BotrK 7 5 1?paoE 28 3

DECLARATTON OF COVENANTS, CONDTTIONS, AND RESTRICTTONS

FOR

DEVON HILLS

Prepared By:DEARBORN & EWINGS u i t e 1 2 0 0 , O n e C o m & r c e P l a c eN a s h v i l l e , T e n n e s s e $ 3 7 2 3 9

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A r e a o f C o m m o n R e s p o n s i b i l i t v . . . . . . IA s s o c i a t i o n ; B o a r d o f D i r e c t i r s ; B o a r d . . . . . . . 1B y - L a w s . . . . . . . . 2C l a s s " B ' C o n t r o l P e r i o d . . . . . . 2C o m m o n A r e a . . . - 2C o m m o n E x p e n s e s . . . . . 2C o m m u n i t y - W i d e S t a n d a r d . . . . . . . 2D e c l a r a n t . . . . . . . . . . . 2D i s t r i c t . . . . . . . 2G e n e r a l A s s e s s m e n t . . . . . . . 2L i m i t e d C o m m o n A r e a . . . . . . 2M a s t e r L a n d U s e P l a n . . . . . 3I " l e m b e r . . . . 3M o r t g a g e . . . . . . . 3M o r t g a g e e . . . . . . 3M o r t g a g o r . . . . . . 3N e i g h b o r h o o d . . . . . . . . 3N e i g h b o r h o o d A s s e s s m e n t s . . . . . . 4O w n e r . . . . . 4PersonP r o p e r t i e s . .S p e c i a l A s s e s s m e n t . . . . . . . 4S u b s e q u e n t A m e n d m e n t . . . . . 4I l n i f qu t t l u . . . . a . J

V o t i n q i v l e m b e r . . . - - . . 5

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P R O P E R T Y R I G H T S . . . . 5

I " I E M B E R S H I P A N D V O T I N G R I G H T S . . . . . . 6

M e m b e r s h i p . . . . . . . . . . 5V o t i n g . . . . 6N e i g h b o r h o o d s a n d E l e c t o r a l D i s t r i c t s . . . . . . . . 1

M A I N T E N A N C E . . . . . . . . 8

1 . A s s o c i a t i o n ' s R e s p o n s i b i l i t y . . . . . . . 82 . O w n e r ' s R e s p o n s i b i l i t y . . . . . . . - 93 . N e i g h b o r h o o d ' s R e s p o n s i b i l i t y . . . . . . 9

INSURANCE AND CASUALTY LOSSES . . . . 10

I n s u r a n c e . . - . . . . . . . i 0I n d i v i d u a l I n s u r a n c e . . . . . . . . - 1 3D i s b u r s e m e n t o f P r o c e e d s . . . . . 1 3D a m a g e a n d D e s t r u c t i o n . . . . . . . I

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R e p a i r a n d R e c o n s t r u c t i o n . . . . 1 4

N O P A R T I T I O N . . . . . . I 5

C O N D E M N A T I O N . . . . . . 1 5

ANNEXATION OF ADDITIONAI PROPERTY. .

1 . A n n e x a t i o n W i t h o u t A p p r o v a l o f C l a s s " A "

l " l e m b e r s h i p . . . . 1 62 . A n n e x a t i o n W i t h A p p r o v a l o f C l a s s " A "

I " l e m b e r s h i p . . . . . . . . . 1 53 . A c q u i s i t i o n o f A d d i t i o n a l C o m m o n A r e a . . . . . . . f 54 . A m e n d m e n t . . . . . . . . . . 1 7

R I G H T S A N D O B L I G A T I O N S O F T H E A S S O C I A T I O N . . . . . . . I 7

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C o m m o n A r e a . . . L jPersona l Proper ty and ReaI Proper ty fo rC o m m o n U s e . . . . I 7R u l e s a n d R e g u l a t i o n s . . . . . . . . 1 7I n p l i e d R i g h t s . . . . . 1 7P o w e r s o f t h e A s s o c i a t i o n w i t h R e s p e c tto Ne ighborhoodsS o e c i a l S e r v i c e s

N e w C o n s t r u c t i o n C o m m i t t e e . - - - . . . . 2 4M o d i f i c a t i o n s C o m m i t t e e . . . . . . 2 5N o W a i v e r o f F u t u r e A p p r o v a l s . . . . . . . . . . 2 5\ / A r t : n - o / \

L 7I d

1 QA S S E S S M E N T S . . . . . . . T U

C r e a t i o n o f A s s e s s m e n t s . . . . . . . . . . . 1 8C o m p u t a t i o n o f A s s e s s m e n t . " . . . . . . . 2 0S p e c i a l A s s e s s m e n t s . . . . . 2 LL i e n f o r A s s e s s m e n t s . . . . . . . . . 2 2C a p i t a l B u d g e t a n d C o n t r i b u t i o n . . . 2 2D a t e o f C o m m e n c e m e n t o f A s s e s s m e n t s . . . . 2 2S u b o r d i n a t i o n o f t h e L i e n t o F i r s t M o r t g a g e s . . . . . . . . . . 2 3C a p i t a l i z a t i o n o f A s s o c i a t i o n . . . . . 2 3E x e m p t P r o p e r t y . . . . 2 3

A R C H I T E C T U R A L S T A N D A R D S . . . . . . . . . . 2 4

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Boor?51?p los 2864 . A n i m a l s a n d P e t s . . . 2 15 . N u i s a n c e a n d H a z a r d o u s S u b s t a n c e s . . . . . . 2 j5 . U n s i g h t l y o r U n k e m p t C o n d i t i o n s . . . . . . . . 2 77 . A n t e n n a s . . . . . . 2 8B . C l o t h e s l i n e s , G a r b a g e C a n s , T a n k s , E t c . . . . . . 2 89 . S u b d i v i s i o n o f U n i t . . . . . 2 8

1 0 . G u n s . . . - . 2 81 1 . P o o l s . . . . 2 8L 2 . I r r i g a t i o n . . . . . . . . . 2 9f 3 . T r a i l e r s a n d T e m p o r a r y S t r u c t u r e s . . . . . . 2 91 4 . D r a i n a g e . . . . . . 2 91 5 . T r e e R e m o v a l . . . . . . . 2 91 6 . S i t e D i s t a n c e a t I n t e r s e c t i o n s . . . . 2 9L 7 . U t i l i t y L i n e s . . . . . . 2 9l B . A i r C o n d i t i o n i n g U n i t s . . . . . . . 2 91 9 . L i g h t i n g . . . . . . 2 92 0 . A r t i f i c i a l V e g e t a t i o n , E x t e r i o r S c u l p t u r e ,

a n d S i m i l a r I t . e m s . . . . . . . 2 92 L , E n e r g y C o n s e r v a t i o n E q u i p m e n t . . . . . . . . . . 2 92 2 . l { a i l - b o x e s - . . . . . . . . . 3 02 3 . L e a s e s . . . 3 02 4 . P l a y g r o u n d . . . . . . . . . 3 02 5 . F e n c e s . . . 3 12 6 . B u s i n e s s U s e . . . . . . . 3 12 7 . O i l a n d M i n i n g O p e r a t i o n s . . . . 3 1

G E N E R A L P R O V I S I O N S . . . . . 3 1

1 . T e r m . . . . . 3 12 . A m e n d m e n t . . . . . . . . . . 3 23 . I n d e m n i f i c a t i o n . . . . 3 24 . Easemen ts o f Enc roachmen t . . . . 335 . E a s e m e n t s f o r U t i l i t i e s , E t c . . . . . . 3 36 . Easemen t fo r Access to Ad jacen t p rope r t y . . . . 337 . S e v e r a b i l i t y . . . . . . . 3 3B . P e r p e t u i t i e s . . . . . . . 3 39 . L i t i g a t i o n . . . . . . . . 3 4

1 0 . U s e o f t h e W o r d s " D e v o n H i l l s . . . . . 3 41 1 . S e c u r i t y . . . . . . 3 4

M O R T G A G E E P R O V I S I O N S . . . 3 51 . N o t i c e s o f A c t i o n . . . . . . . 3 52 . S p e c i a l F H L M C P r o v i s i o n . . . . . . 3 53 . N o P r i o r i t y . . . 3 64 . N o t i c e t o A s s o c i a t i o n . . . . . . . . 3 G5 . A m e n d m e n t b y B o a r d . . . . . . 3 66 . A p p l i c a b i l i t y o f A r t i c l e X I V . . . . . . 3 77 . F a i l u r e o f M o r t g a g e e t o R e s p o n d . . . 3 1

D E C L A R A N T ' S R I G I { T S . . . . . 3 ?X V .

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Boor t7517paor 289DECLARATTON oF covENANTS, CONDITIONS, AND RESTRTCTTONS

FORDEVON HILLS

THIS DECLARATION OF COVENANTS, C O N D I T I O N S , A N D R E S T R I C T I O N Si s made th is /5 f4 day ofP a r t n e r s h i p ( h e r e i n a f t e r

, 1 9 8 8 , b y D e v o n H i l l s L i m i t e da s " D e c L a r a n t "

) ;t o

W I T N E S S E T H

WHEREAS, Decrarant owns the real proper ty descr ibed inExhib i t "A" at tached hereto and incorporated here in by reference andintends by th is Declarat ion to impose upon the proper l ies ( as def inedh e r e i n ) m u t u a l l y b e n e f i c i a l r e s t r i c t i o n s u n d e r a g e n e r a l p i a n o fimprovemen t f o r t he bene f i t o f a l I owners o f res iden t i a l p rope r t yw i th in the P roper t i es . Dec la ran t des i res to p rov ide a f l ex iL te l nAreasonable procedure for the overa l l development of the Proper t ies,and to es tab l i sh a me thod fo r t he admin i s t ra t i on , ma in tenance r p r€se r -va t i on ' use and en joyn ren t o f such P roper t i es as a re now o r he re l f t e rs u b j e c t e d t o t h i s D e c l a r a t i o n ;

NOw' THEREFORE, Dec la ran t he reby dec la res tha t a l l o f t heproper ty descr ibed in Exhib i t 'A" and any addi t ional proper ty as ishe rea f te r sub jec ted to th i s Dec la ra t i on by Subsequen t Amendnen t (asde f i ned he re in ) sha l l be he ld , so ld , and conveyed sub jec t t o t he fo l -l ow ing easemen ts , res t r i c t i ons , covenan ts , and cond i t i ons wh ich a refo r t he pu rpose o f p ro tec t i ng the va lue and des i rab i l i t y o f and wh ichsha l I run w i th the rea l p rope r t y sub jec ted to th i s Dec l l r a t i on andwh ich sha l l be b ind ing on a l r pa r t i es hav ing any r i gh t , t i t l e , o ri n te res t i n t he desc r ibed P roper t i es o r any pa r l t he reo f , t he i r he i r s ,s u c c e s s o r s r s u c c e s s o r s - i n - t i t l e , a n d a s s i g n s , a n d s h a l l i n u r e t o t h ebene f i t o f each owner the reo f .

A r t i c l e IDe f i n i t i ons

The terms in th is Declarat ion and the By-Laws shal l be con-s t rued to have the i r o rd ina ry , genera l l y accep ted mean ings un less o th -e rw is -e_ :Pec i f i ca I I y de f i ned he re in o r i n t he by - l aws . I ; add i r i on .the fo l l ow ing de f i n i r i ons sha l l app l y :

section 1. "Areq_pf common Re:pgnei4_U!.Y" shalr mean andrefer to the Common ere 16 doy, which bythe te rms o f t h i s Dec la ra t i on o r by con t rac t w i th any pe rson o r byag reemen t w i th any Ne ighborhood become the respons ib i l i t y o f t he esso -c ia t i on . The o f f i ce o f any p rope r t y manager emp loyed by o r con t rac t -i ng w i th the Assoc ia t i on , i f - I o ia te l on t f re e rope r t i es , may be pa r t o ft h e A r e a o f C o m m o n R e s p o n s i b i l i t y .

S e c t i o n 2 . " A s s o c i a t i o n " s h a l l m e a n a n d r e f e r t o t h e D e v o nH i I I s C o m m u n i t y A s s o c i a t i o n , l r r c - a T e n n e s s e e n o n p r o f i t c o r p o r a t i o n ,i t s s u c c e s s o r s o r a s s i g n s . T h e B o a r d o f D i r e c t o r s o r " B o a r d ; s h a l l b e

( ire f6 r red

BOOl(!

/ PACEu s 0the e lected body having i ts normal meaning under Tennessee corporateI a w . T h e u s e o f t h e t e r m " a s s o c i a t i o n " o r " a s s o c i a t i o n s " i n l o w e rcase sha l l r e fe r t o any condonr in iun t assoc ia t i on o r o the r owners asso -c ia t i on hav ing j u r i sd i c t i on ove r any pa r t o f t he P roper t i es .

? 5 1

S e c t i o n 3 .Devon Hi l ls Communi ty'C ' and i nco rpo ra tedt ime to t ime .

S e c t i o n 4 .t o t h e p e r i o d o f , t i m eappo in t a ma jo r i t y o ff i e d i n A r t i c l e I I I ,

S e c t i o n 1 0 .assessmen ts l ev ied tot h e A s s o c i a t i o n .

S e c t i o n 1 1 .

" C l a s s " 8 " C o n t r o l P e r i o d "d "the members of the Board of

Sec t i on 2 | o f t he By -Laws .

sha l l mean and re fe rmember is ent i t led to

D i r e c t o r s , a s s p e c i -

"By -Laws " sha l l mean and re fe r t o t he By -Laws o fA s s o c i a t . i o n , I n c . , a t t a c h e d h e r e t o a s n x h i b i t

he re in by re fe rence , as they may be amended f rom

S e c t i o n 5 . " C o m m o n A r e a ' s h a l l m e a n a l l r e a l a n d p e r s o n a lproper ty wh ich the AssoEfETf6 i - i6 r o r herea fLer owns or o the iw iseho lds fo r the common use and en joyment o f the Owners and sha l l inc ludea l I L imi ted Common Area.

S e c t i o n 6 . ' C o m m o n E x p e n s e s ' s h a l l m e a n a n d i n c l u d e t h ea C t u a l a n d e s t i m a t e a e x @ t i n g t h e A s s o c i a t i o n , b o t h f o rgenera l and Ne ighborhood purposes , inc lud ing any reasonab le reserve ,a l l as may be found to be necessary and appropr ia te by the Board pur -s u a n t t o t h i s D e c l a r a t i o n , t h e B y - L a w s , a n d t h e C h a r t e r o f t h eA s s o c i a t i o n .

S e c t i o n 7 . " C o m m u n i t v - W i d e S t a n d a r d " s h a l I m e a n t h e s t a n d -a r c i o f c o n c i u c t , m a i n t e n � g e n e r a i i y p r e v a i i i n gt h r o u g h o u t t h e P r o p e r t i e s . S u c h s t a n d a r d m a y b e m o r e s p e c i f i c a l l yde termined and se t fo r th by the Board o f D i rec to rs and the New Con-s t r u c t i o n C o m m i L t e e .

S e c t i o n 8 . " D e c l a r a n t " s h a l l m e a n a n d r e f e r t o, o r i t s s u c c e s s o r s , s u c c e s s o r s - i n - t i t l e o r

ass igns who take t i t le to any por t ion of the undeveloped or unsoldp rope r t y desc r ibed on Exh ib i t s "A " o r "8 " f o r t he pu rpose o f deve lop -ment or sa le and who are designated as the Declarant hereunder in arecorded inst rument executed by the immediate ly preceding Declarant .

S e c t i o n 9 . " D i s t r i c t " s h a l l m e a n a q r o u p c o m p r i s e d o f o n eor more hous ing t ypes ana rep resen t i ng a po l i t i ca l un i t f o r t he pu r -pose o f e lec t i ng d i rec to rs , as more pa r t i cu la r l y desc r ibed i n A r t i c l eI f I , S e c t i o n 3 ( b ) , o f t h i s D e c l a r a t i o n .

" G e n e r a I A s s e s s m e n t " s h a l I m e a n a n d r e f e r t ofu@e bene f i t o f a l l l " t embers o f

" L i m i t e d C o m m o n A r e a ' s h a l l m e a n a n d r e f e r t oc e r t a i n p o r t i o n s o f t h e C o m m o n A r e a w h i c h a r e f o r t h e e x c l u s i v e u s ea n d b e n e f i t o f o n e o r m o r e , b u t l e s s t h a n a I I , N e i g h b o r h o o d s . A t l

_ ) _

! P I l - l

BOOI ( / b1 /PAGE

c o s t s a s s o c i a t e d w i c h m a i n t e n a n c e , r e p a i r , r e p l a c e m e n t a n d i n s u r a n c eo f L i m i t e d C o m m o n A r e a s s h a l l b e a s s e s s e d a s a N e i g h b o r h o o d A s s e s s m e n taga ins t the Owners o f Un i ts in those Ne ighborhoods wh ich have been

a i s i g n e d t h e u s e o f s u c h L i m i t e d C o m m o n A r e a s . B y w a y o f i l l u s t r a t i o n

and no t l im i ta t ion , L imi ted Common Areas may inc lude recrea t iona l

f a c i l i t i e s a n d p r i v a t e s t r e e t s i n t e n d e d f o r t h e e x c l u s i v e u s e o f O w n -

ers w i th in a par t i cu la r Ne ighborhood or Ne ighborhoods and suppor ted

e x c l u s i v e l y U y l l e i g f r b o r h o o d A s s e s s m e n t s . I n i t i a l l y , a n y L i m i t e d C o m m o n

A r e a s s h a l l b e d e s i g n a t e d a s s u c h b y D e c l a r a n t a n d a s s i g n e d i n t h e

deed convey ing the Common Area to the Assoc ia t . ion . A por t io t t o ! the

Common Area may be ass igned as L imi ted Common Area o f a par t i cu la r

Ne ighborhood and f , in i ted Common Area may be reass igned upon the vo te

o f i m a j o r i t y o f t h e t o t a l A s s o c i a t i o n v o t e , i n c l u d i n g a m a j o r i t y o f

t h e v o t e s w i l h i n t , h e N e i g h b o r h o o d ( s ; t o w h i c h t h e y a r e a s s i g n e d . D u r -

i n g t h e C l a s s " 8 " C o n t r o l P e r i o d , D e c l a r a n t s h a l l h a v e t h e r i g h t i n

i t s s o l e d i s c r e t i o n t o a s s i g n t h e u s e o f a L i m i t e d C o m m o n A r e a t o o n e

or more add i t iona l - Ne ighborhoods even i f such L imi ted Common Area has

b e e n p r e v i o u s l y a s s i g n e d t o a p a r t i c u l a r N e i g h b o r h o o d ,

S e c t i o n L 2 . " M a s t e r L a n d U s e P I a n " s h a l l m e a n a n d r e f e r t o

the pre l im inary deve lopment map or maps fo r the proper ty descr ibed on

e x h i b i t s " A " a n d " B " m o s t r e c e n t l y a p p r o v e d b y t h e M e t r o p o l i t a n G o v -

e r n m e n t o f N a s h v i l l e a n d D a v i d s o n C o u n t y , T e n n e s s e e , a s s u c h m a p o r

maps may be amended from t ime to t ime -

S e c t i o n 1 3 . " M e m b e r " s h a l l - m e a n a n d r e f e r t o a P e r s o n e n t i -

t l e d t o m e m b e r s h i p i n t h e A s s o c i a t i o n r d s p r o v i d e d h e r e i n .

Sec t ion 14 . "Mor tqage " sha l l mean anc l re fe r to a mor tgage 'd e e d o f t r u s t , d e e d t o s e c u r e d e b t , o I o t h e r s e c u r i t y d e e d .

S e c t i o n 1 5 . " M o r t q a q e e " s h a l l m e a n a n d r e f e r t o a b e n e f i -

c i a r y o r h o l d e r o f a m o r t g a g e , d e e d o f t r u s t , d e e d t o s e c u r e d e b t , o r

o t h e r s e c u r i t y d e e d .

S e c t i o n f 5 . " M o r t q a q o r " s h a l l m e a n a n d r e f e r t o a n y P e r s o n

who g ives a Mor tgage"

S e c t i o n 1 7 . " N e i q h b o r h o o d " s h a l l m e a n a n d r e f e r t o a r e a s

d e s i g n a t e d b y D e c l a r a n t c o m p r i s e d o f o n e ( 1 ) o r m o r e h o u s i n g t y p e s

s u b j 6 c t t o t h i s D e c l a r a t i o n , w h e t h e r o r n o t g o v e r n e d b y a n a d d i t i o n a l

o*n6rs assoc ia t ion , in wh ich owners may have common in te res ts o ther

t h a n t h o s e c o m m o n t o a l l A s s o c i a t i o n m e m b e r s , s u c h a s a c o n m o n t h e t n e ,

e n t r y f e a t u r e s , d e v e l o p m e n t n a m e , a n d , / o r c o m m o n a r e a s a n d f a c i l i t i e sw h i c h a r e n o t a v a i l a b l e f o r u s e b y a l I A s s o c i a t i o n m e m b e r s . F o r e x a m -

p l e , a n d b y w a y o f i l l u s t r a t - i o n a n d n o t I i m i t a t i o n , e a c h c o n d o m i n i u m

d e v e l o p m e n l , m u t t i - f a m i l y d e v e l o p m e n t a n d s i n g l e f a m i l y h o u s i n g d e v e l -

o p n r e n t s h a l l c o n s t i t u t e a s e p a r a t e N e i g h b o r h o o d . I n a d d i t i o n , e a c hp l r c e l o f l a n d i n t e n d e d f o r d e v e l o p m e n t a s a n y o f t h e a b o v e s h a l l c o n -

i t i t u t e a N e i g h b o r h o o d , s u b j e c t t o d i v i s i o n i n t o m o r e t h a n o n e ( 1 )

N e i g h b o r h o o d u p o n d e v e l o p m e n t . W h e r e t h e c o n t e x t p e r m i t s o r r e q u i r e s ,

t h e t e r m t i e i q h b o r h o o d s f r l t l a l s o r e f e r t o t h e N e i g h b o r h o o d C o r r u n i t t e e

2 9 1

- 3 -

BooK?517P le r 292(es tab l i shed i n acco rdance w i th the By -Laws) o r Ne ighborhood Assoc ia -t i o n ( a s d e f i n e d i n A r t i c l e I I I , S e c t i o n 3 ) h a v i n g j u r i s d i c t i o n o v e rthe p rope r t y w i th in the Ne ighborhood .

S e c t i o n 1 8 . " N e i q h b o r h o o d A s s e s s m e n t s " s h a I I m e a n a s s e s s -ments for conrmon expenses prov ided for here in or by any SubsequentAmendment which shal l be used for the purposes of promot ing the recre-a t - i on , hea l th , sa fe ty , we l fa re , common bene f i t , and en joynen t ' o f t heOwners and occupan ts o f t he Un i t s aga ins t wh ich the spec i f i c Ne ighbor -hood Assessmen t i s l ev ied and o f ma in ta in ing the P roPer t i es w i th in apa r t i cu la r Ne ighborhood , a I I as may be spec i f i ca l l y au tho r i zed f romt i*e to t ime by the Board of Di rectors and as more par t icu lar ly autho-r i z e d h e r e i n .

Any Ne ighborhood Assessmen t sha l l be Iev ied equa l l y aga ins ta l I Un i t s i n t he Ne ighborhood bene f i t t i ng f rom the se rv i ces suppor tedthe reby , p rov ided tha t i n t he even t . o f assessmen ts fo r ex te r i o r ma in -tenance o f s t ruc tu res , o r i nsu rance on s t ruc tu res , o r rep lacemen trese rves wh ich pe r ta in to pa r t i cu la r s t ruc tu res o r improvemen ts (pu r -suan t t o a Subsequen t Amendmen t o r supp lemen t t o th i s Dec la ra t i on ) , o ro the r expenses i ncu r red fo r t he bene f i t o f pa r t i cu la r Un i t s , suchassessmen ts may be l ev ied on a p ro ra ta bas i s among the bene f i t edU n i t s .

S e c t i o n 1 9 . " O w n e r " s h a l l m e a n a n d r e f e r t o o n e ( f ) o r m o r epersons who ho ld the reco rd t i t l e t o any Un i t wh ich i s pa r t o f t hep roper t i es , bu t exc lud ing i n a I l cases any pa r t y ho ld ing an i n te res tmere l y as secu r i t y f o r t he pe r fo rmance o f an ob l i ga t i on . I f a Un i t - i sso ld under a reco rded con t rac t o f sa le , and the con t rac t spec i f i ca l l yso p rov ides , t hen the pu rchase r ( ra the r t han the fee ow 'ne r ) w i l l becons ide red the Owner .

Sec t i on 20 . 'Pe rson" means a na tu ra l pe rson , a co rpo ra t i on ,a pa r tne rsh ip , a t rus tee , ox o the r l ega l en t i t y .

S e c t i o n 2 I . " P r o p e r t i e s " s h a l l m e a n a n dproper t y desc r ibed i n Exh ib i t "A " a t tached he re tore fe r t o such add i t i ona l p rope r t y as i s he rea f t . e rDeclarat ion by Subsequent Amendment .

re fe r t o t he rea land sha l l f u r the rsubjected to t .h is

S e c t i o n 2 2 . " S p e c i a l A s s e s s m e n t " s h a l l m e a n a n d r e f e r t oassessmen ts l ev ied i n acco rdance w i th A - r t i c l e X , Sec t i on 3 , o f t h i sD e c l a r a t i o n .

S e c t i o n 2 3 . " s u b s e q u e n t A m e n d m e n t - s h a l l m e a n a n a m e n d m e n tt o t h i s D e c l a r a t i o n w h i c h s u b j e c t s a d d i t i o n a l p r o p e r t y t o t h i s D e c I a -r a t i o n . S u c h S u b s e q u e n t A m e n d m e n t m a y , b u t i s n o t r e q u i r e d t o ,i m p o s e , e x p r e s s l y o r b y r e f e r e n c e , a d d i t i o n a l r e s t r i c t i o n s a n d o b l i g a -t i o n s o n t h e l a n d s u b m i t t e d b y t h a t S u b s e q u e n t A m e n d m e n t . t o t h e p r o v i -

s i o n s o f t h i s D e c l a r a t i o n .

A- a -

Boort7517meuS e c t i o n 2 4 . " U n i t ' s h a l l m e a n a p o r t i o n o f t h e P r o p e r t i e s

i n t . e n d e d f o r d e v e l o p m e n t , u s e a n d o c c u p a n c y a s a n a t t a c h e d o r : d e t a c h e dr e s i d e n c e f o r a s i n g l e f a m i l y , a n d s h a l l , u n l e s s o t h e r w i s e s p e c i f i e d ,i n c l u d e w i t h i n i t s m e a n i n g ( b y w a y o f i l l u s t r a t i o n , b u t n o t l i m i t a -t i o n l c o n d o m i n i u m u n i t s , t . o w n h o u s e u n i t s , a p a r t m e n t u n i t s c o n t a i n e dw i t h i n m u l t i - f a r n i l y a p a r t m e n t b u i l d i n g s , c l u s t e r h o m e s , p a t i o o r z e r ol o t l i n e h o m e s , a n d s i n g l e - f a m i l y d e t a c h e d h o u s e s o n s e p a r a t e l yp l a t t e d l o t s r d s w e l l a s v a c a n t l a n d i n t e n d e d f o r d e v e l o p m e n t a s s u c h ,a l l a s m a y b e d e v e l o p e d , u s e d , a n d d e f i n e d a s h e r e i n p r o v i d e d o r a sprov ided in Subsequent Amendments cover ing a l l o r a par t o f the Prop-e r t i e s . T h e t e r m s h a l l i n c l u d e a l l p o r t i o n s o f t h e l o t o w n e d i n c l u o -ing any s t ruc tu re ' thereon.

I n t h e c a s e o f a p a r c e l o f v a c a n t l a n d o r l a n d o n w h i c himprovements a re under cons t ruc t ion , the parce l sha1 l be deemed toc o n t a i n t h e n u n r b e r o f U n i t s d e s i g n a t e d f o r s u c h p a r c e l o n t h e l " l a s t e rL a n d U s e P l - a n o r t h e s i t e p l a n a p p r o v e d b y D e c l a r a n t , w h i c h e v e r i sm o s t r e c e n t .

S e c L i o n 2 5 . " V o l i n q M e n r b e r ' s h a l l m e a n a n d r e f e r t o t h erepresenta t ive se lec ted E

-ma MemEers o f each Ne ighborhood to be

r e s p o n s i b l e f o r c a s t i n g a I I v o t e s a t t r i b u t a b l e t o U n i t s w i t h i n t h eN e i g h b o r h o o d f o r e l e c t i o n o f d i r e c t o r s , a m e n d i n g t h i s D e c l a r a t i o n o rthe By-Laws, and a I I o ther mat te rs p rov ided fo r in th is Dec la ra t ionand in the By-Laws. The Vot ing Member f rom each Ne ighborhood sha l l bet h e s e n i o r e l e c t e d o f f i c e r ( e . 9 . , N e i g h b o r h o o d C o m m i t t e e c h a i r m a n o rNe ighborhood Assoc ia t ion pres ident ) f rom tha t Ne ighborhood; the a i . te r -n a t e V o t i n g M e m b e r s h a l - l b e t h e n e x t m o s t s e n i o r o f f i c e r .

A r t i c l e I IProper ty Riqhts

Sect ion 1. Riqhts in Common Area. Every Owner shal l have ar ight and easement of en joyment in and to the Common Area, subject toth is Declarat ion as i t may be amended f rom t ime to t ime and to anyres t r i c t i ons o r I im i ta t i ons con ta ined i n any deed convey ing such p rop -er ty to the Associat ion. Any Owner may delegate h is or her r ight o fenjoyment to the members of h is or her fami ly , approved lessees, andsoc ia l i nv i t ees sub jec t t o reas . :nab le regu la t i on by the Board and i naccordance wi th procedures iL may adopt . An Ow"ner who leases h is orher Uni t pursuanjE--Eo Af t ic !e XI I I Secl ion

i - , - --------..-

3 har l--be*_deegejjg hav_1{er!ege!_ere9 To thg _uq$' " -I o q q o a

S e c t i o n 2 . D e c l a r a n t ' s R i q h t s . D e c l a r a n t r e s e r v e s t h er i g h t t o a m e n d t h i s o e f f i a I I y a t a n y t i m e d u r i n g t h eC lass "8 " Con t ro l Pe r iod fo r t he pu rpose o f remov ing ce r ta in po r t i onso f t h e P r o p e r t i e s t h e n o w n e d b y t h e D e c l a r a n t o r i t s a f f i l i a t . e s o r t h eA s s o c i a t i o n f r o m t h e p r o v i s i o n s o f t h i s D e c l a r a t i o n , w i t h o u t p r i o rno t i ce and w i thou t t he consen t o f any Person o the r t han the ownerthe reo f , t o t he ex ten t such p rope r t y was i nc luded o r i g ina l l y i n e r ro ro r as a resu l t o f any changes wha tsoeve r i n t he p lans fo r Devon H i I I s

2 9 3

B00K 7 5 2 9 4Dec la ran t , p rov ided such ' w i thd rawa l it he ove ra l l , un i f o rm scheme o f deve lop -

Ar t . iC IE T I IMembersh ip and Vot inq R iqh ts

S e c t i o n 1 . M e m b e r s h . L p . E v e r y O w n e r , a s d e f i n e d i n S e c t i o n19 o f Ar t i c le T , sha l t -EE-OeenreE to have a menrbersh ip in the Assoc ia -t i o n . N o O w n e r , w h e t h e r o n e o r m o r e P e r s o n s , s h a l l h a v e m o r e t h a n o n e( 1 ) m e m b e r s h i p p e r U n i t o w n e d . I n t h e e v e n t t h e O w n e r o f a U n i t i sm o r e t h a n o n e ( 1 ) P e r s o n , v o t e s a n d r i g h t s o f u s e a n d e n j o y m e n t s h a l lb e a s p r o v i d e d h e r e i n . T h e r i g h t s a n d p r i v i l e g e s o f m e m b e r s h i p ,i n c l u d i n g t h e r i g h t t o v o t e , m d y b e e x e r c i s e d b y a M e m b e r o r t h eI ' l e m b e r ' s s p o u s e , s u b j e c t t o t h e p r o v i s i o n s o f t h i s D e c l a r a t i o n a n d t h eB y - L a w s . T h e m e m b e r s h i p r i g h t s o f a U n i t o w n e d b y a c o r p o r a t i o n o rp a r t n e r s h i p s h a l - l - b e e x e r c i s e d b y t h e i n d i v i d u a l d e s i g n a t e d i n a w r i t -t e n i n s t r u m e n t p r o v i d e d L o t h e S e c r e t a r y , s u b j e c t t o t h e p r o v i s i o n s o ft h i s D e c l a r a t i o n a n d t h e B y - L a w s .

S e c t i o n 2 . V o t i q g . T h e A s s o c i a t i o n s h a l l h a v e t w o ( 2 )c l a s s e s o f m e m b e r s h i p , C l a s s " A " a n d C l a s s " B ' , a s f o l l o w s :

( a ) C l a s s ' A " . C l a s s " A " l ' l e m b e r s s h a l l b e a l l O w n e r s w i t hthe except ion oE-TEE--dTEss "8" I " lember , i f any .

C l a s s " A ' M e m b e r s s h a l l b e e n t i t l e d t o o n e ( 1 ) e q u a l v o t ef o r e a c h U n i t i n w h i c h t h e y h o l d t h e i n t e r e s t r e q u i r e d f o r m e m b e r s h i pu n d e r S e c t i o n t h e r e o f ; p r o v i d e d , n o O w n e r s h a l l b e e n t i t l e d t o a v o t ef o r a n y U n i t u n t i l s u c h t i m e a s t h e U n i t i s s u b j e c t t o t h e f u I I a n n u a la s s e s s m e n t u n d e r A r t i c l e X , S e c t i o n 5 h e r e o f . T h e r e s h a l l b e o n l y o n e( 1 ) v o t e p e r U n i t . U n l e s s o t h e r w i s e s p e c i f i e d i n t h i s D e c l a r a t i o n o rt h e B y - L a w s , t h e v o t e f o r e a c h U n i t s h a l l b e e x e r c i s e d b y t h e V o t i n gl " lember r ds de f ined in Ar t i c le I I represent ing the Ne ighborhood o fw h i c h t h e U n i t i s a p a r t .

I n a n y s i t u a t i o n w h e r e a M e m b e r i s e n t i t l e d p e r s o n a l l y t oe x e r c i s e t h e v o t e f o r h i s U n i t a n d m o r e t h a n o n e ( 1 ) P e r s o n h o l d s t h ei n t e r e s t i n s u c h U n i t r e q u i r e d f o r m e m b e r s h i p , t h e v o t e f o r s u c h U n i ts h a l l b e e x e r c i s e d a s t h o s e P e r s o n s d e t e r m i n e a m o n g t h e m s e l v e s a n da d v i s e t h e S e c r e t a r y o f t h e A s s o c i a t i o n p r i o r t o a n y m e e t i n g . I n t h ea b s e n c e o f s u c h a d v i c e , t h e U n i t ' s v o t e s h a l l b e s u s p e n d e d i f m o r et h a n o n e ( f ) P e r s o n s e e k s t o e x e r c i s e i t .

( b ) C l a s s " 8 " . T h e C l a s s " 8 " M e m b e r s h a l l b e t h e D e c l a r -a n t . T h e r i g h t s o f t h e c l a s s " 8 " m e m b e r , i r r c r u d i n g t h e r i g h t t oa P p r o v e a c t i o n s t a k e n u n d e r t h i s D e c l a r a t i o n a n d t h e B y - L a w s , a r es p e c i f i e d e l s e w h e r e i n t h e D e c l a r a t i o n a n d t h e B y - L a w s . T h e C l a s s " 8 "

m e m b e r s h a l l b e e n t i t l e d t o o n e ( 1 ) v o t e p e r U n i t o w n e d a n d , i n a d d i -t i o n , w h e t h e r o r n o t a n y U n i t s a r e o w n e d , s h a l I b e e n t i t l e d t . o a p p o i n t .a m a j o r i t y o f t h e m e m b e r s o f t h e B o a r d o f D i r e c t o r s d u r i n g t h e C l a s s" 8 " c o n t r o r P e r i o d , d s s p e c i f i e d i n A r t i c r e r r r , S e c t i o n 2 o f t h e

1 ? Pnardes i red to be e f fec ted by thenot unequivocably contrary tom e n t f o r D e v o n H i I I s .

- 6 -

Boot t7517paoe 29bBy-Laws . The C lass nB" membersh ip sha l l t e rm ina te and be conve r ted toC l a s s " A " m e m b e r s h i p f i v e ( 5 ) y e a r s a f t e r t h e e x p i r a t i o n o f L h e C l a s s" 8 " C o n t r o l P e r i o d .

S e c t i o n 3 Ne iqhborhoods and E lec to ra l D i s t r i c t s

( a ) N e i q h b o r h o o d s . E v e r y U n i t . s h a l l b e l o c a t e d w i t h i n aN e i g h b o r h o o d a s d e f i n e d i n A r t i c l e I . T h e U n i t s w i t h i n a p a r t i c u L a rN e i g h b o r h o o d m a y b e s u b j e c t t o a d d i t i o n a l c o v e n a n t s a n d / o r t h e U n i tO w n e r s m a y a l l b e m e m b e r s o f a s e p a r a t e o w n e r s a s s o c i a t i o n ( " N e i g h b o r -

h o o d A s s o c i a t . i o n " ) i n a d d i l i o n t o t h e A s s o c i a L i o n , b u t n o s u c h N e i g h -b o r h o o d A s s o c i a t ' i o n s h a l l b e r e q u i r e d e x c e p t i n t h e c a s e o f a c o n d o -min ium deve lopment . Any Ne ighborhood wh ich does no t have a Ne ighbor -h o o d A s s o c i a t i o n s h a 1 l e l e c t a N e i g h b o r h o o d C o m m i t t e e , a s d e s c r i b e d i nA r t i c l e v , S e c t i o n 3 , o f t h e B y - L a w s , t o r e p r e s e n t t h e i n t e r e s t s o fO w n e r s o f U n i t s i n s u c h N e i g h b o r h o o d . E a c h N e i g h b o r h o o d A s s o c i a t i o no r c o m m i t t e e m a y , u p o n t h e a f f i r m a t i v e v o t e , w r i t t e n c o n s e n t , o r ac o m b i n a t i o n t h e r e o f o f a m a j o r i t y o f O w n e r s w i t h i n t h e N e i g h b o r h o o d ,r e g u e s t t h a t t h e A s s o c i a t i o n p r o v i d e a h i g h e r l e v e l o f s e r v i c e o r s p e -c i a l s e r v i c e s f o r t h e b e n e f i t o f U n i t s i n t h e N e i g h b o r h o o d , t h e c o s to f w h i c h s h a l l b e a s s e s s e d a g a i n s t L h e b e n e f i t t e d U n i t s p u r s u a n t t oA r t i c l e X . I n a d d i t i o n , d n y S u b s e q u e n t A m e n d m e n t o r d e c l a r a t i o n o fcovenants a f fec t ing the Proper ty w i th in a Ne ighborhood wh ich is exe-c u t . e d o r c o n s e n t e d t o b y D e c l a r a n t m a y a s s i g n m a i n t e n a n c e , i n s u r a n c eo r o t h e r r e s p o n s i b i l i t i e s t o t h e A s s o c i a t i o n , t h e c o s t o f w h i c h s h a I lb e a s s e s s e d a s a N e i g h b o r h o o d A s s e s s m e n t . T h e s e n i o r e l e c t e d o f f i c e ro f the Ne ighborhood Assoc ia t ion or the Ne ighborhood Comrn i t tee sha l lserve as the Vot ing l , l .ember fo r such Ne iqhborhood and sha l l - cas t a l lv o t e s a t t r i b u t a b l e t o U n i t s i n t h e N e i g h b o r h o o d o n a l l A s s o c i a t i o nm a t t e r s r e q u i r i n g m e m b e r s h i p v o t e , u n l e s s o t h e r w i s e s p e c i f i e d i n t h i sDec la ra t ion or the By-Laws. The Vot ing l - {ember may cas t a l l vo tes asi t , i n i t s d i s c r e t i o n , d e e m s a p p r o p r i a t e .

I n i t i a l l y , D e c l a r a n t s h a 1 1 d e s i g n a t e e a c h p o r t i o n o f t h eP r o p e r t i e s w h i c h s h a l l c o n s t i t u t e a N e i q h b o r h o o d a t t h e t i m e i t i ss u b j e c t e d t o t h i s D e c l a r a t i o n . T h e d e v e l o p e r o f a n y s u c h N e i g h b o r h o o dmay app ly to the Board o f D i rec to rs to d iv ide the parce l cons t i tu t ingthe Ne ighborhood in to more than one (1 ) Ne ighborhood a t any t ime.U p o n a p e t i t i o n s i g n e d b y a m a j o r i t y o f t h e U n i t O w n e r s i n t h e N e i g h -borhood, a t ry Ne ighborhood Assoc ia t ion or Ne ighborhood Commi t tee maya l s o a p p l y t o t h e B o a r d o f D i r e c t o r s t o d i v i d e t h e p r o p e r t y c o m p r i s i n gt h e N e i g h b o r h o o d i n t o t w o ( 2 ) o r m o r e N e i g h b o r h o o d s . a n y i u c h a p p l i -c a t i o n s h a l l b e i n w r i t i n g a n d s h a l l i n c l u d e a p l a t o f s u r v e y o f t h ee n t i r e p a r c e l w h i c h i n d i c a t e s t h e b o u n d a r i e s o f t h e p r o p o s e d N e i g h b o r -h o o d s . T h e N e i g h b o r h o o d d i v i s i o n r e q u e s t e d b y t h e N e i g h b o r h o o d o rp a r c e l d e v e l o p e r s h a l l a u t o m a t i c a l l y b e g r a n t e d u n l e s s t h e B o a r d o fD i r e c t o r s d e n i e s s u c h a p p l i c a t i o n i n w r i t i n g w i t h i n t e n ( i 0 ) d a y s o fi t q r o c o i n F F h e r e o f . T h e B o a r d m a y d e n y a n a p p l i c a t i o n o n l y , r p o nd e t e r m i n a t i o n t h a t t h e r e i s n o r e a s o n a b l e b a s i s f o r d i s t i n g u i s h i n gb e t w e e n t h e a r e a s p r o p o s e d t o b e d i v i d e d i n t o s e p a r a t e N e i g h b o r h o o d s .A I I a P p l i c a t i o n s a n d c o p i e s o f a n y d e n i a l s s h a L l b e f i l e d w i t . h t h e

- 7 -

Boor t?51?Plor 296

books and reco rds o f t he Assoc ia t i on and sha l l be ma in ta ined as l onga s t h i s D e c l a r a t i o n i s i n e f f e c t .

( b ) E l e c t o r a l D i s t r i c t s . f n o r d e r t o a l l o c a t e r e p r e s e n t a -t i o n o n t h e e o a f f i n g t h e v a r i o u s h o u s i n g t y p 6 s a n dres iden t i a l a reas w i th in the P roper t i es and to ensu re tha t no s ing leg roup , by v i r t ue o f i t s s i ze , i s ab le to e lec t t he en t i re Board o fD i rec to rs and exc lude rep resen ta t i on o f o the rs , D i s t r i c t s sha I I bee s t a b l i s h e d f o r e l e c t i o n o f d i r e c t o r s t o t h e B o a r d o f D i r e c t o r s . D i s -t r ic ts may be cornposed of one ( 1 ) or more Neighborhoods and need notbe equa l i n popu la t i on . A D is t r i c t may con ta in non -con t i guous P rop -e r t l r bu t t o t he 'ex ten t p rac t i ca l i t sha l l be composed o f p rope r t i esded ica ted to s im i l -a r uses . No D is t r i c t sha l l be compr i sed o f l essthan seven pe rcenL (7 t ) o f t he to ta l number o f Un i t s w i th in the P rop -e r t i es . The number o f D i s t r i c t s w i th in the P roper t i es sha l l no texceed the to ta l number of d i rectors author ized to serve on the Boardof Di rectors pursuant to the By-Laws. The number of d i rectors to bee lec ted by and f rom each D is t r i c t sha l l be de te rm ined i n acco rdancew i t h A r t i c l e f I I , S e c t i o n 5 , o f t h e B y - L a w s .

D is t r i c t s i n i t i a l l y sha l l be es tab l i shed by the Dec - l -a ran t byf i l ing in the Davidson County, Tennessee, land records an addendum toth i s Dec la ra t i on des igna t i ng by me tes and bounds desc r ip t i on o r n rapa1 I pa rce l s o f p rope r t y con ta ined w i th in a spec i f i ed D is t r i c t . Asadd i t . i ona l p rope r t y i s sub jec ted to th i s Dec l -a ra t i on pu rsuan t t o A r t i -c le VI I I hereof , such addendum may be amended by Declarant to changethe compos i t i on o f ex i s t i ng D is t r i c t s o r t o es tab l i sh new D is t r i c t s taccoun t f o r t he add i t i ona l p rope r t y . A f te r exp i ra t i on o f t heDec la ran t ' s r i gh t t o annex p rope r t y pu rsuan t t o A r t i c l e V I I I he reo f ,t he Board o f D i rec to rs sha l l have the r i gh t t o f i l e o r amend suchaddendum upon the vo te o f a t l eas t two - th i rds (2 /3 ) o f t he to ta l num-ber of Di rectors. Nei ther recordat ion nor amendment of such addendumshal l const i tu te arr amendment to th is Declarat ion and shal l notrequi re the formal i ty thereof . Unt i l such t ime as an addendum isf i l ed , a l I o f t he P roper t i es sha l l cons t i t u te a s ing le D is t r i c t .Af ter an addendum is f i led, any and a l l por t ions of the Proper t ieswh ich a re no t ass igned to a spec i f i c D is t r i c t t he re in , un t i l soa s s i g n e d , s h a l l c o n s t i t u t e a s i n g l e D i s t r i c t .

A r t i c l e I VMain tenance

S e c t i o n 1 . A s s o c i a t i o n ' s R e s p o n s i b i l i t v . T h e A s s o c i a t i o ns h a l 1 m a i n t a i n a n A k e e C o m m o n R e s p o n s i b i l -i t y , s u c h m a i n t e n a n c e t o b e f u n d e d a s h e r e i n a f t e r p r o v i d e d . T h i sm a i n t e n a n c e s h a l l i n c l u d e , b u t n o t b e I i m i t e d t o , ( i ) m a i n t e n a n c e ,r e p a i r , a n d r e p l a c e m e n t , s u b j e c t t o a n y i n s u r a n c e t h e n i n e f f e c t , o fa l l l a n d s c a p i n g a n d o t h e r f l o r a , s t r u c t u r e s , a n d i m p r o v e m e n t s s i t u a t e du p o n s u c h a r e a s , I a n d s c a p i n g o n m e d i a n s a n d r i g h t s - o f - w a y o f a l l p u b -l - i c r o a d s , a n d I a n d s c a p i n g o f a n y b u f f e r s ; ( i i ) a l I r e c r e a t i o n a lf a c i l i t i e s a n d o t h e r s t r u c t u r e s l o c a t e d u p o n t h e C o m m o n A r e a s ; a n d( i i i ) a l I e q u i p m e n t , p i p e s , l i n e s a n d s t r u c t u r e s p r o v i d i n g w e l l o r

- B -

BooK ? 517plar 2gz

r i ve r wa te r f o r l andscap ing w i th in the A rea o f Common Respons ib i l i t y .No tw i t . hs tand ing the ob l i gaL ion to ma in ta in the A rea o f Common Respon-s ib i l i t y , t he Board o f D i rec to rs may d i scon t i nue the ope ra l - i on o f anyfoun ta in o r s im i l a r aes the t i c dev i ce w i th in such A rea o f CommonRespons ib i l i t y : - f , i n i t s so le d i sc re t i on , t he Board de te rm ines tha tdo ing so i s i n t he bes t i n te res t o f t he Assoc ia t i on .

N o t w i t h s t a n d i n g t h a t t h e A s s o c i a t i o n m a y h a v e r e s P o n s i b . i l i t yfo r ma in ta in ing L i rn i t . ed Common Areas , a l I cosEs assoc ia ted w i th ma in -tenance, repai r and replacement of L imi ted Common Areas shal l beassessed so Ie Iy aga ins t t he Un i t s i n t he Ne ighborhood(s ) bene f i t t i ngthe re f rom as a Ned-ghborhood Assessn ten t pu rsuan t t o A r t i c l e X , Sec t i onL , o f t h i s D e c l a r a t i o n .

The Assoc ia t i on sha l l ma in ta in , repa i r and rep lace any P rop -e r t y w i th in a Ne ighborhood fo r wh ich such respons ib i l i t y i s spec i f i -ca l l y ass igned to the Assoc ia t i on by any Subsequen t Amendmen t o r add i -t i ona l dec la ra t i on o f covenan ts reco rded i n the Dav idson Coun ty , Ten -nessee l and reco rds a f fec t i ng any po r t i on o f t he P roper t i es , p rov idedsuch Subsequent Amendment or addi t ional dec larat ion is executed by orc o n s e n t e d t o b n D e c l a r a n t . I f a n y s u c h i n s t r u n e n t i s n o t e x e c u t e d b yD e c l a r a n t , t h e n D e c l a r a n t ' s w r i t t e n c o n s e n t s h a l l b e a t t a c h e d t h e r e t oa n d r e c o r d e d i n t h e l a n d r e c o r d s . I n a d d i t i o n , t h e A s s o c i a t i o n m d Y ,i n t h e d i s c r e t i o n o f i t s B o a r d , a s s u m e t h e m a i n t e n a n c e r e s p o n s i b i l i -t i e s o f a N e i g h b o r h o o d A s s o c i a t i o n s e t o u t i n t h i s D e c l a r a t i o n o r i na n y S u b s e g u e n t A m e n d m e n t o r a d d i t i o n a l d e c l a r a t i o n s u b s e q u e n t l yr e c o r d e d e i t h e r b y c o n t r a c t o r a g r e e m e n t o r b e c a u s e , i n t h e o p i n i o n o ft h o R o a r r J - r h e l e v e l a n d q u a l i t y o f s e r v i c e t h e n b e i n g p r o v i d e d i s n o tcons is ten t w i th the Communi ty -Wide Standard o f the Proper t ies . Thep r o v i s i o n o f s e r v i c e s i n a c c o r d a n c e w i t h t h i s S e c t i o n s h a l l n o t c o n -s t i t u t e d i s c r i m i n a t i o n w i t h i n a c 1 a s s .

S e c t i o n 2 . O w n e r ' s R e s p o n s i b i l i t y . E a c h O w n e r s h a l l m a i n -t a i n h i s o r h e r U n i t a � k i n g a r e a s , l a n d s c a p i n g ,and o ther improvements compr is ing the Un i t in a manner cons is ten t w i ththe Conrnun i ty -Wide Standard and a I - l - app l i cab le covenants , un less suchm a i n t e n a n c e r e s p o n s i b i l i t y i s o t h e r w i s e a s s u m e d b y o r a s s i g n e d t o aNe ighborhood Assoc ia t ion pursuant to any add i t iona l dec la ra t ion o fc o v e n a n t s a p p l i c a b l e t o s u c h U n i t . I f a n y O w n e r f a i l s p r o p e r l y t op e r f o r m h i s o r h e r m a i n t e n a n c e r e s p o n s i b i l i t y , t h e A s s o c i a t i o n m a yp e r f o r m i t a n d a s s e s s a l l c o s t s i n c u r r e d b y t h e A s s o c i a t i o n p l u s a f e ee q u a l t o t e n ( 1 0 * ) p e r c e n t o f s u c h c o s t s a g a i n s t t h e U n i t a n d t h eO w n e r i n a c c o r d a n c e w i t h A r t i c l e X , S e c t i o n 3 o f t . h i s D e c l a r a t i o n ;prov ided, however , except when en t ry i s requ i red due to an emergencys i t u a t i o n , t h e A s s o c i a t i o n s h a I l a f f o r d t h e O w n e r r e a s o n a b l e n o t i c ea n d a n o p p o r t u n i t y t o c u r e t h e p r o b l e m p r i o r t o e n t r y .

S e c t i o n 3 . N e i q h b o r h o o d ' s R e s p o n s i b i l i t y . E a c h N e i g h b o r -h o o d s h a l l b e r e s p o n s i b l e f o r p a y i n g , t h r o u g h N e i g h b o r h o o d A s s e s s -m e n t s , c o s t s o f m a i n t e n a n c e o f c e r t a i n C o m m o n A r e a s a n d L i m i t e d C o m m o nA r e a s w i t h i n o r a s s i g n e d t o s u c h N e i g h b o r h o o d w h i c h p r i m a r i l y b e n e f i tt h e O w n e r s o f U n i t s w i t h i n t h e N e i g h b o r h o o d , i n c l u d i n g , w i t h o u t

- 9 -

7

BooK?517P ls r 298I i m i c a t i o n , t h e c o s t s o f m a i n t - e n a n c e o f a n y r i g h e - o f - w a y a n dg r e e n s p a c e b e t w e e n t h e N e i g h b o r h o o d a n d a d j a c e n t p u b l i c r o a d s , m a i n t cn a n c e o f a I I l a n d s c a p i n g o n m e d i a n s a n d r i g h t s - o f - w a y o f a I I p u b l i cr o a d s , d r y l i g h t i n g s y s t e m s , p r i v a t e s t r e e t s o r p a r k i n g a r e a s w i t h i n ,o r p rov id ing access to the Ne ighborhood, and any lakes or ponds w i th int h e N e i g h b o r h o o d , r e g a r d l e s s o f o w n e r s h i p a n d r e g a r d l e s s o f t h e f a c tt h a t s u c h m a i n t e n a n c e m a y b e p e r f o r m e d b y t h e A s s o c i a t i o n . T h e B o a r do f D i r e c t o r s s h a l l i d e n t i f y , p r i o r t o l e v y i n g a s s e s s m e n t s f o r a n y f i s -ca l year , wh ich proper ty sha l I be main ta ined a t Ne ighborhood expensep u r s u a n t t o t h i s p a r a g r a p h d u r i n g s u c h f i s c a l y e a r ; p r o v i d e d , t o t h eg r e a t e s t e x t - e n t p o s s i b l e , d I I s i m i l a r l y s i t u a t e d N e i g h b o r h o o d s s h a l lb e t r e a t e d t h e s a m e .

A n y N e i g h b o r h o o d A s s o c i a t i o n h a v i n g r e s p o n s i b i l i L y f o r m a i n -t e n a n c e o f a l l o r a p o r t i o n o f t h e p r o p e r t y w i t h i n a p a r t i c u l a r N e i g h -b o r h o o d p u r s u a n t t o a d e c l a r a t i o n o f c o v e n a n t s a f f e c t i n g t h e N e i g h b o r -h o o d s h a I I p e r f o r m s u c h m a i n t e n a n c e r e s p o n s i b i l i t y i n a m a n n e r c o n s i s -ten t w i th the Communi ty -Wide Standard . I f any such Ne ighborhood Asso-c i a t i o n f a i l s t o p e r f o r m i t s m a i n t e n a n c e r e s p o n s i b i l i t y a s r e q u i r e dh e r e i n a n d i n a n y a d d i t i o n a l d e c l a r a t i o n , t h e A s s o c i a t i o n m a y p e r f o r mi t a n d a s s e s s t h e c o s t s a g a i n s t a I l U n i t s w i t h i n s u c h N e i g h b o r h o o dA s s o c i a t i o n a s p r o v i d e d i n A r t i c l e X , S e c t i o n 3 o f t h i s D e c l a r a t i o n .

A r t i c l e Vf n s u r a n c e a n d C a s u a l t y L o s s e s

S e c t i o n 1 . I n s u r a n c e . T h e A s s o c i a t i o n ' s B o a r d o f D i r e c -t o r s , o f i t s d u l y a u t h o r T z e a a g e n t , s h a l l h a v e t h e a u t . h o r i t y t o a n ds h a I I o b t a i n b l a n k e t a l l - r i s k i n s u r a n c e , i f r e a s o n a b l y a v a i l a b l e , f o ra l I i n s u r a b l e i m p r o v e m e n t s o n t h e C o m m o n A r e a . I f b l a n k e t a l l - r i s kcoverage is no t reasonab ly ava i lab le , then a t a min . imum an insurancep o l i c y p r o v i d i n g f i r e a n d e x t e n d e d c o v e r a g e s h a l l b e o b t a i n e d . T h i sinsurance sha l l be in an amount su f f i c ien t to cover one hundred ( 100t )percent o f the rep lacement cos t o f any repa i r o r recons t ruc t ion in theevent o f damage or des t ruc t ion f rom any insured hazard-

Premiums fo r a l l - insurance on the Common Area sha l l be com-m o n e x p e n s e s o f t h e A s s o c i a t i o n a n d s h a l l b e i n c l u d e d i n t h e G e n e r a lA s s e s s m e n t , a s d e f i n e d i n A r t i c l e I , S e c t i o n 1 0 h e r e o f , a n d a s m o r ep a r t i c u l a r l y d e s c r i b e d i n A r t i c l e X , S e c t i o n I h e r e o f . T h e p o l i c y m a yconta in a reasonab le deduct ib le , and the amount thereo f sha l l be addedto the face amount o f the po l i cy in de termin ing whether the insurancea t l e a s t e q u a l s t h e f u I I r e p l a c e m e n t c o s t . T h e d e d u c t i b l e s h a l l b ep a i d b y t h e p a r t y w h o w o u l d b e r e s p o n s i b l - e f o r t h e r e p a i r i n t h ea b s e n c e o f i n s u r a n c e a n d i n t h e e v e n t o f m u l t i p l e p a r t i e s s h a l l b ea l l o c a t e d i n r e l a t i o n t o t h e a m o u n t e a c h p a r t y ' s l o s s b e a r s t o t h et o t . a l .

I n a d d i t i o n t o c a s u a l t y i n s u r a n c e o n t h e C o m m o n A r e a , t h eA s s o c i a t i o n m a y , u p o n r e q u e s t o f a N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t -t e e , o b t a i n a n d c o n t i n u e i n e f f e c t a d e q u a t e b l a n k e t a I 1 - r i s k c a s u a l t yi n s u r a n c e i n s u c h f o r m a s t h e B o a r d o f D i r e c t o r s d e e m s a p p r o p r i a t e f r

- 1 0 -

sour?51?Pnsr 299

one hundred ( 100 t ) pe rcen t o f t he rep lacemen t cos t o f a l l Un i t s ,i r c l ud ing improvemen ts l oca ted the reon , w i th in the Ne ighborhood and /o rcouuron p ioper ty of the Neighborhood Associat ion, and charge Lhe coststhe reo f t o t he Owners w i th in the bene f i t t ed Ne ighborhood as a Ne igh -bo rhood Assessmen t , as de f i ned i n A r t i c l e X he reo f . No tw i ths tand ingth i s au tho r i t y , t he Assoc ia t i on sha l l no t be ob l i ga ted to p rov ideinsu rance fo r any Ne ighborhood un less spec i f i ca l l y ass igned suchrespons ib i l i t y i n a Subsequen t Amendmen t o r add i t i ona l dec la ra t ' i on o fcove lan ts a f fec t i ng such Ne ighborhood execu ted by Dec la ran t o r con -sent ,ed to by Decla iant as ev idenced by a wr i t ten consent at tachedthe re to and reco rded i n the Dav idson Coun ty , Tennessee land reco rds .

fnsu rance ob ta ined on the p rope r t i es w i th in any Ne ighborhoodwhe the r ob ta ined by such Ne ighborhood o r t he Assoc ia t i on , sha l l a t am in imum comp ly w i th the app l i cab le p rov i s ions o f t h i s Sec t i on I ,i nc lud ing the - p rov i s ions o f t h i s A r t i c l e app l i cab le to po l i cy p rov i -s ions , I oss ad jus tmen t , and a I l - o the r sub jec ts to wh ich th i s A r t . i c Ieapp l i es w i th rega rd to i nsu rance on the Common Area . A1 l such i nsu r -a . t i e sha l l be fo r t he fu l l r ep lacemen t cos t . A I I such po l i c i es sha l lp rov ide fo r a ce r t i f i ca te o f i nsu rance to be fu rn i shed to each Memberinsu red , t o t he Assoc ia t i on , and to the Ne ighborhood Assoc ia t i on , asa p p l i c a b l e .

The Board sha l l a l so ob ta in a pub l i c l i ab i l i t y po l i cy cove r -ing the Common Area, the Associat ion and i ts Hembers for a I I damage ori n ju ry caused by the neg l i gence o f t he Assoc ia t i on o r any o f i t s l ' l em-be is o r agen ts . I f r easonab ly ava i l ab le , t he pub l i c l - i ab i l i t y po l i cys h a l l h a v e a t l e a s t a O n e M i l l i o n ( $ 1 , 0 0 0 , 0 0 0 . 0 0 ) D o l l a r s i n g l e p e r s o nl imi t as respects bodi ly in jury and proper ty damage, a One Mi I I ion( S 1 r 0 0 0 , 0 0 0 . 0 0 ) D o l l a r l i m i t p e r o c c u r r e n c e , a n d a F i v e H u n d r e d T h o u -s a n d ( S 5 0 0 , 0 0 0 . 0 0 ) D o l l a r m i n i n t u m p r o p e r t y d a m a g e l i m i t .

A1 I insurance coverage obta ined by the Board of Di rectorsshal l be wr i t ten in the name of the Associat ion as Trustee for therespec t i ve bene f i t t ed pa r t i es , as fu r the r i den t i f i ed i n (b ) be low-Such i nsu rance sha l l be gove rned by the p rov i s ions he re ina f te r se tf o r t h :

( a ) A I I p o l i c i e s s h a l l b e w r i t t e n w i t h a c o m P a n y l i c e n s e dt o d o b u s i n e s s i n T e n n e s s e e w h i c h h o l d s a B e s t ' s r a t i n g o f A o r b e t t e ra n i s a s s i g n e d a f i n a n c i a l s i z e c a t e g o r y o f X I o r l a r q e r a s e s L a b -l i s h e d b y A . M . B e s t C o m p a n y , I n c . , i f r e a s o n a b l y a v a i l a b l e , o r , i fn o t a v a i l a b l e , t h e m o s t n e a r l y e q u i v a l e n t r a t i n g .

( b ) A 1 1 p o l i c i e s o n t h e C o m m o n A r e a s h a l l b e f o r L h e b e n e -f i t o f t h e A s s o c i a t i o n a n d i t s r n e m b e r s a s t h e i r i n t e r e s t s m a y a p p e a r ;a l l p o l i c i e s s e c u r e d a t t h e r e q u e s t o f a N e i g h b o r h o o d s h a l l b e f o r t h eb e n e f i t o f t h e N e i g h b o r h o o d A s s o c i a t i o n , i f a r l f r t h e O w n e r s o f U n i t sw i t h i n t h e N e i g h b o r h o o d a n d t h e i r M o r t g a g e e s , a s t h e i r i n t e r e s t s m a ya p p e a r .

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BooK751?pacE 100( c ) E x c l u s i v e a u t h o r i t y t o a d j u s t l o s s e s u n d e r p o l i c i e s i n

fo rce on the P roper t i es ob ta ined by Lhe Assoc ia t i on sha l l be ves ted rthe Assoc ia t i on ' s Board o f D i rec to rs ; p rov ided , however , no l , l o r tgageehav ing an i n te res t i n such l osses may be p roh ib i t ed f rom pa r t i c i pa t i ngin the se t t l emen t nego t i a t i ons , L f d . r r1 r r re la ted the re to .

( d ) I n n o e v e n t s h a l l t h e i n s u r a n c e c o v e r a g e o b t a i n e d a n dm a i n t a i n e d b y t h e A s s o c i a t i o n ' s B o a r d o f D i r e c t o r s h e r e u n d e r b ebrought in to cont r ibu t ion w i th insurance purchased by ind iv idua l Own-e r s / o c c u p a n t s , o r t h e i r M o r t g a g e e s .

( e ) A . L , I c a s u a l t y i n s u r a n c e p o l i c i e s s h a l l h a v e a n i n f l a t i o nguard endorsement , i f reasonab ly ava i lab le , and an agreed amountendorsement w i th an annua l rev iew by one ( 1 ) o r more qua l i f ied per -s o n s , d L l - e a s t o n e ( i ) o f w h o m m u s t b e i n t h e r e a L e s t a t e i n d u s t r y a n df a m i l i a r w i t h c o n s t r u c t i o n i n t h e D a v i d s o n C o u n t y , T e n n e s s e e , a r e a .

( f ) T h e A s s o c i a t i o n ' s B o a r d o f D i r e c t o r s s h a l l b e r e q u i r e dto make eve ry reasonab le e f fo r t t o secu re i nsu rance po l i c i es tha t w i l Ip r o v i d e f o r t h e f o l l o w i n g :

( i ) a w a i v e r o f s u b r o g a t i o n b y t h e i n s u r e r a s t o a n yc l a i m s a q a i n s t t h e A s s o c i a t i o n ' s B o a r d o f D i r e c t o r s , i t s m a n a g € r r t h eO w n e r s , a n d t h e i r r e s p e c t i v e t e n a n t s , s e r v a n t s , a g e n t s , a n d g u e s t s ;

( i i ) a w a i v e r b y t h e i n s u r e r o f i t s r i g h t s t o r e p a i r ,and recons t ruc t , i ns tead o f pay ing cash ;

suspended on i::;]".':?'.1; 5::':I i l3l"o:":?fi:l:; '6-i:;:]idated or

( iv ) that no pol icy may be cancel led, inval idated, orsuspended on accoun t o f t he conduc t o f any D i rec to r , o f f i ce r , o remployee of t .he Associat ion or i ts du ly author ized manager wiLhoutp r i o r demand in wr i t i ng de l i ve red to the Assoc ia t i on to cu re thedefect and the a l l -owance of a reasonable t ime thereaf ter wi th in whichthe defect may be cured by the Associat ion, i ts manaEerr any Owner, orMortgagee;

( v ) t h a t a n y " o t h e r i n s u r a n c e " c l a u s e i n . a n y p o l i c ye x c l u d e i n d i v i d u a l O w n e r s ' p o l i c i e s f r o m c o n s i d e r a t i o n ; a n d

( v i ) t h a t t h e A s s o c i a t i o n w i l l b e g i v e n a t l e a s t t h i r t y( 3 0 ) d a y s ' p r i o r w r i t t e n n o t i c e o f a n y c a n c e l l a t i o n , s u b s t a n t i a l m o d i -f i c a t i o n , o r n o n - r e n e w a l .

I n a d d i t i o n t o t h e o t h e r i n s u r a n c e r e q u i r e d b y t h i s S e c t i o n ,t h e B o a r d s h a l l o b t a i n , d s a c o m m o n e x p e n s e , w o r k e r ' s c o m p e n s a t i o ni n s u r a n c e , i f a n d t o t h e e x t e n t n e c e s s a r y , d i r e c t o r s ' a n d o f f i c e r s 'l i a b i l i t y c o v e r a g e , a n d , L f r e a s o n a b l y a v a i l a b l e , a f i d e l i t y b o n d o rb o n d s o n d i r e c t o r s , o f f i c e r s , e m p J - o y e e s , a n d o t h e r P e r s o n s h a n d l i n g o rr e s p o n s i b l e f o r t h e A s s o c i a t i o n ' s f u n d s . T h e a m o u n L o f f i d e l i t y

- 1 2 -

BOOK7 5 1Tpnrr3 0 1c o v e r a g e s h a l l b e d e t e r m i n e d i n t h e d i r e c t o r s ' b e s t b u s i n e s s j u d g i r n e n t

b u t , i f r e a s o n a b l y a v a i l a b l e , m a y n o t b e l e s s t h a n t h r e e ( 3 ) m o n t h s 'a s s e s s m e n t s , p l u s r e s e r v e s o n h a n d . B o n d s s h a l l c o n t a i n a w a i v e r o fa l l d e f e n s e s b a s e d u p o n t h e e x c l u s i o n o f p e r s o n s s e r v i n g w i t h o u t c o m -p e n s a t i o n a n d s h a l l r e q u i r e a t L e a s t t h i r t y ( 3 0 ) d a y s ' p r i o r w r i t t e n

n o t i c e t o t h e A s s o c i a t i o n o f a n y c a n c e l l a t i o n , s u b s t a n t i a l m o d i f i c a -t i o n , o r n o n - r e n e w a l .

S e c t i o n 2 . I n d i v i c i u a l I n s u r a n c e . B y v i r t u e o f t a k i n g t i t l et o a U n i t s u b j e c t t o t h e t e r m s o f t h i s D e c l a r a t i o n , e a c h O w n e r c o v e -n a n t s a n d a g r e e s w i t h a I I o t h e r O w n e r s a n d w i t h t h e A s s o c i a t i o n t h a te a c h O w n e r s h a I I c a r r y b l a n k e t a I l - r i s k c a s u e l t y i n s u r a n c e o n t h e

U n i t ( s ) a n d s t r u c t u r e s c o n s L r u c t e d t h e r e o n m e e t i n g t h e s a m e r e q u i r e -m e n t s a s s e t f o r t h f o r i n s u r a n c e i n S e c t i o n 1 o f t h i s A r t i c l e V ,u n l e s s t h e N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t t e e f o r t h e N e i g h b o r h o o di n w h i c h t h e U n i t i s I o c a t e d o r t h e A s s o c i a t i o n c a r r i e s s u c h i n s u r -a n c e . E a c h O w n e r f u r t h e r c o v e n a n t s a n d a g r e e s t h a t i n t h e e v e n t o f ap a r t i a l l o s s o r d a m a g e a n d d e s t r u c t i o n r e s u l t i n g i n l e s s t h a n t o t a ld e s t r u c t i o n o f s t r u c t u r e s c o m p r i s i n g h i s U n i t , t h e O w n e r s h a l l p r o c e e dprompt ly to repa i r o r to recons t ruc t the damaged s t ruc tu re in a mannerc o n s i s t e n t w i t h t h e o r i g i n a l c o n s t r u c t i o n o r s u c h o t h e r p l a n s a n ds p e c i f i c a t i o n s a s a r e a p p r o v e d i n a c c o r d a n c e w i t h A r t i c l e X I o f t h i sD e c l a r a t i o n a n d t h e O w n e r s h a l l p a y a n y c o s t s o f a n y r e p a i r o r r e c o n -s t r u c t i o n w h i c h a r e n o t c o v e r e d b y i n s u r a n c e p r o c e e d s , s u c h r e p a i r o rrecons t ruc t ion to be comple ted w i th in one hundred e igh ty ( 180 ) days o ft h e d a t e o f t h e o c c u r r e n c e o f t h e d a m a g e o r d e s t r u c t i o n . I n t h e e v e n ttha t the s t ruc tu re i s to ta l - l y des t royed the Owner may dec ide no t tor e b u i l d o r t o r e c o n s t r u c t , i n w h i c h c a s e t h e O w n e r s h a l l , w i t h i nt h i r t y ( 3 0 ) d a y s o f t h e d a t e o f t h e d a m a g e o r d e s t r u c t i o n , c l e a r t h e

U n i t o f a l l d e b r i s a n d r e t u r n i t t o s u b s t a n t i a l l y t h e n a c u r a l s t a t e i nw h i c h i t e x i s t e d p r i o r t o t h e b e g i n n i n g o f c o n s t r u c t i o n a n d t h e r e a f t e rt h e O w n e r s h a l l c o n t i n u e t o m a i n t a i n t h e U n i t i n a n e a t a n d a t t r a c t i v econd i t ion cons is ten t w i th the Communi ty -Wide Standard-

A Ne ighborhood Assoc ia t ion or Commi t tee may impose mores t r ingent requ i rements regard ing the s tandards fo r rebu i ld ing or

r e c o n s t r u c t i n g s t r u c t u r e s o n t h e U n i t . s s u b j e c t t o i t s j u r i s d i c t i o n a n d

the s tandard fo r re tu rn ing the Un i ts to the i r na tura l s ta te in thee v e n t t h e s t r u c t u r e s a r e n o t r e b u i l t o r r e c o n s t r u c t e d .

Sec t ion 3 . D isbu rsemen t o f P roceeds . I f t he damage o rdes t ruc t i on fo r wh ich the p roceeds o f i nsu rance po l i c i es a re pa id i sto be repa i red o r recons t ruc ted , t he p roceeds , o r such Por t i on the reo fas may be requ i red fo r such pu rpose , sha l l be d i sbu rsed i n paymen t o fsuch repa i rS o r recons t ruc t i on as he re ina f te r p rov ided . Any p roceedsr e m a i n i n g a f t e r d e f r a y i n g s u c h c o s t s o f r e p a i r s o r r e c o n s t r u c L i o n L othe Common Area o r , i n t he even t no repa i r o r recons t ruc t i on i s made ,a f te r mak ing such se t t l emen t as i s necessa ry and app rop r ia te w i th thea f f ec ted Owner o r Owners and the i r l , l o r tgagee(s ) as the i r i n te res ts maya p p e a r , s h a l I b e r e t a i n e d b y a n d f o r t h e b e n e f i t o f t h e A s s o c i a t i o nand p laced i n a cap i ta l improven len ts accou l t t . Th i s i s a covenan t f o r

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BOOKt he bene f i t o f any Mor tgagee o f a Un i t and may beI" lor tgagee.

enforced by such

S e c t i o n 4 . D a m a g e a n d D e s t r u c t i o n .

(a ) Immed ia te l y a f te r t he damage o r des t ruc t i on by f i r e o ro the r cas t ra l t y t o a l l o r any pa r t o f t he P roper t i es cove red by i nsu r -ance wr i t t en i n t he name o f t he Assoc ia t i on , t he Board o f D i rec to rs o ri t s du l y au t .ho r i zed agen t sha l I p roceed w i th the f i l i ng and ad jus tmen to f a I I c l a ims a r i s i ng under such i nsu rance and ob ta in re l i ab le andde ta i l ed es t ima tes o f t he cos t o f repa i r o r recons t ruc t i on o f t he dam-aged o r des t royed P roper t i es . Repa i i o r recons t ruc t . i on , as used i nth i s pa rag raph , means repa i r i ng o r res to r i ng the P roper t i es to sub -s tan t i a l - l y t he same cond i t i on i n wh ich they ex i s ted p r i o r t o t he f i r eo r o the r casua l t y , a l l ow ing fo r any changes o r improvemen ts necess i -t a ted by c t ranges i n the app l i cab le bu i l d ing code .

(b ) Any damage o r des t ruc t i on to the Common Area sha l l berepa i red o r recons t ruc ted un less the Vo t i ng l l embers rep r?sen t i ng a tI e a s t s e v e n t y - f i v e ( 7 5 t ) p e r c e n t o f t h e t o t a l v o t e o f t h e A s s o c i a t i o ns h a l l d e c i d e w i t h i n s i x t y ( 6 0 ) d a y s a f t e r t h e c a s u a l t y n o t t o r e p a i ror reconstruct . Any damage or dest ruct ion to the common proper ty ofany Ne ighborhood Assoc ia t i on sha l I be repa i red o r recons t ruc ted un lessthe members ho ld ing a t l eas t seven ty - f i ve (75 t ) pe rcen t o f t he to ta l -vote of the Neighborhood Associat ion whose common proper ty is damagedsha l l dec ide w i th in s i x t y (60 ) days a f te r t he casua l - t . y no t t o repa i ro r recons t ruc t I f f o r a n y r e a s o n e i t h e r t h e a m o u n t o f t h e i n s u r a n cp r o c e e d s t o b e p a i d a s a r e s u l t o f s u c h d a m a g e o r d e s t r u c t i o n r o rr e l i a b l e a n d d e t a i l e d e s t i m a t e s o f t h e c o s t o f r e p a i r o r r e c o n s t r u c -t i o n r o r b o t h , a r e n o t m a d e a v a i l a b l e t o t h e A s s o c i a t i o n o r t h e N e i g h -b o r h o o d A s s o c i a t i o n , d s a p p r o p r i a t e , w i t h i n s a i d p e r i o d , t h e n t h eper iod sha l l be ex tended un t i l such in fo rmat ion sha l - l be made ava i la -b r e ; p r o v i d e d , h o w e v e r , s u c h e x t e n s i o n s h a l l n o L e x c e e d s i x t y ( 6 0 )days . No Mor tgagee sha l l have the r igh t to par t i c ipa te in the de ter -mina t ion o f whether the Common Area damase or des t ruc t ion sha l l ber e p a i r e d o r r e c o n s t r u c t e d -

(c ) In the event tha t i t shou ld be de termined in t .he mannerdescr ibed above tha t the damage or des t ruc t ion to the Common Area ort , o t h e c o m n r o n p r o p e r t y o f a n y N e i g h b o r h o o d A s s o c i a t i o n s h a l l n o t b erepa i red or recons t ruc ted and no a l te rna t ive improvements a re au tho-r i z e d t h e n a n d i n t h a t e v e n t t h e a f f e c t e d p o r t i o n o f t h e p r o p e r t i e ss h a l l b e r e s t o r e d t o t h e i r n a t u r a l s t a t e a n d m a i n t a i n e d b y t h e A s s o c i -a t i o n o r t h e N e i g h b o r h o o d A s s o c i a t i o n , a s a p p l i c a b l e , i n I n e a t a n da t t r a c t i v e c o n d i t i o n , c o n s i s t e n t w i t h t h e C o m m u n i t v - W i d e S t a n d a r d .

?5 l?prat 3C 2

S e c t i o n 5 . R e p a i r a n d R e c o n s t r u c t i o n .d e s t r u c t i o n t o t h e C o m mb o r h o o d A s s o c i a t i o n f o r w h i c h i n s u r a n c e p r o c e e d sr e p a i r e d o r r e c o n s t r u c t e d , a n d s u c h p r o c e e d s a r ed e f r a y t h e c o s t t h e r e o f , t h e B o a r d o f D i r e c t o r sn e c e s s i t y o f a v o t e o f t h e V o t i n g M e m b e r s , l e v y

I f t h e d a m a g e o rp r o p e r t y o f a N e i g h -

a r e p a i d i s t o b en o t s u f f i c i e n t t o

s h a l - 1 , w i t . h o u t t h ea s p e c i a l a s s e s s m e n t

- 1 4 -

F.l

BOOI( /

a g a i n s t a I I O w n e r s o n t h e s a m e b a s i s a s p r o v i d e d f o r G e n e r a l A s s e s s -ments, prov ided i f the damage or dest ruct ion involves the conmon prop-e r t y o f a Ne ighborhood Assoc ia t i on , on l y t he Owners o f Un i t s i n t hea f fec ted Ne ighborhood Assoc ia t i on sha l l be sub jec t t o such assessmen t .Add i t i ona l assessmen ts may be made in l i ke manner a t any t ime du r ingo r f o l l ow ing the comp le t i on o f any repa i r o r recons t ruc t i on .

A r t i c l e V iN o P a r t i t i o n

Except , as is permi t . ted in the Declarat ion or amendmentsthe re to , Lhe re sha l l be no phys i ca l pa r t i t i on o f t he Common Area o rany pa r t t he reo f , no r sha l l any Person acqu i r i ng any i n te res t i n t heP r o p e r t i e s o r a n y p a r t t h e r e o f s e e k a n y j u d i c i a l p a r t i t i o n u n l e s s t h eProper t i es have been removed f rom the p rov i s ions o f t h i s Dec la ra t i on .Th is A r t i c l e sha l l no t be cons t rued to p roh ib i t t he Board o f D i rec to rsf rom acqu i r i ng and d i spos ing o f t ang ib le pe rsona l p rope r t y no r f romacqu i r i ng t i t l e t o rea l p rope r t y wh ich may o r may no t be sub jec t t ot h i s D e c l a r a t i o n .

A r t i c l e V I ICondemnat ion

W h e n e v e r a l l o r a n y p a r t o f t h e C o m m o n A r e a s h a l l b e t a k e n(or conveyed in l - ieu o f and under th rea t o f condemnat ion by the Boardac t ing on the wr i t ten d i rec t ion o f Vot ing Members represent ing a tI e a s t t w o - t h i r d s ( 2 / 3 ) o f t h e t o t a l A s s o c i a t i o n v o t e a n d t h e D e c l a r a n ta s l o n g a s t h e D e c l a r a n t . o w n s a n y p r o p e r t y d e s c r i b e d o n E x h i b i t s ' A "

o r " 8 " ) b y a n y a u t h o r i t y h a v i n g t h e p o w e r o f c o n d e m n a t i o n o r e m i n e n idomain , each Owner sha l . l - be en t i t led to no t ice thereo f . The awardm a d e f o r s u c h t a k i n g s h a l l b e p a y a b l e t o t h e A s s o c i a t i o n a s t r u s t e ef o r a I I O w n e r s t o b e d i s b u r s e d a s f o l l o w s :

I f the tak ing invo lves a por t ion o f the Common Area on wh ichi m p r o v e m e n t s h a v e b e e n c o n s t r u c t e d , t h e n , u n l e s s w i t h i n s i x t y ( 6 0 )days a f te r such tak ing the Dec la ran t so long as the Dec la ran t ownsa n y p r o p e r t y d e s c r i b e d i n E x h i b i t s " A " o r ' B ' o f t h i s D e c l a r a t i o n , a n dV o t i n g M e m b e r s r e p r e s e n t i n g a t l e a s t s e v e n t y - f i v e ( 7 5 t ) p e r c e n t o f t h et o t a l v o t e o f t h e A s s o c i a t i o n s h a l I o t h e r w i s e a g r e e , t h e A s s o c i a t i o nsha l l res to re o r rep lace such improvements so taken on the remain ingIand inc l -uded in the Common Area to the ex ten t lands are ava i lab leL h e r e f o r , i n a c c o r d a n c e w i t h p l a n s a p p r o v e d b y t h e B o a r d o f D i r e c t o r so f t h e A s s o c i a t i o n . I f s u c h i m p r o v e m e n t s a r e t o b e r e p a i r e d o rr e s t o r e d , t h e a b o v e p r o v i s i o n s i n A r t i c l e V h e r e o f r e g a r d i n g t h e d i s -b u r s e m e n t o f f u n d s i n r e s p e c t t o c a s u a l t y d a m a g e o r d e s t r u c i i o n w h i c hi s t o b e r e p a i r e d s h a l l a p p l y . I f t h e t a k i n g d o e s n o t i n v o l v e a n yi m p r o v e m e n t s o n t h e C o m m o n A r e a , o r - i f t . h e r e i s a d e c i s i o n m a d e n o t t or e p a i r o r r e s t o r e , o r i f t h e r e a r e n e t f u n d s r e m a i n i n g a f t e r a n y s u c hr e s t o r a t i o n o r r e p l a c e m e n t i s c o m p l e t e d , t h e n s u c h a w a r d o r n e t f u n d ss h a I I b e d i s b u r s e d t o t h e A s s o c i a t i o n a n d u s e d f o r s u c h p u r p o s e s a st h e B o a r d o f D i r e c L o r s o f L h e A s s o c i a t i o n s h a l l d e t e r m i n e .

5 1?plou 3C 3

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BooK ?5 1?paer 30 4A r t i c l e V I I I

Annexa t i on o f Add i t i ona l P rope r t v

Sec t i on 1 . Annexa t i on Wi thou t Approva l o f C lass "A" Membe f -sh ip . As the owner the reo f , o r i f no t t he owner , w i th the consen t o fEh iowner the reo f , Dec la ran t sha I l have the un i l a te ra l r i gh t , p r i v i -I ege , and op t i on f rom t ime to t ime a t any t ime un t i l a l l p rope r t ydesc r ibed on Exh ib i t "8 " has been sub jec ted to th i s Dec la ra t i on o rJ a n u a r y I , 2 0 0 0 , w h i c h e v e r i s e a r l i e r , t o s u b j e c t t o t h e p r o v i s i o n s o fth i s Dec la ra t i on and the j u r i sd i c t i on o f t he Assoc ia t i on a l l o r anypor t i on o f t he l ea l p rope r t y desc r ibed i n Exh ib i t "8 " , a t t ached he re toa n d b y r e f e r e n c e ' m a d e a p a r t h e r e o f , w h e t h e r i n f e e s i m p l e o r l e a s e -ho ld , by f i l i ng i n t he pub l i c reco rds o f Dav idson Coun ty , Tennessee ,an amendment annexing such Proper t ies. Such Subsequent Amendment toth is Declarat ion sha1I not requi re the consent of tnembers or Vot , ingMembers . Any such annexa t i on sha l - I be e f fec t i ve upon the f i l i ng fo rreco rd o f such Subsequen t Amendmen t un less o the rw ise p rov ided the re in .Dec la ran t sha l l - have the un i J -a te ra l r i gh t t o t rans fe r t o any o the rpe rson the sa id r i gh t , p r i v i l ege , and op t i on to annex add i t i ona l p rop -e r t y wh ich i s he re in rese rved to Dec la ran t , p rov ided tha t such t rans -fe ree o r ass ignee sha l l be the deve lope r o f a t I eas t a po r t i on o f t herea l p rope r t y desc r ibed i n Exh ib i t s "A ' o r 'B " a t tached he re to andtha t such t rans fe r i s memor ia l i zed i n a wr i t t en i ns t rumen t execu ted bythe Declarant and recorded in the publ ic records of Davidson County 'T e n n e s s e e .

Sect ion 2 - Annexat ion Wi th Approval o f Class 'A ' t lember-sh ip . Sub jec t t o t he consen t o f t he owner the reo f , t he Assoc ia t i onmay annex rea l p rope r t y o the r t han tha t shown on Exh ib i t "B ' , and fo l -l ow ing the exp i ra t i on o f t he r i gh t i n Sec t i on I o f t h i s A r t i c l e , t hep r o p e r t i e s s h o w n o n E x h i b i t ' B " , t o t h e p r o v i s i o n s o f t h i s D e c l a r a t i o nand the j u r i sd i c t i on o f t he Assoc ia t i on . Such annexa t i on sha l Irequi re the af f i rmat ive vote of Vot ing Members or a l ternates repre-sen t i ng a ma jo r i t y o f t he C lass "A" vo tes o f t he Assoc ia t i on (o the rthan those he ld by Dec la ran t ) p resen t a t a mee t ing du l y ca l l ed fo rsuch purpose and of the Declarant , so long as Declarant owns proper tysub jec t t o t h i s Dec la ra t i on o r wh ich may become sub jec t i n acco rdancew i th Sec t i on 1 o f t h i s A r t i c l e . Annexa t i on sha l l be accomp l i shed byf i l i ng o f reco rd i n t he Req is te r ' s O f f i ce fo r Dav idson Coun ty , Tennes -see, a Subsequent Amendment wi th respect to the Proper : t ies beingannexed . Any such Subsequen t Amendmen t sha l l be s igned by the P res i -dent and the Secretary of the Associat ion, and by the owner of thep roper t y be ing annexed , and any such annexa t i on sha l l be e f fec t i veupon f i l i ng un less o the rw ise p rov ided the re in . The re levan t p rov i -s ions o f t . he By -Laws dea l i ng w i th regu la r o r spec ia l mee t ings , as thecase may be , sha l l app ty to de te rm ine the t ime requ i red fo r , and thep roper fo rm o f no t i ce o f any mee t ing ca l l ed fo r t he pu rpose o f cons id -e r i ng annexa t i on o f p rope r t y pu rsuan t t o th i s Sec t i on 2 , and to asce r -t a i n E h e p r e s e n c e o f a q u o r u m a t s u c h m e e t i n g -

S e c t i o n 3 . A c q u i s i t i o n o f A d d i t i o n a l C o m m o n A r e a . D e c I a r -anE may convey o r cause to be conveyed to the Assoc ia t i on add i t i ona l

- 1 6 -

BooK? 5 1?Plnt 30 5rea l es ta te , improved o r un improved , l oca ted w i th in the p rope r t i esdesc r ibed i n Exh ib i t s "A " o r "8 " wh ich upon conveyance o r ded ica t i onto the Assoc ia t i on sha l I be accep ted Uy the Assoc ia t i on and the rea f te rsha l l be ma in ta ined by the Assoc ia t i on a t i t s expense fo r t he bene f i to f a I I i C s M e m b e r s .

Sec t i on 4 . Amendmen t . Th i s A r t i c l e V I I I sha l l no t beamended w i thou t t he p r i 6? -wr i t t en consen t o f Dec la ran t , so l ong as theDec la ran t owns any p rope r t y desc r ibed i n Exh ib i t s 'A ' o r .B . .

A r t i c l e IXR iqh ts and Ob l i qa t i ons o f t he Assoc ia t i on

Sec t . i on 1 . Common Area . The Assoc ia t i on , sub jec t t o t her i g h t s o f t h e O w n e r s s e t f o r t h i n t h i s D e c l a r a t i o n , s h a l f n " r e s p o n s i -b le for the exc lus ive management and contro l o f the Common Area anda l1 improvemen ts the reon ( i nc lud ing , w i thou t l im i ta t i on , f u rn i sh ingsand equipment re la ted thereto and common landscaped areas ) , and sn i t tk e e p i t i n g o o d , c l e a n , a t t r a c t i v e , a n d s a n i t a r y c o n d i t i o n , o r d e r , a n drepa i r , pu rsuan t t o the te rms and cond i t i ons he reo f .

S e c t i o n 2 . P e r s o n a l p r o p e r t v . a n dU s e . T h e A s s o c i a t i o n , D i r e c t o r s , m a yacqu i re ' ho Id , and d i spose o f t ang ib le and i n tang ib le pe rsona l p rop -e r t y and rea l p rope r t y . The Board , ac t i ng on beha l f o f t he Assoc ia -t i on , sha l l accep t any rea l o r pe rsona l p rope r t y , l easeho ld , o r o the rproper ty in terests wi th in the Proper t ies conveyed to i t by theD e c l a r a n t .

s e c t i o n 3 . R r l e @ . T h e A s s o c i a t i o n , t h r o u g hi t s B o a r d o f D i r e c t o r s � e r e a S o n a b I e r u 1 e s a n d r e g -u la t i ons gove rn ing the use o f t he P roper t i es , wh ich ru les and regu la -t i ons sha l l be cons i s ten t w i th the r i gh t . s and du t i es es tab l i shed byth i s Dec la ra t i on . Sanc t i ons may i nc lude reasonab le mone ta ry f i nes andsuspension of the r ight to vote and t .he r ight to use the recreat ionalfac i r i t i es . The Board sha r r , i n add i t i on , have the power to seekre l i e f i n any cou r t f o r v io la t i ons o r t o aba te nu i sances . Impos i t i ono f sanc t i ons sha l l be as p rov ided i n the By -Laws o f t he Assoc ia t i on .rn add i t i on , t he Assoc ia t i on , t h rough the Board , mdy , by con t rac t o rother : agreement , enforce county ord inances or permi l the County ofDav idson to en fo rce o rd inances on the P roper t i es fo r t he bene f i t o tthe Associat ion and i ts l ' lembers.

S e c t i o n 4 . I m p l i e d R i q h t s . T h e A s s o c i a t i o n m a y e x e r c i s eany o the r r i gh t o r p r i v i l ege g i ven to i t exp ress l y by th i s Dec la ra t i ono r t he By -Laws , and eve ry o the r r i gh t o r p r i v i l ege reasonab ly to beimp l i ed f ron r t . he ex i s tence o f any r i gh t o r p r i v i rege g i ven L ; i th e r e i n o r r e a s o n a b l y n e c e s s a r y t o e f f e c t u a t e a n y s u c h r i g h t o r p r i v i -I e g e .

S e c t i o n 5 .b o r h o o d s . T h e A s s o c i a

F o r e r " o f t n e a s s o c lt i o n s h a l l h a v e t h e a b s o l u t e p o w e r t o v e t o a n v

- 1 1 -

_ - . . n c { F i * r n r " n 6B 0 0 K / O I ' r A r J t ' o u

act ion taken or contempla ted to be taken by any Ne ighborhood Assoc ia -t i o n o r C o m m i t t e e , a n d t h e A s s o c i a t i o n s h a l l h a v e t h e a b s o l u t e p o w e rt o r e q u i r e s p e c i f i c a c t i o n t o b e t a k e n b y a n y N e i g h b o r h o o d A s s o i i a t i o no r C o m m i t t e e i n c o n n e c t i o n w i t h t h e o b l i g a t i o n s a n d r e s p o n s i b i l i t . i e sh e r e u n d e r o r u n d e r a n y o t h e r c o v e n a n t s a f f e c t i n g t h e P r o p e r t i e s . W i t ho u t l i m i t i n g t h e g e n e r a l i t y o f t h e f o r e g o i n g , t h e A s s o c i a t i o n m a yr e g u i r e s p e c i f i c m a i n t e n a n c e o r r e p a i r s o r a e s t h e t i c c h a n g e s t o b ee f f e c t u a t e d b y t h e N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t t e e , m d y r e q u i r etha t p roposed budgets inc lude cer ta in i tems and tha t expend i - t . r res b"m a d e t h e r e f o r r m a y v e t o o r c a n c e l a n y c o n t r a c t p r o v i d i n g f o r m a i n t e -n a n c e , r e p a i r o r r e p l a c e m e n t o f t h e p r o p e r t y g o v e r n e d b y s u c h N e i g h -borhood Assoc ia t ion or Commi t tee and may o therw ise requ i re o r ve to anyo t h e r a c t i o n o f t h e N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t - t e e o r a n y c o m -mi t tee thereo f as the Assoc ia t ion deerns appropr ia te f rom t ime to t ime.

A n y a c t i o n r e q u i r e d b y t h e A s s o c i a t i o n i n a w r i t t e n n o t i c et o b e t a k e n b y a N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t t e e s h a l 1 b e L a k e nw i t h i n t h e t i m e f r a m e s e t b y t h e A s s o c i a t i o n i n s u c h w r i t t e n n o t i c e .I f t h e N e i g h b o r h o o d A s s o c i a t i o n o r C o m m i t t e e f a i l s t o c o m p l y w i t . h t h er e q u i r e m e n t s s e t f o r t h i n s u c h w r i t t e n n o t i c e , t h e A s s o c i a t i o n s h a ] Ih a v e t h e r i g h t t o e f f e c t s u c h a c t i o n o n b e h a l f o f t h e N e i g h b o r h o o dA s s o c i a t . i o n o r C o m m i t t . e e a n d s h a l l - a s s e s s t h e U n i t s c o n t a i n e d w i t h i ns u c h N e i g h b o r h o o d f o r t h e i r p r o r a t a s h a r e o f a n y e x p e n s e s i n c u r r e d b wt h e A s s o c i a t i o n u n d e r t h e c i r c u m s t a n c e s ( t o c o v e r t h e A s s o c i a t i o n ' sa d m i n i s t r a t i v e e x p e n s e s i n c o n n e c t i o n w i t h t h e f o r e g o i n g a n d t o d i s -c o u r a g e f a i l u r e t o c o m p l y w i t h t h e r e q u i r e m e n t s - o f t h e A s s o c i a t i o n ) i nt h e m a n n e r p r o v i d e d i n A r t i c l e X , S e c t i o n 3 h e r e o f . S u c h a s s e s s m e n t rm a y b e c o l - l e c t e d a s a S p e c i a l A s s e s s m e n t h e r e u n d e r a n d s h a l l b e s u b -j e c t t o a I I l i e n r i g h t s p r o v i d e d f o r h e r e i n "

S e c t i o n 6 . S p e c i a l S e r v i c e s . T h e A s s o c i a t i o n s h a l l h a v et h e r i g h t . t o m a k e a v a i l a b l e t o M e m b e r s s p e c i a l s e r v i c e s , s u c h a s , b u tn o t l i m i t e d t o , t e n n i s l e s s o n s , o r o t h e r s e r v i c e s , t h e c o s t o f w h i c hi s n o t i n c l u d e d i n t h e o p e r a t i n g b u d g e t o f t h e A s s o c i a t i o n , a n d t ocharge use. r fees or o ther charges to cover the cos ts thereo f to l " lem-b e r s r e q u e s t i n g s u c h s e r v i c e s .

Ar t i c l e XAssessmen ts

S e c t i o n l . C r e a t i o n o f A s s e s s m e n t s . T h e r e a r e h e r e b v c r e -a t e d a S S e S S m e n t S f o r c � r o m t i m e t o t i m e s p . c i f i -ca l -J -y be au thor ized by the Board o f D i rec to rs to be commenced a t thet i m e a n d i n t h e m a n n e r s e t f o r t h i n S e c t i o n 6 o f t h i s A r t i c l e . T h e r es h a l - l b e t h r e e ( 3 ) t y p e s o f a s s e s s m e n t s : ( f ) G e n e r a l A s s e s s m e n t s L of u n d e x p e n s e s f o r t h e b e n e f i t o f a I l M e m b e r s o f t h e A s s o c i a t i o n ; ( 2 )N e i g h b o r h o o d A s s e s s m e n t s f o r e x p e n s e s b e n e f i t t i n g o n l y U n i t s w i t h i n ap a r t i c u l a r N e i g h b o r h o o d ; a n d ( 3 ) S p e c i a l A s s e s s m e n t s a s d e s c r i b e d i nS e c t i o n 3 b e l o w .

G e n e r a l A s s e s s m e n t s s h a l l b e l e v i e d e q u a l l y o n a I I U n i t s .N e i g h b o r h o o d A s s e s s m e n t s s h a l I b e l e v i e d e q u a l l y o n a I I U n i t s w i t h i n

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t .he Neighborhood for whose benef i t Common Expenses are incurred whichb e n e f i t l e s s t h a n t h e A s s o c i a t i o n a s a w h o l e . S p e c i a l A s s e s s m e n t ssha l l be l ev ied as p rov ided i n Sec t i on 3 be low . Each Owner , by accep-tance o f h i s o r he r deed o r reco rded con t rac t o f sa le , i s deemed tocovenan t . and ag ree to pay these assessmen ts .

A I I a s s e s s m e n t s , t o g e t - h e r w j t h i n t e r e s t a t a r a t e n o t t oe x c e e d t h e h i g h e s L r a t e a l l o w e d b y T e n n e s s e e I a w a s c o m p u t e d f r o m t h ed a t e t h e d e l i n q u e n c y f i r s t o c c u r s , c o s t s , a n d r e a s o n a b l e a t t o r n e y ' sf e e s , s h a 1 l b e a c h a r g e o n t h e l a n d a n d s h a l l b e a c o n t i n u i n g l i e nu P o n t h e U n i t a g a i n s t w h i c h e a c h a s s e s s m e n t i s m a d e . E a c h s u c ha s s e s s m e n t , t o g e t h e r w i t h i n t e r e s t , c o s t s , a n d r e a s o n a b l e a t t . o r n e y ' sf e e s , s h a l l a l s o b e t h e p e r s o n a l o b l i g a t i o n o f t h e P e r s o n w h o w a s t h eO w n e r o f s u c h U n i t a t t h e t i m e t h e a s s e s s m e n t a r o s e , a n d h i s o r h e rq r a n t e e s h a l l b e j o i n t l y a n d s e v e r a l - l y l i a b l e f o r s u c h p o r t i o n t h e r e o fa s m a y b e d u e a n d p a y a b l e a t t h e t i m e o f c o n v e y a n c e , e x c e p t n o f i r s tM o r t g a g e e w h o o b t a i n s t i t l e t o a U n i t p u r s u a n t t o t h e r e m e d i e s p r o -v i d e d i n t h e M o r t g a g e s h a l l b e l i a b l - e f o r u n p a i d a s s e s s m e n t s w h i c ha c c r u e d p r i o r t o s u c h a c q u i s i L i o n o f t . i t l e .

T h e A s s o c i a t i o n s h a l l , u p o n d e m a n d a t a n y t i m e , f u r n i s h t oa n y O w n e r l i a b l e f o r a n y t y p e o f a s s e s s m e n t , a c e r t i f i c a t e i n w r i t i n gs i g n e d b y a n o f f i c e r o f t h e A s s o c i a t i o n s e t t i n g f o r t h w h e t h e r s u c ha s s e s s m e n t h a s b e e n p a i d a s t o a n y p a r t i c u l a r U n i t . S u c h c e r t i f i c a t es h a l l b e c o n c l u s i v e e v i d e n c e o f p a y m e n t t o t h e A s s o c i a t i o n o f s u c ha s s e s s m e n t t h e r e i n s t a t e d t o h a v e b e e n p a i d . T h e A s s o c i a t i o n m a yrequ i re the advance pa) tment o f a p rocess ing fee no t to exceed F i f ty( S 5 0 . 0 0 ) D o l l a r s f o r t h e i s s u a n c e o f s u c h c e r t i f i c a t e .

A s s e s s m e n t s s h a l l b e p a i d i n s u c h m a n n e r a n d o n s u c h d a t e sa s m a y b e f i x e d b y t h e B o a r d o f D i r e c t o r s w h i c h m a y i n c l u d e , w i t h o u tl i m i t a t i o n , a c c e l e r a t i o n o f t h e a n n u a l G e n e r a l A s s e s s m e n t f o r d e l i n -q u e n t s . U n l e s s t h e B o a r d o t h e r w i s e p r o v i d e s , t h e G e n e r a l A s s e s s m e n ta n d N e i g h b o r h o o d A s s e s s m e n t s h a l 1 b e p a i d i n a n n u a l i n s t a l l m e n t s .

No Owner may wa ive or o therw ise exempt h imse l f f rom l iab i l -i t y f o r t h e a s s e s s m e n t s p r o v i d e d f o r h e r e i n , i n c l u d i n g , b y w a y o fi l l us t ra t ion and no t I im i t .a t . ion , by non-use o f Common Areas or aban-d o n m e n t o f t h e U n i t . N o d i m i n u t i o n o r a b a t e m e n t o f a s s e s s m e n t o rs e t - o f f s h a l l b e c l a i m e d o r a l l o w e d b y r e a s o n o f a n y a l l e g e d f a i l u r eo f the Assoc ia t ion or Board to take some ac t ion or per fo rm some func-t ion requ i red to be taken or per fo rmed by the Assoc ia t ion or Boardu n d e r L h i s D e c l a r a t i o n o r t h e B y - L a w s , o r f o r i n c o n v e n i e n c e o r d i s c o m -f o r t a r i s i n g f r o m t h e m a k i n g o f r e p a i r s o r i m p r o v e m e n t s w h i c h a r e t h er e s p o n s i b i l i t . y o f t h e A s s o c i a t i o n , o r f r o m a n y a c t i o n t a k e n t o c o m p l yw i t h a n y l a w , o r d i n a n c e , o r w i t h a n y o r d e r o r d i r e c t i v e o f a n y m u n i c i -P a I o r o t h e r g o v e r n m e n t a l a u t h o r i t y , t h e o b l i g a t i o n t o p a y a s s e s s m e n t sb e i n g a s e p a r a t e a n d i n d e p e n d e n t c o v e n a n t o n t h e p a r t o f e a c h O w n e r .

S o l o n g a s t h e D e c l a r a n t h a s a n o p t i o n u n i l a t e r a l l y t o s u b -j e c t a d d i t i o n a l p r o p e r t y t o t h i s D e c l a r a t i o n , t h e f o l l o w i n g s h a l l -a P p l y : u n l e s s a s s e s s m e n t s h a v e c o m m e n c e d , p u r s u a n t t o S e c t i o n 6 b e l o w

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BooK7517p la r 308o n a l l U n i t s s u b j e c t t o t h i s D e c l a r a t i o n a s o f t h e f i r s t d a y o f a n yf i s c a l y e a r , t h e D e c l a r a n t s h a l l b e o b l i g a t e d f o r t h e d i f f e i e n c ebe tween the amoun t o f assessmen ts l ev ied on a I I Un i t s sub jec t t oassessmen t and the amounL o f ac tua l expend i tu res requ i red to ope ra tet h e A s s o c i a t . i o n d u r i n g t h e f i s c a l y e a r . T h i s o b l i g a t i o n m a y b e s a t i s -f i e d i n t h e f o r m o f a c a s h s u b s i d y o r b y ' i n k i n d " c o n t r i b u t i o n s o fse rv i ces o r ma te r ia l s r o r a comb ina t i on o f t hese .

T h e A s s o c i a t i o n i s s p e c i f i c a l l y a u t h o r i z e d t o e n t e r i n t osubs idy con t rac ts o r con t rac ts fo r " i n k ind " con t r i bu t i on o f se rv i ceso r ma te r ia l s o r a comb ina t i on o f se rv i ces and ma te r ia l s w i th Dec la rancor other ent i t ies for the payment of some por t ion of the CommonE x p e n s e s .

S e c t i o n 2 . C o m p u t a t i o n o f A : s e s s m e n t s .

( a ) C o m p u t a t i o n o f , G e n e r a l . r A s s e s s m e n t . I t . s h a l l b e t h ed u t y o f t h e B o a r d , d t l e a s t s l . x t y ( 6 0 ) . 9 " y " b e f o r e t h e b e g i n n i n g o fthe f i sca l year and th i r ty (30J- - -da fs p r io r tb C l ie meet ing-a t wh ich rheb u d g e t s h a l l b e p r e s e n t e d t o t h e V o t i n g M e m b e r s , t o p r e p a r e a b u d g e tc o v e r i n g t . h e e s t i m a t e d c o s t s o f o p e r a t i n g t h e A s s o c i a t i o n d u r i n g t h ec o m i n g r y e a r . T h e b u d g e t s h a l l i n c . l - u d e a c a p i t a l c o n t r i b u t i o n e s t a b -l i s h i n g a r e s e r v e f u n d i n a c c o r d a n c e w i t h a c a p i t a l b g . d g e t s e p a r a t e l yp r e p a r e d a n d s h a l l s e p a r a t e l y I i s t g e n e r a r " * p l n s " . . ( r n " G e n e r a lA s s e s s m e n t t o b e l e v i e d f o r t h e c o m i n g y e a r a g a i n s t e a c [ U n i t s u b j e c tto assessment under Sec j - {on 5 be low sha l l be computed by \ -d iv id inq theto ta l opera t ing budget ( lexc lud ing Ne ighborhood. e lpenses l \by - ihe- to t .a ln u m b e r o f u n i t s s u b j e c t \ d t o t h i s D e c l a r a t i o n a s o f s i x t f ( 6 0 ) d a y sb e f o r e t h e e n d o f t h e c u i r e n t f i s c a l y e a r . T h e B o a r d s f a l l c a u s e acopy o f the budget and the amounL" .o f the Genera l Assessments to beIev ied agra ins t each Un i t fo r the fp l low ing year to be de l i vered toe a c h O w n e r a t l e a s t f i f t e e n ( 1 5 ) d a y s p r i o r t o t h e m e e t i n g . T h e b u d -get and the assessment sha] ] become e f fec t i ve un less q i rspprogqd a tthe meet ing by a vo te o f vod . lg rg Members or the i r a l te lna tes represent -i n g a t l e a s t a m a j o r i t y o f t h e t o t a l - C l a s s " A " v o t e i n t h e A s s o c i a -t i o n , a n d t h e a p p r o v a l o f t h e C l a s s " 8 " m e m b e r r s o l o n g a s t h e C l a s s" B " m e m b e r s h i p e x i s t s .

Notwi thstanding the foregoing, however , in the event thep roposed budge t i s d i sapp roved o r t he Board fa i l s f o r any reason so tode te rn r i ne the budge t f o r t he succeed ing yea r , t hen and un t i l such t imeas a budge t sha l l have been de te rm ined as p rov ided he re in , t he budge tin e f fec t f o r t he then cu r ren t yea r sha l l con t i nue fo r t he succeed ingy e a r .

( b ) C o m p u t a t i o n o f N e i q h b o r h o o d A s s e s s m e n t s . I t s h a I I b et h e d u t y o f t h e B o a r d , d t I e a s t s i x t y ( 6 0 ) O a y s n e f o r e t n e b e g i n n i n go f e a c h f i s c a l y e a r , t o p r e p a r e a s e p a r a t e b u d g e t c o v e r i n g t h e e s t i -m a t e d N e i g h b o r h o o d e x p e n s e s t o b e i n c u r r e d b y t h e A s s o c i a i i o n f o r . e a c hIg ighbgt lq -od on whose beha l f Ne ighborhood expenses are expec ted t ibA- - - -i n c u r r e d d u r i n g t h e c o m i n g y e a r . T h e B o a r d s h a l l b e e n t i t l e d t o s e 1s u c h b u d g e t o n l y t o t h e e x t e n t t h a t t h i s D e c l a r a t i o n o r t h e B y - L a w s

-20 -

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e a c h N e i g h b o r h o o d m a y r e q u e s t t h a t a d d i t i o n a l s e r v i c e s o r a h i g h e r

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a n d r e p l a c e m e n t o f c a p i t a l i t e m s w i t h i B z - t h e N e i g h b o r h o o d ) . o r w i t h i n .

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i - t r l " s = d i s a p p r o v e d b y D e c l a r a n t . A f t e r t h e t e r m i n a t i o n o f t h e C l a s s" B ' C o n t r o l p e r i o d , s u c h b u d g e t a n d a s s e s s m e n t s h a l l b e c o m e e f f e c t i v eu n l e s s d i s a p p r o v e d b y a m a j o r i t y o f t h e O w n e r s o f U n i t s i n t h e N e i g h -

b o r h o o d w h i c h t h e N e i g h b o r h o o d A s s e s s m e n t a p p l i e s ; p r o v i d e d , t h e r e

s h a l l b e n o o b l i g a t . i o n t o c a I I a m e e t i n g f o r t h e p u r p o s e o f c o n s i d e r -

i n g t h e b u d g e t e x c e p t o n p e t i t i o n o f O w n e r s o f a t l e a s t t e n ( 1 0 t ) p e r -

c e n t o f t h e U n i t s i n s u c h N e i g h b o r h o o d . M e e t i n g s o f N e i g h b o r h o o d C o m -

m i t t e e s , L f c a l l e d , s h a l l b e c o n d u c t e d i n a c c o r d a n c e w i t h A r t i c l e V ,

S e c t i o n 3 o f t h e B y - L a w s .

In the event the proposed budget fo r any Ne ighborhood is

d i s a p p r o v e d o r t h e B o a r d f a i l s f o r a n y r e a s o n s o t o d e t e r m i n e t h e b u d -

get io r any year , then and un t i l such t ime as a budget sha l l have been

determined, tne budget in e f fec t fo r the immedia te ly p reced ing year

s h a I I c o n t i n u e f o r t h e c u r r e n t y e a r .

S e c t i o n 3 . S p e c i a l A s s e s s m e n t s . I n a d d i t i o n t o t h e a s s e s s -

m e n t s a u t h o r i z e d i n S e c t i o n t o f t h i s A r t i c I e , t h e A s s o c i a t i o n m a y

l e v y a S p e c i a l A s s e s s m e n t o r S p e c i a l A s s e s s m e n t s i n a n y y e a r - ! P P l i c a -b l e t o t h a C y e a r ; p r o v i d e d , s u c h a s s e s s m e n t s h a l l h a v e t h e a f f i r m a t i v ev o t e o r w r i t - t e n c o n s e n t o f V o t i n g M e m h e r s o r t h e i r a l t e r n a t e s r e p r e -s e n t i n g f i f t y - o n e ( 5 1 - 8 ) p e r c e n t o f t h e C l a s s " A " v o t e i n t h e A s s o c i a -t ion he ld by l , lembers o ther than Dec la ran t and the approva l o f the

C l a s s . o 3 ' " m e m b e r , s o l o n g a s t h e C l a s s ' B " m e m b e r s h i p e x i s t s .

T h e A s s o c i a t i o n m a y l e v y a S p e c i a l A s s e s s m e n t a g a i n s t a n yl 4 e m b e r t o r e i m b u r s e t h e A s s o c i a t i o n f o r c o s t s i n c u r r e d i n b r i n g i n g a

M e m b e r a n d . h i s U n i t i n t o c o m p l i a n c e w i t h t h e p r o v i s i o n s o f t h e D e c l a -r a t i o n , d f l y a m e n d n t e n t s t h e r e t o , t h e A r t i c I e s , t h e B y - L a w s , a n d t h eA s s o c i a t i o n r u I e s , w h i c h S p e c i a J - A s s e s s n l e n t m a y b e l e v i e d u p o n t h ev o t e o f t h e B o a r d a f t e r n o t i c e t o t h e t ' l e m b e r a n d a n o p p o r t u n i t y f o r a

h e a r i n g . T h e A s s o c i a t i o n m a y a l s o l e v y a S p e c i a l A s s e s s m e n t a g a i n s tt h e U n i t s i n a n y N e i g h b o r h o o d t o r e i m b u r s e t h e A s s o c i a t i o n f o r c o s L s

- 2 r -

BooK?51?P las 3 f0i ncu r red i n b r i ng ing the Ne ighborhood in to comp l iance w i th the p rov i -s ions o f t he Dec la ra t i on , any amendmen ts the re to , t he A r t i c l es , t , heBy -Laws , and the Assoc ia t i on ru les and regu la t i ons , wh ich Spec ia lAssessmen t may be l ev ied upo r l t he vo te o f t he Board a f te r no t i ce tothe sen io r o f f i ce r o r t he Ne iqhborhood Assoc ia t i on o r Commi t tee and ano p p o r t u n i t y f o r a h e a r i n g .

S e c t i o n 4 . L i e n f o r A s s e s s m e n t s . A l i e n f o r u n p a i d a s s e s s -m e n t s a n d o t h e r c h a r g e @ n s h a I l e x i s t a n d s h a l I b ep e r f e c t e d , w i t h o u t a n y f u r t - h e r a c t i o n o n t h e A s s o c i a t i o n ' s p a r t , o Da l l Un i t s on the due da te o f any such assessmen t o r cha rge . The Asso -c ia t i on may , bu t , sha l l no t be requ i red to , reco rd a no t i ce o f l i en onany Un i t t o ev idence i t s I i en on such Un i t . The l i en sha l l be p r i o ra n d s u p e r i o r t o a I I o t h e r I i e n s , e x c e p t ( 1 ) a l l t a x e s , b o n d s , a s s e s s -men ts , and o the r l ev ies wh ich by l aw wou ld be super io r t he re to , and(2 ) t he l i en o r cha rge o f any f i r s t Mor tgage o f reco rd (mean ing anyrecorded Mortgage wi th f i rs t pr ior i ty over other Mortgages ) made ing o o d f a i t h a n d f o r v a I u e .

S u c h l i e n m a y b e e n f o r c e d b y s u i t , j u d g m e n t , a n d / o rf o r e c l o s u r e .

T h e A s s o c i a t i o n , a c t i n g o n b e h a l f o f t h e O w n e r s , s h a l l h a v ethe power to b id fo r t he Un i t a t f o rec losu re sa le and Lo acqu i re andho ld , I ease , no r tgage , and convey the same. Dur ing the pe r iod i nw h i c h a U n i t i s o w n e d b y t h e A s s o c i a t i o n f o l l o w i n g f o r e c l o s u r e : ( a )n o r i g h t t o v o t e s h a l l b e ' e x e r c i s e d o n i t s b e h a l f ; ( b ) n o a s s e s s m e n ts h a l l b e a s s e s s e d o r l e v i e d o n i t ; a n d ( c ) e a c h o t h e r U n i t s h a l l b echarged , i n add i t i on to i t s usua l - assessmen t , i t s equa l p ro ra ta sha reo f t he assessmen t t ha t wou ld have been cha rged such Un i t had i t no tbeen acqu i red by the Assoc ia t i on as a resu l t o f f o rec losu re . Su i t t orecover a money judgment for unpaid common expenses and at torney 'sfees sha l I be rna in ta inab le w i thou t f o rec los ing o r wa iv ing the I i ensecu r ing the same. A f te r no t i ce and an oppor tun i t y f o r a hea r ing , t heBoard may temporar i ly suspend the vot ing r ights of a l " lember who is inde fau l t i n paymen t o f any assessmen t .

S e c t i o n 5 . C a p i t a l B u d q e t a n d C o n t r i b u t i o n . T h e B o a r d o fD i rec to rs sha l l annua l l y p repa re a cap i ta l budge t t o take i n to accoun tthe number and na tu re o f rep laceab le asse ts , t he expec ted l i f e o f eachasse t , and the expec ted repa i r o r rep lacemen t cos t . The Board sha l lse t Lhe requ i red cap i ta l con t r i bu t i on i n an amoun t su f f i c i en t t o pe r -m i t m e e t i n g t h e p r o j e c t e d c a p i t a l n e e d s o f t h e A s s o c i a t i o n , a s s h o w non the cap i ta l budge t , w i th respec t bo th to amoun t and t im ing byannua l assessmen ts ove r t he pe r iod o f t he budqe t . The cap i ta l con t r i -bu t i on sha l l be f i xed by the Board and i nc luded w i th in and d i s t r i bu tedw i t h t h e b u d g e t a n d a s s e s s m e n t , a s p r o v i d e d i n S e c t i o n 2 o f t h i s A r t i -c l e .

S e c t i o n 6 . D a t e o f C o m m e n c e m e n t o f A s s e s s m e n t sa s s e s s m e n t s p r o v i d e d f o r h e r e i n s h a l I c o m m e n c e a s t o e a c hf i r s L d a y o f t h e f i r s t m o n t h f o l l o w i n g t h ' e c l o s i n g o f t h e

TheI J n i t o n t h ep u r c h a s e o f

- 2 2 -

Boor i751?p l t r 311

t h e U n i t f r o m D e c l a r a n t . T h e f i r s t a n n u a l a s s e s s m e n t s h a l I b e a d i u s -ted acco rd ing to the number o f days rema in ing i n t he f i sca l yea r i tt he t ime assessmen ts con rmence on the Un i t . A t t he op t i on o f Dec la r -an t , t he f i r s t annua l assessmen t , as p ro ra ted fo r t he rema in ing po r -t i on o f t he f i sca l yea r , may be requ i red to be pa id a t t he c los ing o ft h e i n i t i a l s a l e o f a U n i t .

Sec t i on 7 . Subord ina t i on o f t he L ien to F i r s t l , l o r tqaoes .T h e l i e n o f a s s e s s m e n t E , T r r c l u d t othe l i r n i t a t i ons o f Tennessee law) , and cos ts ( i nc lud ing a t . t o rney ' sfees ) p rov ided fo r he re in , sha l l be subord ina te to the l i en o f anyf i r s t Mor tgage upon any Un i t . The sa le o r t rans fe r o f any Un i t sha l lno t a f fec t t he assessmen t l - i en . However , t he sa le o r t rans fe r o f anyUn i t pu rsuan t t o j ud i c ia l - o r non jud i c ia l f o rec losu re o f a f i r s t Mor t -gage sha l l ex t i ngu ish the l i en o f such assessmen ts as to pa ) rmen tswh ich became due p r i o r t o such sa le o r t rans fe r . No sa le o r t rans fe rsha l l r e l i eve such Un i t f r om I i en r i gh ts fo r any assessmen ts the rea f -ter becoming due. Where the l4or tgagee hold ing a f i rs t Mor tgage ofreco rd o r o the r pu rchase r o f a Un i t ob ta ins t i t l e , i t s successo rs andass igns sha l l no t be ] i ab le fo r t he sha re o f t he common expenses o rassessmen ts by the Assoc ia t i on cha rgeab le to such Un i t wh ich becamedue p r i o r t o t he acqu is i t i on o f t i t l e t o such Un i t by such acqu i re r .Such unpa id sha re o f common expenses o r assessmen ts sha l l be deemed tobe common expenses co l l ec t i b le f rom a l l o f t he Un i t s , i nc lud ing sucha c q u i r e r , i t s s u c c e s s o r s a n d a s s i g n s .

S e c t i o n B . C a p i t a l i z a t i o n o f A s s o c i a t i o n . U p o n a c q u i s i t i o no f reco rd t i t l e t o a Un i t by the f i r s t pu rchase r the reo f o the r t hanthe Dec la ran t . o r an owner who pu rchases so le l y f o r t he pu rpose o f cc in -s t ruc t i ng a dwe l l i ng the reon fo r resa le , a con t r i bu t i on sha l l be madeby o r on beha l f o f t he pu rchase r to the work ing cap i ta l o f t he Assoc i -a t i on i n an amoun t equa l t o one -s i x th (L /5 ) o f t he amoun t o f t heannual Genera l Assessment and any Neighborhood Assessment for the Uni tfor that year as determined by the Board. This amount shal l bedeposi ted in to the purchase and sa les escrow account and d isbursedthe re f rom to the Assoc ia t i on fo r use i n mee t ing un fo reseenexpendi turesr purchasing equipment deemed necessary or des i rab le, oro l -herwise cover ing operat ing expenses proper ly incurred by theAssoc ia t i on . Such con t r i bu t i ons sha I I no t be cons ide red an advancepaymen t o f regu la r assessmen ts .

S e c t i o n 9 . E x e m p t P r o p e r t y . N o t w i t h s t a n d i n g a n y t h i n g t ot h e c o n t r a r y h e r e i n , t h e f o l l o w i n g p r o p e r t y s h a l l b e e x e m p t f r o m p a y -m e n t o r G e n e r a l A s s e s s m e n t s , N e i g h b o r h o o d A s s e s s m e n t s , a n d S p e c i a lA s s e s s m e n t s

( a ) a I I C o n r m o n A r e a ; a n d

( b ) a I I p r o p e r t y d e d i c a t e d t o a n d a c c e p t e d b y a n y g o v e r n -m e n t a l a u t h o r i t y o r p u b l i c u t i l i t y , i n c l u d i n g , w i t h o u t l i m i t a t i o n .p u b l i c s c h o o l s , p u b l i c s t r e e t s , a n d p u b l i c p a r k s .

- z J -

3 1 2Art ic Ie

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T h e B o a r d o f D i r e c t o r s s h a l l h a v e t h e a u t h o r i t y a n d s t a n d i n go n b e h a l f o f t h e A s s o c i a t i o n , t o e n f o r c e i n c o u r t s o f c o m p e c e n t j u r i s -d i c t i o n d e c i s i o n s o f t h e c o m m i t t e e s e s t a b l i s h e d i n S e c t i o n s I a n d 2 o f .t h i s A r t i c l e x r . T h i s A r t i c l e m a y n o t b e a m e n d e d w i t h o u t t h eD e c l a r a n t ' s w r i t t e n c o n s e n t s o I o n g a s t h e D e c l a r a n t o w n s a n y p r o p e r t ys u b j e c t t o t h i s D e c l a r a t i o n o r h a s a n u n e x p i r e d o p t i o n t o s u b j e c t -a d d i t . i o n a l p r o p e r r y t o t h i s D e c l a r a t i o n .

N o c o n s t r u c t i o n , w h i c h t e r m s h a l l i n c l u d e w i t h i n i t s d e f i n i -t i o n s t a k i n g , c l e a r i n g , e x c a v a t i o n , g r a d i n g , a n d o t h e r s i t e w o r k , a n dn o p l a n t i n g s o r r e m o v a l o f p l a n t s , t r e e s , o r s h r u b s s h a l l t a k e p l a c ee x c e p t i n s t r i c t c o m p l i a n c e w i t h t h i s A r t i c I e , u n t i l t h e r e g u i r l m e n t st h e r e o f h a v e b e e n f u l J - y m e t , a n d u n t i l t h e a p p r o v a l o f t h e J p p r o p r i a t ec o m m i t t e e h a s b e e n o b t a i n e d .

S e c t i o n l . N e w C o n s t l : u c t i o n C o m m i t t e e . T h e N e w C o n s t r u c _t i o n C o m m i t t e e ( N C C I s i c t i o n o v e r a l l o r i g i -n a l c o n s t r u c t i o n o n a n y p o r t i o n o f t h e P r o p e r t i e s . T h e N C C s h a l l p r e -p a r e a n d , o n b e h a l f o f t h e B o a r d o f D i r e c t o r s , s h a l l p r o m u l g a t . e d e i i g nand deve lopment gu ide l ines and app l ica t . ion and rev iew procedr . , res , a I la s p a r t o f t h e D e v o n H i l l s C o m m u n i t y D e v e l o p m e n t C o d e l ' O n C O C " ; , w h i c hd e s i g n a n d d e v e l o p m e n t g u i d e l i n e s a n d a p p l i c a t i o n a n d r e v i e w p r o c e -d u r e s s h a l l b e i n c o r p o r a t e d h e r e i n b y r e f e r e n c e a s i f c o p i e d v e r b a t i mh e r e i n , a n d s h a l l b e d e e m e d t o b e c o v e n a n t s a n d r e s t r i c t i o n = h e r e i ns u b j e c t t o t h e e n f o r c e m e n t p r o v i s i o n s f o r c o v e n a n t s a n d r e s t r i c t i o n sc o n t a i n e d h e r e i n - S u c h d e s i g n a n d d e v e l o p m e n t g u i d e l i n e s a n d a p p l i c a -t ion and rev iew procedures may se t fo r th var ious i tems, inc lud ing Uyw a y o f i l l u s t r a t i o n a n d n o t b y w a y o f l i m i t a t i o n , m i n i m u m s q u a r e f o o t . -a g e r e q u i r e m e n t s f o r U n i t s c o n s t r u c t e d i n D e v o n H i l l s . C o p i e s o f t h eD H C D C s h a l l b e a v a i l a b l e f r o t n t h e N C C f o r r e v i e w . T h e g u i d e l i n e s a n dp r o c e d u r e s s h a l l b e t h o s e o f t h e A s s o c i a t i o n , a n d t h e N C C s h a l l h a v eso le and fu l l au thor i ty to p repare and to amend the DHCDC. The NCCsha1 l have no ob l iga t ions to record any amendments o r rev is ions to theD H C D C . I t s h a l l m a k e t h e D H C D C a v a i l a b l e t o O w n e r s , b u i l d e r s , a n dd e v e l o p e r s w h o s e e k t o e n g a g e i n d e v e l o p m e n t o f o r c o n s t r u c t i o n u p o na I I o r a n y p o r t i o n o f t h e P r o p e r t i e s a n d s u c h O w n e r s , b u i l d e r s a n ad e v e l o p e r s s h a l - I b e r e q u i r e d t o c o n d u c t t h e i r o p e r a t i o n s s t r i c t l y i na c c o r d a n c e w i t h t h e D H C D C a s I a t e s t r e v i s e d a n d a m e n d e d . U n t i l o n eh u n d r e d ( 1 0 0 t ) p e r c e n t o f t h e P r o p e r t i e s , c o m p u t e d o n a n a r e a b a s i s ,h a v e b e e n d e v e l o p e d a n d c o n v e y e d t o p u r c h a s e r s i n t h e n o r m a l c o u r s e o fd e v e l o p m e n t a n d s a l e , t h e D e c l a r a n t r e t a i n s t h e r i g h t t o a p p o i n t a l lm e m b e r s o f t h e N C C , w h i c h s h a l l c o n s i s t o f a t l e a s i t h r e e i : 1 , b u t n om o r e t h a n f i v e ( 5 ) p e r s o n s . T h e r e s h a L l b e n o s u r r e n d . e r o i t n i " r i g h tp r i o r t o t h a t t i m e , e x c e p t i n a w r i t t e n i n s t r u m e n t i n r e c o r d a b l e f o r n re x e c u t e d b y D e c l a r a n t . U p o n t h e e x p i r a t i o n o f s u c h r i g h t , t h e B o a r do f D i r e c t o r s s h a l l a p p o i n t t h e m e m b e r s o f t h e N C C i n t h e s a m e m a n n e ra s p r o v i d e d i n S e c t i o n 2 o f t h i s A r t i c l e f o r t h e i ' , t o d i f i c a t i o n s C o m m i t -f o o

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S e c t i o n 2 . l , l o d i f i c a t i o n s C o m m i t t e e . T h e B o a r d o f D i r e c t o r smay appo in t a Mod i f i ca tTonE-ComrntEEEe (Mdl to cons is t o f a t leasrt h r e e ( 3 ) a n d n o m o r e t h a n f i v e ( 5 ) m e m b e r s , a I I o f w h o m s h a l l b ea p p o i n t e d b y t h e B o a r d o f D i r e c t o r s . T h e M C , i f e s t . a b l i s h e d , s h a l lh a v e e x c l u s i v e j u r i s d i c t i o n o v e r m o d i f i c a t i o n s , a d d i t i o n s , o r a l t e r a -t i o n s m a d e o n o r t o e x i s t , i n g U n i t . s o r s t r u c t u r e s c o n t a i n i n g U n i t s a n dt h e o p e n s p a c e i f d o y , a p p u r t e n a n t t h e r e t o ; p r o v i d e d , h o w e v e r , t h e l " I Cm a y d e l e g a t e t h i s a u t h o r i t y t o t h e a p p r o p r i a t e b o a r d o r c o m m i t t e e o fa n y o w n e r s a s s o c i a t i o n s u b s e q u e n t l y c r e a t e d o r s u b s e q u e n t l y s u b j e c t e dt o t h i s D e c l a r a t i o n s o l o n g a s t h e l 4 C h a s d e t e r m i n e d t h a t s u c h b o a r do r c o m m i t t e e h a s i n f o r c e r e v i e w a n d e n f o r c e m e n t p r a c t i c e s , p r o c e -d u r e s , a n d a p p r o p r i a t e s t a n d a r d s a t I e a s t e q u a l t o t h o s e o f t h e M C .S u c h d e l e g a t i o n m a y b e r e v o k e d a n d j u r i s d i c t i o n r e a s s u m e d a t a n y t i m eb y w r i t t e n n o t i c e .

T h e M o d i f i c a t i o n s C o m m i t t e e s h a l l p r o m u l g a t e d e t a i l e d s t a n -d a r d s a n d p r o c e d u r e s g o v e r n i n g i t s a r e a s o f r e s p o n s i b i l i t y a n d p r a c -t i c e , c o n s i s t e n t w i t h t h e D H C D C . f n a d d i t i o n t h e r e t o , t h e f o l l o w i n gs h a l l a p p l y . P l a n s a n d s p e c i f i c a t i o n s s h o w i n g t h e n a t u r e , k i n d , s h a p ec o l o r , s i z e , m a t e r i a l s , a n d I o c a t i o n o f s u c h m o d i f i c a t i o n s , a d d i t i o n s ,o r a l t e r a t i o n s , s h a l l b e s u b m i t t e d t o t h e M C f o r a p p r o v a l a s t o q u a l -i t y o f w o r k m a n s h i p a n d d e s i g n a n d h a r m o n y o f e x t e r n a l d e s i g n w i t he x i s t i n g s t r u c t u r e s , a n d a s t o l o c a t i o n i n r e l a t i o n t o s u r r o u n d i n gs t r u c t u r e s , t o p o g r a p h y , a n d f i n i s h g r a d e e l e v a t i o n . N o p e r m i s s i o n o ra p p r o v a l s h a l I b e r e q u i r e d t o r e p a i n t i n a c c o r d a n c e w i t h a n o r i g i n a l l ya p p r o v e d c o l o r s c h e m e , o r t o r e b u i l d i n a c c o r d a n c e w i t h o r i g i n a l l ya p p r o v e d p l a n s a n d s p e c i f i c a t i o n s - N o t h i n g c o n t a i n e d h e r e i n s h a l l b ec o n s t r u e d t o l i m i t t h e r i g h t o f a n O w n e r t o r e m o d e l t h e i n t e r i o r o fh i s U n i t r o r t o p a i n t t h e i n t e r i o r o f h i s U n i t a n y c o l o r d e s i r e d . f nt h e e v e n t t h a t t h e M C f a i l s t o a p p r o v e o r t o d i s a p p r o v e s u c h p l a n s o rt o r e q u e s t a d d i t i o n a l i n f o r m a t i o n r e a s o n a b l y r e q u i r e d w i t h i nf o r t y - f i v e ( 4 5 ) d a y s a f t e r s u b m i s s i o n , t h e p l a n s s h a l l b e d e e m e da p p r o v e d .

S e c t i o n 3 . N o W a i v e r o f F u t u r e A p p r o v a l s . T h e a p p r o v a l o fe i t h e r t h e N C C o r M C o s p e c i f i c a l i o n s o rd r a w i n g s f o r a n y w o r k d o n e o r p r o p o s e d , o r i n c o n n e c t i o n w i t h a n yo t h e r m a t t e r r e q u i r i n g t h e a p p r o v a l a n d c o n s e n t o f s u c h C o m m i t t e e ,s h a l l n o t b e d e e m e d t o c o n s t i t u t e a w a i v e r o f a n y r i g h t t . o w i t h h o l da p p r o v a l o r c o n s e n t a s t o a n y s i m i l a r p r o p o s a l s , p l a n s a n d s p e c i f i c a -t i o n s , d r a w i n g s , o r m a t t e r s w h a t e v e r s u b s e q u e n t l y o r a d d i t i o n a l l y s u b -m i t t e d f o r a p p r o v a l o r c o n s e n t .

S e c t i o n 4 . V a r i a n c e . T h e N C C m a y a u t h o r i z e v a r i a n c e s f r o mc o m p l i a n c e w i t h a n y o f t h e p r o v i s i o n s o f t h a D H C D C w h e n c i r c u m s t a n c e ss u c h a s t o p o g r a p h y , n a t u r a l o b s t r u c t i o n s , h a r d s h i p , a e s t h e t i c , o re n ' r i r o n m e n t a l c o n s i d e r a t i o n s r e q u i r e , b u t o n l y i n a c c o r d a n c e w i t h d u l ya d o p t e d r u l e s a n d r e g u l a t i o n s . S u c h v a r i a n c e s m a y o n l y b e g r a n t e d ,h o w e v e r , w h e n u n i g u e c i r c u m s t a n c e s d i c t a t e a n d n o v a r i a n c e s h a l l ( a )b e e f f e c t i v e u n l e s s i n w r i L i n g , ( b ) b e c o n t r a r y t o t h e r e s t r i c t i o n ss e t f o r t h i n t h e b o d y o f t h i s D e c l a r a t i o r r , o r ( c ) e s t o p t h e C o m m i t t e ef r o m d e n y i n g a v a r i a n c e i n o t h e r c i r c u t n s t a n r - p s - F o r n r r r r r / 1 q o c n f t h i s

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