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Stratford Mnr/FP-CS 990721July 21, 1999 Ms. Isabelle Moro Planning and Zoning Coordinator City of Coppell P. O. Box 478 Coppell, Texas 75019 RE: Stratford Manor Declaration of Covenants and Restrictions Dear Isabelle: Please be advised that I have reviewed the proposed Declaration of Covenants and Restrictions as it applies to the Stratford Manor development within the City of Coppell, Texas. In reviewing these deed restrictions, the restrictions tract with sufficient clarity to the standard form which is attached to the Subdivision Ordinance for the City of Coppell, Texas. For that reason, we are prepared to approve the deed restrictions and covenants as they apply to this property. If you should have any questions or need additional information, please feel free to contact me. Thank you for your attention to this matter. Sincerely, NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. REH/cdb By: Robert E. Hager 23304 DRAFT COPY DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR STRATFORD MANOR COPPELL, TEXAS DALLAS COUNTY Initials: Purchaser Builder Page I of_ Declarant Date 01/04/995:30 AM THESE DEED RESTRICTIONS WERE PREPARED IN AND AMENDED ON . ANY AND ALL DEED RESTRICTIONS WITHOUT A DATE OF ARE INVALID AND NULL AND VOID. Initials: Purchaser Builder Declarant Date Page 2 of__ 01/04/995:30 AM DECLARATION OF COVENANTS, COINDITIONS AND DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR STRATFORD MANOR STATE OF TEXAS COUNTY OF DALLAS KNOW ALL PERSONS BY THESE PRESENTS: THAT THE STRATFORD MANOR, LTD., a Texas Limited Partnership, (the "Declarant"), by Texas Corporation, is the owner of all the lots shown on the Final Plat of STRATFORD MANOR (The "Property") an Addition to the City of Coppell (the "city"), Texas, according to the plat thereof (the "Plat") recorded in Volume _, Page of the map Records of Dallas County (the"County"), Texas,'a true and correct copy of which is attached hereto as Exhibit "A" attached hereto and made a part hereof for all purposes. Declarant has subdivided the Property into single-family lots as shown on the Plat. As used herein, "lot" and "lots" shall refer only to the numbered plots shown on the Plat and shall not refer to public areas, parks, esplanades, tracts owned or subsequently acquired by any public body, or any plot or tract shown as a reserve whether designated as unrestricted or not. Declarant hereby declares that all of the property described above shall be held, sold and conveyed subject to the following ea§ements, restrictions, covenants and conditions, which are for the purpose of establishing a general scheme for the development of all the lots in the Property and for the purpose of enhancing and protecting the value, attractiveness and desirability of said lots and which shall run with the land and be binding on all parties having or acquiring any right, title or interest in the Property or any part thereof, and which shall inure to the benefit of each owner thereof. Initials: Purchaser Builder Declarant Date Page 3 of__ 01/04/995:30 AM ARTICLE I DEFINITIONS The following words when used in these Covenants and Restrictions or any amendment or supplement hereto & (unless the context shall otherwise clearly indicate or prohibit) shall have the following meanings: A) "Association" shall mean and refer to STRATFORD MANOR Homeowners Association, Inc., a Texas non-profit corporation which has the power, duty and responsibility of maintaining and administering the Common Area, and collecting the assessments and charges hereinafter prescribed, and has the right of administering and enforcing the Covenants and Restrictions. B) "Common Area(s)" shall mean and refer to all of the following: 1) Landscaping, walls, planters, pillars, entry ways, walkways, berms, sprinkler systems, gazebos, signs, wood structures, markers, lights, lighting systems, poles, flags, water features, fountains, and any other improvements installed by Declarant upon the Property or the Common Area and all equipment, accessories and machinery used in the operation or maintenance of any of the Common Areas and any addition to or replacements of any such Common Areas; and 2) Any and ali other areas of land within the Property which are known, described or designated as Common Area(s) on plats of all or any portion of the Property or in documents executed by Declarant, filed in the Land Records of Dallas County, Texas, together with any and all improvements that are now or may hereat~er be placed or constructed thereon. C) "Declarant" shall mean and refer to (STRATFORD MANOR) and the successors and assigns (if any) of STRATFORD MANOR with respect to the voluntary disposition of all (or substantially all) of the assets of STRATFORD MANOR and/or the voluntary interest of STRATFORD MANOR in and to the Property prior to the completion of development thereon. No person or entity purchasing one or more Lots from STRATFORD MANOR in the ordinary course of business shall be considered as "Declarant". D) "Lot" shall mean and refer to any plot or tract of land shown upon any recorded subdivision map(s) or plat(s) of the Property, as amended from time to time-, which plot or tract is designated as lot therein and which is or will be improved with a residential dwelling. E) "Owner" shall mean and refer to each and every person or business entity who is a record owner of a fee or undivided fee interest in any Lot subject to these Covenants and Restrictions; provided, however, "owner" shall not include person(s) or entity(les) who hold bona fide lien or interest in a Lot as security for performance of an obligation. Initials: Purchaser Builder Declarant Date Page 4 of__ 01/04/995:30 AM F) "Property" shall mean and refer to STRATFORD MANOR (hereinafter defined), and any additions thereto, as arc subject to these Covenants and Restrictions, or any amendment or supplement hereto, prepared and filed of record. ARTICLE II. CONSTRUCTION OF IMPROVEMENTS AND USE OF LOTS Section 2.1 Residential Use. All lots shall be used for single-family residential purposes only. No building shall be erected, altered, placed or permitted to remain on any lot other than on~ (1) detached single-family residence per iot, which residences may not exceec~ thirty-five (35) feet nor more than t~o and ~ne-half (2-U2) stories high. It is permi~sible, with majority vote, of family residence. Section 2.2 Single-Family Use. Each residence may be occupied by only one (1) family consisting of persons related by blood, adoption or marriage or no more than two (2) unrelated persons living and cooking together as a single housekeeping unit, together with any household servants. Section 2.3 Garages. Each residence shall have a garage suitable for parking not less than two and one-half (2-1/2) nor more than four (4) standard size automobiles, which garage shall conforms in design and materials with the main structure. All garage doors shall be closed at all times except as may be necessary for the entry and exit of vehicles and persons. No garage door is to face the street or be visible from the street in relationship to front elevation except for a single car garage door can face the street as long as it is not less than 50 feet from the front properly line. Section2.4 Restrictions or Resubdivisions. Except for replats undertaken by Declarant, none of the lots shall be subdivided into smaller lots. Section 2.5 Driveways. All visible driveways shall be surfaced with concrete. Sections 2.6 Use Specifically Prohibited. (a) No temporary dwelling, shop, trailer or mobile home of any kind or any improvements of a temporary character (except children's playhouse, dog houses, basketball goals, greenhouses, gazebos and buildings for storage of lawn maintenance equipment, which may be placed on a lot only in places which are not visible from any street on which the lot fronts) shall be permitted on any lot except that the builder or contractor, with the prior written approval of the Committee, may have temporary improvements (such as a sales office and/or construction trailer) on a given lot during construction of a residence on the Property. No building material of any kind or character shall be placed stored upon the property until the owner thereof is ready to Initials: Purchaser Builder Declarant Date Page 5 of__ 01/04/995:30 AM commence construction of improvements, and then such material shall be placed within the property lines of the lot upon which the improvements are to be erected. (b) No boat marine craft, hovercraft, aircraft, recreational vehicle, pick-up campers travel trailer, motorhome, camper body or similar vehicle or equipment may be parked for storage in the driveway or front yard of any dwelling or parked on any public street in the property, nor shall any such vehicle or equipment be parked for storage in the side or rear yard of any residence unless completely concealed from public view. No such vehicle or equipment shall be used as a residence or office temporarily or permanently. This restriction shall not apply to any vehicle, machinery or equipment temporarily parked and in use for the construction, maintenance or repair of a residence in the immediate vicinity. (c) Trucks with tonnage in excess of one ton and any vehicle with painted advertisement shall not be permitted to park overnight within the Property except those used by a builder during the construction of improvements. (d) No vehicle of any size which transports inflammatory or explosive cargo may be kept on the Property at any time. (e) No vehicles or similar equipment shall be parked or stored in an area visible from any street except passenger automobiles, passenger vans, motorcycles, pick-up trucks and pick-up trucks with attached bed campers that are in operating condition and have current license plates and inspection stickers and are in daily use as motor vehicles on the streets and highways of any state. (f) No structure of a temporary character, such as a trailer, basement, tent, shack, barn, or other out-building, shall be used on any lot at any time as a dwelling house, provided, however, any builder, with the prior written approval of the Committee, may maintain and occupy model houses, sales offices and construction trailers during the construction period. (g) No oil drilling development operation, oil refining, quarrying or mining operations of any kind shall be permitted on the Property, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon or in any part of the Property. No derrick or other structure designed for use in quarrying or boring for oil, natural gas or other minerals shall be erected, maintained or permitted within the Property. (h) No animals, livestock or poultry of any kind shall be raised, bred or kept on any lot except that dogs, cats or other household pets may be kept for the purpose of providing companionship for the private family. Animals are not to be bred or kept for commercial purposes or for food. It is the purpose of these provisions to restrict the use of the lot so that no person shall quarter on the premises cows, horses, bees, hogs, sheep, goats, guinea fowls, chickens, turkeys, skunks, or any other animals that may interfere with the quietude, health or Initials: Purchaser Builder Declarant Date Page 6 of__ 01/04/995:30 AM safety of the community. No more than four (4) pets will be permitted in each lot. Pets must be restrained or confined on the homeowner's back lot inside a fenced area or within the house. It is the pet owner's responsibility to keep the lot clean and free of pet debris. All animals must be properly tagged for identification. (i) No lot or other area in the Property shall be used as a dumping ground for rubbish or a site for the accumulation of unsightly materials of any kind, including, without limitation, broken or rusty equipment, disassembled or inoperative cars and discarded appliances and furniture. Trash, garbage, or any other waste shall not be kept except in sanitary containers in appropriate locations which may be specified by the Committee, such containers shall be situated and enclosed or screened as not to be visible from any residential street, private drive or adjacent lot. All incinerators or other equipment for storage or other disposal of such material shall be kept in clean and sanitary, condition. Materials incident to construction of improvements may be stored on lots during construction. Materials incident to construction of improvements may be stored on lots during construction so long as construction progresses without undue delay, (j) No individual water supply system shall be permitted in the Property. (k) No individual sewage disposal system shall be permitted in the Property. (1) No garage, garage house or other out-building (except for sales offices and/or construction trailers during the construction period which have been approved by the Committee in writing) shall be occupied by any owner, tenant or other persons prior to the erection of a residence. (m) No air-conditioning apparatus shall be attached on the ground in front of a residence. No air-conditioning apparatus shall be attached to any front wall or window of a residence. No evaporative cooler shall be installed on the front wall or window of a residence. All utility meters, equipment, air conditioning compressors, air conditioning and heating units and similar items must (including those on comer lots) to the extent reasonably practicable, be visually screened from the street and adjoining lots and must be located in areas acceptable to the Committee. (n) Except with the written permission of the Committee or, as provided below, no antennas, discs or other equipment for sending or receiving sound or video messages shall be permitted in the Property except antennas for AM or FM radio reception and UHF, VHF television reception. All antennas shall be located inside the attic of the main residential structure except that, with the written permission of the Committee, one (1) satellite disc or other structure may be placed in the back yard so long as it is completely screened from view of any street, common area or other public area. No use shall be made of any lot or structure thereon for any other type of radio or television or similar broadcasting system. Initials: Purchaser Builder Declarant Date Page 7 of__ 01/04/995:30 AM (o) No lot or improvements shall be used for business, professional, commercial or manufacturing purposes of any kind. No activity, whether for profit or not shall be conducted which is not related to single-family residential purposes. No noxious or offensive activity shall be undertaken within the Property, nor shall anything be done which is or may become an annoyance or nuisance to the neighborhood. Nothing in this subparagraph shall prohibit a builder's temporary use of a residence as a sales office until such builder's last residence in the Property is sold. Nothing in this subparagraph shall prohibit an owner's use of a residence for quiet, inoffensive activities such as tutoring or giving art lessons so long as such activities do not materially increase the number of cars parked on the street or interfere with adjoining homeowners' use and enjoyment of their residences and yards. (p) No fence, wall hedge or shrub planting which obstructs sight lines at elevations between three (3) and six (6) feet above the roadway shall be placed or permitted to remain on any corner lot within the triangular area formed by the street right-of-way lines and a line connecting them at points ten (10) feet from the intersection of the street right-of-way lines, or, in the case of a rounded property comer, from the intersection of the street right-of-way lines as extended. The same sight-line limitations shall apply on any lot within ten (10) feet from the intersection of a street right-of way line with the edge of a private driveway. No tree shall be permitted to remain within such distance of such intersections unless the foliage line is maintained at sufficient height to prevent obstruction of such sight lines. (q) Except for children's playhouse, dog houses, greenhouses, gazebos, and buildings for storage of lawn maintenance equipment, no building previously constructed elsewhere shall be moved onto any lot, it being the intention that only new construction be placed and erected thereon. (r) Within easements on each lot, no structures, planting or maintenance of utilities, which may change the direction of flow within drainage channels or which may obstruct or retard the flow of water through drainage channels. (s) The general grading, slope and drainage plan of a lot may not be altered by more than six (6) inches without the prior written approval of the Declarant, the City and other appropriate agencies having authority to grant such approval. (t) No sign of any kind shall be displayed to the public view on any lot except one (1) professional sign advertising the property for sale, or professional signs used by the builder to advertise the property during the construction and sales period. Declarant or its agents shall have the right to remove any sign, billboard or other advertising structure that does not comply with the foregoing requirements, and in so doing shall not be subject to any liability for trespass or any other liability in connection with such removal. All signs are subject to the approval of the Declarant and may be required by the Declarant to be removed if, in the sole judgment of the Declarant, same are found to be inconsistent with the high standards of the Property. To protect Initials: Purchaser Builder Declarant Date Page 8 of_ 01/04/995:30 AM the safety and harmony of the neighborhood, no person shall engage in picketing on any lot, easement, or right-of-way or common area within or adjacent to the Property, nor shall any vehicle parked, stored or driven in or adjacent to the Property bear or display any signs, slogans, symbols, words or decoration intended to create controversy, invoke ridicule or disparagement, or interfere in any way with the exercise of the property rights, occupancy or permitted business activities of any builder, owner, or Declarant. All signage must comply with cur-rent City sign ordinances. (u) The drying of clothes in public view is prohibited. The owners and occupants of any lots at the intersections of streets or adjacent to parks, playgrounds or other facilities where the rear yard is visible to full public view shall construct a drying yard or other suitable enclosure to screen from public view the equipment which is incident to normal residences, such as clothes drying equipment, yard equipment and storage piles. (v) Except within fireplaces in the main residential dwelling and except for outdoor cooking, no burning of anything shall be permitted anywhere within the Property. (w) No carport shall be permitted on a lot. (x) No abandoned, derelict or inoperative vehicles may be stored or located on any lot unless visually screened from other lots and from any residential street. y) No retaining wall, fence or other structure of any kind made from wooden railroad ties or any individual wooden railroad ties shall be permitted on the front yard or side yard ora lot which are visible from any street, common area or other public area. Section 2.7 Minimum Floor Area. The total air-conditioned living area of the main residential structure, as measured to the outside of exterior walls but exclusive of open porches, garage, patios and detached accessory buildings, shall be not less than two thousand-eight hundred (2,800) square feet for a one (1) story residence and not less than three thousand (3,000) square feet for a two (2) story residence, or the minimum habitable floor area as specified by the City at the time of construction, whichever is greater. Section 2.8 Building Materials: Exterior Items and Surfaces. At least eighty percent (80%) of the exterior walls of the first floor of all structures shall be of masonry construction (see current City ordinances for definition of masonry) exclusive of doors, windows and the area above the top plate line. Each story above the first floor of a straight wall structure shall be at least eighty percent (80%) masonry, exclusive of doors, windows and the area above the top plate line. Roofing shall be constructed of wood, slate, clay tile or architectural tab composition with a minimum of a 25 year materials warranty or specifically approved otherwise by the Committee in writing before installation. Roof pitch shall be a minimum of "8/12," unless approved otherwise by the Committee. Installation of all types of exterior items and surfaces such as address numbers Initials: Purchaser Builder Declarant Date Page 9 of__ 01/04/995:30 AM or external paint or stain, shall be subject to the prior approval of the Committee as to design, materials and location. Section 2.9 Area Regulations. 1. Minimum Size of Yards: A) Front Yard: Thirty (30) feet Where lots have double frontage, running through from one street to another, the required front yard shall be provided on both streets. B) Side Yards: Ten percent (10%) of the lot width, but in no case shall the side yard be less than eight (8) feet. A side yard adjacent to a street shall not be less than fifteen (15) feet. Allowable non-residential uses twenty-five (25) feet. C) Rear Yard: Twenty (20) feet. 2. Maximum Lot Coverage A) Thirty-five percent (35%) of the total lot area may be covered by the combined area of the main building and accessory buildings. No dwelling shall be located on any lot nearer to the front lot line or nearer to the side lot line than the minimum setback lines shown on the Plat or required by the City. For purposes of these covenants, eaves shall not be considered as a part of the building, provided, however, that this shall not be construed to permit any portion of a building on a lot to encroach upon another lot. Section 2.10 Fences and Walls. Any fence or wall must be constructed of masonry brick, wood or other material approved by the Declarant. No fence or wall shall be permitted to extend nearer to any street than the front building line of any residence. Fences or walls erected by the Declarant shall become the property of the owner of the lot on which the same are erected and, as such, shall be maintained and repaired by such owner except as provided in Article Ill. No portion of any fence shall be less than or greater than eight (8) feet in height. Concerning Lot 26 Block "A" and Lot 27 Block "A" where there is a side yard adjacent to the common area, these lots have the fight to continue the same decorative metal fencing along those side yards, but this is only optional and must be determined by the homeowner. All wooden fences must be "board on board", with a level stair step flat top design. The unfinished side of the fence shall not be exposed to any street, common area or neighboring lot. Contractors sips are not to be attached to fence. Fences are to be left natural or a "clear" stain may be used. The "good" side or pickets are to be applied on the exterior of the fence structure. Vertical and horizontal support structures shall not be exposed on the exterior side of the fence. Section 2. 11 Sidewalks. All sidewalks shall conform to City specifications and regulations. Section 2.12 Mailboxes. Mailboxes shall be standardized cluster-boxes Initials: Purchaser Builder Declarant Date Page 10 of_ Ol/O4/995:3o AM required by the U.S. Postal Service. Cluster-boxes must have brick/stone veneer uniformly designed to conform with design concept of entry features. Section 2.13 Retaining Walls. Any retaining wall visible from in), street shall be brick, stone, or other material approved by the Declarant. Section 2.14 Chimney Flues. Chimney Flues shall have no siding. Chimney Flue shall be fully surrounded by masonry or other material approved by Declarant and shall be fully supported from foundation. All materials must be acceptable by the Declarant. Section 2.15 Windows and Skylights. Window jambs and mullians shall be composed of anodized aluminum or wood. There shall be no skylights on the fronts of houses. No windows or doors with glass may be tinted with after market products or artificially affected that can be seen from the street. Sections 2.16 Repetition of Front Elevation. No front elevation shall be allowed for a lot (subject lot) if that same elevation has already been constructed upon, or approved for, any other lot (existing lot), if the improvements of the existing lot would be visible from any part of the front yard of the subject lot at the street line. The Declarant shall be the final authority as to what improvements would be visible from any particular lot and of floor plan duplications. Section 2.17 Circular Driveways/Landscaping All circular driveway plans must be approved by Declarant. ARTICLE III ARCHITECTURAL CONTROL Section 3.2 Authority. No landscaping, building, fence, wall or other structure shall be commenced, erected, placed, maintained or altered on any lot, nor shall any exterior painting of, exterior addition to, or alteration of, such items be made until all plans and specifications and a plot plan have been submitted to and approved in writing by Declarant. (a) quality of workmanship and materials, adequacy of site dimensions, adequacy of structural design, proper facing of main elevation with respect to nearby streets; (b) conformity and harmony of the external design, color, type and appearance of exterior surfaces and landscaping in relation to the various pails of the proposed improvements and in relation to improvements on other lots in the Property; and Initials: Purchaser Builder Declarant Date Page 11 of_ 01/04/995:30 AM (c) the other standards set forth within this Declaration (and any amendments hereto) render a final interpretation and decision. Section 3.4 Procedure for Approval. Final plans and specifications shall be submitted in duplicate to the Declarant. The plans and specifications shall show the nature, kind, shape, height, materials and location of all landscaping and improvements. The documents shall specify any request variance from the set back lines, garage location or any other requirement set forth in this Declaration. The Declarant is authorized to request the submission and samples of proposed construction materials. At such time as the plans and specifications meet the approval of the Declarant, one complete set of plans and specifications will be retained by the Declarant and the other complete set of plans shall be marked "Approved," signed by the Declarant and returned to the lot owner or his designated representative. If disapproved by the Declarant, one set of such plans shall be returned marked "Disapproved" and shall be accompanied by a reasonable statement of the reasons for disapproval, which statement shall be signed by the Declarant. Any modifications of the approved set of plans and specifications must again be submitted to the Declarant for its approval. The Declarant's approval or disapproval, as required herein, shall be in writing. In no event shall the Declarant give verbal approval or disapproval of any plans. If the Declarant fails to approve or disapprove such plans and specifications within thirty (30) days after the date of submission, written approval of the matters submitted shall not be required and compliance with this Article shall be deemed to have been completed. In case of a dispute about whether the Declarant responded within such time period, the person submitting the plans shall have the burden of establishing that the Declarant received the plans. The Declarant's receipt of the plans may be established by a signed certified mail receipt. Section 3.5 Standards. The Declarant shall have sole discretion with respect to taste, design and all standards specified herein. One objective of the Declarant is to prevent unusual, radical, curious, odd, bizarre, peculiar or irregular structures from being built in the Property. The Declarant shall also have the authority to require a "8/12" or greater roof slope, to specify the design of fireplaces and chimney flues, to prohibit the use of light-weight composition roof material, to require the use of specific types of windows, to prohibit or restrict the use of solar or heating panels and generally to require that any plans meet the standards of the existing improvements on neighboring lots. The Declarant may from time to time publish and promulgate bulletins regarding architectural standards, which shall be fair, reasonable and uniformly applied and shall carry forward the spirit and intention of this declaration. Section 3.7 Liability of Declarant. The Declarant shall have no liability for decisions made by the Declarant so long as such decisions are made in good faith and are not arbitrary or capricious. Any errors in or omissions from the plans of the site plan submitted to the Declarant Initials: Purchaser Builder Declarant Date Page 12 of__ 01/04/995:30 AM shall be the responsibility of the owner of the lot to which the improvements relate, and the Declarant shall have no obligation to check for errors in or omission from any such plans, or to check for such plans compliance with the general provisions of this Declaration, City codes, state statutes or the common law, whether the same relate to lot lines, building lines, easements or any other issue. This Section shall also apply to the members of the home owners' committee, if such a committee comes into existence pursuant to Section 3.6 above. ARTICLE IV SPECIAL FENCING AND LANDSCAPING Section 4.1 Fences, Walls and Sprinkler Systems. For a period of two (2) years after the recording of this Declaration, Declarant shall have the right to erect, install, maintain, repair and/or replace fences, walls and/or sprinkler systems within those portions of any lot situated along the perimeter of the Property (other than this development or Common Areas) which are located outside the building, set back or sight lines as established by the Plat, this document or any governmental entity. Any fence, wall or sprinkler system shall be the property of the owner of the lot on which such fence, wall or sprinkler system is erected or installed, subject to easements and rights of Declarant set forth below. No fence, wall or sprinkler system shall be erected or installed in the common area by the owner thereof, without the prior written consent of Declarant. Section4.2 Landscaping. Declarant shall have the right to grade, plan and/or landscape and maintain, repair, replace and/or change such grading, planting and landscaping on any portion of the common area. In the event Declarant does not landscape the common areas, the Association may plant grass and may landscape and plant trees and shrubs in the common areas, with written consent of the Declarant and full compliance of City ordinances regarding landscaping. Section 4.3 Easements. Declarant shall have, and hereby reserves, the right and easement to enter upon the common area for the purpose of exercising the discretionary rights set forth herein. Section 4.4 Maintenance by Individual Lot Owner of Common Areas. In the event Declarant does not maintain or repair any fences, walls, grading, planting or landscaping erected, installed or situated within the Common Areas, then individual owners at his or her expense, may perform such maintenance and repair work as is necessary to maintain such fences, walls, grading, planting and landscaping in a good and neat condition and appearance, provided, however, that the lot owners shall give Declarant ten (10) business days written notice before doing any maintenance other than mowing, edging and trimming. So long as the Common Area and any fences, walls, grading, planting and landscaping thereto are being reasonably maintained and repaired by Declarant, the owners shall not perform any maintenance or repair work on any sprinkler system within the common area without prior written consent of Declarant. Initials: Purchaser Builder Declarant Date Page 13 of__ 01/04/995:30 AM Section4.5 Declarant's Discretion. Notwithstanding any provisions herein to the contrary, Declarant shall never be obligated to erect, install, maintain, repair or replace any fences, walls, sprinkler systems, grading, planting or landscaping on any lots. Section 4.6 Three Year Limitation. This provision of article regarding Declarant's rights shall terminate on the earlier of (a) the date on which Declarant records a document evidencing said termination or (b) three (3) years after the date hereof. Notwithstanding said termination, the owners of the lots shall have the right to exercise Declarant's rights hereunder pursuant to Section 5.13 ARTICLE V GENERAL PROVISIONS Section 5.1 Easements. Easements for the installation and maintenance of utilities and drainage facilities are reserved as shown on the Plat. Easements are also reserved for the installation, operation, maintenance and ownership of utility service lines from the property lines to the residence. Declarant reserves the right to make changes in and additions to the above easements for the purpose of most efficiently installing improvements. By acceptance of a deed to any lot, the owner thereof covenants and agrees to mow weeds and grass and to keep and maintain in a neat and clean condition any easement which may traverse a portion of the lot. Section 5.2 Recorded Plat. All dedications, limitations, restrictions and reservations shown on the Plat are incorporated herein and shall be construed as being adopted in each contract, deed or conveyance executed or to be executed by Declarant, conveying lots in the Property, whether specifically referred to therein or not. Section 5.3 Lot Maintenance. The owner of each lot shall, prior to thirty (30) days after issuance of certificate of occupancy for a house, establish grass front and side yards, or any property visible from the street, plant a minimum of twelve (12), five (5) gallon shrubs and six (6), fifteen (15) gallon shrubs, and a minimum of two (2) trees with a minimum four inch (4") caliper and shall maintain the yards in a sanitary and attractive manner and shall edge the street curbs that run along the property line. Grass, weeds and vegetation on each lot must be kept mowed at regular intervals so as to maintain the property in a neat and attractive manner. No vegetables shall be grown in any yard that faces street. No owner shall permit weeds or grass to grow to a height of greater than six inches (6") upon his/her property. No foundation planting, shrubs or other vegetation near the house shall be allowed to grow above the bottom of any window. If after ten (10) days prior written notice, an owner of a lot shall fail to: (a) control weeds, grass and/or other unsightly growth, (b) remove trash, rubble, building and construction debris, (c) exercise reasonable care and conduct to prevent or remedy an unclean, untidy or unsightly condition, or (d) otherwise satisfy the aforesaid maintenance requirements, then Declarant or the Committee shall have the authority and right but not the obligation to go onto the subject lot for Initials: Purchaser Builder Declarant Date Page 14 of_ 01/04/995:30 AM the purpose of mowing and cleaning said lot or to otherwise effect the aforesaid maintenance requirements and shall have the authority and fight to assess and collect from ,the owner of said lot the amount so expended by Declarant in connection with mowing, cleaning or otherwise maintaining said lot on each respective occasion of such mowing, cleaning or maintenance. In the event an owner ora lot does not pay such an assessment within fifteen (15) days after the date of the invoice for such assessments, such owner shall also be obligated to pay Declarant thereon from said date until paid at the lesser maximum rate permitted by applicable law or eighteen percent (18%) per annum and the costs of collection thereof. Section 5.4 Maintenance of Improvements. Subject to the provisions of Article IV, each lot owner shall maintain the exterior of all buildings, fences, walls and other improvements on his/her lot in good condition and repair, and shall replace worn and rotten parts, and shall regularly repaint all painted surfaces and shall not permit the roofs, rain gutters, downspout, exterior walls, windows, doors, walks, driveways, parking areas or other exterior portions of the improvements to deteriorate in an unattractive manner. Section 5.5 Mortgages. It is expressly provided that the breach of any of the foregoing conditions shall not default or render invalid the lien of any mortgage or deed of trust made in good faith and for the value, as the same premises or any part thereof encumbered by such mortgage or deed of trust, but said conditions shall be binding thereto as to lots acquired by foreclosure, trustee's sale or otherwise, as to any breach after such acquisition of title. Section 5.6 Term. The forgoing covenants and restrictions shall run with and bind the land and shall remain in full force and effect for a term of thirty (30) years after this Declaration is recorded. They shall be automatically extend for successive periods of ten (10) years unless amended as provided herein or as allowed by applicable law. Section 5.7 Severabilitv. If any condition, covenant or restriction herein contained shall be invalid, which invalidity shall not be presumed until the same is determined by the judgment or order of a court of competent jurisdiction, such invalidity shall in no way effect any other condition, covenant or restriction, each of which shall remain in full effect. Section 5.8 Binding Effect. Each of the conditions, covenants, restrictions and agreement herein contained is made for the mutual benefit of, and is binding upon, each and every person acquiring any part of the Property, it being understood that such conditions, covenants, restrictions and agreements are not for the benefit of the owner of any land except land in the its successors and assigns. This Declaration, when executed, shall be filed of record in the deed records of the County so that each and every owner or purchaser or any portion of the Property is on notice of the conditions, covenants, restrictions and agreements herein contained. Section 5.9 Enforcement. The owner of any lot in Property shall have the easement and right to have each and all of the foregoing restrictions, conditions and covenants herein Initials: Purchaser Builder Declarant Date Page 15 of__ 01/04/995:30 AM faithfully carried out and performed with reference to each and every lot in the Property, together with the right to bring any suit or undertake any legal process that may be proper to enforce the performance thereof, it being the intention hereby to attach to each lot in the Property, without reference to when it was sold, the night and easement to have such restrictions, conditions and covenants, strictly complied with, such right to exist with the owner of each lot and to apply to all other lots in the Property whether owned by the undersigned, its successors and assigns, or other. Failure by any owner, including Declarant, to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. Section 5.10 Other Authorities. If other authorities, such as the City or County, impose more demanding, expensive or restrictive requirements than those set forth herein, the requirements of such authorities shall be complied with. Other authorities imposition of lesser requirements than those set forth herein, the requirements of such authorities shall be complied with, Other authorities impositions of lesser requirements than those set forth herein shall not supersede or diminish the requirements herein. Section 5.11 Addresses. Any notices or correspondence to any owner of a lot shall be addressed to the street address of the lot. Any notices or correspondence to the Declarant shall be addressed to the address shown opposite the signature of Declarant below or to such other address as is specified by the Declarant pursuant to an instrument recorded in the deed records of the County. Section 5.12 Owners Election. If any time a majority of the owners of lots in the Property execute and record a document stating their intent and desire to perform some or all of Declarant's landscaping, maintenance, approval, or other rights or functions hereunder, and if such document provides a reasonable procedure for notifying all owners and for delegating responsibility and performing such functions, and if such document is approved and executed by Declarant, then such owners shall be entitled to all discretion, authority, easements and rights of Declarant with respect to the matters as to which the homeowners elect to assume responsibility. Section 5.13 Acknowledgment of Purchaser. This Declaration and the covenants, conditions and restrictions set forth herein must be acknowledged by signature and fully initialed on each page of this Declaration, when a perspective purchaser/resident executes a contract for sale with one of the bonafide builder companies. Perspective purchaser/resident will receive one copy of same: one copy kept on file with builder company and one copy on file with Declarant. Further, when the Association is in force the President of the Association will appoint a representative to fulfill the aforementioned obligations for resale homes. At that time one copy will be kept on file with purchaser/resident of pre-existing resale property and one copy on file with the Association. Section5.14 Amendment. This Declaration and the covenants conditions and restrictions set forth herein may be abolished or amended in whole or in part with the consent of Initials: Purchaser Builder Declarant Date Page 16 of__ 01/04/995:30 AIM fifty-one percent (51%) of the then owners (including Declarant) of lots (with one (1) vote to be cast for each lot so owned) evidenced by a document in writing bearing the signatures of such majority owners; provided, however, that for the period that a Declarant appointed Committee is in existence, no amendment of the covenants, conditions and restrictions set forth herein shall be valid or effective without the joinder of Declarant. (a) Declarant may add or annex additional real property to the scheme of these Covenants and Restrictions by filing of record a Supplemental Declaration of Covenants, Conditions and Restrictions which shall extend the scheme of the Covenants, Conditions and Restrictions of these Covenants and Restrictions to such additional property; provided, however, that such supplemental declarations may contain such complementary additions and modifications of the Covenants and restrictions as may be necessary to reflect the different character, if any, of the additional property and as is not inconsistent with the concept of this Restated Declaration. (b) In the event any person or entity other than the Declarant desires to add or annex additional residential and/or common areas to the scheme of these Covenants and Restrictions, such proposed annexation must have the prior written consent and approval of the majority of the outstanding votes within each voting class of the Association. (c) Any additions made pursuant to paragraphs (a) and (b) of this Section 6.02, when made, shall automatically extend the jurisdiction, functions, duties and membership of the Association to the properties added. (d) Declarant shall have the right and option (upon the joinder, approval or consent of such associations) to cause the Association to merge or consolidated with any similar association then having jurisdiction over real property located (in whole or in part) within one-half (1/2) mile of any real property then subject to the jurisdiction of this Association. Upon a merger or consolidation of the Association with another association, its properties, rights and obligations may, by operation of law be transferred to another surviving or consolidated association or alternatively, the properties, rights and obligations of another association may, by operation of law be added to the properties, fights and obligations of the Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the Covenants and Restrictions within the Existing Property together with the covenants, conditions and restrictions established upon any other properties as one scheme. ARTICLE VI PROPERTY SUBJECT TO THIS DECLARATION: ADDITIONS THERETO Section 6.1 Existing Property. The Existing property is located in the City of Coppell, Dallas County, State of Texas, and is more particularly described on Exhibit "A" attached hereto and incorporated herein by reference for all purposes. Initials: Purchaser Builder Declarant Date Page 17 of__ 01/04/995:30 AM Section 6.2 Additions to Existing Property. Additional land(s) may become subject to these Covenants and Restrictions in any of the following manners: ARTICLE VII MEMBERSHIP AND VOTING RIGHTS IN THE ASSOCIATION. Section 7.1 Membership. Every Owner of a Lot shall automatically be and must remain a Member of the Association in good standing. The Board of Directors of the Association (the "Board of Directors") may declare that an Owner is not a Member in good standing because of past unpaid dues, fines, late charges, interest, legal fees, and/or any other assessments of any nature. The Board of Directors may temporarily suspend the voting rights of any member who is not in good standing until such past unpaid amounts are paid in full. Section 7.2 voting membership: Voting Rights. The Association shall have three (3) classes of CLASS "A": Class A Members shall be all Members other than Class B and Class C members. Class A Members shall be entitled to one (I) vote for each lot in which they hold the interest required for membership. When more than one person holds such interest or interests in any lot, all such persons shall be Members, and the vote for such Lot shall be exercised as they, among themselves, determine, but in no event shall more than one (1) vote be cast with respect to any such Lot. CLASS "B"' Class B Members- shall be any bona fide Owner who is engaged in the process of constructing a residential dwelling on his/her Lot for sale to consumers. Class B Members shall be non-voting members of the Association. The Class B membership shall cease, and each Class B Member shall become a Class A Member: (a) when total number of votes outstanding in the Class A Membership equals the total number of votes outstanding in the Class C Membership, or (b) on the third (3) anniversary of the date hereof, whichever occurs first in time. CLASS "C": Class C Members shall be Beamer. Class C Members shall be entitled to six (6) votes for each Lot which it owns and for each Lot owned by Class B members who purchased Lots initially owned by such Class C Member. Notwithstanding the aforementioned voting rights within the Association, until Declarant no longer owns record title to (or a lien interest in) any Lot, or three (3) years, whichever occurs Initials: Purchaser Builder Declarant Date Page 18 of_ 01/04/995:30 AM first in time, neither the Association nor the Members shall take any action inconsistent with this Declaration without the consent and approval of Declarant. ARTICLE VIII COVENANTS FOR ASSESSMENTS Section 8.1 Creation of the Lien and Personal Obligation of Assessments. Declarant, for each Lot owned by it within the Property, hereby covenants and agrees, and each Purchaser or Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed or other conveyance, is deemed to covenant and agree (and such covenant and agreement shall be deemed to constitute a portion of the purchase money and consideration for acquisition of the Lot) to pay to the Association (or to an entity or agency which may be designated by the Association to receive such Moines): (1) annual assessments or charges for maintenance, taxes and insurance on the Common Properties and a fifty dollar ($50.00) fee payable by Class A Members only to a reserve fund for the Association upon acquisition of any Lot; (2) special assessments for capital improvements, such assessments to be fixed, established and collected from time to time as hereinafter provided, and (3) individual special assessments levied against individual Lot Owners to reimburse the Association for the extra cost of maintenance and repairs caused by willful or negligent acts of the individual Owner and not caused by ordinary wear and tear, such assessment to be fixed, established and collected from time to time as hereinafter provided. The annual, special and individual assessments, together with such interest thereon and costs of collection thereof as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon each Lot against which each such assessment is made and shall also be the continuing personal obligation of the Owner of such Lot at the time when the assessment became due. Section 8.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purposes of (i) promoting the health, recreation, safety and welfare of the residents of the Property; (ii) improving and maintaining the Common Properties; (iii) the payment of taxes and insurance (if any) in connection with Common Properties and the repair, replacement and additions thereto; (iv) developing and maintaining replacement and working capital reserves for the Association; (v) trash and garage collection and exterior maintenance of all or portion of the Lots, as may be determined necessary and appropriate by the Association from time to time; (vi) paying the cost of labor, equipment (including the expense of leasing any equipment) and materials required for, and management and supervision of, the Common properties; (vii) carrying out the duties of the Board of Directors. Section 8.3 Basis and amount of Annual Maintenance Assessments. (a) Until and unless otherwise determined by the Board the annual assessment shall be $485.00 per Lot per year. Initials: Purchaser Builder Declarant Date Page 19 of__ 01/04/995:30 AM (b) The Board of Directors may establish the maximum annual assessment for each Lot, provided that the maximum annual assessment may not be increased more than twenty percent (20%) above the maximum annual assessment for the previous year unless approved by Members of. the Association. Notwithstanding the foregoing, in the event that the Board determines that due to unusual circumstances the maximum assessment even as increased by twenty percent (20%) will be insufficient to enable the Association to meet its expenses as set forth hereof, then in such event, the Board shall have the right to increase the maximum annual assessment by the amount necessary to provide sufficient funds to cover the expenses of the Association without the approval of the Members~ provided, however, that the Board shall only be allowed to make one such increase without obtaining approval of the Members. (c) After consideration of current maintenance cost and the future needs of the Association, the Board of Directors may fix the actual annual assessment at an amount equal to or less than the then-existing maximum annual assessment. (d) Owner, by acceptance of the deed to his/her Lot, hereby expressly vests in Declarant, the Board or its agents the fight and power to bring all actions against Owner personally for the collection of such charges as a debt, and to enforce the aforesaid liens by all methods available for the enforcement of such liens. No owner may waive or otherwise escape liability for the assessments provided herein by non-use of the Common Areas or by abandonment of his Lot. (e) If any assessment remains unpaid as the expiration of fifteen (15) calendar days from and after the due date established by the Board, a late charge shall be assessed against the non-paying Owner for each month that any portion of an assessment remains unpaid. The late charge shall be in the amount of twenty-five and No/100 Dollars ($25.00) for all Class A Members. A reasonable service charge in an amount established by the Board shall be charged for each check that is returned because of insufficient funds, the amounts of late charges and services charges may be adjusted, from time to time, by the Board consistent with any changes in the amounts of regular or special assessments. Section 8.4 Special Assessments for Capital Improvements. In addition to the annual assessments authorized hereof, the Association may levy in any year a special assessment, applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of described capital improvements upon the Common Area, including any necessary fixtures and personal property related thereto, provided that such assessment shall have affirmative approval of the Members of the Association. Section 8.5 Uniform Rate of Annual and Special Assessments. Both annual and special assessments must be fixed at a uniform rate for all Lots owned by Class A members. Initials: Purchaser Builder Declarant Date Page 20 of__ 01/04/995:30 AM Section8.6 Date of Commencement of Assessments, Due Dates. The annual maintenance assessment provided for herein shall commence on the date fixed by the Board of Directors to be the date of commencement, and as may be prescribed by the Board of Directors shall be payable annually, in advance, on the first day of each year. Section 8.7 Duties of the Board of Directors with Resl2ect.to Assessments, (a) The Board of Directors shall fix the date of commencement and the amount of the assessment against each Lot for each assessment period at least sixty (60) days in advance of such date or period if such assessments are being increased and at least thirty (30) days in advance of such date or period if such assessments are not being increased; and the Board of Directors shall, at that time, prepare a roster of the Lots and assessment applicable thereto which shall be kept in the office of the Association. (b) Written notice of the assessment shall thereupon be delivered or mailed to every Owner subject thereto. (c) The Board of Directors shall upon demand at any time furnish to any Owner liable for said assessments, a certificate in writing signed by an Officer of the Association, setting forth whether said assessment has been paid. Such certificate shall be conclusive evidence of payment of any assessment therein stated to have been paid. A reasonable charge may be made by the Board of Directors for the issuance of such certificate. Section 8.8 Effect of Non-Payment of Assessment, The Personal Obligation of the Owner, the Lien, Remedies of Association. (a) If any assessment or any part thereof is not paid on the date(s) when due, then the unpaid amount of such assessment shall become delinquent and shall together with late charges and service charges [hereinafter defined in subparagraph (c)], and interest thereon at the highest permitted lawful rate per annum and cost of collection thereof, thereupon become a continuing debt secured by a lien on the Lot of the non-paying Owner which shall bind such Lot in the hands of the Owner, his/her heirs, executors, devisee, personal representatives and assigns. The Association shall have the right to reject partial payments of an assessment and demand the full payment thereof. The personal obligation of the then-existing Owner to pay such assessment shall remain his personal obligation and shall not pass to his/her successors in title unless expressly assumed by them. Furthermore, the lien for unpaid assessment shall be unaffected by any sale or assignment of a Lot and shall continue in full force and effect. No Owner may waive or otherwise escape liability for the assessment provided herein by non-use of the Common Areas or by abandonment of his/her Lot. Initials: Purchaser Builder Declarant Date Page 21 of__ 01/04/995:30 AM (b) The Association may also give written notification to the holder(s) of any mortgage on the Lot of the nonpaying Owner of such Owner's default in paying any assessment when such default has not been cured within thirty (30) days, provided that the Association has therefore been furnished in writing the correct name and address of the holder(s) of such mortgage. (c) If any assessment remains unpaid at the expiration of fifteen (15) calendar days after the due date established by the Board of Directors, a late charge shall be assessed against the non-paying Owner for each month that any portion of any assessment remains unpaid. The late charge shall be in the amount of ten percent (10%) of the then established regular annual assessment for each Lot. A service charge in the amount of Twenty and No/100 Dollars ($20.00) shall be charged for each check that is returned because of insufficient funds. The amounts of late · charges and service charges may be adjusted, from time to time, by the Board of Directors consistent with any changes in the amounts of regular or special assessments. (d) If any assessment or part thereof, late charge or service charge, is not paid when due, the unpaid amount of such assessment together with all late charges and service charges shall bear interest from and after the date when due at the highest permitted lawful rate per annum, and the Association may, at its election, retain the services of an attorney for collection and there shall also be added to the amount of such unpaid assessment, late charge or service charge, any and all collection costs incurred hereunder by the Association, including reasonable attorney's fees. Section 8.9 Rights of City of Coppell. Unless otherwise approved by seventy-five percent (75%) of the outstanding votes within each voting class, the Association shall not by act or omission seek to abandon its obligations as established by this Declaration. However, in the event that: (a) The Association dissolves and the Common Properties shall not be either (i) dedicated to and accepted by an appropriate municipal corporation, public agency, authority or utility to be devoted to purposes as nearly as practicable the same as those to which such Common Properties were required to be devoted by the Association, or (ii) conveyed to another organization or entity which assumes all obligations imposed hereunder upon the Association to maintain said Common Properties, or (b) The Association, its successors or assigns, shall fail or refuse to adequately maintain the appearance and condition of the common Properties which it is obligated to maintain hereunder; then, in either such event, the City of Coppell, Texas, shall have the fight but not the obligation, to assume the duty of performing all such maintenance obligations of the Association at any time after such dissolution, upon giving written notice to the Owners, or at any time after the expiration of twenty (20) days after receipt by the Association, its successor or assigned, of written notice specifying in detail the nature and extent of the failure to maintain without such failure being remedied. Upon assuming such maintenance obligations, the City of Coppell may Initials: Purchaser Builder Declarant Date Page 22 of__ 01/04/995:30 AM collect, when the same become due, all assessments, annual or special, levied by the Association pursuant to the provisions hereof for the purposes of repairing, replacing, maintaining or caring for the Common Areas; and, if necessary, enforce the payment of delinquent assessments in the manner set forth herein. In the alternative, upon assuming such maintenance obligations, the City of Coppell may levy an assessment upon each Lot on a pro-rata basis for the cost of such maintenance, notwithstanding any other provisions contained in this Declaration, which assessment shall constitute a lien upon the Lot against which each assessment is made. During any period that the City of Coppell assumes the obligation to maintain and care for the Common Area, the Association shall have no obligation or authority with respect to such maintenance. The right and authority of the City of Coppell to maintain the Common Area shall cease and terminate when the Association, its successors or assigns, shall present to the City of Coppell reasonable evidence of its willingness and ability, to resume maintenance of the Common Area In the event the City of Coppell assumes the duty of performing the maintenance obligations of the Association as provided herein, then the City of Coppell its agents, representatives and employees, shall have right access, ingress and egress to and over the Common Area for the purpose of maintaining, improving and preserving the same, and in no event, and under no circumstances, shall the City of Coppell be liable to the Association or any Owner or their respective heirs, devisee, personal representatives, successors and assigns for negligent acts or construction (excluding, however, malfeasance and gross negligence) relating in any manner to maintaining, improving and preserving the Common Areas. Section 8.10 Subordination of the Lien of Mortgages. The lien of the assessment provided for herein shall be subordinate and inferior to the lien of any first mortgage or deed of trust now or hereafter placed upon the Lots subject to assessment; provided, however, that such subordination shall apply only to the assessments which have become due and payable prior to the foreclosure sale, whether public or private, of CKXD" property pursuant to the terms and conditions of any such mortgage or deed of trust. Such sale shall not relieve such Lots from liability for the amount of any assessments thereafter becoming due from the lien of any such subsequent assessment. Section 8.11 The following property otherwise subject to this Declaration shall be exempted from assessments, charges and liens created herein: (a) public use. All properties dedicated and accepted by the local public authority and devoted to (b) All Common Properties (c) Any and all areas which may be reserved by Declarant on the recorded plat(s) of the Property. ARTICLE IX Initials: Purchaser Builder Declarant Date Page 23 of__ 01/04/995:30 AM GENERAL POWERS AND DUTIES OF THE BOARD OF DIRECTORS Section 9.1 Powers and Duties. The affairs of the Association shall be conducted by its Board of Directors(hereinafter referred to as the "Board'). The Board shall be selected in accordance with the Articles of Incorporation and Bylaws of the Association. The Board, for the benefit of the Common Properties and the Owners, shall provide, and shall pay for out of the maintenance fund(s), the following: (a) Care and preservation of the Common Properties and the furnishing and upkeep of any desired personal property for use in the Common Properties~ (b) Taxes, insurance and utilities (including, without limitation, electricity, gas, water and sewer charges) which pertain to the Common Properties only; (c) The services of a person or firm to manage the Association or any separate portion thereof, to the extent deemed advisable by the Board, and the services of such other personnel as the Board shall determine to be necessary or proper for the operation of the Association, whether such personnel are employed directly by the Board or by a manager designated by the Board, (d) Legal and accounting services; (e) Any other materials, supplies, furniture, labor, services, maintenance, repairs, structural alteration, taxes or assessments which the Board is required to obtain or pay for pursuant to the terms of these Covenants and Restrictions or which in its opinion shall be necessary or proper for the operation or protection of the Association or for the enforcement of these Covenants and Restrictions. The Board shall have the following additional rights powers and duties: (f) To execute all declarations of ownership for tax assessment purposes with regard to any of the Common Properties owned by (g) To enter into agreements or contracts with insurance companies, taxing authorities and the holder of first mortgage liens on the individual Lots with respect to: (i) taxes on the Common Properties, (ii) maintenance of Common Properties, and (iii) insurance coverage (if any) on Common Properties, as they relate to the assessment, collection and disbursement process envisioned herein; (h) To borrow funds to pay costs of operation, secured by assignment or pledge of rights against delinquent Owner, if the Board sees fit; (i) To enter into contracts, maintain one or more bank accounts, and, generally, to have all the powers necessary or incidental to the operation and management of the Association; Initials: Purchaser Builder Declarant Date Page 24 of_ 01/04/995:30 AM (j) To protect or defend the Common Properties from loss or damage by suit or otherwise, to sue or defend in any court of law on behalf of the Association and to provide adequate reserves for repairs and replacements; (k) To make reasonable rules and regulations for the operation of the Common Properties and to amend them from time to time; (1) To make available to each Owner within ninety (90) days after the end to each year an annual report~ (m) To adjust the amount collect, and use any insurance proceeds to repair damage or replace lost property; and if proceeds are insufficient to repair damage or replace lost property, to assess the Members in proportionate amounts to cover the deficiency; (n) To enforce the provisions of these Covenants and Restrictions and any rules made hereunder and to enjoin and seek damages from any Owner for violation of such provisions or rules. Section 9.2 Board Powers, Exclusive. The Board shall have the exclusive right to contract for all goods, services and insurance, and the exclusive right and obligation to perform the functions of the Board, except as otherwise provided herein. Section 9.3 Maintenance Contracts. The Board, on behalf of the Association, shall have full power and authority to contract with any Owner (including, without limitation, Declarant) for the performance by the Association of services which the Board is not otherwise required to perform pursuant to the terms hereof, such contracts to be upon such terms and conditions and for such consideration as the Board may deem proper, advisable and in the best interest of the Association. Section 9.4 Liability Limitations. Neither any Member, the Board, any Director, nor any Officer of the Association shall be personally liable for debts contracted for, or otherwise incurred by the Association, or for a tort of another Member, whether such other Member was acting on behalf of the Association or otherwise. Neither Declarant, the Association, its Directors, Officers, agents, or employees shall be liable for any incidental or consequential damages for failure to inspect any premises, improvements or portion thereof or for failure to repair or maintain the same. Declarant, the Association or any other person, firm or corporation liable to make such repairs or maintenance shall not be liable for any personal injury or other incidental or consequential damages occasioned by any act or omission in the repair or maintenance of any premises, improvements or portion thereof. Initials: Purchaser Builder Declarant Date Page 25 of_ 01/04/995:30 AM Section 9.5 Reserve Funds. The Board may maintain and establish funds which may be maintained and accounted for separately from other funds maintained for annual operating expenses and may establish separate, irrevocable trust accounts in order to better demonstrate that the amounts deposited therein are capital contributions and not net income to the Association. Section 9.6 Restrictions on Contracts. Neither Declarant nor the Association may directly or indirectly enter into any management agreement or any other contract on behalf of the Association which extends beyond the date Class B memberships cease. The Association may, however, following such date, enter into new management agreements or other contracts in accordance with these Covenants and Restrictions. ARTICLE X INSURANCE, REPAIR AND RESTORATION Section 10.1 Right to Purchase Insurance. The Association shall have the right and option to purchase, carry and maintain in force insurance coveting any or all portions of the Common Properties, any improvements thereon or appurtenant thereto, for the interest of the Association and of all Members thereof, in such amounts and with such endorsements and coverage as shall be considered good sound insurance coverage for properties similar in construction, location and use to the Common Properties. Such insurance may include, but need not be limited to: (a) Insurance against loss or damage by fire and hazards covered by a standard extended coverage endorsement in an amount which shall be equal to the maximum insurance replacement value, excluding foundation and excavation costs as determined annually by the insurance carrier; (b) Public liability and property damage insurance on a broad form basis; (c) Fidelity bond for all officers and employees of the Association having control over the receipt and disbursement of funds. (d) Officers' and Directors' liability insurance. Section 10.2 Insurance Proceeds. The Association and the Members shall use the net insurance proceeds to repair and replace any damage or destruction of property, real or personal, covered by such insurance. Any balance from the proceeds of insurance paid to the Association remaining after satisfactory completion of repair and replacement, shall be retained by the Association as part of a general reserve fund for repair and replacement of the Common Properties. Initials: Purchaser Builder Declarant Date Page 26 of_ 01/04/995:30 AM Section 10.3 Insufficient Proceeds. If the insurance proceeds are insufficient to repair or replace any loss or damage, the Association may levy a special assessment of these Covenants and Restrictions to cover the deficiency. Initials: Purchaser Builder Declarant Date Page 27 of__ 01/04/995:30 AM