of the Association. Section 5. Vice President. The Vice President, if elected, shall act in the President's absence and shall have all powers, duties, and responsibilities provided for the President when so acting. If no Vice President is appointed, the Secretary shall act in the President's absence. Section 6. Secretary. The Secretary shall keep the minutes of all meetings of the members and of the Board of -13- Directors and shall have charge of such books and papers as the Board of Directors may direct, and shall, in general, perform all duties incident to the office of the secretary of a corporation organized under Georgia law. If no Vice President is appointed, the Secretary shall act in the President's absence and shall have all the powers, duties, and responsibilities of the President when so acting. Section 7. Treasurer. The Treasurer shall have the responsibility for the Association's funds and securities and shall be responsible for keeping full and accurate financial records and books of account showing all receipts and disbursements, for preparing all required financial statements and tax returns, and for the deposit of all monies and other valuable effects in the name of the Association or the managing. agent in such depositories as may from time to time be designated by the Board of Directors. The Treasurer shall be responsible for the preparation of the budget as provided below. Section 6. Agreements, Contracts, Deeds, Leases, Etc. All agreements, contracts, deeds, leases, promissory notes, and other instruments of the Association shall be executed by at least two (2) officers or by such other person or persons as may be designated by resolution of the Board of Directors. Article V Association Responsibilities Section 1. Liability and Indemnification of Officers and Directors. The Association shall indemnify every officer and director against any and all expenses, including counsel fees, reasonably incurred by or imposed upon such officer or director in connection with any action, suit, or other proceeding (including settlement of any such action, suit, or proceeding, if approved by the then Board of Directors) to which he may be made a party by reason of being or having been an officer or director, whether or not such person is an officer or director at the time such expenses are incurred. The officers and directors shall not be liable for any mistake of judgment, negligent or otherwise, or for injury or damage caused by any such officer or director in the performance of his duties, except for their own individual willful misfeasance or malfeasance. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the Association (except to the extent that such officers or directors may also be members of the Association), and the Association shall indemnify and forever hold each such officer -14- and director free and harmless against any and all liability to others on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer or director, or former officer or director, may be entitled. The Association shall, as a common expense, maintain adequate general liability.and, if obtainable, officers' and directors' liability insurance to fund this obligation, and the insurance shall be written as provided in Section 2 of this Article. Section 2. Insurance. The Association shall obtain and maintain at all times, as a common expense, insurance as required by law and as required herein. All such insurance coverage shall be written in the name of the Association as trustee for itself, each of the owners, and the mortgagees of owners, if any. It shall be the duty of the Board of Directors at least every three (3) years to conduct an insurance review to determine if the policy in force is adequate to meet the needs of the Association and to satisfy the requirements of Section 44-3-107 of the Act. Such insurance shall run to the benefit of the Association, the respective unit owners, and their respective mortgagees, as their interests may appear. The improvements and betterments made by the individual unit owners shall be excluded from this required coverage, but each owner shall have the right to obtain additional coverage for such improvements, betterments, or personal property at his or her own expense. The policy may contain a reasonable deductible, and the amount thereof shall be added to the face amount of the policy in determining whether the insurance equals at least the full replacement costs. (a) The Board of Directors shall utilize every reasonable effort to secure a master policy covering physical damage in an amount equal to full replacement cost, before application of deductibles, of all improvements located on the Condominium that will provide the following: (i) that the insurer waives its rights of subrogation of any claims against directors, officers, the managing agent, the individual owners, and their respective household members; (ii) that the master policy on the Condominium cannot be cancelled, invalidated, or suspended on account of the conduct of any director, officer, or employee of the Association or the managing agent without a prior demand in writing delivered to the Association and to all mortgagees of units to cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured; -15- (iii) that any "no other insurance" clause contained in the master policy shall expressly exclude individual unit owners' policies from its operation; (iv) that until the expiration of thirty (30) days after the insurer gives notice in writing to the mortgagee of any unit, the mortgagee's insurance coverage will not be affected or jeopardized by any act or conduct of the owner of such unit, the other unit owners, the Board of Directors, or any of their agents, employees, or household members, nor be cancelled for nonpayment of premiums; (v) that the master policy may not be cancelled or substantially modified without at least thirty (30) days prior notice in writing to the Board of Directors and all mortgagees of units; (vi) an agreed value endorsement; and (vii) that the deductible amount per occurrence shall not exceed One Thousand ($1,000.00) Dollars. (b) All policies of insurance shall be written with a company licensed to do business in the State of Georgia and holding a rating of XI or better in the Financial Category as established by A. M. Best Company,.Inc., if available, or, if not available, the best rating available. The company shall provide insurance certificates to each owner and each mortgagee. (c) In no event shall the insurance coverage obtained and maintained by the Association hereunder be brought into contribution with insurance purchased by individual unit owners or their mortgagees. Each unit owner shall notify the Board of Directors of all structural improvements made by the unit owner to his unit. Any unit owner who obtains an individual insurance policy covering any portion of the Condominium, other than improvements and betterments made by such owner at his expense, and personal property belonging to such owner, shall file a copy of such individual policy or policies with the Board of Directors within thirty (30) days after the purchase, of such insurance. Such owner shall also promptly notify, in writing, the Board of Directors in the event such policy is cancelled. (d) In addition to the insurance required hereinabove, the Board shall obtain as a common expense: (i) workmen's compensation insurance if and to the extent necessary to meet the requirements of law; -16- p (ii) public liability and officers' and directors' liability insurance in such amounts as the Board may determine, but in no event less than One Million ($1,000,000.00) Dollars per occurrence (Such insurance shall contain a cross liability endorsement.); (iii) fidelity bonds covering officers, directors, employees, and other persons who handle or are responsible for handling Association funds. Such bonds shall be in an amount which in the best business judgment of the Board of Directors reflects the estimated maximum amount of funds, including reserve funds in the custody of the Association at any time during the term of the bond, but not less than three (3) months aggregate assessments, plus reserves on hand as of the beginning of the fiscal year and shall contain waivers of any defense based upon the exclusion of persons serving without compensation.); and (iv) such other insurance as the Board of Directors may determine to be necessary. (e) Insurance carried by the Association as a common expense shall not include any part of a unit neither depicted on the original plats and plans nor included in the original mortgage, nor shall the Association include public liability insurance for individual owners for liability arising within the unit. Nothing contained herein gives any owner or other party a priority over any rights of first mortgagees as to distribution of insurance proceeds. (f) Every unit owner shall be obligated to obtain and maintain at all times insurance covering the structural portions of his unit to the extent not insured by policies maintained by the Association. Section 3. Repair and Reconstruction. In the event of damage to or destruction of all or any part of the Condominium as a result of fire or other casualty, unless eighty (80%) percent of the unit owners, including the owner or owners of the damaged unit or units, vote not to proceed with the reconstruction and repair of the structure, the Board of Directors or its duly authorized agent shall arrange for and supervise the prompt repair and restoration of the structure in accordance with the original plats and plans. In the event of substantial damage or destruction, each institutional holder of a first mortgage shall be entitled to written notice of the damage, and nothing in these documents shall be construed to afford a priority to any unit owner with respect to the distribution of proceeds to any such unit. -17- The procedure for repair and reconstruction shall be: (a) Cost Estimates. Immediately after a fire or other casualty causing damage to the Condominium, the Board of Directors shall obtain reliable and detailed estimates of the cost of repairing and restoring the structures (including any damaged unit) to a condition as good as that existing before such casualty. Such costs may also include professional fees and premiums for such bonds as the Board of Directors determines to be necessary. (b) Source and Allocation of Proceeds. If the proceeds of insurance are not sufficient to defray the said estimated costs of reconstruction and repair, as determined by the Board of Directors, or if at any time during the reconstruction and repair or upon completion of reconstruction and repair the funds for the payment of the costs thereof are insufficient, assessments shall be made against all of the unit owners. If after repair and reconstruction is completed there is a surplus of funds, such funds shall be common funds of the Association to be used as directed by the Board of Directors. (c) Plans and Specifications. Any such reconstruction or repair shall be substantially in accordance with the plans and specifications under which the Condominium was originally constructed. (d) Encroachments. Encroachments upon or in favor of units which may be created as a result of such reconstruction or repair shall not constitute a claim or basis for any proceeding or action by the unit owner upon whose property such encroachment exists, provided that such reconstruction was substantially in accordance with the architectural plans under which the Condominium was originally constructed. Such encroachments shall be allowed to continue in existence for so long as the reconstructed building shall stand. (e) Construction Fund. The net proceeds of the insurance collected on account of a casualty and the funds collected by the Association from assessments against unit owners on account of such casualty shall constitute a construction fund which shall be disbursed in payment of the cost of reconstruction and repair in the manner set forth in this Section. (f) Method of Disbursement. The construction fund shall be paid by the Association in appropriate progress payments to such contractor(s), supplier(s), and personnel performing the work or supplying materials or services for the repair and reconstruction of the buildings as are designated by the Board of Directors. -16- (g) Insurance Deductibles. If maintenance is required as a result of an insured loss, the amount of the deductible shall be considered a maintenance expense to be paid by the person or persons who would be responsible for such repair in the absence of insurance. If the loss affects more than one unit or a unit and the common area, the cost of the deductible may be apportioned equitably by the Board among the parties suffering loss in accordance with the total cost of repair. Section 4. Architectural Standards. The Board of Directors, subject to this Section 4, may allow such encroachments onto the common elements as it deems acceptable. No owner, occupant, lessee or lessor, or any other person may make any exterior change, alteration, or construction, nor erect, place, or post any sign, object, light, or thing on the exterior of the buildings or any other common element without first obtaining the written approval of the Board or its delegate. Application shall be in writing and shall provide such information as the Board may reasonably require. The Board or its delegate may publish written architectural standards for exterior alterations or additions, and any request in substantial compliance with any such published standards shall be approved. In the event that the Board or its delegate fails to approve or to disapprove such application within sixty (60) days after it shall have been submitted, its approval will not be required and this Section 4 will be deemed complied with; provided that even if the requirements of this Section are satisfied, nothing herein shall authorize anyone to construct or maintain any structure or improvement that is otherwise in violation of the Declaration or these By -Laws. As a condition of approval for a requested architectural change, modification, addition, or alteration, an owner, on behalf of himself or herself and his or her successors -in -interest, shall assume all responsibility for maintenance, repair, and replacement and insurance to or on such change, modification, addition, or alteration. In the discretion of the Board an owner may be made to verify such condition of approval by written instrument acknowledged by such owner on behalf of himself or herself and his or her successors -in -interest. Section 5. Maintenance Responsibility. (a) By the Owner. Except to the extent otherwise provided below, each owner shall have the obligation to maintain and keep in good repair all portions of his unit and all glass surfaces, windows, window frames, and all doors, doorways, frames, and hardware that are part of the entry system of the unit, patios or balconies, the air conditioning compressor serving the unit, all pipes, lines, ducts, conduits, -19- or other apparatus which serve only the unit, whether located within or without a unit's boundaries (including all gas, electricity, water, sewer, or air conditioning pipes, lines, ducts, conduits, or other apparatus serving only the unit). Except to the extent otherwise provided below, each owner shall maintain all parts of the unit and all limited common elements assigned to his unit. If two or more units share limited common elements, the cost of maintenance shall be divided equally among those who share the facilities, unless otherwise agreed among the parties or provided below. (b) By the Association. The Association shall maintain and keep in good repair as a common expense the "Area of Common Responsibility," which includes all general common elements, the exterior surfaces of all improvements, except those listed in Section 5(a) of this Article, whether or not located within the boundaries of a unit or within the limited common elements of a unit. The Area of Common Responsibility shall include, but shall not be limited to, roofs and roof supports; paving; brick; painting of doors which comprise a boundary to a unit or limited common element, exterior trim, the exterior of decks and balconies and decks and balcony supports; maintenance and repair of all parking facilities, whether or not assigned as limited common elements, including, but not limited to, facilities for parking of golf carts, if any; all maintenance and repair of landings and stairways assigned as limited common elements; and all common property. Except to the extent that insurance required to be maintained or ma.intained by the Association covers any damage or loss and except as otherwise provided herein, the Association shall not be responsible for any maintenance or repair to any unit or to any limited common element. (c) Failure to Maintain. If the Board of Directors determines that: (i) any owner has failed or refused to discharge properly his obligation with regard to the maintenance, repair, or replacement of items of which he is responsible hereunder; or (ii) that the need for maintenance, repair, or replacement which is in the Area of Common Responsibility is caused through the willful or negligent act of any owner, his or her family, guests, lessees, or invitees, and it is not covered or paid by insurance, in whole or in part, then, except in an emergency situation, the Association shall give the owner written notice of the Association's intent to provide necessary maintenance, repair, or replacement at owner's cost and expense. The notice shall set forth with reasonable particularity the maintenance, repair, or replacement deemed necessary by the Board of Directors. Unless the Board of Directors determines that an emergency exists, and except where the necessary maintenance is the responsibility of -20- the Association under Section 5(b) of this Article, the owner' shall have ten (10) days within which to complete maintenance or repair, or if the maintenance or repair is not capable of [ completion within such time period, to commence replacement or repair within ten (10) days. If the Board determines that an emergency exists, or if an owner does not comply with the demand given by the Association as herein provided, or if the maintenance item is the responsibility of the Association under Section 5(b) of this Article, the Association may provide any such maintenance, repair, or replacement at the owner's sole cost and expense, and such costs shall be added to and become a part of the assessment to which such owner is subject and shall become and be a lien against the unit, as hereinafter provided., (d) Measures Related to Insurance Coverage. (i) The Board of Directors, upon resolution, shall have the authority to require all or any unit owner(s) to do any act or perform any work involving portions of the Condominium which are the maintenance responsibility of the unit owner, which will, in the Board's sole discretion, decrease the possibility of fire or other damage in the Condominium, reduce the insurance premium paid by the Association for any insurance coverage or otherwise assist the Board in procuring or maintaining such insurance coverage. This authority shall include, but not be limited to, requiring all owners to turn off cut-off valves which may now or hereafter be installed during winter months for outside water spigots; requiring owners to sufficiently insulate.pipes or take other preventive measures to prevent freezing of water pipes; requiring owners to install smoke detectors; and such other measures as the Board may reasonably require. (ii) In addition to, and not in limitation of, any other rights the Association may have, if any unit owner does not comply with any reasonable requirement made by the Board of Directors pursuant to subparagraph (d)(i) above, the Association, upon fifteen (15) days' written notice (during which period the unit owner may perform the required act or work without further liability), may perform such required act or work at the unit owner's sole cost and expense. Said cost shall be added to and become a part of the assessment obligation of such unit owner and shall become a lien against the unit and shall be collected as provided in Article VI of these By -Laws. The Association shall have all rights necessary to implement the requirements mandated by the Board pursuant to subparagraph d(i) above, including, but not limited to, a right of entry during reasonable hours and after reasonable notice to the owner or occupant of the unit, except that access may be had at any time without notice in an emergency situation. -21- Article VI Assessments Section 1. Purpose of Assessment. The assessments for common expenses provided for herein shall be used for the general purposes of promoting the recreation, health, safety, welfare, common benefit, and enjoyment of the owners and occupants of units in the condominium as may be more specifically authorized from time to time by the Board. Assessments may be used to compensate officers and directors only if approved by a majority vote of the Association. Section 2. Creation of the Lien and Personal Obligation For Assessments. Each owner of any unit, 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) annual assessments or charges; (b) special assessments, such assessments to be established and collected as hereinafter provided; and (c) specific assessments against any particular unit which are established pursuant to the terms of these By -Laws or the Declaration. All such assessments, together with charges, interest, costs, and reasonable attorney's fees actually incurred, in the maximum amount permitted by the Declaration and the Act, shall be a charge on the unit and shall be a continuing lien upon the unit against which each assessment is made. Such amounts shall also be the personal obligation of the person who was the owner of such unit at the time when the assessment fell due. Each owner shall be liable for his or her portion of each assessment coming due while he or she is the owner of a unit, and his or her Grantee shall be jointly and severally liable for a portion thereof as maybe due and payable at the time of any conveyance. Assessments shall be paid in such manner and on such dates as may be fixed by the Board of Directors; unless otherwise provided, the annual assessments shall be paid in equal monthly installments due on the first day of each calendar month. Section 3. Delinquent Assessments. All assessments and related charges not paid on or before the due date shall be delinquent, and the owner shall be in default. (a) If any monthly installment of annual assessments or any part thereof is not paid in full by the tenth (10th) day of the month or if any other charge is not paid within ten (10) days of the due date, a late charge equal to the greater of Ten ($10.00) Dollars or ten (100) percent of the amount not paid, or such higher amounts as may be authorized by the Act, may be imposed without further notice or warning to the delinquent owner and interest at the maximum rate allowed by law shall accrue from the due date. -22- (b) If part payment of assessments and related charges is made, the amount received shall be applied in the following order, and no restrictive language on any check or draft shall be effective to change the order of application: (i) to any unpaid late charges which are not the subject matter of suit in the order of their coming due; (ii) to any unpaid interest charges which are not the subject matter of suit; (iii) to any unpaid specific assessments (including, but not limited to, fines imposed in accordance with the powers granted in the Condominium Instruments) in the order of their coming due; (iv) to costs of collection, including reasonable attorney's fees actually incurred by the Association; (v) to any unpaid installments of the annual assessment or special assessments which are not the subject matter of suit in the order of their coming due; (vi) to the fair rental value of the unit during the pendency of suit and prior to satisfaction of any judgment which remains unpaid; (vii) to any unpaid late charges which are the subject matter of suit in the order of their coming due; (viii) to any unpaid interest charges which are the subject matter of suit; and (ix) to any unpaid installments of the annual assessment or special assessments which are the subject matter of suit in the order of their coming due. (c) The fair rental value of the units, for purposes of this Section, shall be as established from time to time by the Board of Directors. Unless otherwise provided, the fair rental value shall be as follows: (i) Arden - $500.00/month; (ii) Brentwood - $550.00/month; (iii) Classic - $650.00/month; (iv) Devon - $650.00/month; (v) Elton - $700.00/month; and (vi) Foxcroft - $750.00/month. -23- (d) If assessments and related charges or any part thereof due from an owner remain delinquent and unpaid for a period greater than fifteen (15) days from the date due, a "Notice of Delinquency" may be given to that owner which shall state that if the assessment or charge remains delinquent for more than ten (10) days from the date of the Notice of Delinquency, the Board of Directors may accelerate and declare immediately due all of that owner's unpaid monthly assessment installments for that fiscal year. If an owner fails to pay all assessments and related charges currently due within ten (10) days of the date.of the Notice of Delinquency, the Board of Directors may then accelerate and declare immediately due all assessment installments for the remainder of that fiscal year, without any further notice being given to the delinquent owner. That owner shall thereby lose the privilege of paying the annual assessment in monthly installments for that fiscal year. (e) If assessments and related charges or any part thereof remain unpaid more than thirty (30) days after the assessment payments first become delinquent, the Association, acting through the Board of Directors, may institute suit to collect all amounts due pursuant to the provisions of these By -Laws, the Declaration, and Georgia law and suspend the owner's right to use the common elements or the easement properties (provided, however, the Board may not limit ingress or egress to or from a unit), whether or not a Notice of Delinquency has been sent, as provided above. Section 4. Computation of Operating Budget and Assessment. It shall be the duty of the Board at least thirty (30) days prior to the beginning of the Association's fiscal year to prepare a budget covering the estimated costs of operating the Condominium during the coming year. The Board shall cause the budget and the assessments to be levied against each unit for the following year to be delivered to each member at least thirty (30) days prior to the beginning of the Association's fiscal year. The budget and the assessment shall become effective unless disapproved at a duly called and constituted meeting of the Association by a vote of a majority of the total Association membership. Notwithstanding the foregoing, however, in the event that the membership disapproves the proposed budget or the Board fails for any reason so to determine the budget for the succeeding year, then and until such time as a budget shall have been determined as provided herein, the budget in effect for the current year shall continue for the succeeding year, and the Board may propose a new budget at any time during the year by causing the proposed budget and assessment to be delivered to the members at least thirty (30) days prior to the proposed effective date -24- thereof. Unless requested by the members, as provided for special meetings, the budget and assessment may take effect without a meeting of the members. Section 5. Special Assessments. If the assessment proves inadequate for any year, the Board may at any time levy a special assessment against all owners; provided, however, prior to becoming effective, any special assessment shall be approved by the affirmative vote of two-thirds (2/3) of those present, in person or by proxy, at a special or annual meeting of the members, notice of which shall specify that purpose. Section 6. Notice of Meetings. Written notice of any meeting called for the purpose of taking any action authorized under this Article shall be -sent to all members not less than twenty-one (21) days in advance of the meeting. Upon written request of any institutional holder of a first mortgage, that holder shall be entitled to written notice of any such meeting and shall be permitted to designate a representative to attend and observe the meeting. Section 7. Lien for Assessments. The Association shall have full and complete lien rights as provided or permitted by Section 44-3-109 of the Act, and.the lien shall specifically include the maximum costs, charges, fees, and rents set out in the Declaration and in Section 44-3-109(b) of the Act. Section B. Capital Budget and Contribution. The Board of Directors shall annually prepare a capital budget which shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost. The Board shall set the required capital contribution, if any, in an amount sufficient to permit meeting the projected capital needs of the Association, as shown on the capital budget, with respect both to amount and timing by equal annual assessments over the period of the budget. The capital contribution required shall be fixed by the Board and included within the budget and assessment as provided in this Article. A copy of the capital budget shall be distributed to each member in the same manner as the operating budget. Section 9. Statement of Account. Any owner, mortgagee, or a person having executed a contract for the purchase of a unit, or a lender considering a loan to be secured by a unit shall be entitled, upon written request, to a statement from the Association setting forth the amount of assessments due and unpaid, including any late charges, interest, fines, or other charges against a unit. The -25- Association shall respond in writing within five (5) days of receipt of the request for a statement; provided, however, the Association may require the payment of a fee, not exceeding Ten ($10.00) Dollars, as a prerequisite to the issuance of such a statement. Section 10. Assessments by Declarant. Notwithstanding anything to the contrary herein, the Declarant may contribute assessments due from it in services or materials or a combination of services and materials, rather than in money, (herein collectively called "in kind contribution"). The amount by which monetary assessments shall be decreased as a result of any in kind contribution shall be the fair market value of the contribution. If the Declarant and the Association agree as to the value of any contribution, the value shall be as agreed. If the Association and the Declarant cannot agree as to the value of any contribution, the Declarant shall supply the Association with a detailed explanation of the service performed and material furnished, and the Association shall. acquire bids for performing like services and furnishing like materials from three (3) independent contractors approved by the Declarant who are in the business of providing such services and materials. If the Association and the Declarant are still unable to agree on the value of the contribution, the value shall be deemed to be the average of the bids received from the independent contractors. -- Article VII Use Restrictions and Rule Making Section 1. Authority and Enforcement. The Condominium shall be used only for those uses and purposes set out in the Declaration. The Board of Directors shall have the authority to make and to enforce reasonable rules and regulations governing the conduct, use, and enjoyment of units, the easement property and the common elements, provided that copies of all such rules and regulations be furnished to all owners. The Board shall have the power to impose reasonable fines, which shall constitute a lien upon the property, and to suspend an owner's right to vote or to use the common elements or the easement properties for violation of any duty imposed under the Declaration, these By -Laws, or any rules and regulations duly adopted hereunder; provided, however, nothing herein shall authorize the Association or the Board of Directors to limit ingress and egress to or from a unit. In the event that any occupant of a unit violates the Declaration, By -Laws, or a rule or regulation and a fine is,imposed, the fine shall first be assessed against such occupant; provided, however, if the fine is not paid by the occupant within the -26- time period set by the Board, the unit owner shall pay the fine upon notice from the Association. The failure of the Board to enforce any provision of the Act or of the Declaration, By -Laws, or any rule or regulation shall not be deemed a waiver of the right of the Board to do so thereafter. Section 2. Procedure. The Board shall not impose a fine or suspend a member's right to vote for violation of rules unless and until the following procedure is followed: (a) Demand. Written demand to cease and desist from an alleged violation shall be served upon the alleged violator specifying: (i) the alleged violation; (ii) the action required to abate the violation; and (iii) a time period, not less than ten (10) days, during which the violation may be abated without further sanction, if such violation is a continuing one, or a statement that any further violation of the same rule may result in the imposition of sanction after, if the violation is not continuing. (b) Notice. Within twelve (12) months of such demand and during the existence of a continuing violation or subsequent recurrence of a noncontinuing violation, if the violation continues past the period allowed in the demand for abatement without penalty, or if the same rule is subsequently violated, the Board shall serve the violator with written notice which shall contain: (i) the nature of the alleged violation; (ii) the proposed sanction to be imposed; (iii) a statement that the violator may challenge the fact of the occurrence of a violation, the proposed sanction, or both; (iv) the name, address, and telephone number of a person to contact to challenge the proposed action; and (v) a statement that the proposed sanction shall be imposed as contained in the notice unless a challenge is begun within ten (10) days of receipt of the notice. If a challenge is not made, the sanction shall be imposed ten (10) days from the date of the notice. (c) Hearing. If the alleged violator timely challenges the proposed action, a hearing before the Board of Directors or the Covenants Committee, if one has been appointed, shall be held in executive session affording the member a reasonable opportunity to be heard. The hearing shall be set and notice of the time, date (which shall be not less than ten (10) days from the giving of notice), and place of the hearing and an invitation to attend the hearing and produce any statements, evidence, and witnesses shall be sent to the alleged violator. Prior to the effectiveness of any sanction hereunder, proof of notice shall be placed in the minutes of the meeting. Such proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of -27- delivery, is entered by the officer or director who delivered such notice. The notice requirement shall be deemed satisfied if a violator appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed. (d) Appeal. If a hearing held according to subsection (c), above, was held before the Covenants Committee, the alleged violator shall have a right to appeal the decision to the Board of Directors. To perfect this right, a written notice of appeal must be received by the manager, President, or Secretary of the Association within thirty (30) days after the hearing date. The results of any hearing which is not appealed within the time period shall be conclusively presumed to have been concurred in by all parties. Section 3. Additional Enforcement Rights. Notwithstanding anything to the contrary herein contained, the Association, acting through its Board of Directors, may elect to enforce any provision of the the Act, the Declaration, these By -Laws, or the rules and regulations by self-help (specifically including, but not limited to, the towing of vehicles that are in violation of parking rules and regulations, as provided below) or by suit at law or in equity to enjoin any violation or to recover monetary damages or both without the necessity for compliance with the procedure set forth in Section 2 of this Article. In any such action, to the maximum extent permissible, the owner or occupant responsible for the violation for which abatement is sought shall pay all costs, including reasonable attorney's fees actually incurred. Section 4. Parking Rules and Enforcement. All parking on the common area shall be governed by this Section. (a) Designation. Parking shall be only within designated parking spaces on the common elements (or limited common elements, in the case of golf carts) and only in a front first position. There are no assigned parking spaces. All parking spaces for automobiles on the common elements are on a first come, first served basis. Golf carts shall be parked only in areas specifically designated therefor, All parking spaces designated specifically for golf carts are limited common elements for the exclusive use of the owners to whose units they are appurtenant. No more than two (2) passenger automobiles per unit shall be allowed to be parked on the Condominium Property at any time. The Board of Directors may by rule further define, limit, or regulate parking. (b) Prohibited Vehicles. No vehicle other than a passenger automobile shall be authorized to park on the common areas, except in an area or areas, if any, specifically MR&M designated by the Board of Directors for parking or storing any one or more designated types of prohibited vehicles. Without limiting the generality of the foregoing, the following "prohibited vehicles" are strictly prohibited from being parked, stored, or allowed to remain on the common areas (except in an area or areas, if any, specifically designated by the Board of Directors for parking or storing any one or more designated types of prohibited vehicles): abandoned vehicles, disabled vehicles, stored vehicles, motorcycles, boats, boat trailers, campers, trailers of any kind, recreational vehicles, trucks, vehicles primarily used for commercial purposes, and i vehicles with commercial writings on their exteriors. Notwithstanding the above, trucks and commercial vehicles shall be allowed temporarily on the common areas during normal business hours for the purpose of serving any unit or the common areas; provided that no such vehicle shall be authorized to remain on the common areas overnight or for any purpose except serving a unit or the common areas. (c) Definitions. For the purposes of this Section, the terms used herein are defined as follows: (i) An "abandoned vehicle" shall mean a vehicle that is both obviously inoperable or does not have a current operating license and remains parked on the Condominium Property for fourteen (14) consecutive days. (ii) A "disabled vehicle" shall mean any vehicle either not in current operating condition or without a current operating license. (iii) A "stored vehicle" shall mean any vehicle other than an abandoned vehicle which remains parked in the same spot for fourteen (14) consecutive days or which is put on blocks or covered with a tarpaulin and remains on blocks or covered with a tarpaulin for more than forty-eight (48) hours without the prior written consent of the Board of Directors. (iv) A passenger vehicle shall be deemed to include a van designed and used as a primary passenger vehicle. (d) Procedure. If any vehicle is parked on the common area except as authorized by this Section, a notice shall be placed on the vehicle designating the provision hereof which is being violated and indicating that after two (2) days the vehicle may be towed and designating the name and telephone number of the person who will do the towing and setting forth the name and telephone number of a person to contact regarding the alleged violation; provided, however, that in a situation where a vehicle is parked in a fire lane or is blocking another vehicle no notice shall be required and the vehicle may be towed immediately. If two (2) days after such notice is placed on the vehicle the violation continues or again occurs, the vehicle may be towed in accordance with the notice, without further notice to the owner or user of the vehicle. Any fee or expense incurred for towing and storage of any vehicle shall be paid by the owner or user of the vehicle. (e) Alternative Procedure. Notwithstanding anything to the contrary herein, the Board of Directors may elect to use the procedure set forth in Section 2, above, to impose a fine or other available sanction, rather than exercise its authority to tow, as set forth herein. (f) Liability. If a vehicle is towed in accordance with this Section, neither the Association nor any officer or agent of the Association shall be liable to any person for any claim of damage as a result of the towing activity. Article VIII Miscellaneous Section 1. Notices. Unless otherwise provided in these,By-Laws all notices, demands, bills, statements, or other communications under these By -Laws shall be in writing and shall be deemed to have been duly given if delivered personally or if ;sent by United States mail, first class postage prepaid: (a) If to a unit owner, at the address which the unit owner has designated in writing and filed with the Secretary, or if no such address has been designated, at the address of the unit of such owner; (b) If to the Association, the Board of Directors or the Managing Agent, at the principal office of the Association or the Managing Agent, if any, or at such other address as shall be designated by the notice to the owners and Declarant, if required, pursuant to this Section; or (c) If to the Declarant, as specified in the Declaration or at such other address as shall be designated by a notice to the owners and the Association pursuant to this Section. Section 2. Severability. The invalidity of any part of these By -Laws shall not impair or affect in any manner the validity, enforceability, or effect of the balance of these By -Laws. -30- Section 3. Captions. The captions herein are inserted only as a matter of convenience and for reference and in no way define, limit, or describe the scope of these By -Laws or the intent of any provision thereof. Section 4. Gender and Grammar. The use of the masculine gender in these By -Laws shall be deemed to include the feminine gender, and the use of the singular shall be deemed to include the plural whenever the context so requires. Section 5. Fiscal Year. The fiscal year of the Association may be set by resolution of the Board of Directors. In the absence of affirmative action by the Board of Directors, the fiscal year shall be the calendar year. Section 6. Financial Review. A financial review of the accounts of the Association shall be made annually as a common expense by a public accountant, and a copy of the report shall be furnished to each member who requests a copy in writing. The Association shall, upon the vote of a majority of the members present in person or by proxy at a duly constituted meeting thereof, cause an audit to be performed by a certified public accountant as a common expense. Upon written request of any institutional holder of a first mortgage, such holder shall be entitled to receive a copy of the annual financial statement within ninety (90) days after the end of each fiscal year. Section 7. Conflicts. In the event of conflicts between the Act, the Georgia Nonprofit Corporation Code, the Declaration, the Articles of Incorporation, and these By -Laws, the order of control shall be the order listed above. Section 8. Condemnation. In the event of a taking by condemnation or by eminent domain, the provisions of the Act shall prevail and govern. Each institutional holder of a first mortgage shall be entitled to written notice of any such condemnation proceedings, and nothing in these documents shall be construed to give a priority to any unit owner in the distribution of proceeds to such unit. Section 9. Amendment. These By -Laws may be amended by the affirmative vote, written consent, or any combination of affirmative vote and written consent of the members holding two-thirds (2/3) of the total vote of the Association. Notice of any meeting at which an amendment will be considered shall state that fact and the subject matter of the proposed amendment. No amendment shall become effective until it is certified by the officers of the Association and recorded in the official records of Fayette County, Georgia. Notwithstanding anything to the contrary herein, any amendment -31- covered by Sections 12 (b), (c) or (d) of the Declaration shall not be effective until the requirements of that Section are met. Any amendment duly certified and recorded (containing any additional signatures required by the Declaration) shall be conclusively presumed to have been duly adopted in accordance with the Declaration and By -Laws. Section 10. Books and Records. All members of the Association and any institutional holder of a first mortgage shall, upon written request, be entitled to inspect all books and records of the Association during normal business hours at the office of the Association or upon reasonable notice at the office of the Association or other place designated reasonably by the Board of Directors as the depository of such books and records. Section 11. Mortgagees' Notice. A first mortgagee, upon written request, will be entitled to written notification from the Association of any default by an'individual unit owner, who is the mortgagee's mortgagor, of any obligation arising from the Declaration and By -Laws and not cured within thirty (30) days. We, the undersigned, being all of the directors of Ridgelake Condominium Association, Inc., ("Association"), do hereby certify: That we are entitled to exercise all of the voting power of the Association; and That we hereby assent to the within and foregoing ByLaws and hereby adopt same as the By -Laws of the Association at its organizational meeting held IN WITNESS WHEREOF, we have hereunto subscribed our names as of the day of , 19 0944g -32- 30KN A. STRAMA, Director STEVEN LAMBERT, Director MICHAEL MCGWIER, Director RIDGELAKE CONDOMINIUM ESTIMATED 1986-87 HOMEOWNER ASSOCIATION FEES TOTAL MONTHLY MONTHLY 70 HOMES Administration $ 2.26 $ 158.20 Building Repairs .50 35.00 Capital Improvements Reserve 9.20 644.00 Electricity 5.96 417.20 Grounds Maintenance 23.81 1,666.70 Insurance 8.92 624.40 Management Fees Pest Control Pool/Tennis Courts Maintenance Sanitation Collection Supplies and Printing Water and Sewer .48 5.95 6.52 .50 17.90 E -*Affil 33.60 416.50 456.40 35.00 1253.00 5740.00 TOTAL ANNUAL 70 HOMES $ 1,898.40 420.00 7,728.00 5,006.40 20,000.40 7,492.80 403.20 4,998.00 5,476.80 420.00 15,036.00 STATEMENT REGARDING EXPANSION AND RECREATIONAL FACILITIES Expansion The Declarant expressly reserves the option and right, but not the obligation, to expand the Condominium; and, subject to the Declaration and the Act, to submit to the Condominium all or any portion of the Additional Property described on Exhibit "C" attached hereto and by this reference incorporated herein, including any improvements thereon. Except as contained herein, there are no limitations upon this option to expand. (a) This option to expand shall expire seven (7) years from the date of recording the Declaration, unless all of the Additional Property shall have been added to the Condominium before that time; provided that the time may be extended by the affirmative vote or written consent, or any combination of affirmative vote and written consent, of two-thirds (2/3) of the total vote of the Association, excluding any votes held by Declarant at any time during the year preceding the time the option would otherwise expire. (b) The Property shall be developed in five (5) Phases. The Additional Property within any Phase may be added as a whole at one time or in one or more portions at different times, or it may never be added, and there are no limitations upon the order of addition or boundaries thereof. The parcels submitted to the Condominium need not be contiguous and the exercise of the option as to any portion of the Additional Property shall not bar the further exercise of the option as to any other portions of the Additional Property. (c) There are no limitations on the locations or dimensions of improvements to be located on the Additional Property. No assurances are made as to what, if any, further improvements will be made by Declarant on any portion of the Additional Property. (d) The maximum number of units that may be created in the Condominium is seventy (70). The maximum average number of units per acre that may be created on the Additional Property is six (6). (e) The Additonal Property, when and if added to the Condominium, shall be subject to the use restrictions contained in the Declaration or subsequently promulgated in accordance therewith. (f) Any structures and improvements placed, constructed, replaced, or reconstructed on the Additional Property, if added to the Condominium, will be compatible with and the same as or similar to the existing units in the Condominium as to quality of construction and architectural style. No assurances are made with respect to materials to be used in improvements placed on the Additional Property. (g) No assurances are made that units constructed on the Additional Property will be substantially identical to those in the Condominium. (h) The Declarant shall have the unlimited right to assign some of the Additional Property as limited common elements. (i) If the option to expand the Condominium is exercised, the undivided interest in the common elements, the liability for common expenses, and votes in the Association shall all be reallocated so that the interest, liability, and vote of each unit is equal to that of every other unit in the Condominium, as expanded. - (j) This option reserved shall be exercisable by the Declarant and the consent of unit owners shall not be required. Declarant shall have the unilaterial right to reallocate percentages of undivided interests in the common elements, liability for payment of common expenses, and allocation of votes in the Association, all to be done in accordance with the limitations above described. The Declarant shall exercise the option by its adoption, execution, and recordation of an amendment to the Declaration and by recording such plats, certifications, and plans as may be required by the Act. Recreational Facilities The following recreational facilities and amenities will be a part of the condominium. (a) One tennis court; (b) A pool with a maximum five and one half (52) foot depth; (c) A building located near the pool for equipment, storage, and restrooms; and (d) A golf cart path which will be made of asphalt approximately six (6') foot wide will be constructed to wander through the condominium property. Bou 1'17ME 594 FILED !r RECORDED FAYETTE COUtiTY, GA. '9Q NOU ] 2 Rn 1127 W.A. BALLARD. CLERK Return to: Weissman, Nowack, Curry A Wilco, P.C. Two Midtown Pial 156 Hoot 1349 West Peatfi7ee Strad Atlanta,Gooftia 30309 STATE OF GEORGIA.. Cross Reference: Deed Book 392 COUNTY OF FAYETTE Page 425 1 AMENDMENT TO THE BY-LAWS OF THE RIDGELAKE CONDOMINIUM ASSOCIATION, INC. WHEREAS, Ridgeway Development Corp., a Georgia Corporation, filed and recorded a Declaration of Condominium for Ridgelake Condominium in Deed Book 392, Page 425, et seq., Fayette County, Georgia records on June 27, 1986 ("Declaration"); and WHEREAS, the By -Laws of the Ridgelake Condominium Association, Inc. are attached to the Declaration as Exhibit "D" and recorded in Deed Book 392, Page 463 et seq. (`By - Laws"); WHERAS, Article VIII, Section 9 of the By -Laws provides that the By -Laws may be amended by the affirmative vote, written consent, or any combination of affirmative vote and written consent of members holding two-thirds (2/3rd) of the total vote of the Association; WHEREAS, Unit Owners holding two-thirds (2/3rd) of the total Association vote have approved the following amendments to the By -Laws; NOW, THEREFORE, the By -Laws of the Ridgelake Condominium Association, Inc. are hereby amended as follows: aCUht.;.LA, Fayette t,ounty Clark's Office 3,3raa:1.01' Court c-_�rti4,y ti -1,1t theu{.rhin ani fcsr:;.rrj.T t_� z tzuc, correct 2nd crirplet.e e t' y o LI.A-. 1?r.!.�_tn�J l.ilat r•f•rr:ars /c�E •Elle r tttttt Y :..: �� 3r I.,�c {:..1 % T tf.` �J�!/'� ,, . A. B 11 ard, Clerk a, 4 1n rf••, r,' j FILED & REMIDE0 FAYETTE COUNTY, CA, `98 NOU ].2 An 1127 4 W.A. BALLARD. CLERK [ 1 Return to: Weissman, Nowact. Curry & Wilco, P.C. Two Midtown Plus, 15' Floor 1349 West Peachtree Street Atlanta, Georgia 30309 STATE OF GEORGIA Reference: Deed Book 392 Page 425 COUNTY OF FAYETTE Deed Book 551 Page 427 Deed Book 624 Page 641 T AltifEi�Dll1ENT TO THE DECLARATION OF CONDOATINIUM - FOR RIDGELAKE CONDONiNIUNI WHEREAS, Ridgeway Development Corp., ("Declarant") a Georgia corporation, filed and recorded that certain Declaration of Condominium for R.idgelake Condominium in Deed Book. 392, page 425, , j seg., Fayette County, Georgia records on lune 27, 1986 ("Declaration"); and WHEREAS, the plat for Ridgelake Condominium ("Condominium") was recorded in Condominium Plat Book 1, page 30-31, Fayette County, Georgia records; and WHEREAS, the Declaration was amended previously by an amendment recorded in Deed Book 551, Page 427 et seg., Fayette County, Georgia records on May 3, 1989 and an -! amendment recorded in Deed Book 551, Page 427 on October 10, 1990; _ ut;UKG;IA, enyette t.orttjty OOaK j r1 PAGE 5 9 Clerk'n office Superior Court I ltrrr r,�r c^rtif y that the a itl' j tt Copp of c.hc 0rj-g'!nal r_lta: and record ici ^;el:</V-ILOG� in thio office. 1 this _ I riay of T °L-Jy icl� 4'v. A. tlallnrd, Clerk b rt�}'4 I`