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RetreatDECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR THE RETREAT HOMEOWNERS ASSOCIATION HYATT & RHOADS, P.C. Attorneys 2200 Peachtree Center Harris Tower Atlanta, Georgia 30303 (404) 659-6600 1275 K Street, N.W. Washington, D.C. 20006 (202) 488-4418 1725 Central Savings Tower San Diego, California 92101 (619) 232-0811 - TABLE OF CONTENTS - Article III. IV. VI. Section DEFINITIONS PROPERTY SUBJECT TO THIS DECLARATION 1. Property Hereby Subjected 2. Page 1 2 To This Declaration.... ..................... 2 Other Property ............................. 2 ASSOCIATION MEMBERSHIP AND VOTING RIGHTS 1. Membership ................................. 2. Voting ..................................... ASSESSMENTS 2. Purpose of Assessment ...................... Creation of the Lien and Personal Obligation for Assessments ................. 3. Computation ................................ 4. Special Assessments ........................ 5. Lien for Assessments ....................... Effect of Nonpayment of Assessments: Remedies of the Association ................ 7. Date of Commencement of Annual Assessments ............... · ................. 8. Assessment Obligation of Declarant ......... 9. Specific Assessments ....................... MAINTENANCE 7 ibiiity 1. Association's Respo~f ............... 7 Z. O~ner's Responsibility ..................... 7 3. Party Wails and Party Fences ............... s USE RESTRICTIONS AND RULES 1. General .................................... 9 Z. Use of Lots ................................ 9 3. Signs ...................................... 9 4. Vehicles ................................... 9 5. Leasing .................................... 9 6. Occupants Bound ............................ 9 7. Animals and Pets .......................... 10 8. Nuisance .................................. l0 9. Unsightly or Unkempt Conditions ........... 10 10. Architectural Standards ................... l0 11. Antennas .................................. 1~ 12. Gardens. Play Equipment, and Pools ........ 11 13. Tree Removal ............... ................ 11 Article VII. VIII. IX. Xe XI. XII. Section Page 14. Lighting .................................. 11 15. Drainage .................................. 12 16. Site Distance at Intersections ............ 12 17. Clotheslines, Garbage Cans, Woodpiles, 18. Subdivision of Lot ........ 19. Guns ...................... 20. Solar Devices ............. 21. Fences .................... 22. Exterior Colors ........... 23. Mailboxes ................. INSURANCE AND CASUALTY LOSSES ............... ............... 12 ............... ............... 12 ..... .......... 13 13 1. Insurance ................................. 13 2. Damage and Destruction -- Common Property ........................... 15 3~, Damage and Destruction -- Lots ............ 16 CONDEMNATION 16 ANNEXATION OF ADDITIONAL P~OPERTY 17 1. Unilateral Annexation By Declarant ........ 17 2. Other Annexation .......................... 17 MORTGAGEE PROVISIONS 18 1. Notices of Action ......................... 18 Z. Special FHLMC Provision ................... 18 3. No Priority ............................... 19 4. Notice to Association ..................... 19 5. Amendments by Board ....................... 19 EASEMENTS ZO 1. Easements for Encroachment and Overhang...20 2. Easements for Use and Enjoyment ........... 3. Easements for Utilities ................... 21 GENERAL PROVISIONS 1. Enforcement ........................ 2. Self-Help ........................ Duration ......................... 4. Amendment ........................ 5. Partition ........................ 22 ..... 22 ..... 22 ..... 23 6. Gender and Grammar .................... 24 7. Severability ............................ 8. Captions ................................ 24 9. Preparer .................................. 24 10. Conveyances of Common Property ............ 24 11. Perpetuities .............................. 24 Article Section Page 12. Indemnification ........................... 25 13. Construction and Sale Period .............. 25 14. Contracts Executed During Declarant Control ................................... 26 15. Books and Records ......................... 27 16. Audit ..................................... 27 17. Notice of Sale or Lease ................... 27 18. Agreements ................................ 28 DECLARATION OF COVENANTS. CONDITIONS, AND RESTRICTIONS FOR THE RETREAT HOMEOWNERS ASSOCIATION THIS DECLARATION is made on the date hereinafter set forth by John Wieland Homes. Inc.. a Georgia corporation. (here- inafter sometimes called "Declarant"): W I TNE S SETH WHEREAS, Declarant is the owner of the real property described in Article II, Section 1, of this Declaration: and WHEREAS. Declarant desires to subject the real proper- ty desribed in Article II, Section 1, hereof to the provisions of this Declaration to create a residential community of single- family housing and to provide for the subjecting of other real property to the provisions of this Declaration: NOW, THEREFORE, Declarant hereby declares that the real property described in Article II, Section 1, of this Dec- laration, including the improvements constructed or to be con- structed thereon, is hereby subjected to the provisions of this Declaration and shall be held. sold. transferred, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments, and liens, hereinafter set forth, which are for the purpose of protecting the value and desirability of, and which shall run with the title to, the real property hereby or hereafter made subject hereto, and shall be binding on all persons having any right, title, or interest in all or any portion of the real property now or hereafter made subject hereto, their respec:ive heirs, legal representatives, successors, successors-in-title, and assigns and shall inure to the benefit of each and every owner of all or any portion thereof. Article I Definitions Unless the context shall ~rohibit, certai~ words used in this Declaration shall have the definitional meaning set forth in Exhibit "A". attached hereto and by reference made a part hereof. Article II Property Sub)ect To This Declaration Section 1. Property Hereby Subiected To This Declara- tion. The real property which is, by the recording of this Dec- laration, subject to the covenants and restrictions hereafter set forth and which, by virtue of the recording of this Decla- ration, shall be held, transferred, sold, conveyed, used, oc- cupied, and mortgaged or otherwise encumbered subject to this Declaration is the real property described in Exhibit "B", at- tached hereto and by reference made a part hereof. Section 2. Other Property. Only the real property de- scribed in Section 1 of this Article II is hereby made sub)err to this Declaration; provided, however, by one or more Supple- mentary D~clarations, Declarant and the Association have the right, but not the obligation, to subject other real property to this Declaration, as hereinafter provided. Association Membership and Voting Rights Section 1. Membership. Every Person who is the record owner of a fee or undivided fee interest in any Lot that is subject to this Declaration shall be deemed to have a member- ship in the Association. The foregoing is not intended to 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. No Owner, whether one or more Persons, shall have more than one (1) mem- bership per Lot. In the event of multiple Owners of a Lot, votes and rights of use and enjoyment shall be as provided in this Declaration and in the By-Laws. Membership shall be appurtenant to and may not be separated from ownership of any Lot. The rights and privileges o~.-membership, including the right to vote and to hold office, may be exercised by a member or the member's spouse, but in no event shall more than one (1) vote be cast nor office held for each Lot owned. Section 2. Voting. Members shall be entitled to one (1) vote for each Lot owned. When more than one Person holds an ownership interest in any Lot, the vote for such Lot shall be exercised as those Owners themselves determine and advise the Secretary prior to any meeting. In the absence of such advice, the Lot's vote shall be suspended in the event more than one Person seeks to exercise it. - 2 - Article IV Assessments Section 1. Purpose of Assessment. The assessments provided for herein shall be used for the general purposes of promoting the recreation, health, safety, welfare, common bene- fit, and enjoyment of the Owners and occupants of Lots, includ- ing the maintenance of real and personal property, all as may be more specifically authorized from time to time by the Board of Directors. Section 2. Creation of the Lien and Personal Obliga- tion for Assessments. Each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay to the Association: (a) annual assessments or charges; (b) special assessments, such assessments to be established and collected as hereinafter pro- vided: and (c) specific assessments against any particular Lot which are established pursuant to the terms of this Declaration, including, ~ut not limited to, reasonable fines as may be im- posed in accordance with the terms of this Declaration. Ail such assessments, together with late charges, interest, not to exceed the maximum legal rate, costs, and reasonable attorney's fees actually incurred, shall be a charge on the land and shall be a continuing lien upon the Lot against which each assessment is made. Each such assessment, together with late charges, in- terest, costs, and reasonable attorney's fees actually incurred, shall also be the personal obligation of the person who was the Owner of such Lot at the time the assessment fell due. Each Owner shall be personally liable for his or her portion of each assessment coming due while he or she is the Owner of a Lot, and his or her grantee shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance: provided, however, the liability of a grantee for the unpaid assessments of its grantor shall not apply to any first Mortgage holder taking ~itle through foreclosure pro- ceedings or deed in lieu of foreclosure. Assessments shall be paid at a uniform rate per Lot in such manner and on such dates as may be fixed by the Board of Directors, which may include, without limitation, acceleration, upon ten (10) days' written notice, of the annual assessment for delinquents. Unless otherwise provided by the Board, the as- sessment shall be paid in annual installments. Section 3. Computation. It shall be the duty of the Board to prepare a budget covering the estimated costs of erating the Association during the coming year, which shall in- clude a capital contribution or reserve in accordance with a capital budget separately prepared. The Board shall cause the - 3 - budget and the assessments to be levied against each Lot for the' following year to be delivered to each member at least thirty (30) days prior to the end of the current fiscal year. The bud- get and the assessment shall become effective unless disapproved at a meeting by a Majority of the Owners. Notwithstanding the foregoing, however, in the event the membership disapproves the proposed budget or the Board fails for any reason so to deter- mine the budget for the succeeding year, then and until such time as a budget shall have been determined, as provided here- in, the budget in effect for the then current year shall con- tinue for the succeeding year. Section 4. Special Assessments. In addition to the other assessments authorized herein, the Association may levy special assessments in any year. So long as the total amount of special assessments allocable to each Lot does not exceed Three Hundred ($300.00) Dollars in any one fiscal year, the Board may impose the special assessment. Any special assessment which would cause the amount of special assessments allocable to any Lot to exceed this limitation shall be effective only if ap- proved by ~'Majority of the Owners and, so long as the Declarant has an option un'ilaterally to subject addition- al property to-this Declaration as provided in Article IX here- of, the Declarant. Special assessments shall be paid as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed. Section 5. Lien for Assessments. Ail sums assessed against any Lot pursuant to this Declaration, together with late charges, interest, costs, and reasonable attorney's fees actually incurred, as provided herein, shall be secured by a lien on such Lot in favor of the Association. Such lien shall be superior to all other liens and encumbrances on such Lot, except for (a) liens of ad valorem taxes; or (b) liens for all sums unpaid on a first Mortgage Or on any Mortgage to Declarant duly recorded in the land records of the county where the Com- munity is located and all amounts advanced pursuant to such Mortgage and secured thereby in accordance with the terms of such instrument. All other persons acquiring liens or encumbrances on any Lot after this Declaration shall have been recorded in such records shall be deemed to consent that such liens or en- cumbrances shall be inferior to future liens for assessments, as provided herein, whether or not prior consent is specif- ically set forth in the instruments creating such liens or encumbrances. Section 6. Effect of Nonpayment of Assessments: Rem- edies of the Association. Any assessments which are not paid - ¢ - when due shall be delinquent. Any assessment delinquent for a period of more than ten (10) days shall incur a late charge in an amount as the Board may from time to time determine. The Association shall cause a notice of delinquency to be given to any member who has not paid within ten (10) days following the due date. If the assessment is not paid within thirty (30) days, a lien, as herein provided, shall attach and, in addition, the lien shall include the late charge, interest, not to exceed the maximum legal rate, on the principal amount due, and all late charges from the date first due and payable, all costs of collection, reasonable attorney's fees actually incurred, and any other amounts provided or permitted by law. In the event that the assessment remains unpaid after sixty (60) days, the Association may, as the Board shall determine, institute suit to collect such amounts and to foreclose its lien. Each Owner, by acceptance of a deed or as a party to any other type of a conveyance, vests in the Association or its agents the right and power to bring all actions against him or her, personally, for the collection of such charges as a debt or to foreclose the aforesaid lien in the same manner as other liens for the improvement of real property. The lien provided for in this Article shall be in favor of the Association and shall be for the benefi~'of all other Owners. The Association, acting on behalf of the Owners, shall have the power to bid on the Lot at any foreclosur6 'sale or to acquire, hold, lease, mortgage, or convey the same. No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration, but not limitation, abandonment of the Lot. No diminution or abatement of assessment shall be claimed or allowed by reason of any alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or the By-Laws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority, the,.-obligation to pay assessments being a separate and independent covenant on the part of each Owner. All payments shall be applied first to costs and attor- ney's fees, then to late charges, then interest and then to de- linquent assessments. Section 7. Date of Commencement of Annual Assessments. The annual assessments provided for herein shall commence as to all Lots then existing and sub)err to assessment under this Declaration on the first day of the month following the convey- ance of the first Lot by the Declarant to a Person other than Declarant and shall be due and payable in a manner and on a - 5 - schedule as the Board of Directors may provide. The first an- nual assessment shall be adjusted according to the number of months then remaining in that fiscal year. Section 8. Assessment Obligation of Declarant. (a) After the commencement of assessment payments as to any Lot, Declarant, on behalf of itself and its successors and assigns covenants and agrees to pay the full amount of the assessments provided herein for each Lot it owns containing an occupied residence: provided, however, each Lot owned by Declarant which does not contain an occupied residence shall not be subject to any assessment provided for herein. (b) 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 contribu- tion''). The amount by which monetary assessments shall be de- creased as a result of any in kind contribution shall be the fair markeC-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 ser- vices and materials. If the Association and the Declarant are still unable to agree on the value of the contribution, the val- ue shall be deemed to be the average of the bids received from the independent contractors. Section 9. Specific Assessments. The Board shall have the Dower to specifically assess pursuant to this Section as. in its discretion, it shall deem appropriate. Failure of the Board to exercise its authority under this Section 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 Section in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this Sec- tion. The Board may specifically assess Lots for the following Association expenses, except for expenses incurred for mainte- nance and repair of items which are the maintenance responsibil- ity of the Association as provided herein: (a) Expenses of the Association which benefit less than all of the Lots may be specifically assessed equitably - 6 - among all of the Lots which are benefitted according to the benefit received. (b) Expenses of the Association which benefit all Lots, but which do not provide an equal benefit to all Lots, may be assessed equitably among all Lots according to the bene- fit received. Article V Maintenance Section 1. Association's Responsibility. The Associa- tion shall maintain and keep in good repair the Common Property. This maintenance shall include, without limitation, maintenance, repair, and replacement, sub)ect to any insurance then in ef- fect, of all landscaping and improvements situated on the Common Property. The Association shall maintain all entry features for the Community. The Association shall also maintain all property outside of-Lots located within the Community which was origin- ally maintained by Declarant. In addition, the Association shall have the right, but not the obligation, to maintain property not owned by the Asso- ciation where the Board has determined that such maintenance would benefit all Owners. The foregoing maintenance shall be performed consistent with the Community-Wide Standard. Section 2. Owner's Responsibility. All maintenance of the Lot and all structures, parking areas, and other im- provements thereon shall be the sole responsibility of the Owner thereof, who shall maintain such Lot in a manner consistent with the Community-Wide Standard and this Declaration. In the event that the Board of Directors of the Association determines that (a) any Owner has failed or refused to discharge properly his obligations with regard to the maintenance, repair, or replace- ment of items for which he is responsible hereunder; or (b) that the need for maintenance, repair, or replacement, which is the responsibility of the Association hereunder, is caused through the willful or negligent act of an Owner, his or her family, guests, lessees, or invitees, and is not covered or paid for by insurance, in whole or in part, then, the Association may per- form the repair, replacement or maintenance and shall, except in the event of an emergency situation, give the Owner written notice of the Association's intent to provide such necessary maintenance, repair, or replacement, at Owner's sole cost and expense. The notice shall set forth with reasonable particular- ity the maintenance, repairs, or replacement deemed necessary. The Owner shall have ten (10) days within which to complete such maintenance, repair, or replacement, or, in the event that such maintenance, repair, or replacement is not capable of completion within a ten (10) day period, to commence such work which shall be completed within a reasonable time. If any Owner does not comply with the provisions hereof, the Association may provide any such maintenance, repair, or replacement at Owner's sole c0st and expense, and all costs shall be added to and become a part of the assessment to which such Owner is subject and shall become a lien against the Lot. Section 3. Party Walls and Party Fences. (a) General Rules of Law to Apply. Each wall or fence built as a part of the original construction of the Lots which shall serve and separate any two (2) adjoining Lots shall con- stitute a party wall or fence and, to the extent not inconsis- tent with the provisions of this Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. (~) Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall or fence shall be shared by th~.Owners who make use of the wall or fence in equal proportions. (c) Damage and Destruction. If a party wall or fence is destroyed or damaged by fire or other casualty, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, any Owner who has used the wall may restore it, and if the other Owner or Owners thereaf- ter make use of the wall, they shall contribute to the cost of restoration thereof in equal proportions without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions. (d) Right to Contributi6n Runs With Land. The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's successors-in-title. (e) Arbitration. In the event of any dispute aris- ing concerning a party wall or fence, or under the provisions of this Sectioa, each party shall appoint one (1) arbitrator. Should any party refuse to appoint an arbitrator within ten (10) days after written request therefor by the Board of Direc- tors, the Board shall appoint an arbitrator for the refusing party. The arbitrators thus appointed shall appoint one (1) additional arbitrator and the decision by a majority of all three (3) arbitrators shall be binding upon the parties and - $ - shall be a condition precedent to any right of legal action that either party may have against the other. Article VI Use Restrictions and Rules Section 1. General. The Board of Directors may, from time to time, without consent of the members, promulgate, mod- ify, or delete use restrictions and rules and regulations ap- plicable to the Lots and the Common Property. 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 within the Community. 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 Community. Such regulations and use restrictions shall be binding upon all Owners and occupants until and unless over- ruled, cancelled, or modified in a regular or special meeting by the vote,of Owners holding a Ma)ority of the total votes in the Association and by the. vote of the Declarant, so long as the Declarant has an option unilaterally to subject additional property to thi~ Declaration as provided in Article IX hereof. Section 2. Use of Lots. All Lots shall be used for single-family residential purposes exclusively. No business or business activity shall be carried on or upon any Lot at any time except with the written approval of the Association. Leasing of a Lot shall not be considered a business or business activity. Section 3. Signs. No sign of any Rind shall be erected by an Owner within the Community without the written consent of the Board. The-Board shall have the right to erect reasonable and appropriate signs. Section 4. Vehicles. Vehicles shall not be parked on any subdivision street or on any Lot, including the driveway, so as to be visible from the street for periods of more than twenty-four (24) continuous hours. The term "vehicles," as used herein, shall include, without limitation, motor homes, boats, trailers, motorcycles, scooters, trucks, campers, buses, and automobiles, Section 5. Leasing. Lots may be leased for residen- tial ~urposes. Section 6. Occupants Bound. Ail provisions of the Declaration and of any rules and regulations or use restrictions promulgated pursuant thereto which govern the conduct of Owners - 9 - and which provide for sanctions against Owners shall also apply to all occupants of any Lot. Section 7. Animals and Pets. No animals, livestock, or poultry of any kind may be raised, bred, kept, or permitted on any Lot, with the exception of dogs, cats, or other usual and common household pets in reasonable numbar, as determined by the Board: provided, however, those pets which are permitted to roam free, or. in the sole discretion of the Board, endanger the health, make objectionable noise, or constitute a nuisance or inconvenience to the Owners of other Lots or the owner of any property located adjacent to the Community may be removed by the Board. No pets shall be kept, bred or maintained for any commercial purpose. Dogs which are household pets shall at all times whenever they are outside a Lot bm confined on a leash. Without prejudice to the Board's right to remove any such household pets, no household pet that has caused damage or injury may be walked in the Community. Seution 8. Nuisance. It shall be the responsibil- ity of each Owner to prevent the development of any unclean, unhealthy, unsightly, or unkempt condition of his or her Lot. No Lot shall be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or material be kept up- on any Lot that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon tending to cause embarassment, discomfort, annoyance, or nui- sance to any person using any property adjacent to the Lot. There shall not be maintained any plants or animals or device or thing of any sort whose activities or existence in any way is noxious, dangerous, unsightly. 'unpleasant, or of a nature as may diminish or destroy the enjoyment of the Community. Section 9. Unsightly or Unkempt Conditions. The pur- suit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly and disassembly of motor vehicles and other mechanical devices, which might tend to cause disorderly, unsightly, or unkempt con- ditions, shall not be pursued or undertaken in any part of the Community. Section 10. Architectural Standards. No exterior construction, alteration, addition, or erection of any nature whatsoever, including, without limitation, fences, shall be com- menced or placed upon any part of the Community, except such as - l0 - is installed by the Declarant, or as is approved in accordance with this Section, or as is otherwise expressly permitted here- in. No exterior construction, addition, erection, or altera- tion shall be made unless and until the plans and specifications showing the nature, kind, shape, height, materials, and location shall have been submitted in writing to and approved by the Board or its designee. The Board or its designee may promulgate written guidelines for the exercise of this review. The Board or its designee shall be the sole arbiter of such plans and may withhold approval for any reason, including purely aesthetic considerations, and it shall be entitled to stop any construction in violation of these restrictions. Any member of the Board or its representatives shall have the right. during reasonable hours, to enter upon any Lot to inspect any Lot and any improvements thereon for the purpose of ascertain- ing whether or not these restrictive covenants have been or are being complied with. Such person or persons shall not be deemed guilty of trespass by reason of such entry. In the event the Board or its designee fails to approve or to disapprove such design and location within sixty (60) days after the plans and specifications have been submitted to it, approval will not be required, and ~h'is Section will be deemed to have been fully complied with. Section 11. Antennas. No exterior antennas of any kind shall be placed, allowed, or maintained upon any portion of the Community, including any Lot, without the prior written consent of the Board or its designee. No free standing antennas whatsoever shall be placed on any Lot, including, without limitation, satellite dishes. However, the Board reserves the right to (but shall not be obligated to) erect a master antenna, satellite dish or other similar master system for the benefit of the Community as a whole. Section 12. Gardens, Play Equipment, and Pools. Or- namental plants and shrubbery (and only ornamental plants and shrubbery) may be planted between the rear of the dwelling and any street line. All other planting may be done only with prior written approval of the Board or in accordance with the guidelines previously established by the Board. Any vegetable garden, hammocks, statuary, play equipment, or pools must be located between the rear of the dwelling and the rear Lot line. Section 13. Tree Removal. No trees which are left on the Lot at closing shall be removed without the express con- sent of the Association, except for (a) diseased or dead trees: and (b) trees needing to be removed to promote the growth of other trees. Section 14. Lighting. Except for lighting as originally installed by Declarant, exterior lighting visible from the street shall not be permitted, except for (a) one (1) decorative post light: (b) a street light in conformity with an - il - established street lighting program for the Community: (c) seasonal decorative lights at Christmas: or (d) front house illumination of a model home constructed by the Declarant. Section 15. Drainage. Catch basins and drainage areas are for the purpose of natural flow of water only. No obstruc- tions or debris shall be placed in these areas. No Owner of any Lot may obstruct or rechannel the drainage flows after instal- -lati0n of drainage swales, storm sewers, or storm drains are located. Declarant reserves the right to prepare sloping banks, cut or fill, on a three (3) to one (1) slope on all streets and roads. Section 16. Site Distance at Intersections, Ail Lots at street intersections shall be so landscaped as to permit safe sight across the street corners. No fence, wall, hedge, or shrub planting shall be placed or permitted to remain at the corner of a Lot where this would create a traffic or sight problem. Section 17. Clotheslines, Gar~.~ge Cans, Woodpiles, Etc. All clotheslines, garbage cans, woodpiles, and other sim- ilar items shall be located or screened so as to be concealed from view of neighboring Lots, streets, and property located ad)acent to the Lot. All rubbish, trash, and garbage shall be regularly removed from the Lot and shall not be allowed to ac- cumulate thereon. Declarant, however, hereby expressly reserves the right to dump and bury construction debris and trees on Lots as needed for efficient construction. Section 18. Subdivision of Lot. No Lot shall be subdivided or its boundary lines changed except with the pri- or written approval of the Association. Declarant, however, hereby expressly reserves the right to replat any Lot or Lots. Any such division, boundary line change, or replatting shall not be in violation of the applicable subdivision and zoning regulations. -"~' Section 19. Guns. The use of firearms in the Commun- ity is prohibited. The term "firearms" includes "B-B" guns, pellet guns, and small firearms of all types. Section ZO. Solar Devices. No artificial or manmade device which is designed or used for collection of or heating by solar energy or other similar purposes shall be placed, al- lowed, or maintained upon any 9ortion of the Community, includ- ing any Lot, without the prior written consent of the Board or its designee. Section 21. Fences. No fence or fencing type barrier of any kind shall be placed, erected, allowed, or maintained up- on any portion of the Community, including any Lot, without the prior written consent of the Board or its designee. The Board - 12 - may issue guidelines detailing acceptable fence styles or speci- fications, but in no event may a chain link fence or hog wire fence be approved. Section 22. Exterior Colors. The exterior of all im- provements, including, without limitation, residences, con- structed, erected, allowed, or maintained upon any Lot must be painted or repainted in a color used by Declarant in the origin- al construction and marketing of residences within the Community or in a color used by John Wieland Homes, Inc., in the original construction and marketing of residences in any subdivision lo- cated within the same county as the Community. Section 23. Mailboxes. All mailboxes shall be of the same type as that originally installed by the Declarant. Article VII Insurance and Casualty Losses Sedtion 1. Insurance. The Association's Board of Di- rectors or its ~UlY authorized agent shall have the authority to and shall obtain insurance for all insurable improvements on the Common Property. This insurance shall cover loss or damage by fire or other hazards, including extended coverage, vandal- ism, and malicious mischief and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruc- tion in the event of damage or destruction from any such hazard. Alternatively, the Board may purchase "all-risk" coverage in like amounts. The Board shall obtain a public liability policy ap- plicable to the Common Property covering the Association and its members for all damage or injury caused by the negligence of the Association or any of its members or agents, and, if reasonably available, directors' and officers/~ liability insurance. The public liability policy shall have a combined single limit of at least One Million ($1,000,000.00) Dollars. Premiums for all insurance shall be common expenses of the Association. The policies may contain a reasonable deducti- ble, and the amount thereof shall be added to the face amount of the policy in determining whether the insurance at least equals the full replacement cost. All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association, as trustee, for the respective benefitted parties, as further iden- tified in subparagraph (b), below. Such insurance shall be gov- erned by the provisions hereinafter set forth: (a) All policies shall be w=itten with a company li- censed to do business in Georgia and holding a rating of A-XI or better in the financial category as established by A, M. Best Company. Inc.. if available, or. if not available, the most nearly equivalent rating. (b) Exclusive authority to ad]ust losses under poli- cies obtained by the Association shall be vested in the Asso- ciation's Board of Directors: provided, however, no Mortgagee having an interest in such losses may be prohibited from par- ticipating in the settlement negotiations, if any, related thereto. (c) In no event shall the insurance coverage obtained and maintained by the Association's Board of Directors hereunder be brought into contribution with insurance purchased by indi- vidual Owners. occupants, or their Mortgagees. and the insurance carried by the Association shall be primary. (d) All casualty insurance policies shall have an inflation guard endorsement and an agreed amount endorsement if these are reasonably available and all insurance policies shall be reviewed, annually by one or more qualified persons, at least one of whom must be in the. real estate industry and familiar with construction in the county where the Community is located. (e) The Association's Board of Directors shall be re- quired to make every reasonable effort to secure insurance poli- cies that will provide for the following: (i) a waiver of subrogation by the insurer as to any claims against the Association's Board of Directors, its manager, the Owners and their respective tenants, servants, agents, and guests: (ii) a waiver by the insurer of its rights to repair and reconstruct instead of paying cash: (iii) that no poli6~ may be cancelled, invali- dated, or suspended on account of any one or more individual Owners; (iv) that no policy may be cancelled, invali- dated, or suspended on account of any defect or the conduct of any director, officer, or employee of the Association or its duly authorized manager without prior demand in writing deliv- ered to the Association to cure the defect or to cease the con- duct and the allowance of a reasonable time thereafter within which a cure may be effected by the Association. its manager, any Owner or Mortgagee: (v) that any "other insurance" clause in any policy exclude individual Owners' policies from consideration: and - 14 - (vi) that no policy may be cancelled or substan- tially modified without'at least ten (lO) days' prior written notice to the Association. In addition to the other insurance required by this Section, the Board shall obtain worker's compensation insur- ance, if and to the extent necessary, to satisfy the require- ments of applicable laws, and a fidelity bond or bonds on directors, officers, employees, and other persons handling or responsible for the Association's funds. The amount of fidel- ity coverage shall be determined in the directors' best business judgment. Bonds shall contain a waiver of all defenses based upon the exclusion of persons serving without compensation and may not be cancelled or substantially modified without at least ten (10) days' prior written notice to the Association. The Association shall also obtain construction code endorsements, steam boiler coverage, and flood insurance, if and to the extent necessary to satisfy the reqirements of The Mortgage Corporation or the Federal National Mortgage Association. Se6tion 2. Damage and Destruction -- Common Property. (a) th'General. Immediately after the damage or de- struction by fire or other casualty to all or any portion of any improvement covered by insurance written in the name of the As- sociation, the Board of Directors or its duly authorized agent shall proceed with the filing and ad)ustment of all claims aris- ing under such insurance and obtain reliable and detailed esti- mates of the cost of repair or reconstruction of the damaged or destroyed property. Repair or reconstruction, as used in this paragraph, means repairing or restoring the property to substan- tially the same condition and location that existed prior to the fire or other casualty. The Board of Directors shall have all enforcement powers specified in Article XII, Section 1. of this Declaration necessary to enforce this provision. (b) Repair and Reconstruction. Any damage or destruc- tion shall be repaired or reconstructed unless, within sixty (60) days after the casualty, at least seventy-five (75%) per- cent of the Owners and the Declarant, so long as the Declarant has an option unilaterally to sub)ect additional property to this Declaration as provided in Article IX hereof, otherwise agree. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or re- cons:ruction, or both, are not made available to the Association within such period, then the period shall be extended until such information shall be made available: provided, however, such extension shall not exceed sixty (60) days. No Mortgagee shall have the right to participate in the determination of whether damage or destruction shall be repaired or reconstructed. If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are not sufficient to defray the cost thereof, the Board of Directors shall, without the necessity of a vote of the Association's members, levy a special assessment against all Owners in proportion to the number of Lots owned by such Owners. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction. If the funds available from insurance exceed the costs of repair or reconstruction or if the improvements are not repaired or reconstructed, such excess shall be depos- ited to the benefit of the Association. In the event that it should be determined by. the As- sociation in the manner described above that the damage or destruction shall not be repaired or reconstructed and no'alter- native improvements are authorized, then and in that event the property shall be restored to its natural state and maintained as an undeveloped portion of the Common Property by the Associa- tion in a neat and attractive condition. Section 3. Damage and Destruction -- Lots. The dam- age or destruction by fire or other casualty to all or any por- tion of any improvement on a Lot shall be repaired by the Owner thereof within seventy-five (75) days after such damage or de- struction or, where repairs cannot be completed within seventy- five (75) days, they shall be commenced within such period and shall be completed within a reasonable time thereafter. Alter- natively, the Owner may elect to demolish all improvements on the Lot and remove all debris therefrom within seventy-five (75) days after such damage or destruction. In the event of noncompliance with this provision, the Board of Directors shall have all enforcement powers specified in Article XII,~ Section 1, of this Declaration. Article VIII Condemnation Whenever all or any part of the Common Property shall be taken (or conveyed in lieu of and under threat of condemna- tion by the Board, acting on its behalf or on the written di- rection of all owners of Lots sub}err to the taking, if any) by any authority having the power of condemnation or eminent do- main, the Association shall represent the Owners. The award made for such taking shall be payable to the Association as trustee for all Owners. The provisions of Article VII, Section 2. above, applicable to Common Property improvements damage or destruction, shall govern replacement or restoration and the actions to be taken in the event that the improvements are not restored or replaced. - 16 - Article IX Annexation of Additional Property Section 1. Unilateral Annexation BY Declarant. (a) As the owner thereof or, if not the owner, with the consent of the owner thereof. Declarant shall have the uni- lateral right, privilege, and option from time to time at any time until five (5) years after the recording of this Decla- ration to subject all or any portion of the real property de- scribed in Exhibit "C", attached hereto and by reference made a part hereof to the provisions of this Declaration and the jur- isdiction of the Association by filing for record in the Office of the Clerk of the Superior Court of the county in which the property to be annexed is located a Supplementary Declaration in respect to the property being annexed. Any such annexation shall be effective upon the filing for record of such Supplemen- tary Declaration unless otherwise provided therein. As long as covenants applicable to the real property previously subjected to this Declaration are not changed and as long as rights of then Owners are not adversely affected, the Declarant may unila- terally amend this Declaration to reflect the different character of an~ such annexed real property. (b) The rights reserved unto Declarant to subject additional land to the Declaration shall not and shall not be implied or construed so as to impose any obligation upon Declar- ant to subject any of such additional land to this Declaration or to the jurisdiction of the Association. If such additional land is not subjected to this Declaration, Declarant's reserved rights shall not impose any obligation on Declarant to impose any covenants and restrictions similar to those contained herein upon such additional land nor shall such rights in any manner limit or restrict the use to which such additional land may be put by Declarant or any subsequent owner thereof, whether such uses are consistent with the covenants and restrictions imposed hereby or not. Section 2. Other Annexation. Subject to the consent of the owner thereof and the consent of the Declarant, so long as the Declarant has an option to subject additional property to this Declaration as provided above, upon the affirmative vote of a majority of the Owners present or represented by proxy at a meeting duly called for such purpose, the Association may an- nex other real property to the provisions of this Declaration and the jurisdiction of the Association by filing for record in the office of the Clerk of the Superior Court of the county in which the property to be annexed is located a Supplementary Dec- laration in respect to the property being annexed. Any such Supplementary Declaration shall be signed by the President and - 17 - Secr'etary of the Association, and any such annexation shall be effective upon the filing for record of such Supplementary Dec- laration, unless otherwise provided therein. Article X Mortgagee Provisions The following provisions are for the benefit of holders of first Mortgages on Lots in the Community. The provisions of this Article apply to both this Declaration and to the By-Laws, notwithstanding any other provisions contained therein. Section 1. Notices of Action. An institutional hold- er, insurer, or guarantor of a first Mortgage, who provides written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the Lot number), (therefore becoming an "eligible holder"), will be entitled to timely written notice of: (a~ any condemnation loss or any casualty loss which affects a material portion of the Community or which affects any Lot on which there is a first Mortgage held, insured, or guar- anteed by such eligible holder; (b) any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to the Mortgage of such eligible holder, where such delinquency has continued for a period of sixty (60) days; provided, however, notwithstanding this provision, any holder of a first Mortgage, upon request, is entitled to written notice from the Association of any default in the performance by an Owner of a Lot of any obligation under the Declaration or By-Laws of the Association which is not cured within sixty (60) days: (c) any lapse, cancellation, or material modification of any insurance policy maintained' by the Association: or (d) any proposed action which would reqire the consent of a specified percentage of Mortgage holders. Section 2. Special FHLMC Provision. So long as re- quired by the Federal Home Loan Mortgage Corporation (The Mort- gage Corporation), the following provisions apply in addition to and not in lieu of the foregoing. U__nlles~ tw~-thirds (2/3) of the first Mortgagees or owners give their consent, the Asso- 5ia~on shall not~: (a) by act or omission seek to abandon, partition. subdivide, encumber, sell, or transfer the Common Property which - 18 - the Association owns. directly or indirectly (the granting of easements for public utilities or other similar purposes con- sistent with the intended use of the Common Property shall not be deemed a transfer within the meaning of this subsection); (b) ohange the method of determining the obligations. assessmen%s, dues, or other charges which may be levied against an Owner: (c) by act or omission change, waive, or abandon any scheme of regulations or enforcement thereof pertaining to the architectural design or the exterior appearance and maintenance of Lots and of the Common Property (The issuance and amendment of architectural standards, procedures, rules, and regulations or use restrictions shall not constitute a change, waiver, or abandonment within the meaning of this subsection.); (d) fail to maintain insurance, as required by this Declaration; or (6) use hazard insurance proceeds for any Common Prop- erty losses for other than the repair, replacement, or recon- struction of such property. Nothing contained in Article X. Section 2. of this Dec- laration shall be construed to reduce the percentage vote that must otherwise be obtained under the Declaration for any of the acts set out in this Section 2. First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have be- come a charge against the Common Property and may pay overdue premiums on casualty insurance policies or secure new casualty insurance coverage upon the lapse of an Association policy, and first Mortgagees making such payments shall be entitled to im- mediate reimbursement from the AsSociation. Section 3. No Priority. No provision of this Declara- tion or the By-Laws gives or shall be construed as giving any O~ner or other party priority over any rights of the first Mort- gagee of any Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Property. Section 4. Notice to Association. Upon request, each Lot Owner shall be obligated to furnish to the Association the name and address of the holder of any mortgage encumbering such Owner's Lot. Section 5, Amendments by Board. Should the Federal National Mortgage Association or the Federal Home Loan Mortgage - 19 - Corporation subsequently delete any of their respective require- ments which necessitate the provisions of this Article or make any such requirements less stringent, the Board, without approv- al of the Owners, may cause an'amendment to this Article to be recorded to reflect such changes. Article XI Easements Section 1. Easements for Encroachment and Overhanq. There shall be reciprocal appurtenant easements for encroachment and overhang as between each Lot and such portion or portions of the Common Property ad)acent thereto or as between, adjacent Lots due to the unintentional placement or settling or shift- ing of the improvements constructed, reconstructed, or altered thereon (in accordance with the terms of this Declaration) to a distance of not more than five (5) feet, as measured from any point on the common boundary between each Lot and the adjacent portion of the Common Property or as between adjacent Lots, as the case may be, along a line perpendicular to such boundary at such point; provided, however, in no event shall an ease- ment for encroachment exist if such encroachment occurred due to willful conduct on the part of an Owner, tenant, or the Association. Section 2. Easements for Use and,.En,~oyment. (a) Every Owner of a Lot shall have a right and ease- ment of ingress and egress, use and en)oyment in and to the Com- mon Property which shall be appurtenant to and shall pass with the title to his Lot, subject to the following provisions: (i) the right of the Association to charge rea- sonable admission and other fees for the use of any portion of the Common Property, to limit the number of guests of Lot Own- ers and tenants who may use the Common Property, and to provide for the exclusive use and en)oymeht of specific portions there- of at certain designated times by an Owner, his family, tenants, guests, and invitees; (ii) the right of the Association to suspend the voting rights of a Lot Owner and the right of an Owner to use the recreational facilities in the Community, if any, for any period during which any assessment against his Lot which is hereby provided for remains unpaid; and, for a reasonable per- iod of time for an infraction of the Declaration. By-Laws. or rules and regulations: (iii) the right of the Association to borrow money for the purpose of improving the Common Property, or any - 20 - portion thereof, or for construction, repairing or improving any facilities located or to be located thereon, and give as security for the payment of any such loan a mortgage conveying all or any 9ortion of the Common Property: provided, however. the lien and encumbrance of any such mortgage given by the As- sociation shall be subject and subordinate to any rights, in- terests, options, easements and privileges herein reserved or established for the benefit of Declarant. or any Lot or Lot Owner. or the holder of any Mortgage. irrespective of when exe- cuted, given by Declarant or any Lot Owner encumbering any Lot or other property located within the Community (Any provision in this Declaration or in any such Mortgage given by the Associa- tion to the contrary notwithstanding, the exercise of any rights therein by the holder thereof in the event of a default there- under shall not cancel or terminate any rights, easements or privileges herein reserved or established for the benefit of Declarant. or any Lot or Lot Owner. or the holder of any Mort- gage, irrespective of when executed, given by Declarant or any Lot Owner encumbering any Lot or other property located within the Community.): and (iv) the right of the Association to dedicate or transfer all or-any portion of the Common Property subject to such conditions as may be agreed to by the members of the Asso- ciation. No such dedication or transfer shall be effective un- less'an instrument agreeing to such dedication or transfer has been approved by at least a Ma]ority of the Owners present, or represented by proxy, at a meeting duly called for such purpose and by the Declarant, so long as the Declarant has an option unilaterally to subject additional property to this Declaration as provided in Article IX hereof. (b) Any Lot Owner may delegate his or her right of use and enjoyment in and to the Common Property and facilities located thereon to the members of his family, his tenants and guests and shall be deemed to have-made a delegation of all such rights to the occupants of any leased Lot. Section 3. Easements for Utilities. There is here- by reserved to the Association blanket easements upon. across, above and under all property within the Community for access, ingress, egress, installation, repairing, replacing, and main- taining all utilities serving the Community or any portion thereof, including, but not limited to, gas, water, sanitary sewer, telephone and electricity, as well as storm drainage and any other service such as. but not limited to, a master televi- sion antenna system, cable television system, or security system which the Association might decide to have installed to serve the Community. It shall be expressly permissible for the Asso- ciation or its designee, as the case may be. to install, repair. - 21 - replace, and maintain or to authorize the installation, repair- ing, replacing, and maintaining of such wires, conduits, cables and other equipment related to the providing of any such util- ity or service. Should any party furnishing any such utility or service request a specific license or easement by separate recordable document, the Board shall have the right to grant such easement. Article XII General Provisions Section 1. Enforcement. Each Owner and every occu- pant of a Lot shall comply strictly with the By-Laws, the rules and regulations, the use restrictions, as they may be lawfully amended or modified from time to time, and with the covenants, conditions, and restrictions set forth in this Declaration and in the deed to his or her Lot, if any. The Board of Directors may impose fines or other sanctions, which shall be collected as provided-,herein for the collection of assessments. Failure to comply with this Declaration, the By-Laws or the rules and regulations sha~l be grounds for an action to recover sums due for damages or injunctive relief, or both, maintainable by the Board of Directors, on behalf of the Association. or. in a prop- er case, by an aggrieved Owner. Failure by the Association or any Owner to enforce any of the foregoing shall in no event be deemed a waiver of the right to do so thereafter. Section 2. Self-Help. In addition to any other reme- dies provided for herein, the Association or its duly authorized agent shall have the power to enter upon a Lot or any portion of the Common Property to abate or remove, using such force as may be reasonably necessary, any erection, thing or condition which violates this Declaration, the By-Laws, the rules and reg- ulations, or the use restrictions.~, Unless an emergency situa- tion exists, the Board shall give'the violating Lot Owner ten (10) days' written notice of its intent to exercise self-help. All costs of self-help, including reasonable attorney's fees actually incurred shall be assessed against the violating Lot Owner and shall be collected as provided for herein for the collection of assessments. Section 3. Duration. The provisions of this Declara- tion shall run with and bind the land and shall be and remain in effect perpetually to the extent permitted by law: provided, however, so long as Georgia law limits the period during which covenants restricting lands to certain uses may run, any provi- sions of this Declaration affected thereby shall run with and bind the land so long as permitted by such law, and such provi- sions may be renewed or extended, in whole or in part, beyond the initial period permitted by such law for successive periods not to exceed the period permitted by such law. provided such renewal or extension is approved by at least a Majority of the Owners present or represented by proxy at a meeting duly called for such purpose. Further, no such renewal or extension shall be effective unless there is filed for record in the Office of the Clerk of the Superior Court of the county where the Com- munity is located on or before the effective date thereof an instrument executed by the President and Secretary of the Asso- ciation which shall state the terms of such renewal or extension and which shall contain a certification by such Secretary that such extension and renewal was duly approved. Every purchaser or grantee of any interest in any real property subject to this Declaration, by acceptance of a deed or other conveyance there- for, thereby agrees that such provisions o~ this Declaration may be extended and renewed as provided in this Section. Section 4. Amendment. This Declaration may be amended unilaterally at any time and from time to time by Declarant (a) if such amendment is necessary to bring any provision hereof in- to compliance with any applicable governmental statute, rule, or regulation or judicial determination which shall be in conflict therewith: (b) if such amendment is necessary to enable any reputable title-insurance company to issue title insurance cov- erage with respect to the Lots subject to this Declaration: (c) if such amendment is required by an institutional or governmen- tal lender or purchaser of mortgage loans, including, for exam- ple, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase mortgage loans on the Lots subject to this Declaration: or (dj if such amendment is necessary to enable any governmental agency or reputable private insurance company to insure mortgage loans on the Lots subject to this Declaration; provided, however, any such amendment shall not adversely affect the ti.t~e-'te.-any Owner's Lot unless any such Lot Owner shall consent thereto in writing. Furthpr, so long as Declarant has the right unilaterally to subject'~additional property to this Declaration as provided in Article IX hereof. Declarant may unilaterally amend this Declaration for any other purpose: pro- vided, however, any such amendment shall not materially adverse- ly affect the substantive rights of any Lot Owner hereunder, nor shall it adversely affect title to any Lot without the consent of the affected Lot Owner. In addition to the above, this Declaration may be _,tamended upon the affirmative vote or written consent, or any combination thereof, of at least a majority of the Owners he consent of the Declar~~ De~--La-~n~, ha_~ an tion unilaterally to subiect addit~n~] ~ro~erty. ro ~h!~ ~_~a~%o~ as provided in Article IX hereof. Amendments to this - 23 Declaration shall become effective upon recordation, unless a later effective date is specified therein. Section 5. Partition. The Common Property shall re- main undivided, and no Lot Owner nor any other Person shall bring any action for partition or division of the whole or any part thereof without the written consent of all Owners of all portions of the property located within the Community and without the written consent of all holders of all Mortgages encumbering any portion of the property, including, but not necessarily limited to, the Lots located within the Community. Section 6. Gender and Grammar. The singular, wherev- er used herein, shall be construed to mean the plural, when plicable, and the use of the masculine pronoun shall include the neuter and feminine. Section 7. Severability. Whenever possible, each pro- vision of this Declaration. shall be interpreted in such manner as to be effective and valid, but if the application of any provision of~ this Declaration to any person or to any property shall be prohibited or held' invalid, such prohibition or inva- lidity shall not-affect any other provision or the application of any provision which can be given effect without the invalid provision or application, and, to this end, the provisions of this Declaration are declared to be severable. Section 8. Captions. The captions of each Article and Section hereof, as to the contents of each Article and Sec- tion, are inserted only for convenience and are in no way to be construed as defining, limiting, extendi'ng, or otherwise modify- ing or adding to the particular Article or Section to which they refer. Section 9. Preparer. This Declaration was prepared by Richard A. Bacon, Hyatt & Rhoads, p-~c., 2200 Peachtree Center Harris Tower, 233 Peachtree Street, N.E., Atlanta. Georgia, 30303. Section 10. Conveyances of Common ,Property. The Asso- ciation shall accept such conveyances of Common Property as are made from time to time to the Association by Declarant. Section 11. Perpetuities. If any of the covenants, conditions, restrictions, or other provisions of this Declara- tion shall be unlawful, void, or voidable for violation of the rule against perpetuities, then such provisions shall continue only until twenty-one (21) years after the death of the last survivor of the now living descendants of Elizabeth, Queen of England. Section 12. Indemnification. The Association shall indemnify every officer and director against any and all ex- penses, including attorney's fees. imposed upon or reasonably incurred by any officer or director in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of being or having been an officer or director. The officers and directors shall not be liable for any mistake of judgment, negligent or other- wise, except for their own individual willful misfeasance, mal- feasance, misconduct, or bad faith. 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 di- rectors may also be members of the Association), and the Asso- ciation shall indemnify and forever hold each such officer and director free and harmless against any and all liability to oth- ers 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 form- er officer ~r director, may be entitled. The Associaton shall maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasdnably available. Section 13. Construction and Sale Period. Notwith- standing any provisions contained in this Declaration, the By-Laws, Articles of Incorporation, rules and regulations, use restrictions, and any amendments to any of the foregoing, De- clarant hereby expressly reserves unto itself and its succes- sors and assigns a non-exclusive, perpetual right, privilege, and easement with respect to the Community for the benefit of Declarant, its successors, and assigns over, under, in, and/or on the Community. without obligation and without charge to De- clarant, for the purposes of taking all actions related to or connected with construction, installation, relocation, develop- ment sale, maintenance, repair, replacement, use and enjoyment, and/or otherwise dealing with the Community and any other prop- erty now owned or which may in the future be owned by Declarant, (such other property is hereinafter referred to as "Additional Property"). The reserved easement shall constitute a burden on the title to the Community and specifically includes, but is not limited to: (a) the right of access, ingress, and egress for ve- hicular and pedestrian traffic over, under, on, or in the Com- munity; and the right to tie into any portion of the Community with driveways, parking areas, and walkways: and the right to tie into and/or otherwise connect and use (without a tap-on or any other fee for so doing), replace, relocate, maintain, and - 25 - repair any device which provides utility or similar services, including, without limitation, electrical, telephone, natural gas, water, sewer, and drainage lines and facilities constructed or installed in, on, under, and/or over the Community: and (b) the right to construct, install, replace, relo- cate, maintain, repair, use, and enjoy signs, model residences, and sales offices in the Community. (c) No rights, privileges, and easements granted or reserved herein shall be merged into the title of any property, including, without limitation, the Community. but shall be held independent of such title, and no such right, privilege, or easement shall be surrendered, conveyed, or released Unless and until and except by delivery of a quit-claim deed from Declarant releasing such right, privilege, or easement by express refer- ence thereto. (d) If these reserved easements are exercised without annexing any Additional Property to the Community, the Owners of the affected Additional Property shall share the costs, if any, of-using and maintaining utility and similar facilities, includ- ing, without limitation, electrical, telephone, natural gas, wa- ter, sewer, and drainage lines and facilities with the Owners in the Community in the proportion that the number of completed dwellings on the affected Additional Property bears to the to- tal number of completed dwellings upon the affected Additional Property and the number of Lots in the Community. The costs of maintenance and repair of Community driveways shall likewise be apportioned to the affected Additional Property if the only means of vehicular access to the affected Additional Property is across the Community. For the purposes of this provision, a dwelling on the affected Additional Property shall be considered completed when a certificate of occupancy has been granted. The allocation of expenses and the collection therefor may be done on a monthly, quarterly, or annual"basis as may reasonably be determined by the Association in accordance with this Declara- tion. If any of the Additional Property is added to the Commun- ity, from the time of the annexation, the sharing of costs and expenses and the use of any property so added shall be governed by this Declaration, rather than by these reserved easements. Section 14. Contracts Executed During Declarant Con- trol. All contracts or leases executed by or on behalf of the Association prior to extinguishment of the Declarant's veto pow- er shall contain a termination clause permitting the Association to terminate the contract or lease at any time after extinguish- ment of the Declarant's veto power, without cause and without penalty, upon not more than ninety (90) days' written notice. - 26 - Section 15. Books and Records. (a) Inspection by Members and Mortgagees. This Decla- ration, the By-Laws, copies of rules and use restrictions, mem- bership register, books of account, and minutes of meetings of the members of the Board and of committees shall be made avail- able for inspection and copying by any member of the Association or by his duly appointed representative and by holders, insur- ers, or guarantors of any first Mortgage at any reasonable time and for a purpose reasonably related to his or her interest as a member or holder, insurer, or guarantor of a first Mortgage at the office of the Association or at such other reasonable place as the Board shall prescribe. (-b) Rules for Inspection. The Board shall establish reasonable rules with respect to: (i) notice to be given to the custodian of the records: '- (ii) hours and days of the week when such an inspection may be made; and (iii) payment of the cost of reproducing copies of documents. (c) Inspection by Directors. Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the phy- sical properties owned or controlled by the Association. The right of inspection by a Director includes the right to make extra copies of documents at the reasonable expense of the Association. Section 16. Audit. An audit of the accounts of the Association shall be made annuall~,-in the manner as the Board of Directors may decide: provided, however, after having re- ceived the Board's audit at the annual meeting, the Owners. by a Majority vote, may require that the accounts of the Associa- tion be audited as a common expense by a public accountant. Upon written request of any institutional holder of a first Mortgage and upon ~ayment of all necessary costs, such holder shall be entitled to receive a copy of an audited financial statement within ninety (90) days of the date of the request. Section 17. Notice of Sale or Lease. In the event an Owner sells or leases his or her Lot, the Owner shall give to the Association, in writing, the name of the purchaser or lessee of the Lot and suc~ other information as the Board may reason- ably require. - 27 - Section 18. Agreements. Subject to the prior approval of Declarant, so long as the Declarant has an option to unilat- erally subject additional property to this Declaration as pro- vided in Article IX above, all agreements and determinations, including settlement agreements regarding litigation involving the Association, lawfully authorized by the Board of Directors shall be binding upon all Owners, their heirs, legal represen- tatives, successors, assigns, and others having an interest in the Community or the privilege of possession and enjoyment of any part of the Community. IN WITNESS WHEREOF, the undersigned, being the duly ap- pointed officers of Declarant herein, have e, xecuted this instru- ment and affixed the corporate seal this25~ day of Se.Dr~e~ , JOHN WIELAND HOMES, INC. By: Attest: Signed, sealed, and delivered in the presence of: %'.-. ..~; %,,, 4. ~T;., ~' GEO~G!A, Fayette County. '~'~- Clerk's Office Sup~rio~ Filed for rccord~ Re~orded in Bock This J~ ~ day of ~~. 19 Clerk - 28 - EXHIBIT "A" Definitions The following words, when used in this Declaration or in any Supplementary Declaration (unless the context shall pro- hibit), shall have the following meanings: Association" shall mean and refer to The Retreat (a) " ' Homeowners Association. Inc.. a nonprofit Georgia corporation. its successors and assigns. (b) "B~,-Laws" shall refer to the By-Laws of The Retreat Homeowners Association, Inc., attached to this Declara- tion as Exhibit "D" and incorporated 'therein by this reference. (c) "Common Property" shall mean any and all real and personal property and easements and other interests therein, to- gether with, the facilities and improvements located thereon, now or hereafter owned by the Association for the common use and en- joyment of the Owners. (d) "Community" shall mean and refer to that certain real property and interests therein described in Exhibit "B", attached hereto, and (i) such additions thereto as may be made by Declarant (or its Mortgagee or transferee, as provided in the Declaration) by Supplementary Declaration of all or any portion of the real property described in Exhibit "C"o attached hereto: and (ii) such additions thereto as may be made by the Associa- tion by Supplementary Declaration of other real property. (e) "Community-Wide Standard" shall mean the standard of conduct, maintenance, or other activity generally prevailing in the Community. Such standard may be more specifically deter- mined by the Board of Directors oft-the Association. Such determination, however, must be consistent with the Community Wide Standard originally established by the Declarant. (f) "Declarant" shall mean and refer to John Wieland Homes, Inc., a Georgia corporation, and the successors-in-title and assigns of John Wieland Homes, Inc., provided any such successor-in-title or assign shall acquire for the purpose of development or sale all or any portion of the remaining unde- veloped or unsold portions of the real property described in Ex- hibit "B", attached hereto or in Exhibit "C", attached hereto, and provided further, in the instrument of conveyance to any such successor-in-title or assign, such successor-in-title or assign is designated as the "Declarant" hereunder by the grantor of such conveyance, which grantor shall be the "Declarant" here- c.,,LE/<- r,:...~ under at the time of such conveyance; provided, further, upon such designation of such successor Declarant. all rights of the former Declarant in and to such status as "Declarant" hereunder shall cease, it being understood that as to all of the property described in Exhibit "Bt`, attached hereto, and in Exhibit "C", attached hereto, which is now or hereafter subjected to this Declaration, there Shall be only one person or legal entity entitled to exercise the rights and powers of the "Declarant" hereunder at any one point in time. (g) "Lot" shall mean any plot of land within the Community, whether or not improvements are constructed thereon, which constitutes or will constitute, after the construction of improvements, a single dwelling site as shown on the plat for the Community. or amendments thereto, recorded in the land rec- ords of the county where the C6mmunity is located. The owner- ship of each Lot shall include, and there shall pass with each Lot as an appurtenance thereto, whether or not separately described, all of the right, title, and interest of an Owner in the Common Property, which shall include, without limitation, membership'in the Association. (h) "Majority" means those eligible votes. Owners. or other group as the context may indicate totalling more than fifty (50%) percent of the total eligible number. (i) "Mortgage" means any mortgage, deed to secure debt, and any and all other similar instruments used for the purpose of conveying or encumbering real property as security for the payment or satisfaction of an obligation. (j) "Mortgagee" shall mean the holder of a Mortgage. (k) "Owner" shall mean and refer to the record own- er, whether one or more Persons, of the fee simple title to any Lot located within the Community excluding, however, any Per- son holding such interest merely as security for the performance or satisfaction of any obligation. (1) "Person" means any natural person, as well as a corporation, joint venture, partnership (general or limited), association, trust, or other legal entity. EXHIBIT "B" Property Submitted ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lots 36 and 37 of the 6th District of Fayette County, Georgia, and being more particularly described on that certain plat of survey for John Wieland Homes, recorded in Plat Book 16, Page 57, of the Fayette County, Georgia records. EXHIBIT "C" Additional Property Which Can Be Unilaterally Submitted by Declarant ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lots 36 and 37 of the 6th District, Fayette County, Georgia. EXHIBIT "D" BY- LAWS OF THE: RETREAT HOMEOWNERS ASSOCIATION, INC. HYATT & RHOADS, P.C. Attorneys 2200 Peachtree Center Harris Tower Atlanta, Georgia 30303 (404) 659-6600 1275 K Street. N.W. Washington. D.C. 20006 (202) 488-4418 1725 Central Savings Tower San Diego, California 92101 (619) 232-0811 - TABLE OF CONTENTS - II. III. Page NAME, MEMBERSHIP, APPLICABILITY, AND DEFINITIONS 1. Name ...................................... 1 2. Membership ................................ 1 3. Definitions ............................... 1 ASSOCIATION: MEETINGS, QUORUM,..VOTiNG, PROXIES 1. Place of Meetings ......................... -2. First Meeting and Annual Meetings ......... 3. Special Meetings .......................... 4. Notice of Meetings ........................ 5. Waiver of Notice .......................... 6. Adjournment of Meetings ................... Voting .................................... Proxies ................................... 9. ~rum .................................... BOARD OF DIRECTORS: NUMBER, POWERS, MEETINGS A. Composition and Selection. 1 3 4 5 6 7. 8. Governing Body; Composition ............... 3 Directors Appointed by Declarant .......... 3 Number of Directors ...................... Nomination of Directors .................. Election and Term of Office .............. Removal of Directore.-~ .... ~-. ............. Vacancies .................... : ........... Meetings. 10. 11. 12. 13. 14. 15. 16. 17. Organization Meetings ................... Regular Meetings ........................ Special Meetings ........................ Waiver of Notice ........................ Quorum of Board of Directors ............ Compensation ............................ .5 .5 .6 .6 .6 .7 Open Meetings ............................. 7 Executive Session ......................... 7 Action Without A Formal Meeting ........... 7 C. Powers and Duties. 18. Povers .................................... 7 19. Management Agent .......................... 8 20. Borrowing ................................. 9 21. Fining Procedure .......................... 9 IV. VI. P~qe OFFICERS 1. Officers ................................. 10 2. Election,.Te~m of Office, and Vacancies..10 3. Removal .................................. 10 4. President ................................ 5. Vice President ........................... 10 6. Secretary ................................ 10 7. Treasurer ....... ~ ........................ 11 8. Resignation .............................. COMMITTEES 1. General .................................. MISCELLANEOUS ~. Fiscal Year .............................. 11 2'. Parliamentary Rules ...................... 3. Conflicts ................................ 11 4. ~mendment ................................ BY-LAWS OF THE RETREAT HOMEOWNERS ASSOCIATION, INC. Article I Name, Membership, Applicability, and Definitions Section 1. Name. The name of the Association shall be The Retreat Homeowners Association, Inc., (hereinafter sometimes referred to as the "Association"). Section 2. Membership. The Association shall have one class of membership, as is more fully set forth in that Declaration of Covenants, Conditions, and Restrictions for The Retreat Homeowners Association, (this Declaration, as amended, renewed, or extended from time to time. is hereinafter sometimes referred to as the "Declaration"),the terms of which pertaining~'to membership are specifically incorporated by reference herein. Section 3. Definitions. The words used in these By- Laws shall have the same meaning as set forth in the Declara- tion, unless the context shall prohibit. Article II Association: Meetings, Quorum, Voting, Proxies Section 1. Place of Meetings. Meetings of the Asso- ciation shall be held at the principal office of the Associa- tion or at such other suitable place convenient to the members as may be designated by the Board of Directors. either in the Community or as convenient thereto as possible and practical. Section 2. First Meeting and Annual Meetings. An an- nual or special meeting shall be held within one (1) year from the date the Declaration is recorded. Annual meetings shall be set by the Board so as to occur no later than sixty (60) days after the close of the Association's fiscal year. If the day for the annual meeting of the members is a legal holiday, the meeting will be held at the same hour on the first day fol- lowing which is not a legal holiday (excluding Saturday and Sunday). Section 3. Special Meetings. The President may call special meetings. In addition, it shall be the duty of the President to call a special meeting of the Association if so directed by resolution of a Majocity of the Board of Directors or upon a petition signed by at least twenty-five (25%) percent of the Owners. The notice of any special meeting shall state the date, time. and place of such meeting and the purpose there- of. No business shall be transacted at a special meeting, ex- cept as stated in the notice. Section 4. Notice of Meetings It shall be the duty of the Secretary to mail or to cause to be delivered to the Owner of record of each Lot a notice of each annual or special meeting of the Association stating the purpose of the special meeting, as well as the time and place where it is to be held. If an Owner wishes notice to be given at an address other than his or her'L°t,-h~- or she shall have designated by notice in writing to the Secretary such other address. The mailing or delivery of a notice of meeting in the manner provided in this Section shall be considered service of notice. Notices shall be served not less than ten (10) nor more than thirty (30) days before a meeting. Section 5. Waiver of Notice. Waiver of notice of a meeting of,the members shall be deemed the equivalent of proper notice. An~ member may. in writing, waive notice of any meeting of the members,,either before or after such meeting. Attendance at a meeting by a member, whether in person or by proxy, shall be deemed waiver by such member of notice of the time, date. and place thereof, unless such member specifically objects to lack of proper notice at the time the meeting is called to order. Section 6. Adiournment of Meetings. If any meetings of the Association cannot be held because a quorum is not pres- ent, a Majority of the members who are present at such meeting, either in person or by proxy, may adjourn the meeting to a time not less than five (5) nor more than thirty (30) days from the time the original meeting was called. At such adjourned meet- ing at which a quorum is present, any business which might have been transacted at the meeting originally called may be trans- acted without further notice. Section 7. Voting. The voting rights of the members shall be as set forth in the Declaration, and such voting rights are specifically incorporated herein. Section 8. Proxies. At all meetings of members, each member may vote in person or by proxy. Ail proxies shall be in writing, dated, and filed with the Secretary before the ap- pointed time of each meeting. Every proxy shall be revocable and shall automatically cease upon conveyance by the member of his or her Lot, or upon receipt of notice by the Secretary of the death or )udicially declared incompetence of a member, or of written revocation, or upon the expiration of eleven (11) months from the date of the proxy. Section 9. Quorum. The presence, in person or by proxy, of twenty-five (25%) percent of the Owners of Lots to which eligible votes appertain shall constitute a quorum at all meetings of the Association. The members present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough members to leave less than a quorum. Article III Board of Directors: Number, Powers, Meetinqs A. Composition and Selection. Section 1. Governinq Body; Composition. The affairs of the Association shall be governed by a Board of Directors. Except as provided in Section 2 of this Article, the Directors must reside in the Community and shall be members or spouses of such members: provided, however, no Person and his or her spouse may serve oO the Board at the same time. Section. 2. Directors Appointed by Declarant. Declar- ant shall have %he right to appoint or remove any member or mem- bers of the Board of Directors or any officer or officers of the Association until such time as the first of the following events shall occur: (a) the expiration of three (3) years after the date of the recording of the Declaration: (b) three (3) months after the date on which forty (40) Lots shall have been conveyed by Declarant to Owners other than a Person or Persons constituting Declarant: or (c) the surrender by Declarant in writing of the authority to appoint and remove Directors and officers of the Association. Each Owner, by acceptance of a deed to or other conveyance of a Lot, vests in Declarant such authority to appoint and remove Directors and officers of the Association. The Directors selected by the Declarant need not be Owners or residents in the CommUnity. The names of the initial Directors selected by the Declarant are set forth in the Articles of Incorporation of the Association. Section 3. Veto. After the termination of the Declar- ant's right to appoint Directors and officers, the Declarant shall have a veto power over all actions of the Board, as is more fully provided in this Section. This power shall expire upon the expiration of Declarant's option unilaterally to sub- ject additional property to the Declaration, unless earlier surrendered in writing. This veto power shall be exercisable only by Declarant, its successors, and assigns who specifically take this power in a recorded instrument. The veto shall be as follows: - 3 - No action authorized by the Board of Directors shall become effective, nor shall any action, policy, or program be implemented until and unless: (a) Declarant shall have been given written notice of all meetings and proposed actions to be approved at meetings by certified mail. return receipt requested, or by personal deliv- ery at the address it has registered with the Secretary of the Association. as it may change from time to time. which notice shall comply with the provisions of these By-Laws regarding no- tice of regular and special meetings of the Directors and which notice shall, except in the case of the regular meetings held pursuant to the By-Laws. set forth in reasonable particularity the agenda to be followed at the meeting; and ~b) Declarant shall be given the opportunity at any such meeting to join in or to have its representatives or agents join in discussion from the floor of any prospective action, policy, or program to be implemented by the Board or the Asso- ciation. Declarant and its representatives or agents shall make its concerns, thoughts, and suggestions known to the members of the Association and/or the Board. At such meeting, Declarant shall have and:is hereby granted a veto power over any such ac- tion, policy, or program authorized by the Board of Directors and to be taken by the Board. The veto may be exercised by De- clarant, its representatives, or agents at the meeting held pur- suant to the terms and provisions hereof. Any veto power shall not extend to the requiring of any action or counteraction on behalf of the Board. Section 4. Number of Directors. The Board shall con- sist of three (3) members. Section 5. Nomination of Directors. Elected Directors shall be nominated from the floor and may also be nominated by a Nominating Committee, if such a committee is established by the Board. Ail candidates shall have'a reasonable opportunity to communicate their qualifications to the members and to solicit votes. Section 6. Election and Term of Office. Owner-elected Directors shall be elected and hold office as follows: (a) Not later than thirty (30) days after the Declar- ant's right to appoint Directors and officers terminates, the Association shall call a special meeting to be held at which Owners shall elect three (3) Directors. (b) At annual meetings of the membership thereaf- ter, Directors shall be elected. All eligible members of the - ¢ - ~,~Ji~ ~.~., . ,: Association shall vote on all Directors to be elected, and the candidate(e) receiving the most votes shall be elected: vided, however, the initially elected Directors shall serve the remainder of their terms. The term of one (1) Director shall be fixed at one (1) year. the term of one (1) Director shall be fixed at two (2) years, and the term of one (1) Director shall be fixed at three (3) years. At the expiration of the initial term of office of each respective member of the Board of Directors, a successor shall be elected to serve for a term of two (2) years. The mem- bers of the Board of Directors shall hold office until their re- spective successors shall have been elected by the Association. Section 7. Removal 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 Owners and a successor may then and there be elected to fill the vacancy thus created. A Director whose removal has been proposed by the Owners shall be given at, least ten (10) days' notice of the calling of the meeting and the purpose thereof and shall be given an opportun- ity to be heard .at the meeting. Additionally, any Director who has three (3) consecutive unexcused absences from Board meetings or who is delinquent in the payment of an assessment for more than twenty (20) days may be removed by a Majority vote of the Directors at a meeting, a quorum being present. This Section shall not apply to Directors appointed by Declarant. Section 8. Vacancies. Vacancies in the Board of Di- rectors caused by any reason, excluding the removal of a Direc- tor 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. Each Person so selected shall serve the unexpired portion of the term. B. Meetings. Section 9. Organization Meetings. The first meeting of the members of the Board of Directors following each annual meeting of the membership shall be held within ten (10) days thereafter at such time and place as shall be fixed by the Board. Section 10. 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 a Majority of the Di- rectors, but at least four (4) such meetings shall be held dur- ing each fiscal year with at least one (1) per quarter. Notice of the regular schedule shall constitute sufficient notice of such meetings. - 5 - Section 11. Special Meetings. Special meetings of the Board of Directors shall be held when requested by the Pres- ident, Vice President or by any two (2) Directors. The notice shall specify the time and place of the meeting and the nature of any special business to be considered. The notice shall be given to each Director by one of the following methods: (a) by personal delivery; (b) written notice by first class mail, post- age prepaid; (c) by telephone communication, either directly to the Director or to a Person at the Director's home or office who would reasonably be expected to communicate such notice prompt- ly to the Director; or (d) by telegram, charges prepaid. All such notices shall be given or sent to the Director's address or telephone number as shown on the records of the Association. Notices sent by first class mail .shall be deposited into a United States mailbox at least four (4) days before the time set for the meeting. Notices given by personal delivery, tele- phone, or telegraph company shall be given at least forty-eight (48) hours before the time set for the meeting. S~tion 12. Waiver of Notice. The transactions of any meeting of the Board of D~rectors, however called and noticed. or wherever heir', shall be as valid as though taken at a meet- ing duly held after regular call and notice, if (a) a quorum is present, and (b) either before or after the meeting, each of the Directors not present signs a written waiver of notice, a consent to holding the meeting, or an approval of the minutes. The waiver of notice or consent need not specify the purpose of the meeting. Notice of a meeting shall also b9 deemed given to any Director who attends the meeting without protesting before or at its commencement about the lack of.adequate notice. Section 13. Quorum of Board of Directors. At all meetings of the Board of Directors. a Majority of the Directors shall constitute a. q~orum fo~=the transaction of business, and the votes of a Majority of' the Directors present at a meeting at which a quorum is present sha~l constitute the decision of the Board of Directors. A meeting at which a quorum is initial- ly present may continue to transact business, notwithstanding the withdrawal of Directors, if any action taken is approved by at least a Majority of the required quorum for that meeting. If any meeting cannot be held because a quorum is not present, a Majority of the Directors who are present at such meeting may adjourn the meeting to a time not less than five (5) nor more than thirty (30) days from the time that the original meeting was called. At such adjourned meeting at which a quorum is present, any business which might have been t[ansacted at the meeting originally called may be transacted without further notice. - 6 - Section 14. Compensation. No Director shall receive any compensation from the Association for acting as such unless approved by a Majority of the Owners. Section 15. Open Meetings. All meetings of the Board shall be open to all members, but members other than Directors may not participate in any discussion or deliberation unless ex- pressly so authorized by the Board. Section 16. Executive Session. The Board may adjourn a meeting and reconvene in executive session to discuss and vote upon personnel matters, litigation in which the Association is or may become involved, and orders of business of a similar na- ture. The nature of any and all business to be considered in executive session shall first be announced in open session. Section 17. Action Without A Formal Meeting. Any action to be taken at a meeting of the Directors or any action that may be taken at a meeting of the Directors may be taken without a meeting if a consent in writing, setting forth the action so ~aken, shall be signed by all of the Directors. C. Powers and-'Duties. Section 18. Powers. The Board of Directors shall be responsible for the affairs of the Association and shall have - all of the powers and duties necessary for the administration of the Association's affairs and, as provided by law, may do all acts and things as are not by the Declaration. Articles, or these By-Laws directed to be done and exercised exclusively by the members. 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 ad~ion 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 assess- ments, and establishing the period of the installment payments of the annual assessment: (c) providing for the operation, care, upkeep, and maintenance of all areas which are the maintenance responsibil- ity of the Association: (d) designating, hiring, and dismissing the person- nel necessary for the operation of the Association and. where - 7 - 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 pro- ceeds thereof in a bank depository which it shall approve, and using the proceeds to administer the Association: (f) making and amending use restrictions and rules and regulations; (g) opening of bank accounts on behalf of the Associa- tion and designating the signatories required: (h) enforcing by 19gal means the provisions of the Declaration, these By-Laws,"and the rules and regulations adopted by it, and bring any proceedings which may be in- stituted on behalf of or against the Owners concerning the Association: (i) obtaining and carrying insurance against casual- ties and liabilities, as provided in the Declaration, and paying the premium cost thereof: (j) paying the cost of all services rendered to the Association or its members which are not directly chargeable to Owners: (k) keeping books with detailed accounts of the re- ceipts and expenditures a£fecting the Association and its admin- istration, and specifying the maintenance and repair expenses and any other expenses incurred: and (1) contracting with any Person for the performance of various duties and functions. The Board shall have the power to enter into common management agreements with trusts, condomin- iums, or other associations. Any and all functions of the Asso- ciation shall be fully transferable by the Board, in whole or in part. to any other entity. Section 19. Management Agent. The Board of Directors may employ for the Association a professional management agent or agents at a compensation established by the Board of Direc- tors to perform such duties and services as the Board of Direc- tors shall authorize. The Declarant or an affiliate of the De- clarant may be employed as managing agent or Manager. The term of any management agreement shall not exceed one (1) year and shall be subject to termination by either party, without cause and vithout penalty, upon ninety (90) days' written notice. - 8 - Section 20. Borrowing. The Board of Directors shall have the power to borrow money for the purpose of repair or res- toration of the Common Property and facilities without the ap- proval of the members of the Association: provided, however, the Board shall obtain membership approval in the same manner as for special assessments, in the event that the proposed bor- rowing is for the purpose of modifying, improving, or adding amenities, and the total amount of such borrowing exceeds or would exceed Ten Thousand ($10.000.00) Dollars outstanding debt at any one time. Section 21. Fining Procedure. The Board shall not im- pose a fine (a late charge shall not constitute a fine) 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: and (i) the alleged violation; ~i) the action required to abate the violation; (iii) a time period, not less than ten (10) days, during which the violation may be abated without further sanc- tion. if such violation is a continuing one. or a statement that any further violation of the same rule may result in the imposi- tion of a fine. if the violation is not continuing. The Board o= its designee may demand immediate abatement in such circum- stances which, in the Board's determination, pose a danger to safety or property. (b) Notice. Within twelve (12) months of such demand. if the violation continues past the period allowed in the de- mand for abatement without penal~y, or if the same rule is sub- sequently violated, the Board may. upon notice, impose a fine. The notice shall state: (i) the nature of the alleged violation: (ii) that the alleged violator may, within ten (10) days ~rom the date of the notice, request a hearing regard- ing th~ fine: (iii) that any statements, evidence, and wit- nesses may be produced by the alleged violator at the hearing: and - 9 - (iv) that all rights to have the fine reconsid- ered are waived if a hearing is not requested within ten (10) days of the date of the notice. (c) Hearing. If a hearing is requested, it shall be held before the Board in executive session, and the alleged violator shall be given a reasonable opportunity to be heard. The minutes of the meeting shall contain a written statement of the results of the hearing. Article IV Officers Section 1. Officers. The officers of the Association shall be a President, Vice President, Secretary, and Treasurer. Any two or more offices may be held by the same Person, except- ing the offices of President and Secretary. The President and Treasurer shall be elected from among the members of the Board of Directors. Section 2. Election, Term of Office, and Vacancies. The officers of the Association shall be elected annually by the Board of Directors at the first meeting of the Board of Direc- tors following each annual meeting of the members. A vacancy in any office arising because of death, resignation, removal, or otherwise may be filled by the Board of Directors for the unexpired portion of the term. Section 3. ~emoval. Any officer may be removed by the Board of Directors whenever, in its judgment, the best in- terests of the Association will be served thereby. Section 4. President. The President shall be the chief executive officer of the Association and shall preside at all meetings of the Association 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 or- ganized under the Georgia Nonprofit Corporation Code. Section 5. Vice President. The Vice President shall act in the President's absence and shall have all powers, du- ties, and responsibilities provided for the President when so actinq. Section 6. Secretary. The Secretary shall keep the minutes of all meetings of the Association and of the Board of 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 Corpora- tion organized in accordance with Georgia law. - 10 - 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 disburse- ments, for prepa.ring all required financial statements and tax £eturns. 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. Section 8. ~esiqnation. Any officer may resign at any time by giving written notice to the Board of Directors. the President, or the Secretary. Such resignation shall take effect on the date of the receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall.not be necessary to make -Article V Committees Section.1. General. Committees to perform such tasks and to serve for such periods as may be designated by the Board are hereby authorized. Each committee shall be composed and shall operate in accordance with the terms of the resolution of the Board of Directors designating the committee or with rules adopted by the Board of Directors. Article VI M~scellaneous Section 1. Fiscal year. The fiscal year of the Asso- ciation shall be determined by resolution of the Board. In the absence of such a resolution, the ~iscal year shall be the cal- endar year. Section 2. parliamentary Rules. Roberts Rules of. Order (current edition) shall govern the conduct of all Asso- ciation proceedings, when not in conflict with Georgia law. the Articles of Inco£poration. the Declaration. these By-Laws. or a ruling made by the Person presiding over the proceeding. Section 3. ConE~icts. If there are conflicts or consistencies between the provisions of Georgia law, the Arti- cles of Incorporation, the Declaration. and these By-Laws, the provisions of Georgia law, the Declaration.-"the Articles of Incorporation, and the By-Laws (in that otder) shall prevail. Section 4. Amendment. The provisions of the Declara- tion' applicable to amendment of that instrument 8hall apply to any amendment to these By-taws. 085¢g - ll -