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Vistas of C P2A/FP-CS 970304CENTEX HOMES March 4, 1997 Mr. Gary L. Sieb Director of Planning and Community Services City of Coppell 255 Parkway Boulevard P.O. Box 478 Coppell, TX 75019 Vistas of Coppell, Phase 2A Final Plat Dear Gary: I received your letter of February 24, 1997 and appreciate the City's flexibility in the filing of the Final Plat for Vistas of Coppell. As you requested, I would like to verify that Centex recognizes that no Certificates of Occupancy will be issued nor occupancy by permanent residents will be allowed before the HOA Covenants and Restrictions have been approved by the City Attorney. The initial draft copy of the Covenants & Restriction will be a~the City Attorney's office no later than March 10, 1997. For your information only, I have attached the mark-up of the Covenants & Restrictions which are currently being typed by our attorney. I enclose these to demonstrate to you that the documents are being processed. I see no problem with submittal by the agreed date. Thanks again for your patience. Sincerely, CENTEX HOMES Derek E. Earle, P.E. Land Development Manager Dallas North Division attachments 1660 S, Stemrnons Frwy., Suite 230 / Lewisville, Texas 75067 / 214-221-5556 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE Vistas of Coppell THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (the "Declaration") is made on the date hereinafter set forth by CENTEX HOMES, a Nevada general partnership, hereinafter referred to as the "Declarant." WITNESSETH Oill~$ .... it"A" WHEREAS, Declarant owns certain real property in Dallas County, Texas, described on ~ attached hereto; and ~/t'S~'~$ O~ II WHEREAS, Declarant desires to create an exclusive planned community known as Vistas of Coppell on the land described on Exhibit "A.' and such other land as may be added thereto pursuant to the terms and provisions of this Declaration; NOW THEREFORE, Declarant declares that the Property (as hereinafter de£med) will be held, sold an~l aon. veyed subject to the restrictions, covenants and conditions declared below, which will be deemed to be covenants running with the land and imposed on and intended to benefit and burden each Lot (as hereinafter defined) and other portions of the Property in order to maintain within the Property a planned community of high,, stun. dards. Such covenants will be binding on all parties having any right, title or interest therein or any part'the~of, their respective heirs, personal representatives, successors and assigns, and will inUre to the ,benefit of each Owner (as hereinafter de£med) thereof. . ARTICLE I DEFINITIONS Section 1.1. "Association" will mean The Vistas of Coppell Homeowners Association, Inc., a Texas nonprofit corporation established for the purposes set forth herein. .Section 1.2 "Builder" will mean Centex Homes and any other residential building company acquiring Lots from the Declarant for the purpose of construction and sale of homes. Section 1.3 "City" will mean the City of Coppell, DallasCounty, Texas. S___~ection 1.4 Common Areas will mean that portion of the P. ropert~ including any improvements thereon, conveyed to the Association/free and clear of eneumbranees~ommon use~ ~.~ benefit of the oWner~,· The Common Areas to be owned by the Association at the time of(or soon after) the ~ conveyance of the f'u-st Lot to a Class A member are described on Exhibit "B" attached hereto. ~ Section 1.5 "Common Maintenance Areas" will mean the Common Areas, if any, and any areas within public fights-of-way, easements (public and private), public parks, private streets, or landscaping that the Board of Directors of the Association deems necessary or appropriate to maintain for the Common benefit Declaration of Covenants, Conditions and Restrictions - Page 1 g:~legal~f&j\ccrs~nckinney.wpd (1-8-97) of the members which may include, but will not be limited to, those areas described on Exhibit "C" attached hereto. Section 1.6 "Declarant" will mean Centex Homes and its successors and assigns who are designated as such in writing by Declarant, and who consent in writing to assume the duties and obligations of the Declarant with respect to the Lots acquired by such successor or assign. Section 1.7 "Declaration" will mean this Declaration of Covenants, Conditions and Restrictions for Th,~ L,.~ci~a :,_f.'.'~:K"~':cy, and any amendments and supplements thereto made in accordance with its terms V,~,:f~$ o4 C~t}~I Section 1.8 "Lot" will mean any of the plots of land indicated upon the recorded subdivision map of the Property or any part thereof creating single-family homesites, but only if the plot of land has in plaee an infrastructure (including utilities and streets) necessary to allow construction of a single family home. Common Area and areas deeded to a governmental authority or utility, together with all improvements thereon, shall not be included as part of a Lot. Section 1.9 "Owner" will mean the record owner, whether one or more persons or entities, of fee simple title to any Lot, including contract sellers, but excluding those having an interest merely as security for the performance of an obligation, c..ndl~..ff.~J~l ; - · Section 1.10 "Plat" will mean the Final Platsof T-?_ '~' .~' ..$. ection 1.11 "Property" will mean the real property described on Exhibit "A," and such additions ,thereto as may be brought within the jurisdiction of the Associat!on and be made subject to this Declaration. ' ' Section 1.12 "Unit" will mean any residential dwelling situated upon any Lot. ARTICLE II THE ~ ............ ----- ......HOMEOWNERS ASSOCIATION, INC. Section 2.1 Membership. The Declarant and every Owner of a Lot by virtue of ownership of such Lot will be a member of the Association. Membership will be appurtenant to and will not be separated from ownership of any Lot. There will be 2 classes of membership: Class A and Class B, being more particularly described in Section 2.6. Section 2.2 Funding. Subject to the terms of this Article II, the Declarant for each Lot owned within the Property hereby covenants, and each Owner of any Lot by acceptance of a deed therefor, whether or not it will be so expressed in such deed, is deemed to covenant and agrees to pay to the Association: (a) regular assessments'0r, charges, and (b) special assessments for capital improvements to the Common Areas, such assessments to be established and collected as hereinafter provided. Such assessments will remain effective for the full term (and extended term, if applicable) of the covenants contained herein. The regular and special assessments, together with interest, costs, and reasonable attorney's fees, will be a charge on the land and will be a continuing lien upon the Lot against which each such assessment is made. Each such assessment, together with interest, costs and reasonable attorney's fees, will also be the personal obligation of Declaration of Covenants, Conditions and Restrictions - Page 2 g:~legal~f&j\ccrsXmckinney, wpd (1-8-97) the person who was the Owner of such property at the 'time when the assessment fell due. The personal obligation for delinquent assessments will not pass to the successors in title of such Owner unless expressly assumed by them in writing. Section 2.3 Regular Assessment or Charge. (a) Units Owned by Class A Members. Subject to the terms of~,,ja Article, each improved Lot is hereby subject to an-initial maximum maintenance charge of $30.00-per month (until such maintenance charge will be modified as provided in the By-laws of the Association), for the purpose of creating a fund to be designated and known as the "maintenance fund," which maintenance charge and assessment will be paid by the Owner of each such Lot in advance in monthly, quarterly or annual installments, commencing as to all Lots on which an occupied Unit is then located on the conveyance of the first Lot to a Class A member and as to all other Lots as of the occupancy or sale (whichever is earlier) ora Unit thereon. The regular assessment for unimproved Lots will be one-fourth (1/4) the regular assessment for improved Lots. A Lot will be deemed to be an "improved Lot" when construction of a Unit thereon is completed and closing ora sale thereof has taken place, or when the Unit is occupied as a residence, whichever first occurs. The rate at which each Lot will be assessed, and whether such assessment wi~;~p~n~.nthly, quarterly or annually, will be determined by the Board of Directors of'l~z E_a~_,ao-~-r~w~v:~..y Homeowners Association, Inc. (the "Board of Directors"), at least 30 days in advance of each assessment period. Said rate may be adjusted within the limit permitted by the By-laws from time to time by the Board · of Directors as the needs of the Association may, in the judgment of the Board of Directors, require. The assessment for each Lot will be uniform except as provided in subsection (b) of this Section 2.3. The Association will, upon written demand and for a reasonable charge, furnish a certificate signed .~'/b,y an officer of the Association setting forth whether or not the assessment has been paid for the assessment period. (b) Units on Lots Owned by Declarant. Notwithstanding the foregoing, the Declarant and any Builder owning unimproved Lots or Units that are not occupied will pay assessments at the rate of one-fourth (1/4) the regular maintenance assessment charged to Owners so long as there is a Class B membership as set forth in Section 2.6, and Declarant hereby covenants and agrees that if the annual maintenance fund revenues are insufficient to pay the operating expenses of the Association, it will provide the funds necessary to make up the deficit, within 30 days of receipt of request for payment thereof from the Association, provided that if the deficit is the result of the failure or refusal of an Owner or Owners to pay their regular or special maintenance assessments, the Association will diligently pursue all available remedies against such defaulting Owners, including the immediate institution of litigation to recover the unpaid assessments, and will reimburse the Declarant the amounts, if any, So collected. In the alternative, Declarant will have the right to pay full Class A assessments on its Lots without thereby relinquishing its Class B status and will then be excused from the payment of any budget deficits. - (c) Purposes of Maintenance Fund· The Association will establish a maintenance fUnd composed of regular maintenance assessments and will use the proceeds of such fund in providing for normal, recurring maintenance charges for the Common Maintenance Areas for the use and benefit of all members of the Association. Such uses and benefits to be provided by the Association may include, by way of clarification and not limitation, any and all of the following: normal, recurring maintenance of the Common Maintenance Areas (including, but not_limited to, Declaration of Covenants, Conditions and Restrictions - Page 3 g:~lcgal~f&j\ccrs~mckinney.wpd (1-8-97) mowing, edging, watering, clipping, s~eeping, pruning, raking, and otherwise caring for landscaping) and the improvements to such Common Maintenance Areas, such as sprinkler systems, provided that the Association will have no obligation (except as expressly provided hereinafter) to make capital improvements to the Common Maintenance Areas; perpetual maintenance and enhancement for fences, columns, signage, walls, grounds, landscaping, lights; payment of all legal and other expenses incurred in connection with the enforcement of all recorded covenants, restrictions and conditions affecting the property to which the maintenance fired applies; payment of all reasonable and necessary . expenses in connection with the collection and administration of the maintenance charge and assessment; employment of policemen and watchmen, if any; earing for vacant Lots;'and doing any other thing or things necessary or desirable in the opinion of the Board of Directors to keep the Property neat and in good order,.or which is considered of general benefit to the Owners or occupants of the Property, it being understood that the judgment of the Board of Directors in the expenditure of said funds and the determination of what constitutes normal, recurring maintenance will be f'mai and conclusive so long as such judgment is exercised in good faith. The Association will, in addition, establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of improvements to the Common Maintenance Area The fund will be established and maintained out of regular assessments and, where applicable, special assessments. Section 2.4 Non-payment of Assessmentsl Remedies of the Association. Any assessment not paid within 10 days after the due date will bear interest from the due date at the highest rate of interest allowed by ~I'e.x.as law, as mended from time to time. The Association will have the authority to impose late charges to comlSensate for the administrative and processing costs of late payments on such terms as it may establish by duly adopted resolutions, and the Association may bring an action at law against the Owner personally obligated to pay the same. No Owner may waive or otherwise escape liability for the assessments provided for l~ev6'/m, by non-use of the Common Maintenance Area or abandonment of his property. ' ' ~ih'ar Section 2.5 Subordinated Lien to Secure Pawnent.., To secure the payment °fthe maintenance ge and assessment established hereby and to be levied on individual Lots as above provided, there is hereby reserved a lien for the benefit of the Association, said lien to be enforceable through appropriate proceedings at law or in equity by such beneficiary; provided, however, that each such lien will be specifically made secondary, subordinate and inferior to all liens, present and future, given, granted, and created by or at the instance and request of the Owner of any such Lot to secure the payment of mo_nies _advanced or to be advanced on account of the purchase price and/or the improvement of any such Lot; and further provided that as a condition precedent to any proceeding to enforce such lien upon any Lot upon which there is an outstanding valid and subsisting fast mortgage lien, said beneficiary will give the holder of such first mortgage lien 60 days written notice of such proposed action, such notice, which will be sent to the nearest office of such first mortgage lienholder by prepaid U.S. registered mail, to contain the statement of the delinquent maintenance charges upon which the proposed action is based. Upon the request of any such first mortgage lienholder, said beneficiary will acknowledge in writing its obligation to give the foregoing notice with respect to the particular property covered by such first mortgage lien to the holder thereof. Sale or transfer of a Lot will not affect the assessment lien. However, the sale or transfer of any Lot pursuant to mortgage foreclosure will extinguish the lien of such assessment as to payments which became due prior to such sale or transfer. No sale, foreclosure Or transfer will relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof. The Association will have the right to file notices of liens in favor of such Association in the Real Property Records of Lair'County, Texas. A violation of any of the covenants, conditions and restrictions of this Declaration (inclu~l~ng payment of assessments) will not affect the lien of any mortgage or deed of trust now of record, or whichX~aY be placed of record in the future, upo_n the Lots. Declaration of Covenants, Conditions and Restrictions - Page 4 ~ g:~legalXf&jXccrs~mckinney, wpd (1-8-97) Section 2.6 Voting Rights. The Association will have two classes of voting membership: (a) Class A. Class A members will be all Owners, with the exception of - Declarant and any Builder, and will be entitled to 1 vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons will be members, but the vote for such Lot will be exercised as they among themselves determine, and in no event will more than 1 vote be cast with respect to any Lot. (b) .Class B. The Class B members will be the Declarant and any Builder who will be entitled to 3 votes for each unoccupied Lot they own. The Class B membership will cease and be converted to Class A membership 180 days at~er the conveyance of the Lot which causes the total votes outstanding in the Class A membership to equal the total votes outstanding in the Class B membership, or 10 years after conveyance of the fa'st Lot to a Class A member, whichever occurs earlier. (c) Suspension. All voting rights of an Owner Will be suspended during any period in which such Owner is delinquent in the payment of any assessment duly established pursuant to this Article II or is otherwise in default hereunder or under the By-laws or Rules and Regulations of the Association. ARTICLE III , GENERAL POWERS AND DUTIES OF ~ . ~. ' BOARD OF DIRECTORS OF THE ASSOCIATION Z' · Section 3.1 Purpose of Maintenance Fund. Th~ Board of Directors, for the benefit of the 'Owners, will provide and will pay for out of the maintenance fund (provided for in Article II above) the following: (a) Taxes and assessments and other liens and encumbrances which will properly be assessed or charged against the Common Areas rather than against the individual Owners, if any. (b) Care and preservation of the Common Maintenance Areas. ~ (c) The services of a professional person or management firm to manage the Association or any separate potion thereof to the extent deemed advisable by the Board of Directors (provided that any contract for management of the Association will be immediately terminable, without cause, by the Association, with no penalty, upon no more than 90 days prior written notice to the managing party), and the services of such other personnel as the Board of Directors will determine to be necessary or proper for the operation of the Association, whether such personnel are employed directly by the Board of Directors or by the manager. (d) Legal and accounting services. (e) A policy or policies of insurance insuring the Association and/or its Board of Directors and officers against any liability to the public or to the Owners (and/or.invitees-or tenants) Declaration of Covenants, Conditions and Restrictions - Page 5 g:X. legal~f&j\ccrs~nckinney, wpd (1-8-97) incident to the operation of the Association in any amount or amounts a,s determined by the Board of Directors, including a policy or policies of insurance as provided herein in Article IV. (0 applicable laws. Workers compensation insurance to the extent necessary to comply with any (g) Such fidelity bonds as may be required by the By-laws or as the Board of Directors may determine to be advisable. (h) Any other materials, supplies, insurance, furniture, labor, services, maintenance, repairs, structural alterations, taxes or assessments (including taxes or assessments assessed against an individual Owner) which the Board of Directors is required to obtain or pay for pursuant to the terms of this Declaration or by law or which in its opinion will be necessary or proper for the enforcement of this Declaration. Section 3.2 powers and Duties of the Board of Directors. The Board of Directors, for the benefit Of the Owners, will have the following general powers and duties, in addition to the specific powers and duties provided for herein and in the By-laws of the Association: (a) To execute all declarations of ownership for tax assessment purposes with regard to the Common Areas, if any, on bchalf of all Owners. (b) To borrow funds to pay costs of operation secured by assignment or pledge of rights against delinquent Owners if the Board of Directors sees fit. (c) To enter into contracts, maintain one or more bank accounts, and generally to have all the power necessary for or incidental to the op'emtion and management.of the Association. (d) To protect or defend the Common Areas from loss or damage by suit or otherwise, and to provid~ adequate reserves for replacements. (e) To make reasonable rules and regulations for the operation of the Common Maintenance Areas and to amend them from time to time; provided that, any rule or regulation may be amended or repealed by an instrument in writing signed by a majority of the Owners, or with respect to a role applicable to less than all of the Common Areas, by.t_h9 ~Owners in ther portions affected. (f) To make available for inspection by Owners within 60 days after the end of each fiscal year an annual report, and to make all books and records of the Association available for inspection by Owners at reasonable times and intervals. - (g) To adjust the mount, 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 Owners in proportionate amounts to cover the deficiency. (h) To enforce the provisions of any rules made hereunder and to enjoin and seek damages from any Owner for violation of such provisions or rules. -- - Declaration of Covenants, Conditions and Restrictions - Page 6 g:~legalXf&j\ccrshmckinney.wpd (1-8-97) (i) To colle& all assessments and enforce all penalties for non-payment, including the filing of liens and institution of legal proceedings. Section 3.3 Board Powers Exclusive. The Board of Directors will have the exclusive right to contract for all goods, services and insurance, payment of which is to be made fxom the maintenance fund and the exclusive right and obligation to perform the fimctions of the Board of Directors, except as otherwise provided herein. Section 3.4 Maintenance Contracts. The Board of Directors, on behalf of the Association, will have full power and authority to contract with any Owner or other person or entity for the performance by the Association of services which the Board of Directors is not otherwise required to perform pursuant to the terms hereof, such contracts to be upon such terms and conditions and for such consideratiori as the Board of Directors may deem proper, advisable and in the best interest of the Association. TITLE TO COMMON AREAS Section 4.1 Association to Hold. The Association will own all Common Areas in fee simple and assume all maintenance obligations with respect to any Common Areas which may be hereafter established. Ntthing contained herein will create an obligation on the part of Declarant to establish any Common Areas..._ Section 4.2 Liability_ Insurance. From and after the date on which title to any Common Area vests in the AsSociation, the Association will purchase and carry a general comprehensive public liability insffrtmc~, policy for the benefit of the Association and its members, covering occurrences on the Common Areas. ~he policy limits will be as determined by the Board 9fDirectors. The Association will use its best *efforts to see that such policy will contain, if available, cross'liability endorsements or other appropriate 'provisions for the benefit of members, the Board of Directors, and the management company retained by the Association (if any), insuring each against liability to each other insured as well as third parties. Any proceeds of insurance policies owned by the Association will be received, held in a segregated account and distributed to the Association's general operating account, members, Board of Directors, management company and other insureds, as their interests may be determined. Section 4.3 Condemnation. In the event of condemnation or a sale in lieu thereof of all or any portion of the Common Areas, the funds payable with respect thereto will be payable to the Association and will be used by the Association to purchase additional Common Areas to replace that which has been condemned or to take whatever steps it deems reasonably necessary to repair or correct any damage suffered as a result of the condemnation. If the Board of Dkectors determines that the funds cannot be used in such a manner due to the lack of available land for additional Common Areas or for whatever reason, any remaining funds may be distributed to each Owner on a pro rata basis. Declaration of Covenants, Conditions and Restrictions - Page 7 g:klegalXf&jXccrs~mckinney.wpd (1-8-97) ARTICLE V ARCHITECTURAL REVIEW Section 5.1 Architectural Control Committee. A committee to be known as the Architectural Control Committee (the "ACC") will be established consisting of 3 members. (a) The members of the ACC will be appointed, terminated and/or replaced by the Declarant so long as there is Class B membership.' Thereafter the members of the ACC will be appointed, terminated and/or replaced by the Board of Directors. The members appointed to the ACC are .~'c!:_': Pr~-*qr (b) The purpose of the ACC is to enforce architectural standards of the community and to approve or disapprove plans for improvements proposed for the Lots. (c) The ACC will act by simple majority vote, and will have the authority to delegate its duties or to retain the services ora professional engineer, architect, designer, inspector or other person to assist in the performance of its duties. Section 5.2 Scope of Review. No building fence, wall, outbuilding, landscaping, pool, athletic fadility pr other structure or improvement will be erected, altered, added onto or repaired upon any portion of j_ the Pr0~erty without the prior written consent of the ACC, provided however, that improvements erected, altered, added onto or repaired by Declarant will be exempt from the provisions of this Article V. ' ~ Section 5.3 Submission of Plans. Prior to the initiation of construction upon any Lot, the Owner thereof will first submit to the ACC a complete set of plans anc[ specifications for the proposed improvements, ~inqluding site plans, grading plans, landscape plans, floor plan~ depicting room sizes and layouts, exterior elevations, specifications of materials and exterior colors, and any other information deemed necessary by the ACC for the performance of its function. In addition, the Owner will submit the identity of the individual or company intended to perform the work and projected commencement and completion dates. Section 5.4 30 Plan Review. Upon receipt by the ACC of all of the information required by this Article V, it will have gl-days in which to review said plans. The proposed improvements will be approved if, in the sole opinion of the ACC: (a) the improvements will be of an architectural style and material that are compatible with the other structures in the Property; (b) the improvements will notyio!ate.any restrictive covenant or encroach upon any easement or cross platted building set back lines; (c) the improvements will not result in the reduction in property.value, use or enjoyment of any of the Property; (d) the individual or company intended to perform the work is acceptable to the ACC; and (e) the improvements will be substantially completed, including all cleanup, within 3 months of the date of commencement (6 months for the construction of a complete house). If the ACC fails to issue its written approval within,~c'days of its receipt of the last of the materials or documents required to complete the Owner's submissio~ the ACC's approval will be deemed to have been granted without further action. 50 Section 5.5 Non-conforming Structures. If there will be a material deviation from the approved plans in the completed improvements, such improvements will be in violation of this Article V to the same extent as if erected without prior approval of the ACC. The ACC, the Association or any Owner may maintain Declaration of Covenants, Conditions and Restrictions - Page 8 g:klegal~f&j\ccrs~nckinney, wpd (1-8-97) an action at law or in equity for the removal or correction of the.non-conforming structure and, if successful, will recover from the Owner in violation all costs, expenses and fees incurred in the prosecution thereof. Section 5.6 Immunity. of ACC Members. No individual member of the ACC will have any .. _ personal liability to any Owner or any other person for the acts or omissions of the ACC if such acts or omissions were committed in good faith and without malice. The Association will defend any action brought against the ACC or any member thereof arising from acts or omissions of the ACC committed in good faith and without malice. Sectio, 5.7 adr. for Notice. Requests for ACC approval or corresponde, nce with .the AC.C will be addressed to The i.~F:,c..~J_° ef-*'.s-~-Y;'"eY Architectural Control Committee and marled or dehvered m care of Centex Homes at the address shown at the end of the signature block hereto, or such other address as may be designated from time to time by the ACC. No correspondence or request for approval will be deemed to have been received until actually received by the ACC in form satisfactory to the ACC. ARTICLE VI EASEMENTS Section 6.1 ~. As long as Class B membership will be in effect, the Declarant hereby, reserves the right to grant perpetual, nonexclusive easements for the benefit of Declarant or its design6es, upon, across, over, through and under any portion of the Common Area for ingress, egress, installation, replacement, repair, maintenance, use and operation of all utility and service lines and service systems, public and private, including, without limitation, cable television, telephone, gas and electric systems. Declarant. for itself and its designees, reserves the fight to retain title to any and all pipes, lines, cables or other improvements installed on or in such easements. Upon cessation.of Class B membership, the Association will *have the right to grant the easements described herein. Section 6.2 Declarant's Easement to Correct Drainage. As long as Class B membership will be in effect, Declarant hereby reserves for the benefit of Declarant and any Builder, a blanket easement on, over and under the ground within the Property to maintain and correct drainage of surface waters and other erosion controls in order to maintain reasonable standards of health, safety and appearance, and will be entitled to remove trees or vegetation, without liability for replacement or damages, as may be necessary to provide adequate drainage facilities. Notwithstanding the foregoing, nothing herein will be interpreted to impose any duty upon Declarant or any Builder to correct or maintain any drainage facilities within the Property. Section 6.3 Easement for Unintentional Encroachment. The Declarant hereby reserves an exclusix~e easement for the unintentional encroachment by any structure upon the Common Area caused by or resulting from, construction, repair, shifting, settlement or movement of any portion of the Property, which exclusive easement will exist at all times during the continuance of such encroachment as an easement appurtenant to the encroaching Property to the extent of such encroachment. -~Section o.'~'-"~E'~'~ment for Perimeter Fence and Sidewalk. The Declarant hereby reserves an exclusive easement for a perimeter m~~en fence and sidewalk running at the rear (and in some cases, the side) of Lots along the streets su~oun~~ On the Preliminary Plat of The Legends of McKinney (a copy of~B~ated immediately adjacent to (a) the northern end of Lot 23 in Block 14; (b) the northem end of Lots 24 and 3 .._ 3; (c) Declaration of Covenants, Conditions and Restrictions - Page 9 g:klegalXf&jXccrsXmckinney.wpd (1-8-97) ~r-~:u:Ih~tem comer of Lot 36 in Blocl~ 13; (d) the northwestern comer of Lot 1 in Block 12; (e) the northeastern en~-d'~::~J~ugh 18, inclusive, in Block 12; (f) the southeastern end of Lot 18 in Block 12; (~m end of Lo~h) the northeastern end of Lots 1 through 9, inclusive, of Block i-'('~tem en sd o~k 3; and (j)the northeastern end of the drainage _ ~hese Lo~ wi~ct_to the perimeter masonry and/or ~e~rHa~section, and the easeme.n..t se Lots wdl ring the area upon which the fence is situated to prevent the shifting of the foundation of the fence w ould damage the fence. Section 6.5 ~ment. If the Owner fails to maintain the Lot as required herein, or in the event of emergency, the Association will have the right to enter upon the Lot to make emergency repairs and to do other work reasonably necessary for the proper maintenance and operation of the Property. Entry upon the Lot as provided herein will not be deemed a trespass, and the Association will not be liable for any damage so created unless such damage is caused by the Association's willful misconduct or gross negligence. Section'6.6 Drainage Easements.. Easements for installation and maintenance of utilities, stormwater retention/detention ponds, and/or a conservation area are reserved as may be shown on the recorded Plat. Within these easement areas, no structure, planting or other material will be placed or permitted to remain w~ieh may damage or interfere with the installation and maintenance of utilities, or which may hinder or change"the direction of flow of drainage channels or slopes in the easements. The easement area of each Lot and all improvements contained therein will be maintained continuously by the Owner of the Lot, except for those improvements for which a public authority, utility company °r the Association is responsible. ~ection 6.7 Temporary Completion Easemenlt. All Lots will be subject to an easement of · ,*~gress and egress for the benefit of the Declarant, its employees,'subcontractors, successors and assigns, over and upon the' front, side and rear yards of the Property as may be expedient or necessary for the construction, servicing and completion of dwellings and landscaping upon Lots adjacent to the Property, provided that such easement will terminate 12 months after the date such Lot is conveyed to the Owner by the Declarant. ARTICLE VII USE AND OCCUPANCY All Lots and dwellings will be used and occupied for single family residence purposes only. No Lot or dwelling may be used for commercial, institutional or other non-residential purpose (including residential day care facilities) if such use involves the attendance or entry of non-residents upon the Lot for business purposes or otherwise diminishes the residential character of the Lot or neighborhood. This prohibition will not apply to (i) "garage sales" conducted entirely on an Owner's Lot in accordance with guidelines (if any) established by the Association provided that no Owner will conduct more than 1 garage sale of no more than 2 days duration during, any 6 month period, or (ii) the use of any Unit by Declarant or any Builder as a model home or sales office, or (iii) the use of any Lot as a site for a selection center trailer, construction office trailer and/or sales office trailer by Declarant or any Builder. Declaration of Covenants, Conditions and Restrictions - Page 10 g:~legal~f&jXccrsXmckinney.wpd (1-8-97) ARTICLE VIII PROPERTY RIGHTS Section 8.1 Owners' Easements of En|oyment. Every Owner will have a right and easement in and to the Common Areas and a right and easement of ingress and egress to, from and through said Common Areas, and such easement will be appurtenant to and will pass with the title to every Lot, subject to the following provisions: (a) The fight of the Association to establish and publish roles and regulations governing the use of the Common Areas affecting the welfare of Association members. (b) The right of the Association to suspend the right of use of the Common Areas and the voting rights of an Owner for any period during which any assessment against his Lot remains unpaid; and for a period not to exceed 60 days for any infxaction of its published roles and regulations. (c) The right of the Association, subject to the provisions hereof, to dedicate, sell or transfer all or any part of the Common Areas to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Owners. No such dedication, sale or transfer will be effective unless an instrument signed by Owners entitled to cast two-thirds (2/3) of the votes of each class of membership has been recorded agreeing to such dedication, sale or transfer, -_ '; excluding Declarant. (d) The right of the Association, subject to the provisions hereof, to mortgage .~.' all or any part of the Common Areas. The Common Areas cannot be mortgaged without consent of ¢~vo-thirds (2/3) of the votes of each class of membership, excluding Declarant. (e) All easements herein described are easements appurtenant to and running with the land; they will at all times inure to the benefit of and be binding upon the undersigned, all of their grantees, and their respective heirs, successors, personal representatives and assigns, perpetually and in full force. .Section 8.2 Effect of Declaration. Reference in any deed, mortgage, trust deed or any other recorded documents to the easements, restrictions and covenants herein described or to this Declaration will be sufficient to create and reserve such easements and covenants to the respective grantees, mortgagees, or trustees of said parcels as fully and completely as if those easements, restrictions and covenants were fully related and set forth in their entirety in said documents. Section 8.3 Rezoning Prohibited. No Lot will be rezoned to any classification allowing commercial, institutional or other-non-residential use without the express consent of the Association and Declarant, which may be withheld in Declarant!s sole discretion. Declarant or the Association may enforce this covenant by obtaining an injunction against any unapproved rezoning at the expense of the enjoined party. Section 8.4 Lot Consolidation. No Lots may be combined with all or any portion of an adjoining Lot unless such consolidation is approved in writing by Declarant. Declaration of Covenants, Conditions and Restrictions -Page 11 g:Xlegal~f&jXccrsXmckinney, wpd (1-8-97) Section 8.5 Drainage Alteration Prohibited: The surface water drainage contours of each Lot will conform to the approyed grading plan established by the Declarant or any Builder. No Owner will fill or alter any drainage swale established by the Declarant or any Builder, nor will any Owner install landscaping or other improvements that may damage or interfere with the installation and maintenance of utilities or which may obstruct or divert surface water runoff from the drainage patterns, swales and easements established by the Declarant or any Builder. .~eCfio~, q-',~ 100~';~;C~'fOtt~' ARTICLE IX USE RESTRICTIONS Section 9.1 Nuisances. No noxious or offensive activity will be carried on upon any Lot, nor will anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. Section 9.2 Development Activity. Notwithstanding any other provision herein, Declarant and its successors and assigns, including Builders, will be entitled to conduct on the Property all activities normally associated with and convenient to the development of the Property and the construction and sale of single- family dwelling units on the Property. Section 9.3 Temporary_ Structures. No structure of a temporary character, including, without li)nit, jn,g the generality thereof, any trailer, tent, shack, garage, barn, motor home or mobile home or other outbuil~ling, and no prefabricated or relocated structure will be used on any Lot at any time as a residence, either temporarily or permanently. This restriction will not be interpreted to limit the right of Declarant or any Builder to use trailers or outbuildings as sales offices, selection center offices, construction offices or material storage'faed~t~es. *, Section 9.4 Signs. No sign or emblem of any kih6 may be kept or placed upon any Lot or m~unted, painted or attached to any Unit, fence or other improvement upon such Lot so as to be visible from public view or mounted on any vehicle or trailer parked or driven in the subdivision or carried by any person or by any other means displayed within the subdivision except the following: (a) For Sale Signs. An Owner may erect 1 sign not exceeding 2 feet by 3 feet in area, fastened only to a stake in the ground and extending not more than 3 feet above the surface of the ground advertising the property for sale. (b) Declarant's ~. Signs or billboards may be erected by the Declarant or any Builder. · . (e) Political Signs. Political signs may be erected upon a Lot by the Owner of such Lot advocating the election of one or more political candidates or the sponsorship of a political party, issue or proposal provided that such signs will not be erected more than 90 days in advance of the election tO which they pertain and are removed within 15 days after the election. Declarant or its agents will have the right to remove any sign, billboard or other advertising structure that does not comply with the foregoing requirements, and in so doing, will not be subject to any liability in connection with such removal. Declaration of Covenant% Conditions and Restrictions - Page 12 g:~legal~f&j\ccrs~mckinney.wpd (1-8-97) .Section 9.5 Vehicles. (a) Campers, Boats and Recreational Vehicles. No campers, boats, marine crafg hovercraR, boat trailers, travel trailers, motor homes, camper bodies, golf carts, and other types of recreational vehicles and non-passenger vehicles, equipment, implements or accessories may be kept on any Lot. The ACC, as designated in this Declaration, will have the absolute authority to determine from time to time whether a vehicle and/or accessory is operable and fully enclosed. Upon an adverse determination by said ACC, the vehicle and/or accessory will be removed and/or otherwise brought into compliance with this paragraph. No dismantling or assembling of motor vehicles, boats, trailers, recreational vehicles, or other machinery or equipment will be permitted in any driveway or yard adjacent to a street.. (b) Commercial Vehicles. No commercial vehicle will be parked on any street right-of-way or Lot except within an enclosed structure which prevents such view thereof from adjacent lots and streets, unless such vehicle is temporarily parked and in use for the conslxuction, maintenance or repair of a residence in the immediate vicinity. No trucks or vehicles of any size which transport inflammatory or explosive cargo may be kept on the Property at any time. (c) Motor Vehicles. No vehicles or similar equipment will 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 the State of Texas. No abandoned, derelict or inoperable vehicles may be stored or located on any Lot. ~ection 9.6 pets, Livestock and Poult~. No animals, livestock or poultry of any kind will be 'raised, bred or kept on any Lot, except for cats, dogs or other ge~rally recognized household pets, provided 'that they are not kept, bred, or maintained for any commercial purpose or for food. It is the purpose of these provisions to restrict the use of the Property so that no person will quarter on the premises cows, horses, bees, hogs, pigs, sheep, goats, ducks, geese, chickens, turkeys, skunks or other animals that may interfere with the quietude, health or safety of the community. No more than 4 animals may be kept on a single Lot. All such animals will be kept in strict accordance with all local laws and ordinances (including leash laws) and in accordance with all rules established by the Association. All animals must be properly tagged for identification. No animal will be allowed to run at large, and all animals will be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse, insects and waste at all times. Such enclosed area . will be constructed in accordance with plans approVed by the ACC, 'will be of reasonable design and construction to adequately contain such animals in accordance with the provisions hereof, and will be screened so as not to be visible from any other portion of the Property. Section 9.7 Garbage and Refuse Disposal. No LOt will be used or maintained as a dumping ground for rubbish. Trash, garbage or other waste will not be kept except in sanitary containers. All equipment for the storage or disposal of such material will be kept in a clean and sanitary condition. No cans, bags, containers or receptacles for the storing or disposal of trash, garbage, refuse, rubble, or debris will be stored, kept, placed or maintained on any Lot where visible from any street except solely on a day designated for removal of garbage and rubbish and on which days only such cans, bags, containers, and receptacles may be placed in front of a residence and beside a street for removal but will be removed from view before the Declaration of Covenants, Conditions and Restrictions - Page 13 g:~legal~f&j\ecrsXmckin ney.wpd (1-8-97) following day. Materials incident to construction of improvements may be stored on Lots during construction by Declarant. Section 9.8 Air-Conditioning Units. No air-conditioning apparatus will be installed on the ground in f~ont of a residence nor will any air-conditioning apparatus or evaporative cooler be attached to any ~ont wall or any window of a residence. Section 9.9 Sight Distance at Intersections. Unless City standards are more rigorous, no fence, wall, hedge or shrub planting which obstructs sight lines at elevations between 2 and 6 feet above the roadways will be placed or permitted to remain on any comer Lot within the triangular area formed by the street boundary lines and a line connecting them, at points 25 feet f~om the intersection of such street boundary lines, or in the case ora rounded property comer, from the intersection of the street boundary lines extended. Also, unless City standards are more rigorous, the same sight line limitations will apply on any Lot within 1'0 feet from the intersection of a street boundary line with the edge of a driveway or alley pavement. No tree will be permitted to remain within such distances of such intersections unless the foliage line is maintained at sufficient height to prevent obstruction 6f such sight lines. Section 9.10 Parking. No vehicles, trailers, implements or apparatus may be driven or parked in the Common Areas, the Common Maintenance Areas or on any easement unless such vehicle, trailer, implement or apparatus is in use for maintaining such area or easement, provided, however, that this restriction will not apply to driveways or streets intended for vehicular use. Section 9.11 Commercial or Institutional Use. No Lo~, and no building erected or maintained on a~y .Lot, will be used for manufacturing, industrial, business, professional, commercial, institutional or other non-resi~.ential purposes, except as set forth in Article VII. No activity, whether for profit or not, will be ,,conducted which is not related to single-family residential purpo.ses. Nothing in this section will prohibit an .6vmer's use of a residence for quiet, inoffensive activities such as tutoring or giving art lessons as 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. Section 9.12 Detached Buildings. No detached accessory buildings, including, but not limited to, detached garages (other than provided herein) and storage buildings, will be erected, placed or constructed upon any Lot without the prior consent of the ACC. Every outbuilding, inclusive of such structures as a storage building, greenhouse or children's playhouse will be compatible with the dwelling to which it is appurtenant in terms of its design and material composition. Outbuildings, other than garages built by Declarant, will be of a l-story design and not exceed 15 feet in height measured from existing grade or have total floor area in excess of 10% of the floor area of the main dwelling. Section 9.13 Fences. All fences and walls will comply with City requirements. No fence, wall or hedge will be erected or maintained on any Lot nearer to the street than the building setback lines for the fi-ont and side yards, except for fences erected in conjunction with _~tn, tc'!l.J~ nlQql~l hq~e~ or sales offices. be erected on: .zz. ~rz ...... : o,~o~ ,. .... ~.r~or the side y Fences constructed on. comer lotsn~ ~ -q~, .c~tX:~/a,a~tru~/ ~q w_~_~ ~ ' ard as long as such fencing complies with City requirements. All perimeter fences will be constructed of wood, brick and/or masonry except for retaining walls installed by Declarant or retaining walls or decorative walls approved by the ACC. All side and rear property lines must be fenced and meet City set-back criteria. All perimeter fences will be 6 feet in height unless another height is approved by the ACC but, in any event, no such fence will be less than 4 feet in height or greater than 8 feet in height. No chain-link, metal cloth or Declaration of Covenants, Conditions and Restrictions-Page 14 gAlegal~f&j\ccrs~nckinney.wpd (1-8-97) agricultural fences may be built or maintained on an), Lot. unless such fenqe is located within the perimeter fence in such a manner that it is not visible from any street, alley, park, Common Area or public area (unless otherwise approved by the ACC in the manner described below). Unless otherwise agreed between Owners, side and rear yard fences that separate adjacent Lots will be owned and maintained by the Owner on whose l Lot the fence exists, or if the location is indefmite, such fence will be maintained by the Owners whose Lots are involved jointly with expenses being shared equally. Notwithstanding the foregoing, the ACC will has the right and authority to approve variances of fencing height, material and/or location for reasonable cause or to alleviate hardship as determined in the sole judgment of the ACC; provided however, the ACC may not approve a variance which contradicts the zoning and/or subdivision ordinances of the City unless the City has previously approved the variance. Section 9.14 SideWalks. All sidewalks will conform to City specifications and regulations. Ifa homeowner, its representative,' agent or employee, muses damage to any sidewalk located on or adjacent to such homeowner's Lot, the homeowner must repair or replace the sidewalk so that it will be returned to its original condition on or before 45 days following the date such damage occurred. Section 9.15 Landscaping and Exterior Maintenance. Decorative ground cover rock in the front and side yard may not exceed 10% of the total area of the front and side yard. Growth of grasses in lawns must be properly maintained not to exceed 6 inches in height All landscaping located on any Lot will be properly maintained at all times by the Lot Owner. Each Lot Owner will keep all shrubs, trees, grass, and plantings of ev}r~ kind on his Lot cultivated, pruned, free of trash, and other unsightly material. All improvements upon - any Lot' will at all times be kept in good condition and repair and adequately painted or otherwise maintained by the Lot Owner. Declarant, the Association, and the ACC will have the right at any reasonable time to enter upon any Lot to replace, maintain, and cultivate shrubs, trees, grass, or other plantings as deemed necessary; and'~o.~int, repair, or otherwise maintain any improvements in need thereof, and to charge the cost thereof ,to the Lot Owner. ' ' Section 9.16 Antennae, Satellite Dishes and Solar Collectors. Except with the written permission of the Declarant or as provided herein, no Owner may erect or maintain (a) any direct broadcast satellite ("DBS") antenna greater than one meter (39 inches) in diameter, or (b) any multi-channel multipoint distribution service (wireless cable) ("MMDS") antenna greater than one meter (39 inches) in diameter. The installation of any antennal structure, including any television broadcast service ("TVBS") antenna, mounted on the roofofa residential stmcture will not (i) exceed more than 12 feet over the roof line (including the mast, if any), (ii) be erected nearer to the lot line than the total height of the antennal structure above the roof, (iii) be erected near electric power lines, or (iv) encroach upon any street or other public space. Any applic, able DBS or MMDS antenna (being less than one meter in diameter), may be placed in the baekyard of a Lot as long as it is not visible (for aesthetic reasons) from view of any street, alley, park, Common Area or other public area, unless otherwise approved in writing by Declarant (or unless such a designated location would impair signal reception of acceptable quality or unreasonably increase the costs of the installation, maintenance and use of such apparatus). Except with the written permission of Declarant, no solar collector panels may be placed on or around the residential structure. Section 9.17 Exterior Finish. All exterior walls of all dwellings, garages and approved accessory buildings will be completely finished to meet minimum City standards with wood, stucco, brick, stone, lap- siding or other material acceptable to the ACC. No unpainted concrete block surfaces will be visible on any exterior wall. Declaration of Covenants, Conditions and Restrictions - Page 15 g:~legal~f&j\ccrs~nckinney.wpd (1-8-97) ~ ....................... ~ .... ,~o~ts which able 'alley~iii have t~e right to use such alley or to cons~ct any buildi,~ ~hluh requires the alley t0r~  ~ 7 ~l.~.~iC, :~e!"~;"~. and I.nt~ 26 through inall~qixzo. [~ 42_ Section 9.19 Clothes Hanging Devices. No clothes hanging devices exterior to a dwelling are to be constructed on the Lot. Section 9.20 Window Treatment. No aluminum foil, reflective film or similar treatment will be placed on windows or glass doors. Temporary window treatments must be removed within 45 days. Section 9.21 Limitation on Square Feet. The minimum square footage area of Units erected on the Lots will not be less than the applicable City minimums. Section 9.22 Oil and Mining Operations. No oil drilling, oil development operations, oil refining, quarrying or mining operation of any kind will be permitted upon or in any Lot, nor will oil wells, tanks, tunnels, mineral excavations, or shafts be permitted upon any Lot. No derrick or other structure designed for use in boring for oil or natural gas will be erected, maintained or permitted upon any Lot. No tank for the storage of oil or other fluids may be maintained on any of the Lots above the surface of the ground. ; Section 9.23 Mail Boxes. Mail boxes will be erected and maintained upon areas determined by the U.S.'Postal Service in accordance with the current postal authority standards and the approval of the ACC. ~ d .Section 9.24 Garages and Driveways. An enclosed attached garage able to accommodate up to 2 automobiles must be constructed and maintained for each residence. The openings of such garages must be *front-facing and situated within the setback lines set out in Section 9.26 below. Garages may be used as a 'b~ilder's Sales offices prior to permanent occupancy of the main structure; however, sales offices must be converted to garages prior to permanent occupancy. With the exception of periods when garages are used by the Builder as sales offices, all garages will be maintained for the storage of automobiles, and no garage may be enclosed or otherwise used for habitation. No carport will be permitted on a Lot. Section 9.25 Roof. No exposed roof surfaces on any principal and/or secondary structures will be of wood shingles or wood shakes. The ACC will have the authority to approve roof treatments and materials when in its determination such treatments and materials, in the form utilized, will not be a detriment to the quality of the neighborhood. Section 9.26 Setback Lines. No dwelling will be located on any Lot nearer to the front Lot line or nearer to the side street llne than the minimum setback lines shown on the Plat or required by the City. Notwithstanding the foregoing, the ACC will have the right and authority to approve variances from the setback requirements for reasonable cause or to alleviate a hardship; provided however, the ACC may not approve a variance which contradicts the setback requirements of the zoning and/or subdivision ordinances of the City unless the City has previously approved the variance. Section 9.27 Athletic and Recreational Facilities. Outdoor athletic and recreational facilities such as basketball goals, playseapes, swing sets and sport courts of a permanent nature will not be placed on any Lot in the subdivision between the street right-of-way and the front of a Unit, and must be approved by Declaration of Covenants, Conditions and Restrictions -Page 16 g:~legal~f&j\ccrs~nckinney.wpd (1-8-97) the ACC pursuant to Article V. Temporary facilities may be placed, utilized and removed from view frOm the street during the course of a day. Section 9.28 Security_. Neighborhood watchman patrols may be provided by independent contractors through the Association, from time to time; however, the Association is not responsible for security of the neighborhood or any Unit and the Owners are exclusively responsible for security for home and property. Section 9.29 Burning. Except within fireplaces in the main residential dwelling and except for outdoor cooking, no burning of anything will be permitted anywhere on the Property. Section 9.30 Utilities. Except as to special street lighting or other aerial facilities which may be required by the City or by the franchise of any utility company or which may be installed by the Declarant pursuant to its development plan, no aerial utility facilities of any type (except meters, risers, service pedestals, transformers and other surface installations necessary to maintain or operate appropriate underground facilities) will be erected or installed on the Property whether upon individual Lots, easements, streets or rights-of-way of any type, either by the utility company or any other person or entity, including, but not limited to, any person owning or acquiring any part of the Property, and all utility service facilities (including, but not limited to, water, sewer, gas, cable, electricity and telephone) will be buried underground unless otherwise required by a public utility. No individual water supply system or sewage disposal system will be permitted on any Lot, ineiu.d(ng, but not limited to, water wells, cesspools or septic tanks~ Section 9.31 Exterior Holiday Decorations. Lights or decorations may be erected on the exterior of Units in commemoration or celebration of publicly observed holidays provided that such lights or dec~ra~ions do not unreasonably disturb the peaceful enjoyment of adjacent Owners by illuminating bedrooms, creating ~oise or attracting sight-seers. All lights and decorations that are not permanent fixtures of the Unit *which are part of the original construction or have been properly ~ipproved as permanent improvements by the 'A~C will be removed within 30 days after the holiday has ended. Christmas decorations or lights may not be displayed prior to November 1 st of any year. For other holidays, decorations or lights may not be displayed more than 3 weeks in advance of the holiday. The Association will have the right, upon 30 days prior written notice, to enter upon any Lot and summarily remove exterior lights or decorations displayed in violation of this provision. The Association, and the individuals removing the lights and decorations, will not be liable to the Owner for trespass, conversion or damages of any kind except in the case of intentional misdeeds and gross negligence. Section 9.32 Construction Activities. This Declaration will not be Construed so as to unreasonably interfere with or prevent normal construction activities during the construction or remodeling of or making of additions to improvements by a Lot O~vner (including Declarant) upon any Lot within the Property. Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of this Declaration by reason of noise, dust, presence of vehicles or construction machinery, posting of signs or similar activities, provided that such construction is pursued to completion with diligence and conforms to usual construction Practices in the area. If construction upon any Lot does not conform to usual practices in the area as determinedby the ACC in its sole good faith judgment, the ACC will have the authority to obtain an injunction to stop such construction. In addition, if during the course of construction upon any Lot, there is an excessive accumulation of debris of any kind that is offensive or detrimental to the Property or any portion thereof, then the ACC may contract for or cause such debris to be removed, and the Lot Owner will be liable for all expenses incurred in connection therewith. ~. _ Declaration of Covenants, Conditions and Restrictions - Page 17 g:XlegalXf&j\ccrsXamkinney.wpd (1-8-97) ARTICLE X PICKETING AND DEMONSTRATIONS By acceptance of the deed to any Lot covered by this Declaration, the Owner covenants and agrees with the Owners of all other Lots within the subdivision, that no Owner or resident of any Lot will engage in picketing, protest marches, sit-in demonstrations, protest speeches or other forms of public protest, including without limitation, displaying signs or placards within public view, upon any Lot or within any Common Area, easement or street right-of way adjacent to any LOt, or af~xed to any vehicle or apparatus upon or adjacent to any Lot. This prohibition will not affect the right of any person to participate in any other form of public protest conducted outside the area depicted on the recorded subdivision Plat. No Owner or resident of any Lot will engage in conduct that tends to vilify, ridicule, denigrate, or impugn the character of any other Owner or resident if such conduct occurs on anyLot, Common Area easement or street depicted on the subdivision Plat. Each Owner, by acceptance of the deed to any LOt, will be deemed to have accepted the foregoing prohibitions as reasonable limitations on his constitutional right of free speech, and to recognize and agree that all Owners have the right to the peaceful enjoyment of their property; the right of privacy; the right to practice their own religion; the freedom of association; and the right to engage in a profession, business or life-style of their _own choosing provided that the conduct of such profession, business or life-style is not illegal and does not otherwise violate any provision of this Declaration. ARTICLE XI ANNEXATION SeCtion 11.1 Annexation by Declarant. At any t'.une during the initial term of this Declaration, ~the Declarant may, at its sole option, annex additional property into.the Association to be subject to the terms he~eofto the same extent as if originally included herein and subject to such other terms, covenants, conditions, easements and restrictions as may be imposed thereon by Declarant. (a) Eligible Property_'. All or any portion of the property (the "Eligible Property") described in Exhibit "D" is eligible for annexation. The Eligible Property may be annexed into the Association at the option of the Declarant. (b) Consent or Joinder Not Required. No consent or joinder of any Class A member or other party except the record owner of the land being annexed will be necessary to effect any annexation made pursuant to this Section. (c) Declaration of Annexation. Annexation will be evidenced by a written Declaration of Annexation executed by Declarant setting forth the legal description of the property being annexed and the restrictive covenants to be applied to such annexed property. (d) FHANA Approval. Declarant will submit a written request for approval of any annexation under this Section to the Federal Housing Administration ("FHA") and the Veterans Administration ("VA"), accompanied by a copy of the Declaration of Annexation. If neither FHA nor VA notifies Declarant of objections to the annexation within 15 days of the date of Deelarant~s request for approval, such approval will be deemed to have been granted. . _ Declaration of Covenants, Conditions and Restrictions - Page 18 g:klegal~f&j\ccrs~nckinney.wpd (1-8-97) Section 11.2 Annexation by Action of Members. At any time, the Board of Directors may request approval of the membership for the annexation of additional property into the Association to be subject to all of the terms of this Declaration to the same extent as if originally included herein. No such annexation will be effective unless approved in writing by members entitled to cast two-thirds (2/3) of the votes in each class of membership, and by FHA and VA as set forth in subsection 11.1 (d) above. Any property that is contiguous to existing property subject to this Declaration may be annexed hereto according to the foregoing requirements, provided however, that no such annexation will be effective without the consent and joinder of the owners of the property to be annexed. Such annexation must be evidenced by a Declaration of Annexation as set forth in subsection 11.1 (e) above, executed by the parties herein described. Section 11.3 1~1o Duty_ to Annex. Nothing herein contained will establish any duty or obligation on the part of the Declarant or any member to annex any property into the Association, and no owner of property excluded fi.om the Association will have any right to have such property annexed thereto. Section 11.4 Effect of Annexation on Class B Membership. In determining the number of Lots owned by Declarant for purposes of Class B membership status according to Section 2.6, the total number of Lots covered by the Association, including all Lots annexed thereto, will be considered. If Clms_s B membership has previously lapsed but annexation of additional property restores the ratio of Lots owned by Declarant to the number required for Class B membership, such Class B membership will be reinstated until it &xI?ir.es pursuant to the terms of Section 2.6. ARTICLE XII · ~.· GENERAL · Section 12.1 Enforcement. The AssOCiation or any Owner will have the right to enforce, by any p~ceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges imposed now or in the future by the provisions of this Declaration. Failure of the Association or any Owner to enforce any covenant or restriction of this. Declaration will in no event be deemed a waiver of the right to do so in the future. Section 12.2 Remedies. In the event of any default by any Owner under the provisions of this Declaration, the By-laws or the rules and regulations of the Association, the Association and any Owner will have each and all of the rights and remedies which may be provided for in this Declaration, the By-laws and said rules and regulations, and those which may be available at law or in equity, and may prosecute any action' or other proceedings against such defaulting Owner and/or others for enforcement of any lien, statutory or otherwise, including foreclosure of such lien and the appointment of a receiver for the Lot and ownership interest of such Owner, or for damages or injunction, or specific performance, or for judgrnent for payment of money and collection thereof, or for any combination of remedies, or for any other relief. No remedies herein provided or available at law or in equity will be deemed mutually exclusive of any other such remedy. All expenses of the.Association in connection with any such actions or proceedings, including court costs and attorneys' fees and other fees and expenses, and all damages, liquidated or otherwise, together with interest thereon at the maximum rate permitted by law but, with reference to any Lots financed by FHA insured loans, not in excess of the maximum rate of FHA loans at the time of delinquency, from the due date until paid, will be charged to and assessed against such defaulting Owner, and will be added to and deemed part of his respective maintenance assessment (to the same extent as the lien provided herein for unpaid ~s_essments), Declaration of Covenants, Conditions and Restrictions -Page 19 g:Xlegal~&j\ccrs~nckinney, wpd (1-8-97) upon the Lot and upon all of his additions and improvements thereto, and upon all of his personal property upon the Lot. Any and all of such rights and remedies may be exercised at any time and from time to time, cumulatively or otherwise, by the Association or any Owner. Section 12.3 Term and Amendments. The covenants and restrictions of this Declaration will mn with and bind the land for a term of 30 years ~om the date this Declaration is recorded, after which time they will be automatically extended for successive periods of 10 years each, unless 75% of the votes outstanding will have voted to terminate the covenants and restrictions of this Declaration upon the expiration of the initial 30-year period or any extension thereof, which termination will be by written instrument signed by 75% of the Owners and properly recorded in Collin County, Texas. This Declaration may be amended during the first 30- year period by an instrument signed by not less than 90% of the Owners and by the Declarant. Any amendment must be recorded. Notwithstanding any provisions hereof to the contrary, the Declarant may, at its sole discretion and without consent being required of anyone, modify, amend, or repeal this Declaration at any time prior to the closing of thq~,~f the fu'st Lot, provided said amendment, modification, or repeal is in writing and properly recorded intrt,~J~'~ County, Texas. Declarant further reserves, (i) prior to the closing of the sales of all of the Property, all rights which may be necessary to deal with the Property, including the right to vacate, amend, or modify the Plat of subdivision, and(ii) the right at any time to amend this Declaration in order to correct scriveners errors. Amendments will be subject to prior approval by FHA and VA if any Lot within the Property is encumbered by an FHA or VA mortgage loan. '. .Section 12.4 Severability_. Invalidation of any one of these covenants or restrictions by judgment or co'it order will in no way affect any other provisions which will remain, in full force and effect. Section 12.5 Rights and Obligations. The provisions of this Declaration and the Articles of Incotpgration and By-laws and the rights and obligations established thereby will be deemed to be covenants · running ~ith the land and will inure to the benefit of, and be .binding upon, each and all of the Owners and '*their respective heirs, representatives, successors, assigns, purchasers, grantees and mortgagees. By the Ye~ording or the acceptance of a deed conveying a Lot or any ownership interest in the Lot whatsoever, the person to whom such Lot or interest is conveyed will be deemed to accept and agree to be bound by and subject to all of the provisions r)fthis Declaration and the Articles of Incorporation and By-laws, whether or not mention thereof is made in said deed. Section 12.6 Miscellaneous Provisions. If there is a conflict between any .provision of this Declaration and the Articles of Incorporation and By-laxvs, the following provisions will control: (a) If any prospective Owner applies for FHA or VA mortgage financing and receives a commitment therefor, and there exists a Class B membership, the following actions will require approval of the Federal Housing Administration and the Veterans Administration, as applicable: (1) mortgaging or dedication of Common Areas, (2) annexation of additional properties into the Association, (3) amendment of this Declaration or the Articles of Incorporation or By-laws of the Association, and (4) dissolution of the Association. mortgage liens: Declaration. (b) The following actions will require notice to all institutional holders of first (1) abandonment or termination of the Association; or (2) material amendment to this Declaration of Covenants, Conditions and Restrictions - Page 20 g:~legal~f&j\ccrs~nckinney.wpd (!-8-97) (c) Upon the request of any first, mortgagee of a dwelling on a Lot, the Association will furnish to such mortgagee a written notice of any default by the Owner of such dwelling in the performance of such Owner's obligations under this Declaration or the By-laws or Association rules or regulations which is not cured within 30 days. Any first mortgagee ora dwelling who comes into possession of said dwelling pursuant to the remedies provided in the mortgage, a foreclosure of the mortgage, or deed (or assignment) in lieu of foreclosure, will take such property fxee of any claims for unpaid assessments or charges in favor of the Association against the mortgaged dwelling which accrued before the time such holder comes into possession of the dwelling. (d) Unless at least 75% of the first mortgagees (based upon one vote for each mortgage) have given their prior written approval, neither the Association nor the Owners will be entitled to: (i) by act or omission seek to abandon, partition, encumber or transfer the Common Areas, if any, or any portion thereof or interest therein (the granting of easements for public utilities or other public purposes consistent with the intended use of such property will not be deemed a transfer within the meaning of this clause); (ii) substantially change the method of determining the obligations, assessments, dues or other charges which may be levied against an Owner by the Association; (iii) by act or omission change, waive, or abandon any scheme of regulations or enforcement thereof pertaining to the architectural design or the exterior appearance of the dwellings or maintenance of the dwellings or Lots; and (iv) fail to maintain liability and extended coverage insurance on insurable property comprising a part of the Common Areas on a current replacement cost basis in an amount not less than 100% of the insurable value (based on current replacement costs). (e) All personal pronouns used in this Declaration, whether used in the masculine, feminine or neuter gender, will include all other genders, and the singular will include the plural, and vice versa. .Section 12.7 Headings. The headings contained in this Declaration are for reference purposes only and will not in any way affect the meaning or interpretation of this Declaration. Section 12.8 Conflicts. In the event of conflict between the terms of this Declaration and any By- laws, rules, regulations or Articles of Incorporation of the Association, this Declaration will control. Section 12.9 Partial Invalidity_. The invalidation of any one of these covenants by judgment or court order will in no way affect any of the other provisions, which will remain in full force and effect. Declaration of Covenants, Conditions and Restrictions - Page 21 g:XlegalXf&j\ccrsXmckinney.wpd (1-8-97) IN WITNESS WHEREOF, the Declarant has caused this instrument to be executed on its behalf, attested and its corporate seal to be~hereunto affixed as of the day and year first above written. .DECLA_.__~NT: CENTEX HOMES, a Nevada general partnership By: Centex Real Estate Corporation, a Nevada corporation, its managing general partner By: Division Homes- STATE OF TEXAS § COUNTY OF § ~ '.The foregoing instrument was acknowledged before me on this the day of .z /, ,1996,~,:., ~,.. t..,-~,: ~ .r'.~¥ ....... .v., ,_.,v,o,,,,.' .... CCh .trc!!er of Centex Real Estate Corporation, *,a .Nevada corporation, managing general partner of CENTI~X'HOMES, a Nevada general partnership, on behalf of said partnership. Notary Public, State of Texas Notary's Name Printed: My Commission Expires: AFTER RECORDING RETURN TO: ¢/o Centex Homes - - ' Declaration of Covenants, Conditions and Restrictions - Page 22 g:Megal~f&j\ccrsXmckinney.wpd (1-8-97) EXHIBIT "A" Property_ Subject to the Declaration The EXHIBIT "B" Common Areas The Legends of McKinney may include, but not be limited to, the following: Ao ;tview Ap side) of Lots c immediately and 36 in Block 13; tce and Sidewalk (adjacent to Eldorado Parkway, Legend Drive): and/or wooden fence and sidewalk running at the rear (and in some cases, the streets surrounding the neighborhood. On the Preliminary Plat of The Legends is attached as page 2 of this Exhibit "B"), these areas are located the northern end of Lot 23 in Block 14; Co) the northern end of Lots 24 comer of LOt 36 in Block 13; (d) the northwestern corner of Lot 1 in Block 12; (e) end of Lots 1 through 18, inclusive, in Block 12; (f) the southeastern end of Lot 18 Block 12; (g) the northwestern end of Lot 1 in Block 1; (h) the northeastern end of Lots 1 throu inclusive, of Block 1; (i) the northeastern and southeastern ends of Lot 1 in Block 3; and (j) the end of the drainage easement designated as Lot 80 in Block 3. Entry_ Monumf~nt: An entry monument located in the median · On the Preliminary Plat of The Legends Exhibit "B"), such median is located in the in Block 12 and Lot 1 in Block 1. intersection of Eldorado Parkway and Legend Drive. ( a copy of which is attached as page 2 of this of Legend Drive and runs between Lot 18 Drainage Easement*: The drainage easement located in the most particularly described as Let 80 in Block 3, on the copy of which is attached as page 2 of this Exhibit "B." corner of the Property, being more Plat of The Legends of McKinney, a Do Park Area**: The park area located in the most southwesterly corner of the described as Lot 79 in Block 3, on the Preliminary Plat of The Legends is attached as page 2 of this Exhibit "B." being more particularly a copy of which Common Area unless it is dedicated to, and accepted by, the City of McKinney. ~ The park area will be part of the Common Area unless it is dedicated to, an ' ted by, the Parks Department of the City of McKirmey. Page 1 of 2 Exhibit "B" (continued) Page 2 of 2 The Common EXHIBIT "C" Common Maintenance Areas Areas may include, but are not limited to, the following: Bo fence runnm are located of Lots 24 (d) the southeastern ends designated as Lot 80 lies between the curb of Eldorado Parkway and the perimeter masonry and/or wooden at the rear of Lots along Eldorado Parkway. On the Preliminary Plat of The Legends t copy of which is attached as page 2 of Exhibit "B" to this Declaration), these areas t adjacent to (a) the northern end of Lot 23 in Block 14; Co) the northern end Block 13; (c)the northeastern end of Lots 1 through 18, inclusive, in Block 12; end of Lots 1 through 9, inclusive, of Block 1; (i) the northeastern and Lot 1 in Block 3; and (j) the northeastern end of the drainage easement ~lock 3. Co The area that fence running at the McKinney (a copy of which located immediately adjacent northwestern comer of Lot 1 curb of Westview Drive and the perimeter masonry and/or wooden along Westview Drive. On the Preliminary Plat of The Legends of as page 2 of Exhibit "B" to this Declaration), these areas are the northeastern comer of Lot 36 in Block 13; and (b)the 12. ; .; The area that lies between the curb of running at the side of Lots along (a copy of which is attached as page 2 · immediately adjacent to (a) the northeastern · ~ of Lot 1 in Block 1. The entry area median located at the intersection Preliminary Plat of The Legends of McKinney ( a to this Declaration), such median is located in the 18 in Block 12 and Lot 1 in Block I. perimeter masonry and/or wooden fence On the Preliminary Plat of The Legends of McKinney to this Declaration), these areas are located of Lot 18 in Block 12; and (b) the northwestern end :.Ido~'ado Parkway and Legend Drive. On the !which is attached as page 2 of Exhibit "B" land of Legend Drive and runs between Lot The entry sign or signs which may be placed on the intersection of Eldorado Parkway and Legend Drive and/or and Westview Drive. On the Preliminary Plat of The Le attached as page 2 to Exhibit "B" to this Declaration), such sign of lot(s) located adjacent to (i) the intersection of Eldorado Parkway of McKinney (a copy of which is ~ include the following: The northeast comer of Lot 36 in Block 13; The northwest comer of Lot 1 in Block 12; The east comer Lot 18 in Block 12; and/or The north comer of Lot 1 in Block 1. F. Landscaping and irrigation in the Common Areas. The bicycle trail located within the park area located in the mo being more particularly described as Lot 79 in Block 3, on the Preliminary Plat McKinney, a copy of which is attached as page 2 ofJExhibit "B" to this Declaration. Legends of EXHIBIT "D" Eligible Property A) THE DEVELOPMENT IS LOCATED ALONG STATE HIGHWAY 121 BYPASS. B) DUE TO DFW ANB LOVE FIELB NRPORTS, TI-JERE MAY BE OCCURRENCES OF AMBIENT AIRCRAFT NOI:SE DUE TO NRCRAFT OVERFUGHTS, i~..':i~:F.-..~.,,.~:..~'.~'-:,. :::::::::::::::::::::::::: :::::::::::::::::::::::::