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HomeMy WebLinkAboutCovenants & Amendments: RECORDED I I I I I I I I I I I I I I I I I I I 19. 13. Entry Ways, Landscape Easements and Planting Areas ....................... -15- (a) Entry Ways · · · · · · · .. · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -15- (b) Landscape Easements ........................................... -15- (c) Planting Areas ................................................. -15- 14. Site Furniture and Facilities · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -15- 15. Round-Abouts and Street Trees · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ". . . . . .. -15- (a) Round-Abouts. · · · · '. · · · · . . . . ." . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -15- (b) Street Trees ................................................... -16- (c) Maintenance of Street Trees ...................................... -16- 16. Common Parkirig Lots · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -16- Open Space ......................................................... -16- 17. 18. Village of WestClay Owners Association, Inc. .......... . . . . . . . . . . . . . . . . . . . . ( a) Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b.) Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . ( c ) Classes of Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) V oting and Other Rights of Members .............................. _.. ( e ) Reserve for Replacements ......................................... (f) Debt Service Account ........................................... (g) Maintenance Standards .......................................... (h) Insurance, Taxes and Utilities ..................................... (i) Limitations on Action by the Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . G) . Mergers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . (a) Creation of the Lien and Personal Obligation of Assessments. . . . . . . . . . . . (b) General Assessment . . .. . . . . . . . . . . . . . . . .'. . . . . . . . . . . . . . . . . . . . . . . . . (i) Purpose of Assessment .............................. (ii) Basis for Assessment ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Residential Lots .................................. . . . (2) Commercial Lots ................................... (3) Lots Owned by Declarant or Permitted Title Holder. . . . . . . . ( 4) Condominiums . . . . . . . . . . . . . . . . . . . . . . .". . . . . . . . . . . . . . ( 5) Chan.ge in Basis .................................... (iii) Method of Assessment . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . (iv) Allocation of Assessment ............................ ( c ) Community Area Initial Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) Community Area Debt Service Assessment .......................... (e) Parcel Assessments ............................................. -ti- -17- -17- -17- -17- -17- -17- -17- -18- -18- -18- -19- -19- -19- -20- -20- -20- -20- -20- -22- -22- -22- -23- -23- -24- -25- -25- I I I I I I I I I I I I I I I I I I I (i) Purpose of Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -25- (ii) Method of Assessment · . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -25- (iii) Special Assessments ................................ -26- (f) Architectural Control Assessment ...... . . . . . . . . . . . . . . . . . . . . . . . . . . .. -26- (g) Special Assessment ............................................. -26- (h) Date of Commencement of Assessments ............................. -27- (i) Effect of Nonpayment of Assessments; Remedies of the Corporation.. . . . .. -27- G) Subordination of the Lien to Mortgages ............................. -27- (k) Certificates · · · · · · · · · · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -28- (I) Annual Budget · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -28- (1) Adoption of Budget .......................... . . . . . .. -28- (2) Certification of Village Center Maintenance Costs. . . . . . . .. -28- (3) Village Center Budget ................ . . . . . . . . . . . . . .. -28- 20. Architectural Control · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -29- ( a) The Architectural Review Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -29- (b ) PtlrpO se · · · · · · · · · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . .. - 29- (c) Building Activity · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -29- (d) Procedmes. · · · · · · · · · · . . . . .'. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. _ 30- ( e ) Guidelines and Standards · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 30- (t) Application of Guidelines and Standards ............................ -31- (g) Design Consultants ............................................. -31- (h) Existing Violations of Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -31- (i) Exercise of Discretion ....................................-....... -31- G) Liability of Board · · · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -32- (k) Inspection · · · · · · · · · · · .. · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 32- 21. Community Area and Common Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -32- ( a) Ownershi. p .................................................... _ 3 2- (b ) Density 0 f Use ............................................. . . .. - 32- (c) Obligations of the Corporation .................................... -32- (d) Easements of Enjoym~nt ................................. . . . . . . . .. -33- (i) Owners · · · · · · · · · . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -33- (ii) Occupants · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . .. -33- (e) Extent of Easements · · · · · . · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. _ 34- (f) Additional Rights of Use --. · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -35- (g) Damage or Destruction by/Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -35- (h) Conveyance of Title · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -36- 22. Use of Tract ..................................................... . . .. _ 3'6- (a) Protective Covenants ............................................. _ 36- (i) Land Use ............................................... - 36- (ii ) Nuisances · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. _ 36- - ill- I I I '1 I I I I I I I I I I I I I I I (iii) Other Restri cti ons ........................................ - 36- (iv) Exceptions. · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 37- (b ) Maintenance ofT mCt · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 3 7- 23 · Easements. · · · · · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. _ 37 _ (a) Plat Easements · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 37- (i) Drainage Easements · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -38- (ii) Sewer Easements ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -38- (iii) Utility Easements · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -38- (iv) Entry Way Easements ..................... '. . . . . . . . . . . . . . .. -38- (v) Landscape Easements ..................................... -3 8- (vi) Water Access Easements ................................. .. - 39- (vii) Community Area Access Easements........... . .. .. . . . . . . . . .. -39- (viii) Pathway Easements ....................................... -39- (ix) Non-Access Easements .................................... -39- (x) Alley Easements · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - 3 9- (b) General Easement .............................................. - 39- ( c) Public Health and Safety Easements ................................ -40- (d) Drainage Board Easement .................................... . . .. -40- ( e) Crossing Underground Easements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -40- (f) Declarant's Easement to Correct Drainage ........................... -40- (g) Water Retention · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -41- 24. Use of Lots During Development ........................................ -41- (a) By Declarant .................................................. -41- (b) By Builders ................................................... -41- 25 · Enforcement · · · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -41- 26. Limitations on Rights of the Corporation ................................... -42- 27. Approvals by Declarant · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -42- 28. Mortgages. · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -42- (a) Notice to Corporation ........................................;... -42- (b) Notices to Mortgagees .. · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -42- (c) Notice of Unpaid Assessments .................................... -43- (d) Financial Statements ................................ ~ . . . . . . . . . . .. -43- (e). . Payments by Mortgagees · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -43- 29. Am.endm.ents. · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -43- ( a) Generally. · · · · · · · · · · · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -43- (b) By Declarant .................................................. -44- -iv- I I I I I I I I I I I I I I I I I I I DECLARA nON OF COVENANTS AND RESTRICTIONS THE VILLAGE OF WESTCLA Y This Declaration, made as of the 9th day of Au~ust , 19E,by BRENWICK 'IND. COMMUNITIES, LLC, an Indiana limited liability company ("Declarant"), WITNESSETH: WHEREAS, the following facts are true: A. Declarant owns, or has the right to acquire the real estate located in Hamilton County, Indiana, described in Exhibjt A and depicted on Exhibit B, upon which Declarant intends, but is not obligated, to develop a traditional neighborhood to be lmown as The Village of West Clay. B. The Development Area has been designated as the Planned Unit Development District and development thereof is subject to the development standards set forth in the Zoning Ordinance. C. Declarant intends, but is not obligated, to construct certain improvements and amenities in WestClay which shall constitute Community Area. D. Declarant desires to provide for the preservation and enhancement of the property values, amenities and opportunities in WestClay and for the maintenance of the Tract and the improvements thereon, and to this end desires to subject the Tract together with such additions as may hereafter be made thereto (as provided in Paragraph 3) to the covenants, restrictions, easements, charges and liens hereinafter set forth, each of which is for the benefit of the Lots and lands in the Tract and the future owners thereof. E. Declarant deems it desirable, for the efficient preservation of the values and amenities in W estClay, to create agencies to which may be delegated and assigned the powers of owning, maintaining and administering the Community Area, administering and enforcing the Restrictions, collecting and disbursing the Assessments and charges hereinafter created, and promoting the recreation, health, safety and welfare of the Owners of Lots in WestClay. F. Declarant has incorporated under the laws of the State of Indiana nonprofit corporations lmown as The Village ofWestClay Owners Association, Inc. andWestClay Village Owners Association, Inc. for the purpose 'of exercising such functions. . NOW, THEREFORE, Declarant hereby declares that all of the Lots and lands in the Tract and such additions thereto as may hereafter be made pursuant to Paragraph 3 hereof, as they are held and shall be held, conveyed, hypothecated or encumbered, leased, rented, used, occupied and improved, are subject to the following Restrictions, all of which are declared to be in furtherance of a plan for the improvement and sale of Lots in the Tract, and are established and agreed upon for the I I I I I I I I I I I I I I I I I I I "Villaie Center Supplemental Declaration" means the Supplemental Declaration relating to the Village Center Parcel. "Village Community Buildings" means the Meeting House, the Trustees Hall, the Chapel, the buildings constituting a part of or located in or on the Recreation Centers and such other civic or recreational buildings as may be constructed in W estClay by Declarant principally for the use of the Owners as a benefit of ownership of a Lot, title to which is, or is intended ultimately to .be, vested in a Permitted Title Holder. . "Warranty Period" means, with respect to Street Trees, a period of one (1) year following the date a Street Tree is planted in a Planting Area. "Water Access Easement" means the area designated on a Plat as a means of access to the Lake or a Pond. "WestClay" means the name by which the Tract shall be commonly known. "Zoning Authority" with respect to any action means the Director of the Department of Community Services of the City of Carmel or, where he lacks the capacity to take action, or fails to take such action, the governmental body or bodies, administrative or judicial, in which authority is vested under applicable law to hear appeals from, or review the action, or the failure to act, of the Director. "Zoning Ordinance" means the ordinance adopted by the Common Council of the City of Carmel, Indiana, establishing the WestClay Village Planned Unit Development District. 2. Declaration. Declarant hereby expressly declares that the Tract and any additions thereto pursuant to Paragraph 3 hereof shall be held, transferred, and occupied subject to the Restrictions. The Owner of any Lot" or Parcel subject to these Restrictions, by (i) acceptance of a deed conveying title thereto, or the execution of a contract for the purchase thereof, whether from Declarant or a subsequent Owner of such Lot or Parcel, or (ii) by the act of occupancy of any Lot or Parcel, shall accept such deed and execute such contract subject to each Restriction and agreement herein contained. By acceptance of such deed or execution of such contract, each Owner acknowledges the rights and powers of Declarant and of the Corporation with respect to these Restrictions, and also for itself, its heirs, personal representatives, successors and assigns, covenants, agrees and consents to and with Declarant, the Corporation, and the Owners and subsequent Owners of each of the Lots and Parcels affected by these Restrictions to keep, observe, comply with and perform such Restrictions and agreement 3. Additions to the Tract. Declarant shall have the right to bring within the scheme of this Declaration and add to the Tract real estate that is a Part of the Development Area or that is -10- I I I I I I I I I I I I I I I I I I I contiguous to the Development Area. In determining contiguity,' public rights of way shall not be considered. The additions authorized under this Paragraph 3 shall be made by the filing of record of one or more Supplemental Declarations with respect to the additional real estate and by filing with the Corporation any revisions to the General Plan of Development necessary to reflect the scheme of development of the additional real estate. Unless otherwise stated therein, such revisions to the General Plan of Development shall not bind Declarant to make the proposed additions. For purposes of this Paragraph 3, a Plat depicting a portion of the Development Area shall be deemed a Supplemental Declaration. 4. The Lake. (a) Development. Declarant intends, but is not obligated, to acquire title to the Lake. Declarant reserves the right, subsequent to acquisition of the Lake, to alter the size and configuration thereof (as a result of which, the Lake may vary from that depicted on the General Plan of Development attached as Exhibit B hereto). (b ) Title and Maintenance. If Declarant acquires title to the Lake, it shall subsequently convey such title to a Permitted. Title Holder. Unless otherwise specified in the instrument of conveyance, the Corporation shall be responsible for maintaining the Lake. The Maintenance Costs of the Lake shall be assessed as a General Assessment against all Lots subject to assessment. Each Owner of a Lot that abuts the Lake shall be responsible at all times for maintaining so much of the bank of the Lake above the pool level as constitutes a part of, or abuts, his Lot (exclusive of the Lake Liner and apy Path) and shall keep that portion of the Lake abutting his Lot free of debris and otherwise in reasonably clean condition. (c) lls.c. No boats shall be permitted upon any part of the Lake except if and to the extent authorized by the Board of Directors and then subject to such roles and regulations as may be adopted by the B~ard of Directors. No dock, pier, wall or other structure may be extended into the Lake without the prior written consent of the Architectural Review Board and such governmental authority as may have jurisdiction thereover. No swimming will be permitted in the Lake except if and to the extent authorized by the Board of Directors. Each Owner of a Lot abutting the Lake shall indemnify and hold harmless Declarant, the Corporation and each other Owner against all loss or damage incurred as a result of injury to any Person or damage to any property, or as a re~lt of any other cause or thing, arising from or related to use of, or access to, the L8ke by any Person who gains access thereto from, over or across the Owner's Lot with the knowledge or acquiescence of such Owner. Declarant shall have no liability to any Person with respect to the Lake, the use thereof or access thereto, or with respect to any damage to any Lot resulting from the Lake or the proximity of a Lot thereto, including loss or damage from erosion. -11- I I I I I I I I I I I I I I I I I I I 5. The Ponds. (a) . Development. Declarant intends, but is not obligated, to develop the Ponds. Declarant reserves the right, subsequent to commencement of development of the Ponds, to determine the size and configuration thereof (which may vary from that depicted on the General Plan of Development attached as Exhibit B hereto). (b ) Title and Maintenance. Declarant shall convey title to the Ponds to a Permitted Title Holder. Unless otherwise specified in the instrument of conveyance, the Corporation shall be responsible for maintaining the Ponds. The Maintenance Costs of the Ponds shall be assessed as a General Assessment against all Lots subject to assessment. Each Owner of a Lot that abuts a Pond shall be responsible at all times for maintaining so much of the bank of the Pond above the pool level as constitutes a part of, or abuts, his Lot (exclusive of any Path) and shall keep that portion of the Pond abutting his Lot :free of debris and otherwise in reasonably clean condition. (c) ~. No boats shall be permitted upon any part of a Pond. No dock, pier, wall or other structure may be extended into a Pond without the prior written consent ~f the Architectural Review Board and such governmental authority as may have juIisdiction thereover. No swimming will be permitted in any Pond except if and to the extent authorized by the Board of Directors. Each Owner of a Lot abutting a Pond shall indemnify and hold harmless Declarant, the Corporation and each other Owner against all loss or damage in~urred as a result of injury to any Person or damage to any property, or as a result of any other cause or thing, arising from or related to use of, or access to, a Pond by any Person who gains access thereto from, over or across such Owner's Lot with the knowledge or acquiescence of such Owner. Declarant shall have no liability to any Person with respect to a Pond, the use thereof or access thereto, or with respect to any damage to any Lot resulting from a Pond or the proximity of a Lot thereto, including loss or damage from erosion. 6. The Commons. Declarant shall convey title to the Commons to a Permitted Title Holder. Unless otherwise specified in the instrument of conveyance, the Corporation shall be responsible for maintaining the Commons and the Maintenance Costs thereof shall be assessed as a General Assessment against all Lots subject to assessment. Unless approved by the Architectural Review Board and the Zoning Authority, no permanent improvements shall be made to or installed on the Commons (excepting University Green) . other than Village Community Buildings, Education Facilities, underground utility facilities, Site Furniture and Facilities, walkways, planting structures, and .fountains or other nonrecreational water features. University Green may be improved with -recreational facilities, including but not limited to Founder's Comer and a croquet court. The use of the Commons shall be subject to rules and regulations adopted by the Board of Directors which are not inconsistent with the provisions of this Declaration or any Supplemental Declaration. -12- I I I I I I I I I I I I I I I I I I I 7. fmts. Declarant shall convey title to the Parks to a Permitted Title Holder. Unless the instrument of conveyance provides otherwise, the Corporation shall be responsible for maintaining the Parks and the Maintenance Costs thereof, together with any costs incurred by the Corporation in connection with the further improvement thereof, shall be assessed as a General Assessment against all Lots subject to assessment. The Parks may be improved as appropriate for recreational and open space areas. The use of the Parks shall be subject to rules and regulations adopted by the Board of Directors which are not inconsistent with the provisions of this Declaration or any Supplemental Declaration. 8. Village Community Buildings. Declarant may, but is not obligated to, construct in the area designated on the General Plan of Development as the contemplated location thereof the Meeting House, the Trustees Hall, the Chapel and one or more Recreation Center (which may include a bath house, sWimming pool, tennis courts and other recreational facilities) and such other recreational and community facilities as Declarant in its sole discretion believes are justified by the progress of development of the Development Area. If Declarant undertakes the development of one or more Village Community Buildings, Declarant intends upon completion of construction to convey the same to a Permitted Title Holder prior to the Applicable Date free and clear of all financial encumbrances and other liens securing indebtedness of Declarant except Community Area Secured Indebtedness, but subject to the right of Declarant to use the Village Community Buildings as provided in Paragraph 24(a). Unless the instrument of conveyance provides otherwise, the Corporation shall be responsible for maintenance of the Village Community Buildings and the Maintenance Costs thereof shall be assessed as a General Assessment against all Lots subject to assessment The Board of Directors may adopt such mles and regulations with respect to the use of the Village Community Buildings as it deems appropriate and may charge reasonable fees for the use thereof, but no rule" regulation or charge shall be inconsistent with the provisions of this Declarati<?n or any Supplemental Declaration. Any Education Facility, including the Education Center, shall be constructed by and be the sole property of the public or private educational institution which operates the Education Facility and none of the Corporation, the Association or any Owner shall have any interest therein except as otherwise specifically provided herein, in a Supplemental Declaration or in an instrument of conveyance from' Declarant to such educational institution. Declarant may secure indebtedness incurred to finance construction of the Village Community Buildings and the Common Facilities, or parts thereof, with a mortgage lien(s) on all or some of the Village Community Buildings; provided that the aggregate original principal amount of the indebtedness secured by such lien(s) shall not exceed Two Million Dollars ($2,00Q,000.00). 9. Dra.ina~e System. The Drainage System has or will be constructed for the purpose of controlling drainage within and adjacent to the Development Area and maintaining the water level in the Lake and the Ponds. The Corporation shall maintain the Drainage System to the extent not maintained by the Drainage Board and the Maintenance Costs thereof shall be assessed against all Lots_'subject to assessment serviced by that part of the Drainage System with respect to which -13- I I I I I I I I I I I I I I I I I I I Maintenance Costs are incurred. Each Owner shall be individually liable for the cost of maintenance of any drainage system located entirely upon his Lot and which is devoted exclusively to drainage of his Lot and is not maintained by the Drainage Board. 10. Common Liihtini. Declarant may, but is not obligated to, install Common Lighting in WestClay and may reserve easements for such purpose over and across Lots. If installed, the Corporation shall operate.and maintain the Common Lighting and, unless otherwise provided in a Supple~ental Declaration, the Maintenance Costs thereof shall be assessed as a General or Parcel Assessment against all Lots subject to assessment. . 11. Paths and Path Li~ts. Declarant may, but is not obligated to, install the Paths and Path Lights at the approximate locations depicted on the General Plan of Development and may reserve easements for such purpose over and across Lots. If installed, the Corporation shall operate and maintain the Paths and Path Lights and the Maintenance Costs thereof shall be assessed as a General Assessment against all Lots subject to assessment. The Board of Directors may adopt such rules and regulations with respect to the use of the Paths as it may deem appropriate including but not limited to the prohibition of the use of all or some of the Paths by bicycles, skateboards and/or motorized or non-motorized vehicles. 12. Private Drives and Private Gates. (a) Maintenance of Private Drives (Exclusive of Alleys). Unless otherwise provided in a Supplemental Declaration, each Private Drive (exclusive of alleys) shall be owned by the Corporation and maintained by the Corporation in good condition satisfactory for the purpose for which it was constructed. The Maintenance Costs incurred by the Corporation in maintaining a Private Drive shall be assessed against all Lots whose principal means of vehicular access to a public right-of-way or to the Village Center is over and across such Private Drive. Estimated Maintenance Costs, including a contribution to a reserve fund for future maintenance, repair and replacement of Private Drives, shall be included in each annual budget of the Corporation adopted pursuant to Paragraph 19(1). (b) Maintenance of Alleys. Unless otherwise provided in a Supplemental Declaration, the Corporation shall maintain all alleys and the Maintenance Costs incurred for such maintenance shall be assessed against all Lots served by alleys. (c) Maintenance of Private Gates. Private Gates shall be maintained by the Corporation. The Maintenance Costs incurred by the Corporation in maintaining Private Gates shall be assessed against all Lots whose principal access to a public right-of-way or to the Village Center is through a Private' Gate. -14- I I I I I I I I I I I I I I I I I I I 13. Entry Ways. Landscape Easements and Plantin~ Areas. (a) Entry Ways. The Corporation shall maintain the Entry Ways and all improvements and plantings thereon, and the Maintenance Costs thereof shall be assessed as a General Assessment against all Lots subject to assessment Grass, trees, shrubs and other plantings located on an Entry Way shall be kept neatly cut, cultivated or trimmed as reasonably required to maintain an attractive entranceto WestClay or a part thereof. All entrance signs located on an Entry Way shall be maintained at all times in good and sightly condition appropriate to a first-class residential community. (b ) Landscape Easements. Unless the Board of Directors (of the Corporation or the Association, as applicable) determines that all or some of the Landscape Easements shall be maintained by the Corporation and/or the Association and the Maintenance Costs thereof assessed as a General or Parcel Assessment, the Owner of each Lot upon which a Landscape Easement is located shall at hislher expense keep the grass, trees, shrubs and other plantings located on a Landscape Easement properly irrigated and neatly cut, cultivated or trimmed as reasonably necessary to maintain the same at all times in a good and sightly condition appropriate to a first-class residential subdivision and, if such Owner fails to do so, the Corporation or the Association, as applicable, may undertake such maintenance and assess the Maintenance Costs thereof as a Special Assessment against such Lot. (c) Planting AreaS. Following the expiration of the Warranty Period, the Corporation (or, if the Village Center Supplemental Declaration so provides with respect to Planting Areas in the Village Center Parcel, the Association) shall maintain the Planting Areas and the Maintenance Costs thereof shall be assessed as a General or Parcel Assessment. 14. Site Furniture and Facilities. Declarant may, but is not obligated to, construct, install or place Site Furniture and Facilities in WestClay. Ifit does so, title thereto shall be conveyed to a Permitted Title Holder. After conveyance to a Permitted Title Holder, unless otherwise specified in the instrument of conveyance, the Corporation (or, if the Village Center Supplemental Declaration so provides with respect to Site Furniture and Facilities in the Village Center Parcel, the Association) shall maintain the Site Furniture and Facilities and the Maintenance Costs thereof shall be assessed as a General or Parcel Assessment. 15. Round~Abouts.and Street Trees. (a) Round-Abouts. The Corporation shall maintain the Round-Abouts (exclusive of the street pavement, curbs and drainage structures and tiles unless they constitute a part of a Private Drive), and the Maintenance Costs thereof shall be assessed as a General Qr Parcel Assessment. -15- I I I I I I I I I I I I I I I I I I I (b ) Street Trees. Declarant shall plant Stree~ Trees within Planting Areas adjacent to such of the Principal Streets as are constructed by Declarant and in Community Areas adjacent to other streets constructed in WestClay. Each Owner shall, within the time specified in the Building Guidelines, plant within a Planting Area adjacent to the Owner's Lot that number of Street Trees as are depicted on such Lot on the Development Plan, such Street Trees to be of a size and species designated by the Architectural Review Board or the Design Review Board, as applicable, and to be planted at locations specified on the landscaping plan submitted by the Owner to and approved by the applicable Board. Declarant, the Corporation or the Association may plant additional Street Trees on any Lot. (c) . Maintenance of Street Trees. During the Warranty Period, all dead or dying Street Trees, installed new, transplanted, or designated on the Lot Development Plan as existing trees to be retained, shall be replaced by the person. responsible for causing such Street Trees to be planted. Following the expiration of the Warranty Period for a Street Tree, unless otherwise provided in a Supplemental Declaration, the Corporation shall maintain and, if necessary, replace the Street Tree, and the Maintenance Cost thereof shall be assessed as a General Assessment against all Lots subject to Assessment. 16. Common Parkin~ Lots. Declarant shall construct such Common Parking Lots as it deems desirable. The Association shall maintain the Common Parking Lots located in the'Village Center, including the exterior and interior landscaping required by the Zoning Ordinance, and the Maintenance Costs thereof shall be assessed as a Parcel Assessment as provided in the Village Center Supplemental Declaration. The Corporation shall maintain all other Common Parking Lots, including the exterior and interior landscaping required by the Zoning Ordinance, and the Maintenance Costs thereof shall be assessed against all Lots which derive a substantial benefit from the availability of parking in such other Common Parking Lots, as determined in the reasonable discretion of the Board of Directors of the Corporation. The Association may allocate to the Corporation a portion of the Maintenance Costs of Common Parking Lots in the Village Center which serve a Village Community Building as provided in the Village Center Supplemental . Declaration and the amount so allocated shall be included in the General Assessment against all Residential Lots subject to assessment 17. Open Space. A Permitted Title Holder shall not change the use of any Park, Commons or other area designated by Declarant as open space conveyed to the Permitted Title Holder by Declarant from the use being made thereof at the time of conveyance without the prior , consent or approval of the Zoning Authority. 18. Villag-e of We stC1 a:y Owners Association. In~. (a) Membership. Each Owner shall automatically be a Member and shall enjoy the privileges and be bound by the obligations contained in the Articles and By-Laws. If a Person ~ou1d realize upon his security and become an Owner, he shall ..16- I I I I I I I I I I I I I I I I I I I then be subject to all the requirements and limitations imposed by this Declaration on other Owners, including those provisions with respect to the payment of Assessments. (b ) Powers. The Corporation shall have such powers as are set forth in this Declaration, all Supplemental Declarations and in the Articles, together with all other powers that belong to it by law. (c) Members. Classes of Members. The Corporation shall have a single class of (d) yotini and Other Ri~hts of Members. The voting and other rights of Members shall be as specified in the Articles and By-Laws; provided, however, that the Owners of Lots in each Electoral Parcel shall be entitled to elect a Person to serve as a Director representing such Electoral Parcel on the Board of Directors in the manner specified in the Code of By-Laws of the Corporation. (e) Reserve for ReJ'lacements. The Board of Directors shall establish and maintain the Reserve for Replacements by the allocation and payment to such reserve fund of an amount determined annually by the Board to be sufficient to meet the cost of periodic maintenance, repair, renewal and replacement of the Community Area and the Common Facilities to the extent the Corporation is responsible for the maintenance thereof. In determining the amount, the Board shall take into consideration the expected useful life of the Community Area and the Common Facilities, projected increases in the cost of materials and labor, interest to be earned by such fund and the advice of Declarant or such consultants as the Board may employ. The Reserve for Replacements shall be deposited in a special account with a lending institution the accounts of which are insured by an agency of the United States of America or may, in the discretion of the Board, be invested in obligations of, or fully guaranteed as to principal by, the United States of ' America. Prior to the Applicable Date, funds from the Reserve for Replacements may be ~thdrawn and applied at the direction of Declarant to meet the costs of periodic maintenance, repairs, renewal or replacement of the Community Area and the Common Facilities. (f) Debt Service Account. The Board of Directors shall establish and maintain a separate account for the payment of principal, interest and other charges on account of Community Area Secured Indebtedness. Community Area Debt Service Assessments shall be deposited to said account and disbursed solely for the purpose of payments on account of Community Area Secured Indebtedness. The debt service account shall be maintained in a lending institution the accounts of which are insured by an ag~ncy of the United States of America or may, in the discretion of the Board, be invested in obligations of, or fully guaranteed as to principal by, the United States of America Prior to the Applicable Date, funds from -17- I I I I I I I I I I I I I I I I I I I the debt service account may be withdrawn and applied at the direction of Declarant to make payments on account of Community Area Secured Indebtedness. (g) Maintenance Standards. In each instance in which this Declaration or a Supplemental Declaration imposes on the Corporation a maintenance obligation with respect to the Community Area or the Common Facilities or a part thereof, the Corporation shall maintain the Community Area., Commc;>n Facilities or designated part thereof in good condition, order and repair substantially comparable to its condition when originally constructed, installed or planted and compatible in appearance and utility with a first-class residential community. Grass, trees, shrubs and other plantings located on the Community Area for which the Corporation has maintenance responsibility shall be kept properly irrigated and neatly cut, cultivated or trimmed as reasonably required and otherwise maintained at all times in good and sightly condition appropriate to a first-class residential community. In each fiscal year subsequent to the Applicable Date the Corporation shall make expenditures to Maintain the Community Area and Common Facilities located in the Village Center in an amount not less than the Village Center Maintenance Amount established pursuant to Paragraph 19(1)(3). . (h) Insurance. Taxes and Utilities. The Corporation shall maintain public liability and casualty insurance in prudent amo~ts insuring against risk of loss to the Corporation on account of injury to person or property and damage to property owned by the Corporation and shall pay all taxes assessed against such property and all utility charges incurred with respect to Community Area for which the Corporation has maintenance responsibility . (i) Limitations on Action by the Co(poration. Unless at least two-thirds (2/3) of the Mortgagees (based on one vote for each first mortgage owned) or two- thirds (2/3) of the Members have given their prior written approval, a Permitted Title Holder, the Board of Directors and the Owners may not: (i) except as authorized by Paragraph 21(a) (but subject to the limitations of Paragraph 17), by act or omission seek to abandon, partition, subdivide, encumber, sell or transfer the Community Area (but the granting of easements for public utilities or other public purposes consistent with the intended use of the Community Area shall not be deemed a transfer for the purposes of this clause); (ii) fail to maintain fire and extended coverage insurance on insurable Community Area and Comm9n Facilities on a current replacement cost basis in the amount of one hundred percent (100%) of the insurable value (based on current replacement cost); (iii) use hazard insurance proceeds for losses to. any Community Area or Common Facilities for other than the repair, replacement- or reconstruction of the Community Area or Common Facilities; (iv) 'subject to Paragraph 19(b)(ii)(5), the last sentence of Paragraph 19(b)(iv) and 19(1)(iii), change the method of determining the obligations, Assessments, dues or other charges that may be levied against the Owner of a Unit; (v) by act or omission change, waive or abandon any scheme_ of regulations or their enforcement pertaining to the -18- I I I I I I I I I I I I I I I I I I I architectural design or the exterior appearance of Units, or the maintenance and upkeep of the Community Area and Common Facilities; or (vi) fail to maintairi the Reserve for Replacements in the amount required by this Declaration or any Supplemental Declaration. G) Met:iers. Upon a merger or consolidation of another corporation with the Corporation, its properties, rights and obligations may, as provided in its articles of incorporation, by operation of law be transferred to another surviving or consolidated corporation or, alternatively, the properties, rights and obligations of another corporation may by operation of law be added to the properties, rights and obligations of the Corporation as a surviving corporation pursuant to a merger. The surviving or consolidated corporation may administer the covenants and restrictions established by this Declaration within the Tract together with the covenants and restrictions established upon any other properties as one scheme. No merger or consolidation, however, shall effect any revocation, change or addition to the covenants established by this Declaration within the Tract except as hereinafter provided. 19. Assessments. (a) Creation of the Lien and Personal Obliiation of Assessments. Declarant hereby covenants, and each Owner of any Lot by acceptance of a deed thereto, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Corporation the following: (1) General Assessments, (2) the Community Area Initial Assessment, (3) Community Area Debt Service Assessments, (4) annual and special Parcel Assessments, (5) Architectural Control Assessments (to the extent levied) and (6) Special Assessments, such Assessments to be established and collected as hereinafter provided. If two (2) or more Lots originally shown on a Plat are consolidated as a single Lot by virtue of partial vacation of a Plat, or if a Lot is divided by conveyance of portions thereof to owners of adjacent Lots, then, in either such event, so long as the consolidated or divided Lot is used in its entirety by one or more Owners of contiguous Lots, the vacated or divided Lot(s) shall cease to be Lot(s) for purposes of Assessments under this Paragraph 19. All Assessments, together with interest thereon and costs of collection thereof, shall be a charge on the land and shall be a continuing lien upon the Lot against which each Assessment is made until paid in full. Each Assessment, together with interest thereon and costs of collection thereof, shall also be the personal obligation of the Person who was the Owner of the Lot at the time when the Assessment became due. \ -19- I I I I I I I I I I I I I I I I I I I incurred in satisfying any requirements imposed on the Corporation by a Supplemental Declaration relating to a Parcel. Any Special Assessment pursuant to this clause (ill) shall be allocated equally among all Lots in the Parcel except those exempt from the General Assessment (f) Archit~cturaI COl\trol Asses$IIlent If any Owner or Person acting for or on behalf o~ or pursuant to the authorization or acquiescence of, an Owner fails to comply with Building Guidelines or other requirements for construction of improvements, landscaping and other Building Activities or maintenance' of a Lot (including but not limited to installation of required Street Trees or the filing of a Lot Development Plan) or any restrictive covenant or condition specified in a Supplemental Declaration for the Parcel in which such Owner's Lot is located (exclusive of the Village Center Parcel) and/or the provisions of Paragraphs 20 or 22 of this Declaration, then the Corporation may levy against the Lot owned by such Owner an Assessment in an amount determined by the Board of Directors which does not exceed the greater of (i) Five Hundred Dollars ($500.00) for each day that such failure continues after written notice thereof is given by Declarant or the Corporation to such Owner or (ii) One Hundred Thousand Dollars ($100,000.00). Such Assessment shall constitute a lien upon the Lot of such Owner and may be enforced in the manner provided in subparagraph (i) below. The levy of an Architectural Control Assessment shall be in addition to, and not in lieu of, any other remedies available to Declarant and/or the Corporation provided in this Declaration, at law or in equity in the case of the failure of an Owner to comply with the provisions of this Declaration and all applicable Supplemental Declarations (exclusive of the Village Center Supplemental Declaratio~). (g) Special Asse~sment In addition to such other Special Assessments as may be authorized herein, the Corporation may levy in any fiscal year a Special Assessment applicable to that year and not more than the next four (4) succeeding fiscal years for the purpose of defraying, in whole or in part, the cost of any construction, repair, or replacement of a capital improvement upon the Community Area, .including fixtures and personal property relating thereto or any Common Facilities, provided that any such Assessment shall have the assent of a majority of the votes of the Members whose Lots are subject to assessment with respect to the capital improvement who are voting in person or by proxy.at a meeting of Members duly called for this purpose. Any Special Assessment pursuant to this subparagraph (g) shall be allocated equally among all Lots in the Tract except those exempt from the General Assessment (h) Date ofComm~nceIIl~n~ ofAssessmen~. The General Assessment and Parcel Assessments (exclusive of Parcel Assessments applicable to Commercial Lots in the Village Center Parcel) shall commence with respect to assessable Lots within a Parcel on the first day of the month following conveyance of the first Lot in -26- I I I I I I I I I I I I I I I I I I I the Parcel to an Owner who is not Declarant The initial Assessment on any assessable Lot shall be adjusted according to the days remaining in the month in which the Lot became subject to assessment. Notwithstanding the foregoing, if an Owner owns more than two (2) unimproved Residential Lots or one (1) or more unimproved Commercial Lots, the General Assessment shall not commence with respect to such unimproved Lot(s) until the earlier of (i) the date the Owner completes construction of a Unit, Multifamily Structure or Multiuse Structure thereon or (ll) the first day of the ninth month following the date the Owner acquired title to the Lot(s). (i) Effect of~onpayment of Asse.ssments: Remedies of the Coworatjon. Any ASsessment not paid within thirty (30) days after the due date may upon resolution of the Board of Directors bear interest from the due date at a percentage rate no greater than the current statutory maximum annual interest rate, to be set by the Board of Directors for each assessment year. The Corporation shall be entitled to institute in any court of competent jurisdiction any lawful action to collect a delinquent Assessment plus any expenses or costs, including attorneys' fees, incUITed by the Corporation in collecting such Assessment. If the Corporation has provided for collection of any Assessment in installments, upon default in the payment of any one or more installments, the Corporation may accelerate payment and declare the entire balance of said Assessment due and payable in full. No Owner may waive or otherwise escape liability for the Assessments provided for herein by nonuse of the Community Area or the Common Facilities or abandonment of his Lot. G) SqbordinatjOll of the Lien to MortiDi~s. To the extent specified herein, the lien of the Assessments provided for herein against a Lot shall be subordinate to the lien of any recorded :first mortgage covering such Lot and to any valid tax or special assessment lien on such Lot in favor of any governmental taxing or assessing authority. Sale or transfer of any Lot shall not affect the assessment lien. The sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding . in lieu thereof shall, however, extinguish the lien of such Assessments as to payments which became due more than six (6) months prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any Assessments thereafter becoming due or from the lien thereof: (k) Certificates. The Corporation shall, upon demand by an Owner, at any time, furnish a certificate in writing signed by an officer of the Corporation that the Assessments on a Lot have been paid or that certain Assessments remain unpaid, as the case ~ay be. -27- I I I I I I I I I I I I I I I I I I I 20. Architectural Control. (a) The Architectural Review Board. An Architectural Review Board consisting of three (3) or more Persons as specified in the By-Laws shall, prior to the Applicable Date, be appointed by Declarant Thereafter, the Architectural Review Board shall be appointed by the Board of Directors of the Corporation. (b) Ptu:poSC. The Architectural Review Board shall regulate the external design, appearance, use, location and maintenance of the Tract (exclusive of the Village Center Parcel) and of all improvements thereon in such manner as to preserve and enhance values, to maintain a harmonious relationship among structures, improvements and the natural vegetation and topography, to implement the development standards and guidelines set forth in the Zoning Ordinance and to assure compliance with the Building Guidelines established 'by Declarant or the Architectural Review Board for WestClay (exclusive of the Village Center Parcel). (c) Buildini Activity. Except as otherwise expressly provided in this Declaration or a Supplemental Declaration, and excluding from the provisions of this Paragraph 20 all Commercial Lots located in the Village Center Parcel, no improvements, alterations, repairs, chan.ge of colors, excavations, changes in grade, planting, installation or modification of signage or other work that in any way alters any Lot or the exterior of the improvements located thereon from its natural or improved state existing on the date such Lot was first conveyed in fee by Declarant to another Owner (including, but not limited to, (i) construction, erection or alteration of any Unit, Multifamily Structure, Multiuse Structure, other building, fixture, equipment, fence, wall, deck, swimming pool, ball court, patio, parking area, or other structure on a Lot, or (ii) any plantings, other landscaping or exterior lighting on a Lot, (Hi) the installation or alteration of any signage on any Lot, Unit, Multifamily Structure or Multiuse Structure, or (iv) the removal of any Significant Tree from a Lot, shall be made or done without the prior approval of the Architectural Review Board of a Lot Development Plan therefor. Prior to commencement by any Owner other than Declarant of any Building Activity a Lot Development Plan with respect thereto shall be submitted to the Architectural Review Board, and no Building Activity shall be commenced or continued by any Person other than Declarant without the prior written approval of the Architectural Review Board of a Lot Development Plan relating to such Building Activity. Such approval shall be in addition to, and not in lieu ot: all approvals, consents, permits and/or variances required by law from governmental authorities. having jurisdiction over WestClay, and no Owner shall undertake any construction activity within WestClay unless all legal requirements have been satisfied. Approval by the Architectural Review Board of a Lot Development Plan shall not be deemed to imply compliance with approvals, consents, permits and/or variances required by law from governmental authorities having jurisdiction over the Tract Each Owner shall complete all improvements to a Lot strictly in accordance with the Lot Development Plan approved by the -29- I I I I I I I I I I I I I I I I I I I Architectural Review Board As used in this subparagraph (c), "plantings" does not include flowers, bushes, shrubs or other plants having a height of less than eighteen (18) inches. (d) Procedures. In the event the Architectural Review Board fails to approve, modify or disapprove in writing a Lot Development Plan within sixty (60) days after notice of such plan has been duly filed with the Architectural Review Board in accordance with procedures established by Declarant or, subsequent to the Applicable Date, the Board of Directors, approval will be deemed denied. A decision of the Architectural Review Board (including a denial resulting from the failure of such Board to act on the plan within the specified period) may be appealed to the Board of Directors which may reverse or modify such decision (including approve a Lot Development Plan deemed denied by the failure of the Architectural Review Board to act on such plan within the specified period) by a two-thirds (213) vote of the Directors then serving. (e) Guidelines and Standards. The Architectural Review Board shall have the power to establish and modify from time to time such written architectural, landscaping, lighting, fencing, recreational facility and signage design guidelines and standards as it may deem appropriate to achieve the purpose set forth in subparagraph (b) to the extent that such design ~delines and standards are not in conflict with the specific provisions of this Declaration, the Zoning Ordinance or, prior to the Applicable Date, the Building Guidelines established by Declarant. Any such guideline or standard may be appealed to the Board of Directors which may terminate or modify such guideline or standard by a two-thirds (2/3) vote of the Directors then serving. The Building Guidelines may establish different standards and requirements for various Lots within WestClay based on the size, location and use of such Lots and the improvements to be located thereon. (f) J\pJ'lication of Guidelines and Standards. The Architectural Review Board shall apply the Building Guidelines in a fair, uniform and reasonable manner consistent with the discretion inherent in the design review process. In disapproving any Lot Development Plan, the Architectural Review Board shall furnish the applicant with specific reasons for such disapproval and may suggest modifications in such plan which would render the plan acceptable to the Board if resubmitted. (g) Design Consultants. The Architectwal Review Board may utilize the services of architects, engineers and other Persons possessing design expertise and experience in evaluating Lot Development Plans. No presumption of any conflict of interest or impropriety shall be drawn or assumed by virtue of the fact that any of such consultants are affiliated with Declarant or a Designated Builder or may, from time to time, represent Persons filing Lot Development Plans with the Architectural Review Board. -30- I I I I I I I I I I I I I I I I I I I (h) Existing Violations of Declaration. The Architectural Review Board shall not be required to consider any Lot Development Plan submitted by an Owner who is, at the time of submission o.f such Lot Development Plan, in violation of the requirements of a Supplemental Declaration relating to the Parcel in which such Owner's Lot is located and/or the provisions of the Zoning Ordinance or this Paragraph 20, unless such Owner submits to the Architectural Review Board with such Lot Development Plan an irrevocable agreement and undertaking (with such surety as the Board may reasonably require) to remove from the Owner's Lot any improvements, landscaping, exterior lighting or signage constructed and/or installed prior to the submission of a Lot Development Plan (or constructed and/or installed in violation of a previously approved Lot Development Plan) to the extent any such previously const:mcted and/or installed improvement, landscaping, exterior lighting or signage is not subsequently approved by the Architectural Review Board. The Architectural Review Board shall have the power to recommend to the Board of Directors that the Corporation assess an Architectural Control Assessment against any Owner who fails to comply with the requirements of a Supplemental Declaration (other than the Village Center Supplemental Declaration), Paragraph 20 of this Declaration or the provisions of the Zoning Ordinance. Under no circumstances shall any action or inaction of the Architectural Review Board be deemed to be unreasonable, arbitrary or capricious if: at the time, of such decision, the Person having submitted a Lot Development Plan for approval by the Architectural Review Board has violated a Supplemental Declaration, Paragraph 20 of this Declaration or the provisions of the Zoning Ordinance and such violation remains uncured. (i) Exercise of Discretion. Declarant intends that the members of the Architectural Review Board exercise discretion in the performance of their duties consistent with the provisions of subparagraph (f), and every Owner by the purchase of a Lot shall be conclusively presumed to have consented to the exercise of discretion by such Inembers. In any judicial proceeding challenging a detennination by the Architectural Review Board and in any action initiated to enforce this Declaration in. which an abuse of discretion by the Architectural Review Board is raised as a defense, abuse of discretion may be established only if a reasonable Person, weighing the evidence and drawing all inferences in favor of the Board, could only conclude that such determination constituted an abuse of discretion. G) Liability of Boarq. Neither the Architectural Review Board or any member or agent thereof, nor Declarant shall be responsible in any way for any defects in any plans, specifications or other materials submitted to it, nor for any defects in any work done according thereto. Further, the Board does not make, and shall not be deemed by virtue of any action of approval or disapproval taken by it to have made, any representation or warranty as to the suitability or advisability of the design, the engineering, the method of construction involved, or the materials to be used. -31- I I I I I I I I I I I I I I I I I I I (k) Ins.pection. Members of the Architectural Review Board may inspect work being performed to assure compliance with these Restrictions and applicable regulations. 21. Community Area and Common Facilities. (a) Ownership. The Community Area and the Common Facilities shall re~ain private, and neither Declarant's execution or recording of an instrument portraying the Community Area, nor the doing of any other act by Declarant is, or is intended to be, or shall be construed as, a dedication to the public of the Community Area or the Common Facilities. Declarant, the Corporation or the Association may, however, dedica~e or transfer all or any part of the Community Area or the Common Facilities to any Permitted Title Holder for parks or other public purposes, to the City of Carmel or the County of Hamilton for use as public rights-of-way or to a public utility for public utility purposes, and Declarant may transfer all or any part of the Community Area to a Permitted Title Holder as contemplated by this Declaration. (b) Density of Use. Declarant expressly disclaims any warranties or representations regat"ding the density of use of the Community Area or any facilities located thereon or constituting a part thereof. (c) Obligations of the COlj)oration. The Corporation, subject to the rights of Declarant, the Association and the Owners set forth in this Declaration and the rights of any Permitted Title Holder established in an instrument conveying title to any part of the Common Area, shall be responsible for the exclusive management and control of the Community Area and all improvements thereon (including Common Facilities and other furnishings and equipment related thereto), and, except as otherwise provided herein, in a Supplemental Declaration, or in an instrument of conveyance to a Permitted Title Holder, shall keep the Community Area and Common Facilities in good, clean, attractive and sanitary condition, order and repair. The Corporation may, with the consent of the Board of Directors of the Association, transfer to the Association responsibility for management, control andlor maintenance of Community Area and Common Facilities located in the Village Center. (d) Easements ofEnioyment. (i) Owners. No Person shall have any right or easement of enjoyment in - or to the Community Area' except to the extent granted by, and subject to the terms and provisions of, this Declaration or a Supplemental Declaration. Such rights and easements'. as are thus granted shall be appurtenant to and shall pass with the title to every Lot for whose benefit they are granted. Unless otherwise provided in a Supplemental Declaration or a Plat, all -32- I I I I I I I I I I I I I I I I I I I Owners may use the Paths, the Village Community Buildings, the Parks and the Commons and the Site Furniture and Facilities located thereon or therein, subject to the reserved rights of Declarant, the Corporation and the Association. The Owners of Lots abutting the Lake or a Pond may use the Lake or Pond which abuts such Owner's Lot, but such use shall be limited to fishing and such other uses as may be authorized by resolution adopted by the Board' of Directors. Subject to restrictions on points of access, the Lake and the Ponds · may be used by all Owners, but only for fishing and such other purposes as may be authorized by the Board of Directors. No Owner whose Lot does not abut the Lake or a Pond shall have any right of access to the Lake or a Pond over any Lot, but only such right of access over the C,ommunity Area as may be designated on a Plat or by the Board of Directors for such purpose. (ll) OCCllp{lUtS. Occupants who are not also Owners may use and enjoy the Community Area only to the extent specified in subparagraph (f) or as explicitly authorized elsewhere in this Declaration, in a Supplemental Declaration or by the Board of Directors. Occupants shall have the same rights as Owners to the use of the Paths, the Village Community Buildings, the Parks and the Commons except that the Board of Directors may restrict or preclude the use of the Recreation Centers by Occupants of Commercial Units and Multifamily Structures if no part of the Maintenance Costs of the Recreation Centers are assessed to Owners of Commercial Units or Multifamily Structures. To the extent Owners of Lots that do not abut the Lake or a Pond are granted rights of access to the Lake or a Pond over Community Area designated for that purpose, Occupants (other than Occupants of Commercial Units) shall enjoy the same rights. In the adoption of rules and regulations relating to the use of Community Area and Common Faciliti~s, the Board of Directors of the Corporation or Association, as applicable, shall not discriminate against Occupants of Multifamily Structures or of Living Units located in Multiuse Structures but may restrict or preclude use of the Recreation Centers by such Occupants as heretofore provided. (e) Extent of Easements. The easements of enjoyment created hereby shall be subject to the following: (i) the right of the Corporation and/or the Association to establish reasonable rules for the use of the Community Area (including but not limited to use of identification cards) and to charge reasonable fees for the use of any meeting or banquet facilities (but -33- I I I I I I I I I I I I I I I I I I I and voting at a duly constituted meeting of the Members, agreeing to such dedication or transfer, has been recorded; and (vii) the right of Declarant in any Supplemental Declaration or Plat to restrict the use of Community Area and/or Common Facilities located in a Section or Parcel to (a) Owners and/or Occupants of Units, Multifamily Structures or Multiuse Structures located in such Section or Parcel or (b) to other Owners of less than all of the Lots in the Tract (f) Adgitional Riihts of Use. The members of the family of every Person who has a right C?f enjoyment to all or part of the Community Area and the Common Facilities may use the Community Area and the Common Facilities (or part thereof) on the same terms and subjectto the same limitations as such Person subject to the terms of any instrument of conveyance of such Community Area or Common Facilities to a Permitted Title Holder and to such general regulations consistent with the provisions of this Declaration and all Supplemental Declarations as may be established from time to time by the Corporation and/or the Association and included within the Register of Regulations. Except as otherwise provided herein or in a Supplemental Declaration, the Corporation or the Association may restrict use of the Community Area and Common Facilities by' guests of Persons whose use thereof is authorized herein. (g) paIl\8.ge or DestructiQtl by Qwner. In the event the Community Area or any Common Facility is damaged or destroyed by an Owner or any of his guests, tenants, licensees, agents, or member of his family, such Owner authorizes the Corporation to repair said damaged area and the Corporation shall repair said damaged area in a good workmanlike manner in conformance with the original plans and specifications of the area involved, or as the area may have been modified or altered subsequently by the Corporation in the discretion of the Corporation. An amount equal to the costs incurred to effect such repairs shall be assessed against such Owner as a Special Assessment and shall constitute a lien upon the Lot of said Owner. (h) CQDveY311ce of Title. Declarant may retain the legal title to the Community Area and the Common Facilities until the Applicable Date, but notwithstanding any provision herein, the Declarant hereby covenants that it shall convey such of the Lake, the Ponds, the Private Drives (exclusive of alleys), the Village Community Buildings, the Parks, the Commons and the ,Common Facilities which Declarant acquires, develops or constructs and such other of the Community Area to which Declarant holds title to a Permitted Title Holder, free and clear of all liens and other financial encumbrances exclusive of liens securing Community Area Secured Indebtedness and the lien for taxes not yet due and payable, not later than the Applicable Date. -35- I I I I I I I I I I I I I I I I I I I and repair and free of debris including, but not limited to, the seeding, watering, and mowing of all lawns, the pruning and cutting of all trees and shrubbery and the painting (or other appropriate external care) of all buildings and other improvements, all in a manner and with such frequency as is consistent with good property management as determined by the Architectural Review Board. In the event an OWner of any Residential Lot in the Tract shall fail to maintain the premises and the improvements situated thereon, as provided herein, the Corporation, after notice to the Owner as provided by the By-Laws and approval by two-thirds {213) vote of the Board of Directors, shall have the right to enter upon said Lot to correct drainage and to repair, maintain and restore the Lot and the exterior of the buildings and any other improvements erected thereon. All costs related to such correction, repair or restoration shall, become a Special Assessment upon such Lot. 23. Easements. (a) Plat Easements. In addition to such easements as are created elsewhere in this Declaration or in a Supplemental Declaration and as may be created by Declarant pursuant.to other written instruments recorded in the office of the Recorder of Hamilton County, Indiana, Lots are subject to drainage easements, sewer easements, utility easements, entry way easements, landscape easements, water access easements, community area access easements, pathway easements and nonaccess easements, either separately or in any combination thereof, as shown on the Plats, which are reserved for the use of Declarant, Owners, the Corporation, the Architectural Review Board, public utility companies and governmental agencies as follows: (i) Drainage Easements (DE) are created to provide paths and courses for area and local storm drainage, either overland or in adequate underground conduit, to serve.the needs of We stC lay and adjoining ground and/or public drainage systems; and it shall be the individual responsibility of each Owner to maintain the drainage across his own Lot. Under no circumstance shall said easement be blocked in any manner by the construction or reconstruction of any improvement, nor shall any grading restrict,' in any manner, the waterflow. Said areas are subject to construction or reconstruction to any extent necessary to obtain adequate drainage at any time by any governmental authority having jurisdiction over drainage, by Declarant, and by the Architectural Review Board, but neither Declarant nor the Architectural Review Board shall have any duty to undertake any such construction or reconstruction. Said easements are for the mutual use and benefit of the Owners. (ii) Sewer Easements (SE) are created for the use of the local governmental agency having jurisdiction over any storm and -37- I I I I I I I I I I I I I I I I I I I (x) Alley E~ements (AE) are created to afford public access over Private Drives to the rear or side of Lots and for all uses specified in the case of utility easements. All easements mentioned herein include the right of reasonable ingress and egress for the exercise of other rights reserved. No structure, including fences, shall be built on any drainage, sewer or utility easement if such structure would interfere with the utilization of such easement for the. purpose intended or violate any applicable legal requirement or the terms and conditions of any easement specifically granted to a Person who is not an Owner by an instrument recorded in the Office of the Recorder of Hamilton County, Indiana, but a paved driveway necessary to provide access to a Lot from a public street or Private Drive and a sidewalk installed by or at the direction of Declarant (and replacements thereof) shall not be deemed a "structure" for the purpose of this Restriction. (b) General Easement There is hereby created a blanket easement over, across, through and under the Tract for ingress, egress, installation, replacement, repair and maintenance of underground utility and service lines and systems, including but not limited to water, sewers, gas, telephones, electricity, television, cable or communication lines and systems. By virtue of this easement it shall be expressly permissible for Declarant or the providing utility or service company to install and maintain facilities and equipment on the Tract and to excavate for such purposes if Declarant or such company restores the disturbed area as nearly as is practicable to the condition in which it was found. No sewers, electrical lines, water lines, or other utility service lines or facilities for such utilities may be installed or relocated in a Section or Parcel except as proposed and approved by Declarant prior to the Applicable Date or by the Architectural Review Board thereafter. Should any utility furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, Declarant or the Corporation shall have the right to grant such easement on the Tract without conflicting with the terms hereof. This blanket easement shall in no way affect any other recorded easements on the Tract, shall be limited to improvements as originally constructed, and shall not cover any portion of a Lot upon which a Unit, Multifamily Structure or . Multiuse Structure has been constructed or is proposed for construction pursuant to a Lot Development Plan which has been approved by the Architectural Review Board or the Design Review Board. (c) Pqblic Health and Safety ~eIDents. An easement is hereby created . for the benefit of, and granted to, all police, fIre protection, ambulance, delivery vehicles, and all similar Persons to enter upon the Community Area in the performance of their duties. (d) Drainage Bo~d Easemeut. An easement is hereby created for the benefit of, and granted to, the Drainage Board to enter the Tract and all Lots therein -39- I I I I I I I I I I I I I I I I I I I to the extent necessary to exercise its rights with respect to any legal drain constituting a part of the Drainage System. (e) Crossini Underground Easements. Easements utilized for underground service may be crossed by driveways, walkways, Paths, Water Access Easements and Community Area Access Easements provided prior arrangements are made with the utility company furnishing service. Such easements as are actually utilized for underground service shall be kept clear of all other improvements, including buildings, decks, patios, or other pavings, other than crossings, driveways, walkways, Paths, Water Access Easements or Community Area Access Easements, and neither Declarant nor any utility company using the easements shall be liable for any damage done by either of them or their assigns, agents, employees, or servants to shrubbery, trees, flowers or other improvements of the Owner located on the land covered by said easements. (f) D~claI'aIlfs Easement to Correct Drain~e. For a period often (10) years from the date of conveyance of the first Lot in a Section or Parcel, Declarant reserves a blanket easement and right on, over and under the ground within that Section or Parcel to maintain and to correct drainage of surface water in order to maintain reasonable standards of health, safety and appearance. Such right expressly includes the right to cut any trees, bushes or shrubbery, make any gradings of the soil, or to take any other similar action reasonably necessary, following which Declarant shall restore the affected property to its original condition as nearly as practicable. Declarant shall give reasonable notice of its intention to take such action to all affected Owners, unless in the opinion of Declarant an emergency exists which precludes such notice. (g) Water R.,etentiQn. The Owner of each Lot, by acceptance of a deed thereto, consents to the temporary storage (detention) of storm water within the drainage easements (DE) on such Owner's Lot. 24. Use of Lots Durin~ Development. (a) By Declarant. Notwithstanding any provisions to the contrary contained herein or in any other instrument or agreement, Declarant or its sales agents or contractors, or any Designated Builder, may maintain during the period of construction and sale or rental of Lots and Units in the Tract or the Development Area, upon such portion thereof as is owned or leased by Declarant or any Designated Builder, such facilities as in the sole opinion of Declarant may be reasonably required, convenient or incidental to the construction, sale or rental of Lots and Units, including, but without limiting the generality thereof, a business office, storage area, construction yards, signs, model Units and sales or leasing offices. Declarant specifically reserves the right to maintain a sales office in, and make other use of, the -40- I I I I I I I I I I I I I I I I I I I Village Community Buildings during the period that it is engaged in the sale of Lots in WestClay. (b) By auilden:;. Notwithstanding any prOVISIOns to the contrary contained herein, a builder who has constructed a Living Unit in W estClay may, with the prior consent of the Board of Directors, use such Living Unit as a "model" home and may hold such home open to the public, either individually or as part of a "home show" approved by the Board of Directors for such reasonable period as the Board of Directors may specify. With the approval of DeClarant and the consent of the Owner thereof, undeveloped Lots adjacent to or in proximity to such model home may be used for parking by visitors to such model home. 25. Enfoq(CIUent.. The Corporation, any Owner or Declarant shall have the right to enforce, by proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration and of any Supplemental Declarations, but neither Declarant nor the Corporation shall be liable for damage of any kind to any Person for failure either to abide by, enforce or carry out any of the Restrictions. No delay or failure by any Person to enforc~ any of the Restrictions or to invoke any available remedy with respect to a violation or violations thereof shall under any circumstances be deemed or held to be a waiver by that Person of the right to do so thereafter, or an estoppel of that Person to assert any right available to him upon the occurrence, recurrence or continuation of any violation or violations of the Restrictions. In any action to enforce this Declaration, the Person seeking enforcement shall be entitled to recover all costs of enforcement, including attorneys' fees, if it substantially prevails in such action. 26. LimiUltio~ on Ri~hts of the COl:PoratiQn. Prior to the Applicable Date, the Corporation may not use its resources nor take a public position in opposition to the General Plan of Development or to changes thereto proposed by Declarant. Nothing in this paragraph shall be construed to limit the rights of the Members acting as individuals or in affiliation with other Members or groups as long as they do not employ the resources of the Corporation or identify themselves as acting in the name, or on the behalf: of the Corporation. 27. Awroval~ by Qeclaran.:t. Notwithstanding any other provisions hereof, prior to the Applicable Date, the following actions shall require the prior approval of Declarant: the addition of real estate to the Tract; dedication or transfer of the Community Area; mergers and consolidations of Sections or Parcels within the Tract or of the Tract with other real estate; mortgaging of the Community Area; amendment of this Declaration or any Supplemental Declaration; changes in the basis for assessment or the amount, use and time of payment of the Community Area Initial Assessment; and the adoption or modification of Building Guidelines. 28. Mortgages. (a) Notice to Col:P orati on. Any Owner who places a first mortgage lien upon his Unit, Multifamily Structure or Multiuse Structure or the Mortgagee shall · -41- I I I I I I I I I I I I I I I I I I I notify the Secretary of the Board of Directors of such mortgage and provide the name and address of the Mortgagee. A record of such Mortgagee's name and address shall be maintained by the Secretary and any notice required to be given to the Mortgagee pursuant to the tenns of the Declaration, any Supplemental Declaration, the Articles or the By-Laws (the "Organizational Documents") shall be deemed effectively given if mailed to such Mortgagee at the address shown in such record in the time provided. Unless notification of any such mortgage and the name and address of Mortgagee are furnished to the Secretary, either by the Owner or the Mortgagee, no notice to any Mortgagee as may be otherwise required by the Organizational Documents shall be required and no Mortgagee shall be entitled to vote by virtue of the Organizational Documents or a proxy granted to such Mortgagee in connection with the mortgage. (b) Notice~ to Mortllagees. The Corporation shall promptly provide to any Mortgagee of whom the Corporation has been provided notice under subparagraph (a) above notice of any of the following: (i) Any condemnation or casualty loss that affects a material portion of the Community Area; (ii) Any delinquency in the payment of any Assessment owed by the Owner of any Unit, Multifamily Structure or Multiuse Structure on which said Mortgagee holds a mortgage or any default by an Owner under the Organizational Documents, if said delinquency or default continues for more than sixty (60) days; (iii) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Corporation; (iv) Any proposed action that requires the consent of a specified percentage of Mortgagees; and, (v) Any proposed amendment of the Organizational Documents effecting a change in (A) the interests in the Community Area appertaining to any Lot or the liability for Maintenance Costs appertaining thereto, (B) the vote appertaining to a Lot or (C) the purposes for which any Lot or the Community Area are restricted. (c) Notice oiUI)paid Assessments. The Corporation shall, upon request of a Mortgagee, a proposed mortgagee, or a proposed purchaser who has a contractual right to purchase a Lot, furnish to such mortgagee or purchaser a statement setting forth the amount of the unpaid Assessments against the Lot and the Owners, and any Mortgagee or grantee of the Lot shall not be liable for, nor shall the Lot conveyed be subject to a lien for, any unpaid Assessments in excess of the amount set forth in such statement. -42- I I I I I I I I I I I I I I I I I I I (d) Financi'll Statemen~. Upon the request of any Mortgagee, the Corporation shall provide to said Mortgagee the most recent financial statement prep~edonbehmfoffueCo~omtioa ( e) Paymen~ by M:.ortg~ees. Any Mortgagee may (i) pay taxes or other charges that are in default and that mayor have become a lien upon the Community Area or any part thereof and (ii) pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage for the Community Area in case of a lapse of a policy. A Mortgagee making such payments shall be entitled to immediate reimbursement from the CoIporation. 29. Amendments. (a) Qep.era1ly. Subject to subparagraphs (c) and (d), this Declaration may be amended at any time by an instrument signed by (i) the appropriate officers of the Corporation acting pursuant to the authority granted by not less than two-thirds (2/3) of the votes of the Members cast at a meeting duly called for the purpose of amending this Declaration and (ii), to the extent required by Paragraph 27, Declarant (b) By peclarant. Subject to subparagraph (c) but without regard to subparagraphs (a) and (d), Declarant hereby reserves the right prior to the Applicable Date unilaterally to amend and revise the standards, covenants and restrictions contained in this Declaration or any Supplemental Declaration. Such amendments shall be in writing, executed by Declarant, and recorded with the Recorder of Hamilton County, Indiana No such amendment, however, shall restrict or diminish the rights or increase or expand the obligations of Owners with respect to Lots conveyed to such Owners prior to the amendment or adversely affect the rights and interests of Mortgagees holding first mortgages on Lots at the time of such amendment Declarant shall give notice in writing to such Owners and Mortgagees of any amendments. Except to the extent authorized in Paragraph 23(b), Declarant shall not have the right at any time by amendment of this Declaration or any Supplemental Declaration to grant or establish any easement through, across or over any Lot which Declarant has previously conveyed without the consent of the Owner of such Lot. (c) Approval by Z9ninll' Authority. No amendment which would eliminate, waive or qualify a requirement set forth herein for the consent of or approval by the Zoning Authority shall be effective unless approved in writing by the Zoning Authority. (d) Clas$ AJ!proval. No amendment which would limit or impair the rights granted herein or in any Supplemental Declaration to, or add to the burdens imposed by this Declaration or any Supplemental Declaration on, the Owners of Commercial Units, M~tifamily Structures or Multiuse Structures (or any Units -43- I I I I I I I I I I I I I I I I I I I therein) and no amendment to Paragraphs 18, 19, 21 (d), (e) or (f) or this Paragraph 29 shall be effective unless approved by not less than fifty-one percent (51 %) of the Owners of Commercial Units, Multifamily Structures and Multiuse Structures (and all Units therein). (e) Effective Date. Any amendment shall become effective upon its recordation in the Office of the Recorder of Hamilton County, Indiana. 30. Intex:pretation. The underlined titles preceding the various paragraphs and subparagraphs of this Declaration are for convenience of reference only, and none of them shall be used as an aid to the construction of any provision of this Declaration. Wherever and whenever applicable, the singular form of any word shall be taken to mean or apply to the plural, and the masculine form shall be taken to mean or apply to the feminine or to the neuter. 31. Pura,tion. The foregoing covenants and restrictions are for the mutual benefit and protection of the present and future Owners, the Corporation, and Declarant, and shall run with the land and shall be binding on all parties and all Persons claiming under them until January 1, 2030, at which time said covenants and restrictions shall be automatically extended for successive periods of ten (10) years, unless chan.ged in whole or in part by vote of those Persons who are then the Owners of a majority of the Lots in the Tract. 32. Severability. Every one of the Restrictions is hereby declared to be independent of, and severable from., the rest of the Restrictions and of and from every other one of the Restrictions, and of and from every combination of the Restrictions. Therefore, if any of the Restrictions shall be held to be invalid or to be unenforceable, or to lack the quality of running with the land, that holding shall be without effect upon the validity, enforceability or "nmning" quality of any other one of the Restrictions. 33. Non-Liability of De!;!laran.t. Declarant shall not have any liability to an Owner, Occupant or any other Person with respect to drainage on, over or under a Lot or erosion of a Lot. Such drainage and erosion control shall be the responsibility of the Owner of the Lot upon which a Unit, Multifamily Structure or Multiuse siructure is constructed and of the builder of such Unit, Multifamily Structure or Multiuse Structure and an Owner, by an acceptance of a deed to a Lot, shall be deemed to agree to indemnify and hold Declarant free and harmless from and against any and all liability arising from, related to, or in connection with the erosion of or drainage on, over and under the Lot described in such deed. Declarant shall have no duties, obligations or liabilities hereunder except such as are expressly assumed by Declarant, and no duty of, or warranty by, Declarant shall be implied by or inferred from any term or provision of this Declaration. 34. CQmpljance with tlte Soil ErQsion Control Plan. (a) The Plan. Declarant .has established and implemented an erosion control plan pursuant to the requirements and conditions of Rule 5 of327 lAC 15, Storm Water Run-Off Associated with Construction Activity. In connection with any -44- I I I I I I I I I I I I I I I I I I I EXHIBIT A n~$tti'PtiQn of tht: DeveJonment ~_ The Southwest quarter of Section 28, part of the Southeast quarter of Section 29 and part of the Northwest and Southwest quarters of Section 33 all in Township 18 North, Range 3 East of Hamilton County, Indiana, and being described as follows : Beginning at the Northeast comer of the Southwest quarter of said Section 28; thence on an assumed bearing of South 00 degrees 01 minutes 09 seconds West along the East line of said Southwest quarter a distance of 503.75 feet; thence North 89 degrees 29 minutes 11 seconds East a distance of 605.93 feet; thence North 00 degrees l5 minutes 45 seconds East a distance of 506.25 feet to a point of the North line of the Southeast Quarter of said Section 28 distant 608.1l feet east of the Northwest comer thereof; thence North 89 degrees 15 minutes 12 seconds East along said North line a distance of2069.03 feet to the Northeast comer ~fsaid Southeast Quarter; thence South 00 degrees 07 minUtes 17 seconds West along the East line of said Southeast Quarter a distance of2630.92 feet to the Southeast comer of said Southeast Quarter; thence South 89 degrees 23 minutes 24 seconds West along the South line of said Southeast Quarter a distance of2672.37 feet to the Northeast comer of the Northwest Quarter of said Section 33; thence South 00 degrees 20 minutes 16 seconds East along the East line of the Northwest quarter of Section 33 a distance of2632.10 feet to the Southeast comer thereof; thence South 00 degrees 23 minutes 56 seconds East along the East line of the Southwest quarter of said Section 33 a distance of 490.67 feet; thence South 89 degrees 20 minutes 46 seconds West parallel with the North line of said Southwest quarter a distance of 1331.44 feet to the West line of the East half of said Southwest quarter; thence North 00 degrees 25 minutes 30 seconds West along said West line a distance of 442.67 feet to a point distant 48.00 feet South from the Northwest comer of said half-quarter; thence South 89 degrees 20 minutes 46 seconds West parallel with the North line of said Southwest quarter a distance of 1331.64 feet to the West line of said Southwest quarter; thence North 00 degrees 27 minutes 03 seconds West along said West line a distance of 48.00 feet to the Northwest comer of said Southwest quarter; thence North 00 degrees 27 nlinutes 13 seconds West along the West line of the Northwest quarter of Section 33 a distance of 1281.55 feet; thence North 89 degrees 20 minutes 46 seconds East parallel with the South line of said Northwest quarter a distance of 1332.95 feet to the West line of the East half of said Northwest quarter; thence North 00 degrees 23 minutes 44 seconds West along said West line a distance of 1348.18 feet to the Northwest comer thereof; thence South 89 degrees 14 minutes 42 seconds West along the South line of the Southwest quarter of Section 28 a distance of 1334.33 feet to the southwest comer thereof; thence South 88 degrees 51 minutes 10 seconds West along the South line of the Southeast quarter of Section 29 a distance of 1351.40 feet to a point hereinafter referred to. as Point A; thence North 01 degrees 08 minutes 50 seconds West a distance of 8.00 feet; thence North 52 degrees 30 minutes 24 seconds East a distance of 14.45 feet; thence North 22 degrees 52 minutes 44 seconds East a distance of27.27 feet; thence North 00 degrees 36 minutes 26 seconds West a distance of 1453.10 feet; thence South 89 degrees 13 minutes 03 seconds West a distance of 107.69 feet; thence North 00 degrees 00 minutes 53 seconds West a distance of 1138.44 feet to the North line: of said Southeast q~er; thence North 89 degrees 13 minutes 03 seconds East along said North line a distance of 1443.58 feet to the Page 1 of3 I I I I I I I I I I I I I I I I I I I Northeast comer thereof; thence North 89 degrees 14 minutes 59 seconds East along the North line of the Southwest quarter of Section 28 a distance of2678.68 feet to the Point of Beginning. Containing 534.984 acres, more or less. , Also, Part of the Northwest and the Northeast Quarters of Section 28, Township 18 North, Range 3 East of the Second Principal Meridian, Hamilton County described as follows: Beginning at a railroad spike at the southwest comer of the east half of the northwest quarter; thence North 00 degrees 00 minutes 08 seconds West along the west line of said half quarter 2631.74 to the northwest comer thereof; thence North 89 degrees 15 minutes 26 seconds East along the north line of the Northwest Quarter 693.79 feet to a railroad spike at the northwest comer of a tract of land described in a deed to Stumm, et al, and recorded as instrument number 9601331 in the Office of the Recorder of Hamilton County; thence South 00 degrees 02 minutes 24 seconds East along the west line thereof and along the west line of a tract of land described in a deed to Smith, recorded in Deed Book 154 page 17 a distance of 660.00 feet to a 5/8"x30" rebar with yellow plastic cap marked "SCHNEIDER ENG FIRM #0001" (hereinafter referred to as "REBAR/CAP") at the southwest comer of said Smith tract; thence North 89 degrees l5 minutes 26 seconds East along the south line thereof and along the south line of a tract of land described in a deed to Toll, recorded in Deed Book 310 page 838 a distance of 594.00 to a REBAR/CAP at the southeast comer of said Toll tract; thence North 00 degrees 02 minutes 24 seconds West along the east line thereof 329.99 feet to a REBAR/CAP on the westerly extension of the south line ofa tract ofland described in a deed to Sullivan, recorded in Deed Book 327 page 646; thence North 89 degrees 14 minutes 34 seconds East along said extension and said south line 211.43 to a REBAR/CAP at the southeast comer thereof; thence North 00 degrees 03 minutes 50 seconds West along the east line thereof 330.00 feet to a railroad spike on the north line of the Northeast Quarter; thence North 89 degrees 14 minutes 34 seconds East along said north line 120.00 feet to a railroad spike at the northwest comer ofa tract ofland described in a deed to Stumm, recorded in Deed Book 281 page 412; thence South 00 degrees 03 minutes 50 seconds East along the west line thereof 330.00 feet to a REBAR/CAP at the southwest comer thereof; thence North 89 degrees 14 minutes 34 seconds East parallel with the north line of the Northeast Quarter 1056.00 feet to the southeast comer of a tract of land described in a deed to Frederick, recorded as instrument number 9545201, and on the east line of the west haIf of the Northeast Quarter; thence South 00 degrees 03 minutes 50 seconds East along said east line 2030.77 feet to the northeast comer of a tract of land described in a deed to Lasher, recorded as instrument number 9213826; thence South 89 degrees 15 minutes 12 seconds West along the north line thereof 130.00 feet to a REBAR/CAP at the northwest comer thereof; thence South 00 degrees 03 minutes 50 seconds East along the west line of said Lasher tract 271.00 feet to a railroad spike on the south line of the Northeast Quarter; thence South 89 degrees 15 minutes 12 seconds West along the south line of said quarter 365.00 feet to the a railroad spike at the southeast comer of a tract of land described in a deed to Frank, recorded in Deed Book 163 page 280; thence North 00 degrees 04 minutes 33 seconds West 330.00 feet to the southeast comer of a tract ofland described in a deed to Pierson, recorded as instrument number 93649l8; thence North 01 degrees 13 minutes 35 seconds East along the east line thereof 60.44 feet to a REBAR/CAP, thence the following thirteen (13) courses along the lines of said tract, nine (9) of Page 2 of 3 , . I I I I I I I I I I I I I I I I I I I which are also along Elliott Creek; (1) North 27 degrees 36 minutes 44 seconds West 177.33 feet; (2) North 17 degrees 26 minutes 49 seconds West 57.75 feet; (3}North 06 degrees 33 minutes 38 seconds East 59.39 feet; (4) North 88 degrees 53 minutes 52 seconds West 380.61 feet; (5) North 54 degrees 23 minutes l8 seconds West 158.25 feet; (6) North 32 degrees 36 minutes 31 seconds West 96.43 feet; (7) North 08 degrees 48 minutes 39 seconds West l59.88 feet; (8) North 36 degrees 36 minutes 53 seconds West 43.86 feet; (9) North 56 degrees 59 minutes 39 seconds West 141.03 feet; (10) South 00 degrees 49 minutes 57 seconds East 725.49 feet; (11) South 73 degrees 29 minutes 19 seconds East 139.54 feet; (12) North 89 degrees 15 minutes 15 seconds East 50.00 feet; (13) South 01 degrees 00 minutes 58 seconds East 356.12 feet to a railroad spike on the south line of the Northeast Quarter; thence South 89 degrees 15 minutes 12 seconds West along the south line thereof222.21 feet to a Stone in two boxes 1.2 feet down at the southwest comer of the Northeast Quarter; thence South 89 degrees 14 minutes 59 seconds West along the south line of the Northwest Quarter 1339.34 feet to the Point of Beginning. Containing 130.021 acres, more or less. Also, part of the Southeast Quarter of said Section 29 being described as follows: Commencing at the aforesaid Point A on the South line of said Southeast quarter; thence South 88 degrees 51 minutes 10 seconds West along said South line a distance of 627.23 feet to the Point of Beginning at the Southwest comer of the land described in a deed to Wendy Fortune (Instrument Number 89l5090, Office of the Recorder of Hamilton County, Indiana); thence continuing South 88 degrees 51 minutes 10 seconds West along said South line a distance of 668.05 feet to the Southwest comer of said Southeast quarter; thence North 00 degrees 24 minutes 33 seconds West along the West line of said Southeast quarter a distance of 1437.39 feet to a point distant 1203.96 feet South of the Northeast comer thereof; thence North 88 degrees 29 minutes 35 seconds East a distance of 658.94 feet to a westerly comer of the aforesaid Fortune tract; thence South 00 degrees 46 minutes 26 seconds East along the West line thereof a distance of 1441.43 feet to the Point of Beginning. Containing 21.923 acres, more or less. Containing, in all, 686.928 acres, more or less. \\S EC_' NDY\DA TA UOBS\1238\O01 \DOCS\OAOPT A.doc Page 3 of 3 I'JI7 ECDE 0= =0 · =CO:k E:lt~, ... .... 1-( L ,-~ ::::!:f - - ~8 cs 1a.SWU a 1 D~(I 0;= r-r ~ ~ -~ --"I~ - . ..... t ~ \--- rff-mg o ~G~_ ~~ o~\ ~ 1 1 I I J - ~ I 0 f { 1l -tm ~ i f , -]IIl- , ~~ I I I I I I I I I I I I I I I I I I I EXHIBIT C DESCRIPTION OF THE TRACT (Griffin, Rice, Perez and Szynal Land) The Southwest quarter of Section 28, part of the Southeast quarter of Section 28 and part of the Northwest and Southwest quarters of Section 33 all in Township 18 North, Range 3 East of Clay Township, Hamilton County, Indiana, and being described as follows: Beginning at the Northeast comer of the Southwest quarter of said Section 28; thence on an assumed bearing of South 00 degrees 01 minutes 09 seconds West along the East line of said Southwest quarter a distance of 503.75 feet; thence North 89 degrees 29 minutes 11 seconds East a distance of605.93 feet; thence North 00 degrees 15 minutes 45 seconds East a distance of 506.25 feet to a point of the North line of the Southeast Quarter of said Section 28 distant 608.11 feet east of the Northwest comer thereof; thence North 89 degrees 15 minutes 12 seconds East along said North line a distance of 2069.03 feet to the Northeast comer of said Southeast Quarter; thence South 00 degrees 07 minutes 17 seconds West along the East line of said Southeast Quarter a distance of 2630.92 feet to the Southeast comer of said Southeast Quarter; thence South 89 degrees 23 minutes 24 seconds West along the South line of said Southeast Quarter a distance of2672.37 feet to the Northeast comer of the Northwest Quarter of said Section 33; thence South 00 degrees 20 minutes 16 seconds East along the East line of the Northwest quarter of Section 33 a distance of2632.1O feet to the Southeast comer thereof; thence South 00 degrees 23 minutes 56 seconds East along the East line of the Southwest quarter of said Section 33 a distance of 490.67 feet; thence South 89 degrees 20 minutes 46 seconds West parallel with the North line of said Southwest quarter a distance of 1331.44 feet to the West line of the East half of said Southwest quarter; thence North 00 degrees 25 minutes 30 seconds West along said West line a distance of 442.67 feet to a point distant 48.00 feet South from the Northwest comer of said half-quarter; thence South 89 degrees 20 minutes 46 seconds West parallel with the North line of said Southwest quarter a distance of 1331.64 feet to the West line of said Southwest quarter; thence North 00 degrees 27 minutes 03 seconds West along said West line a distance of 48.00 feet to the Northwest comer of said Southwest quarter; thence North 00 degrees 27 minutes 13 seconds West along the West line of the Northwest quarter of Section 33 a distance of 1281.55 feet; thence North 89 degrees 20 minutes 46 seconds East parallel with the South line of said Northwest quarter a-distance of 1332.95 feet to the West line of the East half of said Northwest quarter; thence North 00 degrees 23 minutes 44 seconds West along said West line a distance of 1348.18 feet to the Northwest comer thereof; thence South 89 degrees 14 minutes 42 seconds West along the South line of the Southwest quarter of Section 28 a distance of 1334.33 feet to the southwest comer thereof; thence North 00 degrees 32 minutes 45 seconds East along the West line of the Southwest quarter of Section 28a distance of2624.94 feet to the Northwest comer of the Southwest quarter of Section 28; thence North 89 degrees 14 minutes 59 seconds East along the North line of the Southwest quarter of Section 28 a distance of2678.68 feet to the Point of Begioning. Containing 451.608 acres, more or less. (J . Kreutz 08-09-99) I I I I I I I I I I I I I I I I I I I which the meeting is called and the time and place of the meeting. Attendance at any meeting shall constitute a waiver of notice of that meeting. Section 2 05. Voting Lists. After fixing a record date for a notice of a meeting, the Secretary shall prepare a complete list of Members entitled to notice of a meeting of Members, containing the address and number of votes each Member is entitled to cast at the meeting. The Secretary shall prepare on a current basis through the time of the membership meeting a list of Members, if any, who are entitled to vote at the meeting, but are not entitled to notice of the meeting. Such lists may be inspected by any Member, for any proper purpose, at any reasonable time. Section 2.06. Quorum. At any meeting of the Members twenty-five percent (25%) of the Members entitled to vote at such meeting, present in person or by proxy executed in writing, shall constitute a quorum for the transaction of business, except as otherwise provided by law. In the absence of a quorum, the Members present in person or by proxy, by a majority vote and without notice, may adjourn the meeting from time to time until a quorum is present. At any such adjourned meeting at which a quorum is present, any business may be transacted for which notice was originally given. The Members present at a duly. organized meeting may continue to do business until adjournment notwithstanding the withdrawal of enough Members to leave less than a quorum. Section 2.07. Voting Rights. The voting rights of the Members shall be as prescribed in the Articles. In any election of Directors, no Member shall have the right to multiply the number of votes to which such Member may be entitled by the number of Directors to be elected. A majority of the votes cast at a meeting of the Members, duly called and at which a quorum is present, shall be sufficient to take or authorize action upon any matter that may properly come before the meeting unless more than a majority of votes cast is required by law, the Declaration, any Supplemental Declaration, the Articles or these By-Laws. Section 2.08. Multiple Owner. Where the Owner of a Lot constitutes more than one person, or is a partnership, there shall be only one voting representative entitled to cast the vote allocated to that Lot. Those persons constituting such Owner or the partners shall determine among themselves who shall be the voting representative for such Lot. In the event agreement is not reached the vote attributable to such Lot shall not be cast. Section 2.09. Voting by Cor:poration.,. LLC or Trust. Where a corporation, a limited liability company or trust is an Owner or is otherwise entitled to vote, the trustee may cast the vote on behalf of the trust and the agent or other representative of the corporation or limited liability company duly empowered by the board of directors of such corporation or the managers or members of the limited liability company shall cast the vote to which the corporation or limited liability cqmpany is entitled. Section 2 10. Proxies. A Member may vote either in person or by his duly authorized and designated attorney-in-fact. Where voting is by proxy, the Member shall designate his attorney-in-fact in writing, delivered to an officer of the Corporation prior to the_commencement of the meeting. No -2- I I I I I I I I I I I I I I I I I I I proxy shall be valid after eleven (II) months from the date of its execution unless a longer time is expressly provided in the proxy. Section 2 11. Action Without a Meeting. Any action required by the Act to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting it: prior to the action, a consent in writing setting forth the action so taken is signed by all of the Members entitled to vote with respect to the subject matter thereot: and such written consent is filed with the minutes of the proceedings of the Members. Such consent shall have the same effect as a unanimous vote of the Members. Section 2.12. Meeting by TeleJ>honer etc. Any or all of the Members may participate in a meeting by or through t~e use of any means of communication by which all Members participating may simultaneously hear each other during the meeting. Participation in a meeting using these means constitutes presence in person at the meeting. ARTICLE 3 Board of Directors Section 3 .01. Functions. The business, property and affairs of the Corporation shall be managed and controlled by a Board of Directors as fro'm time to time constituted (herein collectively called "Board" or "Directors" and individually called "Director"). Section 3 02. Eligibility. No person shall be a Director who is not a Member, a designee of a Member or a designee of Developer, nor shall any person be a Director representing a Parcel who is not the Owner or Occupant of a Lot in such Parcel or the designee of an Owner. Section 3 03. Number. Prior to the Applicable Date, the number of Directors comprising the Board shall be three (3), which number may from time to time be increased by resolution adopted by not less than a majority of the Board of Directors. In no event shall the number of Directors prior to the Applicable Date be less than three (3) nor more than seven (7) and no reduction in the number of Directors shall have the effect of removing a Director from office prior to the expiration of his term. In the event the number of Directors is increased prior to the Applicable Date, the additional Director or Directors shall be appointed by Developer as provided in Section 5.03 of the Articles. Subsequent to the Applicable Date, the number of Directors comprising the Board shall be nine (9), which number may from time to time be.increased or decreased by resolution adopted by not less than a majority of the Board of Directors, provided that all times the number shall not be less than a number divisible by three (3). In no event shall the number of Directors subsequent to the Applicable Date be less than three (3) nor more than fifteen (15) and no reduction in the number of Directors shall have the effect of removing a Director from office prior to the expiration of his term. In the event the number of Directors is increased subsequen{'to the Applicable Date as providedh -3- I I I I I I I I I I I I I I I I I I I herein, the election of the additional Director or Directors shall be by a vote of the Members entitled to elect such additional Director or Directors according to a procedure established by the Board by resolution. " Section 3 .04. Classes. Subsequent to the Applicable Date, the membership of the Board shall be divided into classes consisting of (i) Directors each of whom shall represent an Electoral Parcel and (ii) Directors not representing Electoral Parcels. The class of Directors representing Electoral Parcels shall consist of that number of Directors which is equal to the number of Electoral Parcels within the Tract. Section 3 05. Appointment. Prior to the Applicable Date, Directors shall be appointed by Developer as provided ~ Section 5.03 of the Articles. Section 3 .06. Nomination. Subsequent to the Applicable Date, candidates for election to the Board of Directors as Directors not representing Electoral Parcels shall file a notice of candidacy, ,signed by not less than five (5) Members, with the Elections Committee at least three (3) weeks prior to the annual meeting. The Elections Committee shall provide all Members with' a ballot containing the names of all bona fide candidates not less than ten (10) days before the annual meeting. Subsequent to the Applicable Date, the Board of Directors shall by resolution establish such procedure as it deems appropriate governing nominations for election to the Board of Directors as Directors representing Electoral Parcels. Section 3 07. Election. Subsequent to the Applicable Date, Directors shall be elected at the annual meeting provided in Article 2. If the Board of Directors is divided into classes pursuant to section 3.04, the Directors representing an Electoral Parcel shall be elected by those Members who are Owners of Lots in the Electoral Parcel to be represented by such Director. A Member who owns a Lot in more than one Electoral Parcel shall be entitled to vote for all Directors representing Electoral Parcels in which he owns a Lot. Anything to the contrary in this Section 3.07 notwithstanding, the Board of Directors shall have the power to authorize that Directors representing Electoral Parcels be elected at the annual meeting of the owners association of each such Electoral . Parce~ ifany, rather than at the annual meeting of the Corporation. The Board may, by resolution, establish such election procedures as it deems appropriate. V oting for the Board of Directors shall be by secret written ballot. The ballot shall be prepared by the Elections Committee and shall contain the name of each person nominated for election. Those" persons receiving the highest number of votes shall be elected. Section 3.08. Imn. Each Director, other than a Director appointed by Developer, shall serve for a term of one (1) year or until his successor is elected and qualified or until he has resigned or been removed. Incumbent Directors shall be eligible for re-election and the number of years a person may serve as a Director is not limited. A "Director appointed by Developer, including the initial Directors identified in Section 5.02 of the Articles, shall s~rve until such Director dies, resigns or is removed by Developer. - -4- I I I I I I I I I I I I I I I I I I I Section 3.09. Resignation. Any Director may resign at any time by giving written notice of such resignation to the President or the Secretary of the Corporation. Such resignation shall take effect when the notice is effective unless the notice specifies a later effective date. The acceptance of a resignation shall not be necessary to make it effective. Section 3 10. Removal. Subsequent to the Applicable Date, any Director may be removed, with or without cause, in accordance with the provisions of the Act. Prior to the Applicable Date, any Director may be removed by Developer for any reason. Section 3 11. Vacancies. Any vacancy occurring on the Board of Directors caused by death, resignation, removal or othetwise, shall (a) prior to the 'Applicable Date be filled by Developer and (b) subsequent to the Applicable Date be filled until the next annual meeting through a vote of a majority of the remaining members of the Board. If: subsequent to the Applicable Date, a majority of the remaining members of the Board cannot agree on a Person to fill any such vacancy, a special meeting of the Members shall be called to elect a Person to fill such vacancy. A Director elected to fill a vacancy shall hold office until the expiration of the term of the Director causing the vacancy or until his successor has been elected and qualified. Section 3.12. Meetings. The Board of Directors shall meet each year immediately after the annual meeting of the Members, at the place where such meeting of the Members has been held, for the purpose of organization, election of officers, and consideration of any other business which may properly be brought before the meeting. No notice shall be necessary for the holding of this annual meeting. If such meeting is not held as above provided, the election of officers may be held at any subsequent meeting of the Board specifically called in the manner provided in Section 3.13. The Board of Directors may provide by resolution the time and the place, either within or without the State of Indiana, for the holding of additional regular meetings of the Board without other notice than such resolution. Special meetings of the Board may be called by the President and shall be called by order thereofupon the written request of not less than two (2) Directors, which request shall set forth the business to be conducted at such meeting. Section 3.13. Notice of Meetings. Notice of all meetings of the Board of Directors, except as herein otherwise provided, shall be given by mailing, telephoning, telegraphing or delivering personally the same at least two (2) days before the meeting to the usual- business or residence address of the Director as shown upon the records of the Corporation. Notice of any meeting of the Board may be waived in a document filed with the Secretary by any Director if the waiver sets forth in reasonable detail the purpose or purposes for which the meeting is called and the time and place of the meeting. Attendance at any meeting of the Board shall constitute a waiver of notice of that me~ting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Any meeting of the Board may adjourn from time to time to reconvene at the same place or some other place. No notice need be given of any such adjourned meeting. -5- I I I I I I I I I I I I I I I I I I I Section 3.14. Quorum. A quorum of the Board of Directors at any annual or special meeting of the Board shall be a majority of the duly qualified members of the Board the~ occupying office, but in no event less than two (2) Directors, except that, subsequent to the Applicable Date, in filling vacancies a majority of the remaining Directors (but not less than two (2) Directors) shall constitute a quorum. The act of a majority of the Directors present at a meeting, who constitute a quorum, shall be the act of the Board unles~ otherwise provided by the Act, the Declaration, any Supplemental . Declaration, the Articles, or these By-Laws. In the absence of a quorum, the Directors present may, by majority vote,adjoum the meeting from time to time until a quorum is present. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting for which notice was originally given. Section 3 15. Action Without a Meeting. Any action required or pennitted to be taken at any meeting of the Board of Directors or any committee thereof may be taken without a meeting if the action is taken by all members of the Board of Directors or such committee. The action must be evidenced by at least one (1) written consent describing the action taken signed by each member of the Board of Directors or of such committee, and included in the minutes or filed with the corporate records reflecting the action taken. Section 3.16. Meeting by Telephoner etc Any or all of the members of the Board or of any committee designated by the Board may participate in a meeting by or through the use of any means of communication by which all persons participating may simultaneously hear each other during the meeting. Participation in a meeting using these means constitutes presence in person at the meeting. Section 3 17. Committees. The Board of Directors, by resolution adopted by a majority of the Board, may designate one or more committees, each of which shall consist of two (2) or more Directors, which committees, to the extent provided in said resolution, shall have and exercise the authority of the Board in the management of the Corporation. Other committees not having and exercising the authority of the Board in the management of the Corporation may be designated by a resolution adopted by a majority of the Directors present at a meeting at which a quorum is present. The designation of any such committee and the delegation thereto of authority shall not operate to relieve the Board, or any individual Director, of any responsibility imposed upon it or him by law. Subsequent to the Applicable Date, the Board shall annually establish an Elections Committee which shall be responsible for the conduct of the election of the Board of Directors pursuant to Sections 3.06 and 3.07. Section 3 18. Powers. All of the corporate powers, except as otherwise provided herein or by law, shall be vested in and shall be exercised by the Board of Directors. Said powers shall include, but not be limited to: (a) The power to adopt, publish, and enforce rules and regulations governing the use of the Community Areas not inconsistent with the provisions of the Declaration or any Supplemental Declaration; -6- I I I I I I I I I I I I I I I I I I I ( q) exercise their powers and duties in good faith, with a view to the . interests of the Corporation and the Members. Section 3.20. Non-Liability of Directors. No Director shall be liable to any Person for any error or mistake of judgment exercised in carrying out his duties and responsibilities ,as a Director, unless (a) the Director has breached or failed to perform the duties of his office in compliance with the Act and (b) the breach or failure to perform constitutes willful misconduct or recklessness. The Members shall indemnify and hold harmless each of the Directors against any and all liability to any Person arising out of contracts made by the Board on behalf of the Corporation, unless any such contract shall have been made in bad faith or is contrary to the provisions of the Act, the Articles or these By-Laws. It is intended that the Directors shall have no personal liability with respect to any contract made by them. on behalf of the Members and as their agent. The liability of any Member arising out of any contract made by the Board or out of the aforesaid indemnity in favor of the Directors shall be limited to such percentage of the total liability or obligation thereunder as is equal to a fraction, the numerator of which is the number of Lots owned by him and the denominator of which is the total number of Lots in the Tract. Section 3.21. Indemnity of Officers and Directors. To the extent not inconsistent with the laws of the State of Indiana, every Person (and the heirs, assigns and legal representatives of such Person) who is or was a Director or an officer of the Corporation shall be indemnified by the Corporation as provided in the Act. To the extent the assets of the Corporation are insufficient to satisfy its indemnification obligations hereunder, the Board of Directors may levy a Special Assessment in the manner specified in the Declaration to obtain such funds as may be required to satisfy such obligation. Section 3 .22. Transactions lrivolvini Affiliates. No contract or other transaction between the Corporation and one or more of its Directors, or between the Corporation and any Person (including the Developer) in which one or more of the Directors are directors, officers, partners, or employees or ,are pecuniarily or otherwise interested, shall be void or voidable because such Director or Directors are present at the meeting of the Board or any committee thereof which authorizes, approves or ratifies the contract or transaction, or because his or their votes are counted for such purpose if: (a) the fact of the relationship or interest is disclosed or known to the Board or committee, and the Board or committee authorizes, approves, or ratifies such contract or transaction by a vote or consent sufficient for the purpose without counting the vote or consents of the interested Director(s); or (b) the fact of the relationship or interest is disclosed or known to the Members, and they authorize, approve or ratify the contract or transaction by a vote or written consent; or ( c) the contract or transaction is fair and reasonable to the Corporation. -9- I I I I I I I I I I I I I I I I I I I Affiliated or interested Directors may be counted in determining the presence of a quorum of any meeting of the Board or committee thereofwhich authorizes, approves or ratifies any contract or transaction. Section 3 .23. Insurance. The Board of Directors, or its duly authorized agent, shall have the authority to and shall obtain insurance for all of the Common Facilities and all of the structures located in the Community Area, whether owned or leased by the Corporation, against loss or damage by fire or other'hazards commonly insured against in similar properties. in an amount sufficient to cover the full replacement cost of any repair or reconstruction work in the event of damage or destruction from any insured hazard, and shall also obtain a broad form public liability policy covering all damage or injury caused by the negligence of the Corporation or any of its agents. All such insurance policies shall contain a provision that all Members shall, in appropriate circumstances, be able to recover damages as claimants under such insurance. Premiums for all such insurance shall be included in the General Assessment. Section 3 .24. Insured Lossr Damage or Destruction. In the event of loss, damage or destruction by fire or other peril, the Board of Directors shall (unless otherwise agreed by two-thirds (2/3) of the Directors then serving), upon receipt of the insurance proceeds, contract to rebuild or repair damaged or destroyed portions of the insured property to its condition before such damage. All such insurance proceeds (if the amount of such proceeds exceeds $5,000.00) shall be deposited in a bank or other financial institution, the accounts of which are insured by a federal governmental agency, with the provision agreed to by said bank or institution that such funds may be withdrawn only by signatures of at least one-third (1/3) of the members of the Board of Directors, or by their duly authorized agent. In such event, the Board of Directors shall advertise for sealed bids with any licensed contractors, and then may negotiate with any contractor, who may be required to provide a full performance and payment bond for the repair, reconstruction or rebuilding of such destroyed structure or structures. In the ~vent that the insurance proceeds are insufficient to pay all the costs of repairing and/or rebuilding to the same condition as previously existed, the Board of Directors may levy a Special Assessment in the manner specified in the Declaration to make up any deficiency. Excess insurance proceeds, if any, shall become a part of the Corporation's reserve for replacements. Section 3 25. Uninsured Lossr Damage or Destruction. In the event of loss, damage or destruction to the Property caused by perils not covered by standard insurance described in Section 2.04(d) of the Articles, the Board of Directors may levy a Special Assessment in the manner specified in the Declaration to make up any deficiency created by such uninsured loss. Section 3.25. Compensation. No Director shall receive any compensation for any service he may render to the Corporation. He may, however, be reimbursed for his actual expenses incurred in the performance afhis duties. -10- I I I I I I I I I I I I I I I I I I I ARTICLE 4 The Officers of the Corporation Section 4.01. Officers and Agents. The officers of the Corporation shall consist of a President, one or more Vice Presidents, a Secretary, a Treasurer, and such other officers as the Board of Directors may, by resolution, designate from time to time. Any two or more offices may be held by the same person The Board of Directors may, by resolution, create, appoint and define the duties and fix the compensation of such officers and/or agents as, in its discretion, is deemed necessary, convenient or expedient for carrying out the purposes for which the Corporation is formed; but such officers and agents shall be compensated only for actual services performed on behalf of the Corporation. Section 4.02. Electionj Term of Office and Qualifications. The officers shall be chosen annually by the Board of Directors. Each officer shall hold office (unless he resigns, is removed or dies) until the next annual meeting of the Board of Directors or until his successor is chosen and qualified. Section 4.03. Vacancies. In the event an office of the Corporation becomes vacant by death, resignation, retirement, disqualification or any other caus~, the Board of Directors shall elect a person to ful such vacancy, and the person so elected shall hold office and serve '(unless he resigns, is removed or dies) until the next annual meeting of the Board or until the election and qualification of his successor. Section 4.04. President. The President, who shall be chosen from among the membership of the Board of Directors, shall preside at all meetings of the Board, if present; shall appoint the chainnan and members ofall standing and temporary committees, subject to the review of the Board of Directors; shall be the executive officer of the Corporation; shall have and exercise general charge and supervision of the affairs of the Corporation; and shall do and perform such other duties as these By-Laws provide or as may be assigned to him by the Board of Directors. Section 4 05. Vice President. Any Vice President may perform all duties incumbent upon the President during the absence or disability of the President and shall p"erform other duties as these By-Laws may require or as may be assigned to him by the President or the Board of Directors. Section 4.06. Secretary. The Secretary shall have the custody and care of the corporate records and the minute book of the Corporation. He shall attend all of the meetings of the Board of Directors and the Members, and shall keep, or cause to be kept in a book provided for the purpose, a true and complete record of the proceedings of such meetings; and shall perform a like _duty for all standing committees of the Board of Directors when required. He shall attend to the giving and serving of all notices of the Corporation, shall file and take care of all papers and documents belonging to the Corporation, shall authenticate records of the _Corporation, as necessary, and shall - . -11- I I I I I I I I I I I I I I I I I I I ARTICLE 8 Financial Affairs Section 8.01. Contracts. The Board of Directors may authorize any officer or agent to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to a specific instance; and unless so authorized by the Board of Directors, no officer, agent or employee shall have any power or authority to bind the Corporation by any contract or engagement, or'to pledge its credit or render it ,liable pecuniarily for any purpose or to any amount. Section 8.02. Checksr Etc. All checks, drafts, notes, bonds, bills of exchange, and orders for the payment of money' and other evidence of indebtedness in excess of One Thousand Dollars ($1,000.00), shall, unless otherwise directed by the Board of Directors or required by law, be signed by any two of the following officers, who are different persons: President, a Vice President, Secretary or Treasurer. Any such obligation equal to or less than One Thousand Dollars ($1,000.00) may be signed by anyone (1) of such preceding officers. The Board of Directors may, however, designate officers or employees of the Corporation, other than those named above, who may, in the name of the Corporation, execute drafts, checks and orders for the payment of money on its behalf. Section 8.03. Investments. The Corporation shall have'the right to retain all or any part of any securities or property acquired by it in whatever manner, and to invest and reinvest any funds held by it, according to the judgment of the Board of Directors. Section 8 04. Reserve for Replacements. The Board of Directors shall establish and maintain a reserve fund for replacements by the allocation and payment to such reserve fund of the Community Area Initial Assessment and an amount determined annually by the Board to be sufficient to meet the cost of periodic maintenance, repairs, renewal and replacement of the Property. In determining the amount, the Board shall take into consideration the expected useful life of the' Property, projected increases in the cost of materials and labor, interest to be earned by such fund and the advice of the Developer, managing agent or any consultants the Board may employ. Such fund shall be deposited in a special account with a lending institution the accounts of which are insured by an agency of the United States of America or may, in the discretion of the Board, be invested in obligations of: or fully guaranteed as, to principal by, the United States of America. Section 8.05. Community Area Debt Service Assessment. The Board of Directors shall establish and maintain an account for the deposits of Community Area Debt Service Assessments. ,The funds in ,such account shall be held and disbursed in accordance with Paragraph 18(f) of the Declaration. Section 8.06. Fiscal Year. The fiscal year of the Corporation shall be commence on January 1 in each year. -14-