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20030000&0&0
Filed for Record in
HAMILTON COUNTYL INDIANA
JENNIFER J HAYDeN
01-15-2003 01:04 pm.
DEC COV RES 9&.00
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DECLARATION OF COVENANTS
AND RESTRICTIONS OF TAYLOR TRACE
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TABLE OF CONTENTS
ARTICLE I. DEFINITIONS
Section I.
Section 2.
ARTICLE II. REAL ESTATE SUBJECT TO THIS DECLARATION
Section I. Declaration
ARTICLE Ill. COMMON AREAS; OBLIGATiONS OF DECLARANT AS TO COMMON AREAS
Section I. The Common Areas
Section 2. Agreement to Construct and Convey Common Areas
ARTICLE IV. CORPORATION; MEMBERSHIP; VOTING; FUNCTIONS
Section 1. Membership in Corporation
Section 2. Voting Rights
Section 3. Functions
ARTICLE V. BOARD OF DIRECTORS
Section I. Management
Section 2. Initial Board of Directors
Section 3. Additional Qualifications
Section 4. Term of Office and Vacancy
Section 5. Removal of Directors
Section 6. Duties of the Board of Directors
Section 7. Powers of the Board of Directors
Section 8. Limitation on Board Action
Section 9. Compensation
Section 10. Non-Liability of Directors and Officers
Section 11. Additional Indemnity of Directors and Officers
Section 12. Bond
Section 13. Initial Management
ARTICLE VI. REAL ESTATE TAXES; UTILITIES
Section I. Real Estate Taxes
Section 2. Utilities
ARTICLE VII. MAINTENANCE, REPAIRS AND REPLACEMENTS
Section 1. By Owners
Section 2. By the Corporation
ARTICLE VIII. T A YLORTRACE BUILDING CONTROL COMMITTEE
Section 1. Creation
Section 2. Character of the Real Estate
Section 3. Restrictions and Obligations Concerning Size, Placement and Maintenance of Dwelling
Units and Other Structures
Section 4. Provisions Respecting Disposal of Sanitary Waste
Section 5. General Prohibitions
Section 6. Committee's Functions
Section 7. Rules Governing Building on Several Contiguous Lots Having One Owner
ARTICLE IX. ASSESSMENTS
Section 1. Annual Accounting
Section 2. Proposed Annual Budget
Section 3. Regular Assessments
Section 4. Special Assessments
Section 5. Failure orOwner to Pay Assessments
Section 6. Initial Budgets and Assessments
Section 7. Initial Working Capital and Start-Up Fund
ARTICLE X. MORTGAGES
Section 1. Notice to Corporation
Section 2. Notice of Unpaid Assessments
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ARTICLE XI. INSURANCE
Section I. Casualty Insurance
Section 2. Public Liability Insurance
Section 3. Other Insurance
Section 4. General Provisions
Section 5. Insurance by Owners
ARTICLE XII. CASUALTY AND RESTORATION
ARTICLE XliI. RESTRICTIONS, COVENANTS AND REGULATIONS
Section I. Restrictions on Use
Section 2. Non-applicability to Corporation
ARTICLE XIV. AMENDMENT OF DECLARATION
Section I. Generally
Section 2. Amendments by Declarant Only
ARTICLE XV. ACCEPTANCE AND RATIFI<CATION
ARTICLE XVI. NEGLIGENCE
ARTICLE XVII. BENEFIT AND ENFORCEMENT
ARTICLE XVIII. MISCELLANEOUS
Section I. Costs and Attorney's Fees
Section 2. Waiver
Section 3. Severability Clause
Section 4. Pronouns
Section 5. Interpretation
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DECLARATION OF COVENANTS
AND RESTRICTIONS
OF TAYLOR TRACE
This Declaration (hereinafter referred to as "the Declaration" or "this Declaration"), made
Ihis _ day of
, SPRINGMILL BUILDERS, INC., an Indiana corporation
(hereinafter referred to as "Declarant"),
WIT iN ESE T H:
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WHEREAS, Declarant is the owner of the parcel of real estate in Hamilton County,
Indiana which are more particularly described in Exhibit "A" attached hereto and hereby
incorporated herein by refercnce (hereinafterireferred to, collcctively, as the "Parcel"); and
WHEREAS, Declarant intends to cre*te on the Parcel a residential community with
public streets, private open spaces and landscaped areas, including lakes or ponds, and which
community may include certain recreational facilities and amenities, for the benefit of such
residential community, to be known as "TAYLOR TRACE"; and
WHEREAS, Declarant desires to provide for the preservation and enhancement of the
values and amenities in such community and the common areas therein contained, and, to this
end, Declarant desires to subject the Parcel to certain rights, privileges, covenants, restrictions,
easements, assessments, charges and liens, each and all to the extent herein provided, for the
benefit of the Parcel and each owner of all or part thereof; and
WHEREAS, Declarant deems it desirable, for the efficient preservation of the values and
amenities in said community, to create an agency to which shall be delegated and assigned the
powers of owning, maintaining and administering any common areas located on the Real Estate,
administering any common areas located on the Real Estate (hereinafter defined), administering
and enforcing the covenants and restrictions contained in this Declaration, collecting and
disbursing the assessments and charges imposed and created hereby and hereunder, and
promoting the health, safety and welfare of the owners of the Real Estate, and all parts thereof;
and
WHEREAS, Declarant has caused or will cause, to be incorporated under the laws of the
Statc of Indiana a not-for-profit corporation under the name "Taylor Trace Homeowners
Association, Inc.", or a similar name, as such agency for the purpose of exercising slIch
functions;
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NOW, THEREFORE, Declarant hereby declares that the Real Estate in Exhibit "A" is
and shall be held, transferred, sold, conveyed, hypothecated, encumbered, leased, rented, used,
improved and occupied subject to the provisions, agreements, conditions, covenants, restrictions,
casements, asscssments, chargcs and licns hereinafter set forth, all or \vhich are declared to be in
furtherance of a plan for preservation and enhancement of the Real Estate, and are established
and agreed upon for the purpose of enhancing and protecting the value, desirability and
attractiveness of the Real Estate as a whole and of each of the Lots situated therein.
ARTICLE I
Definitions
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Section I. The following words and tfrms, when used herein or in supplement or
amendment hereto, unless the context clearlylrequires otherwise, shall have the following
meal11ngs:
(a) "Act" shall mean and refer to the Indiana Not-for-Profit Corporation Act of 1991,
as amended;
(b) "Applicable Date" shall mean and refer to the date determined pursuant to Article
IV, Section 2(b) of this Declaration;
(c) "Articles" shall mean and refer to the Articl.es 0 f Incorporation 0 I' he Corporation,
as the same may be amended from time to time;
(d) "Board" or "Board of Directors" shall mean and refer to the governing body of
the Corporation elected, selected or appointed as provided for in the Articles, By-
Laws and this Declaration;
(e) "By-Laws" shall mean and refer to the Code of By-Laws of the Corporation, as
the same may be amended from time to time;
(f) "Committee" shall mean and refer to the "Taylor Trace Building Control
Committee", the same being the committee or entity established pursuant to
Article VIII, Section I of this Declaration for the purposes herein;
(g) "Common Areas" shall be limited to, mean and refer to (i) all portions orthe Real
Estate shown on any recorded subdivision plat of the Real Estate, or any part
thereof, which are not dedicated to the public and which are not identified as lots
on any such plat (such as public streets), whether such plat is heretofore or
hereafter recorded, (ii) to the extent hereinafter established, such portions of the
Real Estate as are herein declared to the Common Areas even though located on
or constituting part of one or more such lots shown on any such plat, and (iii) to
the extent hereinafter established, such improvements located, installed or
established in, to, on, under, across or through the Real Estate as are herein
declared to be Common Areas whether located, installed or established entirely or
partially on Lots (as herein defined) or portions of the Real Estate which are to
Lots, or both;
(h) "Com1110n Expenses" shall mean and refer to expenses oradministration or the
Corporation, and expenses for the upkeep, maintenance. repair and replacement or
the Common Areas, and all Sl'tms lawfully assessed against the Owners by the
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Corporation, and all slllns, costs and expenses declared by Ihis Declaralion 10 be
Common Expenses;
(i)
"Corporation" shall mean and refer to Taylor Trace Homeowners Association,
Inc., and Indiana Not-for-Profit corporation which Declarant has caused, or will
cause, to be incorporated under said name or a similar name. its successors and
assigns;
(j)
"Declarant" shallmcan and refer 10 Springmill Builders, Inc.. an Indiana
corporation, and any successors and assigns of it whom it designates in one or
more written recorded instrun~ents to have Ihe rights of Declarant hereunder.
including, but not limited to, ~ny mortgagee acquiring titlc to any portion of the
Real Estate pursuant to the ex~rcise of rights under, or foreclosure of, a mortgage
executed by Declarant; I
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"Dwelling Unit" shall mean a1~d refer to any building, structure or portion thereof
situated on the Real Estate de~igned and intended for use and occupancy as a
single family residence as defiined by the City of Carmel or Carmel's reference
definition.
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"Household pets" shall mean those pets allowed by local laws and ordinances.
No other animals shall be allowed.
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"Living space" shall mean finished and permanently heated areas within a home.
This term shall not include garage space, screened porches, or unfinished
basements or lower level areas. Below grade space must be heated and finished
with drywall or other approved materials on the walls and ceilings and,
furthermore, must be finished and inspected by the Carmel bui Iding inspectors at
the time of the original construction.
"Lot" shall mean and refer to any and each portion of the Real Estate excluding
any part of the Common Areas) designed and intended for use as a building site
for, or developed and improved for use as, a Dwelling Unit (which shall be
deemed to include any other buildings or improvements appurtenant to such
Dwelling Unit), as designated" by Declarant by its deed of the same to another
Person. A Lot will not necessarily be the same as any individually numbered
parcel ofland shown upon, and identified as a lot on, any recorded subdivisions
plat of the Real Estate or any part thereof. For purposes of this Declaration, a
"Lot" may be (I) any individually numbered parcel of land identified as a lot on
such subdivision plat, (ii) part of such a numbered parcel of land, (iii) such a
numbered parcel of land combined with part or all of a another such numbered
parcel of land, or (iv) parts of all of two (2) or more of such numbered parcels of
land combined. The determination of what portion of the Real Estate constitutes a
"Lot" for purposes of this Declaration shall be made by reference to, and shall
mean, each tract of land conveyed by Dcclarant to another Person for use as a
building site for, or developed and improved for use as, a D\velling Unit (which
shall be deemed to include any other buildings or improvements appurtenant to
such Dwelling Unit). Notwithstanding the foregoing, is after the initial
conveyance of a portion of the Real Estate so originally conveyed to such Person
as a "Lot", then the determination of what portion of the Real Estate constitutes
such a "Lot" for purposes of this Declaration shall be made by reference to, and
shall mean, such "Lot" initially so conveyed by Declarant, as the same has been
adjusted or changed at any time by conveyances by and between Declarant and
such Person. Any deed or other instrument of conveyance so adjusting or
changing the description of a "Lot" shall state on its face that it is made /()r such
purpose. Any part of "Lot" reconveyed to Declarant shall, upon such re-
conveyance, lose its character as part or a "Lot" and may thereafter by conveyed
by Declarant as part of another "Lol", The foregoing procedures may be used to
correct errors in descriptions, to adjusl boundary lines of Lots" or for any other
reason;
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"Mortgagee" shall mean and refer to the holder of a recorded first mortgage lien
on a Lot or Dwelling Unit;
(p)
"Owner" shall mean and refer to (i) the Declarant, as to each Lot owned by it and
as to each individually numbered parcel of land shown upon, and identi oed as a
lot on, any recorded subdivision plat of the Real Estate (or any part thereof) of
which it is the owner (either as to the entire numbered parcel or any part thereof)
which is not a Lot, and (ii) the record owner, whether one or more Persons, of the
fee simple title to any Lot, pr~vided, however, that Owner shall not include or
mean or refer to a mortgagee I,)r tenant unless and unti I such mortgagee or tenant
has acquired title to any Lot, but upon so acquiring title to any Lot a mortgagee or
tenant shall be an Owner;
(q)
"Person" shall mean and refel; to an individual, orm, corporation, partnership,
association, trust, or other leg~l entity, or any combination thereof;
(I')
"Real Estate" shall mean and ,'efer to the Parcel subject to this Declaration;
(s)
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"Restrictions" shall mean and: refer to the agreements, conditions, covenants,
restrictions, easements, assessments, charges, liens and all other provisions set
forth in this Declaration, as th;e same may be amended from time to time; and
(t)
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"Site Plan" shall mean and refer to the preliminary plan reflecting Declarant's
proposed development of the ,Parcel, , a copy of which is attached as
Exhibit "B" and hereby incorporated herein by reference.
Section 2. Other terms and words defined elsewhere in this Declaration shall have the
meanings herein attributed to them.
ARTICLE II
REAL ESTATE SUBJECT TO THIS DECLARATION
Section I.
Declaration. Declarant hereby expressly declares that the Real Estate shall
be held, transferred, sold, conveyed and occupied subject to all the Restrictions. As of the date
of execution of this Declaration, the Real Estate consists solely of the Parcel. The Owner of any
Lot at any time subject to the Restrictions and this Declaration, (i) by 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 (ii) by the act of occupancy of any Lot, shall
conclusively be deemed to have accepted such deed, executed such contract and undertaken such
occupancy subject to all of the Restrictions contained in this Declaration. By acceptance of such
dced, execution of such contract or undertaking such occupancy, each Owner and all other
Persons acknowledge the rights and powers of Declarant, the Committee and the Corporation
with respect to or under this Declaration, and, for himself, his heirs, personal representatives,
successors and assigns, covenant, agree and consent to and with Declarant, the Committee and
the Corporation, and the Owners and subseq!uent Owners of each of the Lots affected by this
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Declaration, to keep, observe, perform and comply with the terms and provisions of this
Declaration.
ARTICLE 1lI
Common Areas;
Obligations of Declarant
as to Common Areas
Section I.
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The Common Areas. The Common Areas shall consist of the portions of
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the Real Estate, and improvements thereon oj' thereto, as defined in Article I, Section 1 (g) of this
Declaration. Without limiting the generality;ofthe foregoing, the Coml11on Areas shall include
the following portions of the Parcel, and improvements thereon or thereto, to the extent the same
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have been subjected to this Declaration and ~re part of the Real Estate:
(a) The storm water detention pond or lake shown on the Site Plan, including all land
areas surrounding the same which are shown upon the Site Plan as, and may be
shown on subdivision plats of the Real Estate as "Common Areas" or "Lake
Maintenance Easement", and any other portions of the storm drainage system for
the Real Estate which are not established as legal drains subject to the jurisdiction
of the Hamilton County Drainage Board and maintained by it;
(b) the public drive or street to be located in the Common Area as shown on the Site
Plan;
(c) landscaping to be installed in "Landscaping Easements" noted or to be noted on
subdivision plats of the Real Estate along the perimeter of the Real Estate
adjacent to 146th Street, or elsewhere within the Real Estate, including entry way
walls, fences or other structures, subdivision identification signs, street decent
lighting systems and other similar items to be installed in "Landscaping
Easements" noted or to be noted on subdivision plats of the Real Estate along
such perimeter frontages of the Real Estate, or at or in proximity to the street
entrance to the Real Estate frol11 146th S treel.
Section 2.
Agreement to Construct and Convey Coml11on Areas. Declarant will,
prior to the Applicable Date, construct or provide for the Common Areas described herein to the
extent the same are due to be located on portions of the Parcel which are subjected to this
Dec laration and are part of the Real Estate. Upon final construction or provision 0 f such
Common Areas, Declarant covenants to convey all of its right, title and interest in and to said
Common Areas to the Corporation and all such right, title and interest in and to said items
(whether owned in fee, by leasehold, by contract or in the nature of an easement or license) shall
then be the property of the Corporation, whether or not the same may be located entirely or
partially on anyone or more of the Lots, the Owners of such Lots shall take and hold title thereto
subject to an easement for the maintenance Qf such improvements as Commo/1 Areas, and a right
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and eascmcnt in favor of Dcclarant and the Corporation l'or access thereto and thereon for
purposes of maintaining such Common Areas.
ARTICLE IV
Corporation; Membership; Voting; Functions
Section 1.
Membership in Corporation. Declarant and each Owner of a Lot shall,
automatically upon becoming an Owner, be and become a member of the Corporation and shall
remain a member until such time as his own~rship of a Lot ceases, but membership shall
tenninate when such Owner ceases to be an Owner, and will be transferred to the new Owner of
his Lot; provided, however, that any Person who holds the interest of an Owner in a Lot merely
as security for the performance of an obligati,on shall not be a member until and unless he
realizes upon his security, at which time he shall automatically be and become an Owner and a
member of the Corporation.
Section 2.
Voting Rights. The Corporation shall have the following classes of
membership, with the following voting rights:
(a)
Class A. Class A members shall be all Owners except Class B members.
Each Class A member shall be entitled to one (I) vote for each Lot of which such
member is the Owner with respect to each matter submitted to a vote of mcmbers
upon which the Class A members are entitled to vote. When more than one (I)
Person constitutes the Owner of a particular Lot, all such Persons shall be
members of the Corporation, but all of such Persons shall have only one (1) vote
for such lot, which vote shall be exercised as they among themselves determine,
but in no event shall more than one (1) vote be cast with respect to any such Lot.
(b)
Class B. Class B members shall be Declarant and all successors and assigns
of Declarant designated by Declarant as Class B members in a written notice
mailed or delivered to the resident agent of the Corporation. Each Class B
member shall be entitled to five (5) votes for each Lot of which it is the Owner
and five (5) votes for each individually numbered parcel of land shown upon, and
identi fied as a lot on, any recorded subdivision plat of the Real Estate, or any part
thereof, of which it is the Owner (either as to the entire numbered parcel or any
part thereat) which is not a "Lot" as defined in this Declaration, on all matters
requiring a vote of the members of the Corporation. The Class B membership
shall cease and terminate upon the first to occur of (i) the date upon which the
written resignation of the Class B members as such is delivered to the resident
agent of the Corporation, (ii) the date Declarant no longer owns any Lots nor any
portion of any individually numbered parcel of land shown upon, and identified as
a lot on, any recorded subdivision plat of the Real Estate, or any part thereof, or
(iii) December 3 I, 2004 (the "Applicable Date"). After the Applicable Date,
Class B memberships shall be converted to Class A memberships, and each
former Class B member shall 'be entitled to one (1) Class A membership for each
Lot owned and for each individually numbered parcel 0 f land shown upon, and
identi fied as a lot on, any recorded subdivision plat of the Real Estate, or any part
thereof, of which it is then the owner (eithcr as to the entire numbered parcel or
any part thereof) which is not a "Lot" as defined herein.
(c)
Special. Until the Applicable Date, there shall be three (3) additional Special
members of the Corporation, being the persons from time to time appointed by
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Declarant to serve on the "Initial Board" pursuant to Section 2 of Article V
hereof. Persons who are special members shall not be deemed or considered
members of the Corporation nor Owners of Lots for any purpose other than to
qualify to act as members of the Initial Board. Special members shall have no
voting rights on any matters submitted to a vote of the members [unless sllch
Special member is also a Class A member, in which event his voting rights shall
be governed by subsection (a) of this Section 2].
Section 3.
Functions. The Corporation has been (or will be) formed for the purpose
of providing for the maintenance, repair, replacement, administration, operation and ownership
of the Common Areas as and to the extent provided herein, to pay taxes assessed against and
payable with respect to the Common Areas, to pay any other necessary expenses and costs in
connection with the Common Areas, and perfonn such other functions as may be designated for
it to perform and to perform such other func,ions as may be designated for it to perform under
this Declaration or under any recorded subdivision plat of the Real Estate, whether heretofore or
hereafter recorded.
ARTICLE V
Board of Directors
Section I.
Management. The business and affairs of the Corporation shall be
governed and managed by the Board of Directors. No person shall be eligible to serve as a
member of the Board of Directors unless he is, or is deemed in accordance with this Declaration
to be, an Owner, including a person appointed by Declarant as provided in Section 2 of this
Article V.
Section 2.
Initial Board of Directors. The initial Board of Directors shall be
composed of the persons designated or to be designated in the Articles, to-wit: Marvin Taylor
and Kcnt Shipley (herein referred to as the "Initial Board"), all of whom have been or shall be
appointed by Declarant. Notwithstanding anything to the contrary contained in, or any other
provisions of, this Declaration, the Articles, the By-Laws or the Act (a) the Initial Board shall
hold office until the first meeting of the members of the Corporation occurring on or after the
Applicable Date, and (b) in the event of any vacancy or vacancies occurring in the Initial Board
for any reason or cause whatsoever prior to s.uch first meeting occurring on or after the
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Applicable Date detennined as provided abo~e, every such vacancy shall be filled by a person
appointed by Declarant, who shall thereafter be deemed a member of the Initial Board. Each
Owner, by acceptance of a deed to a Lot, or by acquisition of any interest in a Dwelling Unit by
any type of juridic acts inter vivos or causa Q1ortis, or otherwise, shall be deemed to have
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appointed Declarant as such Owner's agent, attorney-in-fact and proxy, which shall be deemed
coupled with an interest and irrevocable until the Applicable Date detemlined as provided above,
to exercise all of said Owner's right to vote, and vote as Declarant determines, on all matters as
to which members of the Corporation are entitled to vote under the Declaration, the Articles, the
By-Laws, the Act or otherwise. This appointment of Declarant as such Owner's agent, attorney-
in- fact and proxy shall not be affected by incompetence of the Owner granting the same. Each
Person serving on the Initial Board, whether as an original member thereof or as a member
thereof appointed by Declarant to fill a vacancy, shall be deemed a Special member of the
Corporation and an Owner solely for the purpose of qualifying to act as a member of the Board
of Directors and for no other purpose. No such Person serving on the Initial Board shall be
deemed or considered a member of the Corporation nor an Owner of a Lot for any other purpose
(unless he is actually the Owner of a Lot and thereby a member of the Corporation).
Section 3.
Additional Qualifications. Where an Owner consists of more than one
Person or is a partnership, corporation, trust or other legal entity, then one of the Persons
constituting the multiple Owner, or a partner or an officer or trustee, shall be eligible to serve on
the Board of Directors, except that no single Lot or Dwelling Unit may be represented on the
Board of Directors by more than one Person at a time.
Section 4.
Term of Office and Vacancy. Subject to the provisions of Section 2 of
this Article V, the entire membership of the Board of Directors shall be elected at each annllal
meeting of the Corporation. The Initial Board shall be deemed to be elected and re-elected as the
Board of Directors shaH be elected for a term on one (I) year. Each Director shall hold office
throughout the term of his election and until his successor is elected and qualified. Subject to the
provisions of Section 2 of this Article Vas to the Initial Board or by vote of the Owners if a
Director is removed in accordance with Section 5 of this Article V as to the Initial Board, any
vacancy or vacancies occurring in the Board shall be filled by a vote of a majority of the
remaining members of the Board or vote of the Owners if a Director is removed in accordance
with Section 5 of this Article V. The Director so filling a vacancy shall servc lIntilthc ncxt
annual meeting of the members and until his;successor is elected and qualified.
Section 5.
Removal of Directors. A Director or Directors, except the members of the
Initial Board, may be removed with or without cause by vote of a majority of the votes entitled to
cast at a special meeting of the Owners duly called and constituted for such purpose. In slIch
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case, his successor shall be elected at the same meeting from eligible Owners nominated at the
meeting. A Director so elected shall serve until the next annual meeting of the Owners and until
his successor is duly elected and qualified.
Section 6.
Duties of the Board of Directors. The Board of Directors shall be the
governing body of the Corporation representing all of the Owners and being responsible for the
functions and duties of the Corporation, including but not limited to, providing for the
administration of the Real Estate, the management, maintenance, repair, upkeep and replacement
of the COllllllon Areas (unless the same are otherwise the responsibility or duty of Owners), and
the collection and disbursement of the Common Expenses. After the Applicable Date, the Board
may, on behalfofthe Corporation and at the sole discretion of the Board, employ a professional
property management agent (herein called the "Managing Agent") upon such terms as the Board
shall tind, in its discretion, reasonable and customary. The Managing Agent, if one is employed,
shall assist the Board in carrying out its duties, which include, but are not limited to:
(a) protection, surveillance and replacement of the Common Areas, unless the same
are otherwise the responsibility or duty of Owners of Lots; provided, however,
that this duty shall not include or be deemed or interpreted as a requirement that
the Corporation, the Board or any Managing Agent must provide anyon-site or
roving guards, security service or security system for protection or surveillance,
and the same need not be furnished;
(b) procuring of utilities used in connection with the Lots, Dwelling Units and
COlllmon Areas (to the extent the same are not provided and billed directly to
Owners of Lots and Dwelling Units by utility companies) and snow removal from
the Street; streets within the Real Estate (i f the appropri ate governmental
authority exercising jurisdiction over such streets is unable or unwilling to
provide such snow removal);
(c) landscaping, painting, decorating, furnishing, and maintenance and upkeep of, the
Common Areas;
(d) assessment and collection from the Owners of the Owners' respective shares of
the Common Expenses;
(e) preparation of the proposed annual budget, a copy of which will be mailed or
delivered to each Owner at the same time as the notice of the annual or special
meeting at which the same is to be acted upon is mailed or delivered;
(I) preparing and delivering annually to the Owners a full accollnting of all receipts
and expenses incurred in the prior year; if possible, sllch accounting shall be
delivered to each Owner simultaneously with delivery of the proposed budget for
the current year;
(g) keeping a current, accurate and detailed record of receipts and expenditures affecting
the Common Areas and business and affairs of the Corporation. spcci fying and
itemizing the Common Expenses; all records and vouchers shall be available for
examination by an Owner at any time during normal business hours;
(g) procuring and maintaining for the bene tit of the Corporation, the Owners, any
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Managing Agent and the Board the insurance coverages required under this
Declaration and such other insurance coverages as the Board, in its sole
discretion, may deem necessary or advisable;
(i) paying taxes and assessments levied and assessed against, and payable with
respect to, the Common Areas and paying any other necessary expenses and costs
in connection with the Common Areas; and.
U) procuring weekly trash removal services for the benefit of the Owners for which
services the Owners may be billed directly; and
(k) all duties and obligations imposed upon the Corporation or the Board under this
Declaration, the Articles, the 8y-Laws, the Act, or any recorded subdivision plat
of the Real Estate, whether heretofore or hereafter recorded.
Section 7.
Powers of the Board of Directors. The Board of Directors shall have such
powers as are reasonable and necessary to accomplish the perfom1ance of their duties. These
powers include, but are not limited to, the power:
(a) to employ a Managing Agent to assist the Board in performing its duties;
(b) to purchase, lease or otherwise obtain for the corporation, to enable it to perform
its functions and duties, such equipment, materials, labor and services as may be
necessary in the judgement of the Board of Directors;
(b) to employ legal counsel, architects, contractors, accountants and others as in the
judgement of the Board of Directors may be necessary or desirable in connection
with the business and affairs ofthe Corporation;
(c) to employ, designate discharge and remove such personllel as in the judgcment of
the Board of Directors may be necessary for the maintenancc, upkeep, repair and
replacement of the Common Areas and to perform all other maintenance, upkeep,
repair and replacement duties of the Corporation and the Board;
(d) to include the costs ofperfonning all of its functions, duties and obligations as
Common Expenses and to pay all of such costs therefrom;
(f) to open and maintain a bank account or accounts in the name of the Corporation;
(h) to promulgate, adopt, revise, amend and alter from time to time such additional
rules and regulations with respect to sue, occupancy, operation and cnjoymcnt of
the Real Estate and the Common Areas (in addition to those set forth is this
Declaration) as the Board, in its discretion, deems necessary or advisable;
provided, however, that copies of any such additional rules and regulations so
adopted by the Board shall be promptly delivered to all Owners; and
(i) to grant to such public or private companies, entities or bodies as the Board shall
approve, such easements as may be necessary to provide the Lots, Dwelling Units
and Common Areas with facilities for utility and similar services, including but
not limited to cable television facilities and service; provided that such easements
are located within or are co-extensive with anyone or more easements or
Common Areas shown upon, and identified as such on, or provided for in. any
subdivision plat of the Real Estate, whether such plat is heretofore or hercafter recorded.
Section 8.
Limitation on Board Action. After the Applicable Date. the authority of
the Board of Directors to enter into contracts shall be limited to contracts involving a total
expenditure of less and twenty per cent (20%) of the annual budget without obtaining the prior
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approval of a majority of the cumulative vote of the Owners, except that in the following cases
such approval shall not be necessary:
(a) contracts for replacing or restoring portions of the Common Areas damaged or
destroyed by fire or other casualty where the cost thereof is payable out of insurance
proceeds actually received or for which the insurance carrier has acknowledged
coverage;
(b) proposed contracts and proposed expenditures expressly set forth in the proposed
annual budget as approved by'the Owners at the annual meeting; and
(c) expenditures necessary to deal with emergency conditions in which the Board of
Directors reasonable believes there is insufficient time to call a meeting of the
Owners.
Section 9.
Compensation. No Director shall receive any compensation for his
services as such, except to such extent as may be expressly authorized by a majority vote of the
Owners. Then Managing Agent, if any is employed, shall be entitled to reasonable
compensation for its services, the cost of which shall be a Common Expense.
Section 10. Non-Liability of Directors and Officers. The Directors and 0 fficers of the
Corporation shall not be liable to the Owners or any other Persons for any error or mistake of
judgement exercised in carrying out their duties and responsibilities as Directors and officers,
except for their own individual willful misconduct, bad faith or gross negligence. The
Corporation shall indemnify and hold harmless and defend each of the Directors and officers
against any and all liability to any person, finn or corporation arising out of contracts made by
the Board on behalf ofthe Corporation, unless any such contract shall have been made in bad
faith. It is intended that the Directors and officers shall have no personal liability with respect to
any contract made by them on behalf of the Corporation.
Section II.
Additional Indemnitv of Directors and Officers. The Corporation shall
indemnify, hold harmless and defend any Person, his heirs, assigns and legal representatives,
made a party to any action, suit or proceeding by reason of the fact that hie is or was a Director
or officer orthe Corporation, against the reasonable expenses, including attorneys' fees, actually
and necessarily incurred by him in connection with the defense of such action, suit or
proceeding, or in connection with any appeal therein, except as otherwise speci fically provided
herein in relation to matters as to which it shall be adjudged in such action, suit or proceeding
that such Director or officer is liable for gross negligence or misconduct in the performance of
his duties. The Corporation shall also reimburse to any such Director or officer the reasonable
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costs of settlement of or judgment rendered in any action, suit or proceeding, if it shall be found
by a majority vote of the Owners that such Director of officer was not guilty of gross negligence
or misconduct. In making such findings and notwithstanding the adjudication in any action, suit
or proceeding against a Director or officer, no Director or officer shall be considered or deemed
to be guilty of or liable for negligence or misconduct in the performance of his duties where,
acting in good faith, such Director or officer relied On the books and records of the Corporation
or statcmcnts or advice made by or prepared by the Managing Agent (i f any) or any other officer
or employee thereof, or any accountant, attorney or other person, firm or corporation employed
by the Corporation to render advice or service unless such Director or officer had actual
knowledge of the falsity or incorrectness thereof; nor shall a Director 0 f officer be deemed gui Ity
of or liable for negligence or misconduct by virtue of the fact that he failed or neglected to attend
a meeting or meetings of the Board of Directors.
Section 12. Bond. The Board of Directors may provide surety bonds and may require
the Managing Agent (if any), the treasurer of the Corporation, and any other 0 fficers as the
Board deems necessary, to provide surety bonds, indemnifying the Corporation against larceny,
theft, embezzlement, forgery, misappropriation, wrongful abstraction, willful misapplication, and
other acts of fraud or dishonesty, in such sums and with such sureties as may be approved by the
Board of Directors and any such bond shall specifically include protection for any insurance
proceeds received for anyreason by the Board. The expense of any such bonds shall be a
Common Expense.
Section 13. Initial Management. Notwithstanding anything to the contrary contained
in this Declaration, Declarant shall have, and Declarant hereby reserves to itsel f, the exclusi\;e
right to manage or designate a Managing Agent for the Real Estate and Common Areas, and to
perfornl all the functions of the Corporation, until the Applicable Date. Declarant may, at its
option, engage the services of a Managing Agent affiliated with it to perform such functions and,
in either case, Declarant or such Managing Agent shall be entitled to reasonable compensation
for its services.
ARTICLE VI
Real Estate Taxes; Utilities
Section 1.
Real Estate Taxes. Real estate taxes on each Lot, and on any Dwelling
Unit or other improvements on each Lot, are to be separately assessed and taxed to each Lot and
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shall be paid by the Owner of such Lot. Any real estate taxes or other assessments against the
Common Areas shall be paid by the Corporation and treated as a Common Expense.
Section 2.
Utilities. Each Owner shall pay for his own utilities which, to the extent
possible, shall be separately metered to each Lot and Dwelling Unit. Utilities which are not
separately metered to an Owner's Lot or Dwelling Unit shall be treated as and paid as part of the
Comlllon Expense, unless otherwise determined by the Corporation.
ARTICLE VII
Maintenance, Repairs and Replacements
Section I.
By Owners. Each Owner shall, at his own expense, be responsible for,
and shall promptly perform as the need therefor arises, all maintenance, repairs, decoration and
replacement of his own Dwelling Unit, both interior and exterior. In addition, each Owner shall
fumish and be responsible for the maintenance of all portions of his Lot, except for sllch portions
thereof as may, in accordance with the terms of this Declaration, be designated as a part of the
Common Areas for purposes of maintenance only. All fixtures and equipment installed within or
as part of a Dwelling Unit, commencing at the points where the utility lines, pipes, wires,
conduits or systems enter the Lot upon which said Dwelling Unit is located, shall be maintained
and kept in repair by the Owner thereof. Each Owner shall promptly perform all maintenance
and repair of his Lot and Dwelling Unit which, if neglected, might adversely affect any other Lot
or Dwelling Unit or any part of the Common Areas. Such maintenance and repairs include but
are not limited to intemal water lines, plumbing, electric lines, gas lines, appliances, and all other
fixtures, equipment and accessories belonging to the Owner and a part of or appurtenant to his
Dwelling Unit or Lot.
Section 2.
By the Corporation. Maintenance, repairs, replacements and upkeep of
the Common Areas [including, but not limited to, the storm drainage system for the Real Estate
(other than portions thereof established as legal drains subject to the jurisdiction of the Hamilton
County Drainage Board and maintained by it)] shall (except to the extent provided herein as the
obligation of Owners) be furnished by the Corporation, as a part of its duties, and the cost thereof
shall constitute a part of the Common Expenses.
In addition to the maintenance of the Common Areas as herein otherwise defined, the
Corporation, as part of its duties, and as a part of the Common Expenses, shall provide for
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maintenance for the following items, which shall be considered part of the Common Areas for
purposes of maintenance only:
(a) those portions of the Real Estate, whether or not said portions are part of any of
the Lots, which are located outside any perimeter fencing (including walls)
originally installed by Declarant as part orthc perimcter trcatment of tile Real
Estate, but only to the extent that the same are not maintained by or the
responsibility of a public authority; provided, however, that the Corporation shall
have no obligation to maintain any public street, road or highway located within
any public right-of-way on or abutting the Real Estate. For purposes of this
subparagraph (a), "outside any perimeter fencing" means the areas between such
fencing and the nearest property line of the Real Estate;
(b) any perimeter fencing (including walls) originally installed by Declarant as part of
the perimeter treatment of the Real Estate;
(c) landscaping and other items installed by Declarant as part of its initial
development of the Real Esta~e or by the Corporation in the right-of-way of any
streets within the Real Estate or in any "Landscaping Easements" noted on
subdivision plats of the Real Estate; and
(d) the lakes or ponds shown on the Site Plan, including any equipment (such as
water wells, fountains or other aeration equipment) installed by Declarant as an
appurtenance to or to aid in the functioning of such lakes or ponds, whether or not
located on Lots.
The Board of Directors may adopt such other rules and regulations concerning
maintenance, repair, use and enjoyment of the Common Areas as it deems necessary, provided
that the same are not inconsistent with the express provisions of this Declaration.
Notwithstanding any obligation or duty of the Corporation to repair or maintain any of
the Common Areas (or items deemed Common Areas for purposes of maintenance), if, due to
the willful, intentional or negligent acts or omissions of an Owner or of a member of his family
or of a guest, tenant, invitee or other occupailt or visitor of such Owner, damage shall be caused
to the Common Areas (or items deemed as such for purposes of maintenance), or if maintenance,
repairs or replacements shall be required thereby which would otherwise be at the Common
Expense, then such Owner shall pay for such damage and such maintenance, repairs and
replacements, as may be determined by the Corporation, unless such loss is covered by the
Corporation's insurance with such policy having a waiver of subrogation clause. I I' not paid by
such Owner upon demand by the Corporation, the cost of repairing such damage shall be added
to and become a part of the assessment to which such Owner's Lot is subject.
The authorized representatives of the Corporation, the Board and the Managing Agent ror
the Corporation (if any) shall be entitled to reasonable access to any Lot as may be required in
connection with maintenance, repairs or replacements of or to the Common Areas and items
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deemed as Common Areas for purposes of maintenance, including, but not limited to, access to
any easements reserved, granted or created by any subdivision plat of allY portion of the Real
Estate for such purposes.
ARTICLE VIIl
Tavlor Trace Building Control Committee
Section I.
Creation. There shall be, and hereby is, created and established the
"Taylor Trace Building Central Committee" (the "Committee") to perform the functions
provided to be performed by it hereunder or l,lnder any subdivision plat or the Real Estate. Until
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the Applicable Date, the Declarant, or not more than three (3) persons designated by it, shall
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constitute the Committee. After the Applicable Date, the Committee shall be a standing
committee of the Corporation consisting oftl1ree (3) or more Persons as may, from time to time,
be provided in the By-Laws. If the By-Laws do not, at any time, provide for the Committee,
then the Board shall be and constitute the Committee.
Section 2.
Character of the Real Estate.
A. In General. Every Lot in the Real Estate, unless it is otherwise designated by the
Declarant, is a residential lot and shall be used exclusively for single family residential purposes.
No structure shall be erected, placed or permitted to remain upon any or said residential lots
except a single family dwelling house and such other improvements, appurtenances and facilities
as are usual and customary accessory uses to' a single family dwelling house.
Prior to the commencement of any construction or demolition activity on a lot, a
delineation of the building area for each Lot shall be submitted to the Committee for approval by
the Committee, and all trees outside the building, driving and parking areas shall be designated
by type and size and shall not be removed unless approved by the Committee upon proof of
unusual hardship in the practical utilization of the Lot and such removal shall not cause a
material adverse effect upon the aesthetic values of adjoining lands and rights-of-way. Trees
inside the building area shall not be destroyed, but shall be moved to other areas or the Lot.
unless they exceed 12" in diameter and cannot be moved.
Unpermitted removal or destruction of trees by an Owner or his successors in title, other
than by acts of God or circumstances beyond the Owner's control, shall, within ninety (90) days
after notice in writing from the Committee, be replaced by a tree of a type and size established
by the Committee, and upon failure to do so, the Committee shall cause such tree to be replaced
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and the cost of such replacement shall be a lien upon the Lot collectable in any court of law or
equity together with reasonable attorney's fees for the enforcement of such lien. For purposes of
executing this covenant, an easement for ingress and egress shall be and hereby is reserved on
each Lot for the perfomlance thereof.
Adequate physical barriers, such as straw bales or snow fence, shall be provided by
builders to protect trees to be preserved from damage by construction equipment or otherwise in
the erection of building improvements. Pruning of trees outside the building line shall be
permitted subject to the review and approval of the Committee and shall be undertaken only by
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qualified persons having adequate equipment to properly protect and preserve such trees.
In addition to individual site plan restrictions and tree preservation administered by the
Committee, platted building lines, and mininlum front, side and rear building lines shall be as
established on any subdivision plats of the R~al Estate or portions thereof. All construction upon
the Real Estate shall be done in compliance \vith the requirements of all applicable zoning,
building and other govemmentallaws, ordinances, codes and other regulations.
B. Residential Use of Accessory Structures Prohibited. No accessory uses or
improvements shall be erected on any other Lots prior to the erection thereon of a single family
Dwelling Unit, and in no event shall any such accessory or any temporary structure which may
be constructed upon a Lot subject to these Restrictions ever be used as a residence or dwelling
house or place for human occupancy or habitation.
C. Occupancy and Residential Use of Partially Completed Dwelling House
Prohibited. No Dwelling Unit constructed on any of the Lots shall be occupied or used for
residential purposes or human habitation until it shall have been substantially completed. The
determination of whether the Dwelling Unit shall have been substantially completed shall be
made by the Committee and such decision shall be binding on all parties.
Section 3.
Restrictions and Obligations Concerning Size, Placement and
Maintenance of Dwelling Units and Other Structures.
A. Minimum Living Space Areas. The minimum square footage of living space of
Dwelling Units constructed on the Lots shall be 2000 square feet for ranch homes and 3,000
square feet for two story homes with 1,400 tilinimum on the main floor.
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B. Set-Back Requiremcnts. Sct-back and yard size requiremcnts 1'01' Lots shall bc as
sct forth on any recorded subdivision plats of the Real Estate. If the plat is silcnt, thenthc sidc
yard setback shall be 5 feet unless easements or other restrictions impose other limitations.
C. Mailboxes and yard lights. In order to aid in the preservation of aesthetic
appearances within the Real Estate, any mailbox installed on the Real Estate must be approved
by the Committee as to size, location, height ,and composition before it is installed. A standard
mailbox design will be prepared by the Coml'nittee, and such design shall be the standard 1'01' all
mai Iboxes installed on the Real Estate.
Each home must install a uniform dusk-to-dawn light and maintain it in good working
order.
D. Exterior Construction. The finished exterior of every Dwelling Unit and other
building constructed or placed on any Lot shall be of material other than aluminum siding, vinyl
siding, rollbrick siding or any other similar artificial material. All materials used on the exterior
of any Dwelling Unit and any other building improvements on a Lot shall bc subject to the
approval of the Committee. All driveways must be paved from their point of connection with the
abutting street or road to their point of connection with the garage apron.
E. Heating Plants and Garages. Every Dwelling Unit located on the Real Estate
must contain a heating plant installed in compliance with the required codes and capable of
providing adequate heat for year-around human habitation of the Dwelling Unit. Every Dwelling
Unit located on the Real Estate must have at least a three-car attached garage, of the same
architectural design and materials as the Dwelling Unit. Additionally, an attached side-load
garage cannot extend past the front line of the principal residence, excluding porches, terraces,
and bay windows, into the front yard more than 14 feet for a two (2) car garage or more than
nineteen (19) feet for a three (3) car garage. An attached front-load garage cannot extend past
the front line of the principal residence, excluding porches, terraces, and bay windows, into the
front yard more than fourteen ( 14) feet.
F. Diligence in Construction. Unless a delay is caused by strikes, was, court
injunction or acts of God, every building whose construction or placement on an Lot is begun
shall be completed within nine (9) months after the beginning of such construction or placement.
No improvement which has partially or totally been destroyed by fire or otherwise shall be
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allowed to remain in such state for more than two (2) months from the time of such destruction
or damage.
G. Prohibition of Used Structures. All structures constructed or placed on any Lot
shall be constructed with substantially all new materials, and no used structures shall be
relocated or placed on any such Lot.
H. Maintenance of Lots and Impr'ovements. The Owner of any Lot shall at all times
maintain the Lot and any improvements situ~ted thereon in such a manner as to prevent the Lot
or improvements from becoming unsightly aI,1d, specifically, such Owner shall:
(i) Mow the lot at such times as may be reasonably required in order to prevent the
unsightly growth of vegetation and noxious weeds and, in any event, not less
frequently than once each month during the months of April through October,
inclusive, of each year;
(ii) Remove all debris or rubbish;
(iii) Prevent the existence of any other condition that reasonably tends to detract from
or diminish the aesthetic appearance of the Real Estate;
(i v) Cut down and remove dead trees;
(v) Where applicable, prevent debris and foreign material from entering drainage areas.
(vi) Keep the exterior or all improvements in such a state or repair or maintenance as
to avoid their becoming unsightly; and
I. Declarant's and the Corporation's Right to Perform Certain Maintenance. In the
event that any Owner of a Lot shall fail to maintain his Lot and any improvements situated
thereon in accordance with the provisions of these Restrictions and the provisions of any
recorded subdivision plats of the Real Estate, the Declarant, until the Applicable Date, and
thereafter, the Corporation, shall have the right, but not the obligation, by and through its agents
and employees or contractors, to enter upon said Lot and repair, mow, clean or perform such
other acts as may be reasonably necessary to make such Lot and improvements situated thereon,
i I' any, con foml to the requirements of these Restrictions and the provisions contained in any
such subdivision plats. The cost thereof to the Declarant or the Corporation shall be collected as
a special assessment against such Owner and his Lot in the manner provided for herein for the
collection of Common Expenses. Neither the Declarant nor the Corporation, nor any of its
agents, employees, or contractors, shall be liable for any damage which may result from any
maintenance work performed hereunder. Property Owner shall be given a written notice by first
class mail at his last known address and shall be allowed 10 days (48 hours in the case of outside
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toilet removal) from the date of mailing of that notice to cure any violation of these Restrictions
and the provisions contained in any such subdivision plats.
J. Fences. Walls. and Screening Structure. In order to aid in the preservation of the
aesthetic appearance within the real estate and to help maintain an open view orthc natural
surroundings, the following restrictions and limitations will apply to rear yard or side yard
fences, walls or screening structures:
(i) No rear yard or side yard fenc~s, wall or screening structure may exceed 48
inches in height on any Lot, except on Lots abutting or adjoining the common
area surrounding the pond.
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(ii) The material and style used for rear yard or side yard fences or screening
structures on Lots abutting or ~djoining the common area surrounding the pond
shall be limited to a see through material (i.e. vinyl coated chain link [green,
brown or black color] includirlg rails and posts, split rail, ornamental iron or
aluminum [black color], or "Cape Cod" or vertical spaced wood picket). The
material and style used for rear yard or side yard fences or screening structures on
all other Lots, shall be limited to: vinyl coated chain link [green. brown or black
color] including rails and posts, split rail, ornamental iron or aluminum [black
color], "Cape Cod" or vertica~ spaced wood picket, vertical wood shadow box,
and vertical wood picket. Hidden electronic fencing will be allowed on any Lot.
No stockade, ox-bow, basket weave, horizontal wood, galvanized chain link, wire,
solid aluminum, or PYC fences or screening structures will be allowed on any Lot
and no portable or modular kennel or kennel systems will be allowed on any Lot.
Section 4.
Provisions Respecting Disposal of Sanitary Waste.
A. Nuisances. No outside toilets shall be permitted on any Lot (except during a
period 0 f construction and then only with the consent of the Comm iltee), and no san itary waste
or other wastes shall be permitted to be exposed. Outside Toilet removal must take place within
48 hours and any removal notice shall state such time limits and be given pursuant to Section 3
of this Article.
8. Construction of Sanitary Sewage Lines and Disposal Facilities. All sanitary
sewage lincs and disposal facilities on the Lots shall be designed. constructed, installed and
maintained in accordance with the provisions and requirements of Hamilton County, Indiana,
any other governmental or quasi-governmental agencies having jurisdiction over public sanitary
sewers and these Restrictions.
Section 5.
General Prohibitions. 111 addition to any rcstrictions or limitations
contained elsewhere in this Declaration or in any recorded subdivision plats of the Real Estate,
the following limitations, restrictions and prohibitions shall govern the development, use and
occupancy of the Real Estate:
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A. In General. No noxious or offensive activities shall be carried on any Lot, nor
shall anything be done on any of said Lots that shall become or be an unreasonable annoyance of
nuisance to any Owner of another Lot.
B. Signs. Except as otherwise permitted by any subdivision plats of the Real Estate
or the Committee, no signs or advertisements shall be displayed or placed on any Lot or
structures without the prior written approval of the Committee.
C. Animals. No animals shall b~ kept or maintained on and Lot except usual
household pets, and, in such cases, such household pets shall be kept reasonably confined so as
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not to become a nuisance.
D. Vehicle Parking. No trucks, qampers, trailers, recreational vehicles, boats, boat
trailers or similar vehicles shall be parked on any street or Lot, unless the same are parked in a
garage. Temporary visitors may be allowed such parking but limited to no more than 3 days in
any given calendar month and no more than 4 consecutive days.
E. Garbage, Trash and Other Refuse. Now Owner of a Lot shall burn or permit the
burning out-of-doors of garbage or other refuse, nor shall any such Owner accumulate or permit
the accumulation out-of-doors of such refuse on his Lot except as may be permitted in
subparagraph F below. All houses shall be equipped with a garbage disposalunil.
F. Fuel Storage Tanks and Trash Receptacles. Every tank for the storage of fuel that
is installed outside any building shall be buried blow the surface of the ground. Every outdoor
receptacle for ashes, trash, rubbish or garbage shall be installed underground or shall be so
placed and kept as not to be visible from any street within the Real Estate at any time, except at
the times when refuse collections are being made.
G. Model Homes. No Owner of any Lot shall build or permit the building upon his
Lot of any dwelling house that is to be used as a model home or exhibit house without
permission to do so from the Declarant.
H. Temporary Structures. No temporary house, trailer, tent. garage or other
outbuilding shall be placed or erected on any Lot, nor shall any overnight camping be permitted
on any Lot.
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I. Ditches and Swales. It shall be the duty of every Owner of every Lot on which
any part of an open st0rl11 drainage ditch or ~wale is situated to keep such portion thereof as may
be situated upon his Lot continuously unobstructed (both by improvements and plant material)
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and in good repair, and to provide for the installation of such culverts upon said Lot as may be
reasonably necessary to accomplish the purposes of this subparagraph I.
J. Utility Services. Utility services shall, to the greatest extent possible, be installed
underground and in or adjacent to public rights-of-way to minimize rcmoval of or damage to
trees.
K. Wells and Septic Tanks. No Jater we.lls shall be drilled on any of the Lots, nor
shall any septic tanks or other :sewage disposal systems be installed on any of the
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Lots, without the approval of the Committee and of the governing public health
agency or other civil authority.
L. Compost piles. Owners shall ]1ot keep any form of composting on any Lot.
Section 6.
Committee's Functions.
A. Statement of Purposes and Powers. The Committee shall regulate the exterior
design, appearance, use, location and maintenance of lands subject to these Restrictions, and
improvements thereon, in such a manner as to preserve and enhance values, to maintain a
harmonious relationship among structures and the natural vegetation and topography, and to
provide for the proper functioning of the storm drainage system for the Real Estate. For these
purposes, the Committee may, from time to time and at any time, makc, amend and modify such
rules, regulations and guidelines as it may deem necessary or desirable to guide Owners as to the
terms, conditions, procedures and requirements of the Committee for the submission and
approval of items to it. Such rules, regulations and guidelines may, in addition, sct forth
additional specifications to those set forth herein or in any subdivision plats of the Rcal Estate, so
long as the same are not inconsistent with this Declaration or any such subdivision plat.
i) Generally. No dwelling, building, structure or other improvement of any type or
kind shall be constructed, on any Lot, nor shall any work be done on any Lot
which alters or changes the grade or elevation thereof, without the prior approval
of the Committee. Such approval shall be obtained only after written application
has been made to the Committee by the Owner of the Lot requesting authorization
from the Committee. Such written application shall be made in the manner and
fonn prescribed from time to time by the Committee, and shall be accompanied
by two (2) complete sets of plans and specifications for any such proposed
construction, improvement or other work. Such plans shall include plot plans
showing the location of all in1provements existing upon the Lot and location of
the improvement proposed to ,be constructed, placed, repaired, remodeled,
reconstructed or altered upon 'the Lot, each properly and clearly designated. Such
plans and specifications shall set forth the color and composition of all exterior
materials proposed to be used and any proposed (and existing) landscaping, together
with any other material or information which the Committee may require. All
building plans and drawings required to be submitted to the Committee shall be
drawn to a scale of W'=l ' and all plot plans shall be drawn to a scale of 1 "=30',
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or to such other scale as the Committee shall require. There shall also be
submitted, where applicable, such other permits or reports as may be required
under this Declaration. The following drawings shall be considered minimum for
approval study:
(a) Site plan which includes complete topographic study, location of all trees,
existing and proposed structures, drives, proposed (or existing) sanitary
sewage disposal systerll location, utility service. storm drainage and grading
details, terraces and all landscape details (including size of all plantings
and type); and
(b) Foundation plan, Floor plans, cross-sections, exterior elevations, and complete
specifications for all n~aterials to be used on the exterior of the house,
building, structure or other improvement.
(ii) Power of Disapproval. The Committee may refuse to grant permission to
construct, place or make the requested improvement, or perform other work.
when: '
(a) the plans, specifications, drawings or other material submitted arc,
themselves, inadequate or work to be in violation of these Restrictions,
the requirements or rdtrictions of any subdivision plats of the Real Estate,
the requirements or restrictions of any applicable zoning ordinances, or
any rules, regulations or guidelines adopted by the Committee;
(b) the design or color scheme of a proposed improvement is not in
hamlOny with the general surroundings of the Lot or with adjacent
buildings or structures in the sole opinion the Committee; or
(c) the proposed improvement, or work, or any part thereof, would, in the sole
opinion of the Committee, be contrary to the interests, welfare or rights of
all or any of other Owners.
(iii) Change, Modification or Amendment of Rules, Regulations and Guidelines. Any
rules, regulations and guidelines at any time made by the Committee may be changed,
modified and amended by the Committee at any time, and from time to time, on a
prospective basis; provided, however, that no such change, modi [ication or
amendment shall be applied by the Committee retroactively as to any construction
theretofore completed nor as to the construction of any improvement which has
previously been fomlally approved by the Committee if such construction has
been commenced or is commenced within ninety (90) days after such change,
modification or amendment is effective. Any rules, regulations or guidelines
adopted and made by the Committee, and any changes, modi fications or
amendments of any such rules, guidelines adopted and made by the Committee,
and any changes, modifications or amendments of any such rules, regulations and
guidelines at any time made by the Committee, shall be set forth in a written
instrument and recorded in the office of the Recorder of Hamilton County,
Indiana, and shall be effective' upon such recording; provided, however, that the
making, adoption, change, modification and amendment of any such rules,
regulations or guidelines by the Committee shall not be considered or deemed to
be amendments of this Declaration requiring the consent or approval of any
Owners, Mortgages or other Persons.
B. Duties of Committee. The Committee shall approve or disapprove proposed
improvements or other work within fifteen (15) days after all required information shall have
been submitted to it. One copy of submitted material shall be retained by the Committee 1'01' its
permanent files. All notifications to applicants shall be in writing, and, inlhc event that such
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noti fication is one of disapproval, it shall sped fy the reason or reasons therefore. I r the
Committee fails to act upon any plans or requests for approval submitted to it for its approval
within such fifteen (15) day period, it shall be deemed that the Committee has disapproved such
plans or request.
C. Liability of Committee. Neither the Committee, nor any member thereof, nor any
agent thereof, nor the 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, nor for any action or l~lilure to act with respect to the exercise or non-exercise of its
rights, duties authority hereunder. Further, the Committee docs not make, and shall not be
deemed by virtue of any action of approval or disapproval taken by it to have made, any
representation nor warranty as to the suitability or advisability of the design, the engineering, the
method of construction involved, or the materials to be used.
D. Inspection. The Committee and the Declarant may inspect work being performed
to assure compliance with these Restrictions; the restrictions contained in any subdivision plats
of the Real Estate and applicable regulations. However, neither the Committee, nor any member
thereof, nor the Declarant, nor any agent or contractor employed or engaged by the Committee or
the deficiencies in any work inspected or approved by it or them, or on its or their behalf.
Further, no such inspection or approval given by or on behalf of the Committee or the Declarant
shall be taken or deemed to be or constitute a warranty or guaranty of the work so inspected or
approved.
Section 7.
Rules Governing Building on Several Contiguous Lots Having One
Owner. Whenever two or more contiguous Lots shall be owned by the same Person, and such
Owner shall desire to use two or more of said Lots as a site for a single Dwelling Unit, he shall
apply in writing to the Committee for permission to so use said Lots. If permission for such a
use shall be granted, the Lots constituting the site for such single Dwelling Unit shall be treated
as a single Lot for the purpose of applying these Restrictions to said Lots, so long as, and only so
long as, the Lots remain improved with one single Dwelling Unit.
,
ARTICLE IX
Assessments
Section ].
Annual Accounting. f.nnllally, after the close of each fiscal year of the
Corporation and prior to the date of the annllalmeeting of the Corporation next following the end
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of such liscal ycar, the Board shall cause to be prepared and furnishcd to each Owner a financial
statement prepared by a certified public accountant or firm or certi lied public accountants then
serving the Corporation, which statement shall show all receipts and expenses received, incurred
and paid during the preceding fiscal year.
Section 2. Proposed Annual Budget. _ Annually, on or before the date of the annual or
special meeting of the Corporation at which the budget is to be acted upon, the Board of
Directors shall cause to be prepared a proposed annual budget for the next ensuing fiscal year
estimating the total amount of the Common Expenses for such next ensuing fiscal ycar and shall
fUl11ish a copy of such proposed budget to each Owner at or prior to the time the notice of such
meeting is mailed or delivered to such owners. The annual budget shall be submitted to the
Owncrs at the designated meeting of the Corporation for adoption and, if so adopted, shall be the
basis for the Regular Assessments (hercinafter defined) for the next ensuing fiscal year. At such
annual or special meeting of the Owners, the budget may be approved in whole or in part or may
be amended in whole or in part by a majority vote of the Owners; provided, however, that in no
event shall such meeting of the Owners be adjourned until an annual budgct is approved and
adoptcd at such meeting, eithcr the proposed annual budgct or the proposcd annual budget is
amended. The annual budget, the Regular Assessments and all sums assessed by the Corporation
shall be established by using generally accepted accounting principles applied on a consistent
basis. The annual budget and the Regular Assessments shall, in addition, be established to
include the establishment and maintenance of a replacement reserve fund for capital expcnditures
and replacement and repair of the Common Areas, which replacement reserve fund shall be used
for those purposes and not for usual and ordinary repair expenses of the Common Areas. Such
replacement reserve fund for capital expenditures and replacement and repair of the Common
Areas shall be maintained by the Corporation in a separate interest bearing account or accounts
with one or more banks or savings and loan associations authorized to conduct business in
Hamilton County or Marion County, Indiana selected from time to timc by the Board. The
failure or delay of the Board of Directors to prepare a proposed annual budget and to furnish a
copy thereof to the Owners shall not constitute a waiver or release in any manner of the
obligations of the Owners to pay the Common Expenses as herein provided, whenever
determined. Whenever, whethcr before or after the meeting of the Corporation at which the
budget is to be acted upon, there is no annual budget approved by the Owners as herein provided
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for the current fiscal year, the Owners shall continue to pay Regular Assessments bascd upon the
last approved budget or, at the option of the Board, based upon one hundred and ten percent
(110%) of such last approved budget, as a temporary budget.
Section 3.
Regular Assessments. _ The annual budgct as adoptcd by thc Owncrs shall,
based on the estimated cash requirement for the Common Expenses in the fiscal year covcred
thereby as set forth in said budget, contain a proposed assessment against each Lot, which shall
be the same amount for each Lot. Immediately following the adoption of the annual budget,
each Owner shall be given written notice of the assessment against his respective Lot (herein
called the "Regular Assessment"). In the event the Regular Assessment for a particular fiscal
year is initially based upon a temporary budget, such Regular Assessment shall be revised,
within fifteen (15) days following the adoption of the final annual budget by the Owners, to
reflect the assessment against each Lot based upon such annual budget as finally adopted by the
Owners. The aggregate amount of Regular Assessments shall be equal to the total amount of
expenses provided and included in the final annual budget, including the reserve funds as
hereinabove provided. The Regular Assessment against each Lot shall be paid in full in advance
by a date specified by the Board which date shall not be earlier than fifteen (15) days after the
written notice of such Regular Assessment is given to the Owners. However, at the option of the
Board, the Regular Assessment against each Lot may be paid in advance in equal quarterly
installments commencing on the first day of the first month of each fiscal year and quarterly
thereafter through and including the first day of the last quarter of such fiscal year. Payment of
the Regular Assessment, whether in one payment or in quarterly installments, shall be made to
the Board of Directors or the Managing Agent, as directed by the Board of Directors. In the
event the Regular Assessment for a particular fiscal year of the Corporation was initially based
upon a temporary budget,
(a) if the Regular Assessment based upon the final annual budget adopted by the
Owners exceeds the amount of the Regular Assessment based upon the temporary
budget, that portion of such excess applicable to the period from thc first day of
the current fiscal year to the date of the next payment of the Regular Assessment
which is due shall be paid with such next payment and such next paymcnt, and all
payments thereafter during such fiscal year, whether annual or quarterly, shall be
increased so that the Regular Assessment as finally determined shall be paid in
full by the rcmaining payments due in such fiscal ycar, or
(b) if the Regular Assessmcnt based upon the temporary budgct excecds the Rcgular
Asscssment bascd upon thc filutl annual budget adopted by the Owners, such
excess shall be credited against the next payment or payments of thc Regular
Assessment coming due, whether annual or quarterly, until the entire amount of
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such excess has been so credited;
provided, however, that if an Owner had paid his Regular Assessment in full in advance, then the
adjustments set forth under (a) or (b) above shall be made by a cash payment by, or refund to, the
Owner on the first day of thc second month following thc dctcrmination of the Regular
Assessment based upon the annual budget finally adopted by the Owners. The Regular
Assessment for each fiscal year of the Corpoi'ation shall become a lien on each separate Lot as of
the first day of each fiscal year of the Corporation, even thought the final dctermination of the
amount of such Regular Assessment may not have been made by that datc. The fact that an
Owner has paid his Regular Assessment for the current fiscal year in whole or in part based upon
a temporary budget and thereafter, before the annual budget and Regular Assessment are finally
determined, approved and adjusted as herein provided, sells, conveys or transfers his Lot or any
interest therein, shall not relieve or release such Owner or his successor as owner 0 I' such Lot
from payment of the Regular Assessment for such Lot as finally determincd, and such Owner
and his successor as owner of such Lot shall be jointly and severally liable for the Regular
Assessment as finally detennined. Any statement of unpaid assessments furnished by the
Corporation pursuant to Section 2 of Article X hereof prior to the final determination and
adoption of the annual budget and Regular Assessment for the year with respect to which such
statement is made shall state that the matters set forth therein are subject to adjustment upon
detel111ination and adoption of the final budget and Regular Assessment for such ycar, and all
parties to whom any such statement may be delivered or who may rely thereon shall be bound by
such final detel111inations. Annual or quarterly (ifso determined by the Board) installments of
Regular Assessments shall be due and payable automatically on their respective due dates
without any notice from the Board or the Corporation, and neither the Board nor the Corporation
shall be responsible for providing any notice or statements to Owners for the same.
Section 4.
Special Assessments. From time to time Common Expenses of an lInusual
or extraordinary nature or not otherwise anticipated may arise. At such time and without the
approval of the Owners, unless otherwise provided in this Declaration, the Articles, the By-Laws
or the Act, the Board of Directors shall have the full right, power and authority to make special
assessments which, upon rcsolution of the Board, shall becomc a lien on cach Lot, prorated in
equal sharcs (herein called "Special Assessment"). Without limiting the gcncrality of the
foregoing provisions, Special Assessments nlay be made by the Board of Directors from time to
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time to pay for capital expenditures and to pay for the cost of any repair or reconstruction of
damage caused by fire or other casualty or disaster to the extent insurance proceeds are
insufficient therefor under the circumstances described in this Declaration.
Section 5.
Failure of Owner to Pay Assessments.
(a) No Owner may exempt himself from paying Regular Assessments and Special
Assessments, or from contributing toward the expenses of administration and of maintenance
and repair of the Common Areas and items deemed Common Areas for purposes or
maintenance, and toward any other expense lawfully agreed upon, by \vaivcr ofthc LIse or
enjoyment of the Common Areas or by abandonment ofthc Lot belonging to him. Each Owner
shall be personally liable for the payment of ,\11 Regular and Special Assessments against his Lot.
Where the Owner constitutes or consists or Inore than one Person, the liability of such Persons
shall be joint and several. If any Owner shall fail, refuse or neglect to make any payment of any
Regular Assessments or Special Assessments against his Lot when due, the lien for such
Assessment on the Owner's Lot and Dwelling Unit may be filed and forcclosed by the Board for
and on behalfofthe Corporation as a mortgage on real property or as otherwise provided or
permitted by law. Upon the failure of an Owner to make timely payments of any such Regular
Assessments or Special Assessments, when due, the Board may, in its discretion, accelerate the
entire balance of the unpaid Assessments and declare the same immediately due and payable,
notwithstanding any other provisions hereof to the contrary. In any action to foreclose the lien
for any Assessments, the Owner and any occupant of the Lot and Dwelling Unit which are the
subject of such action shall be jointly and severally liable for the payment to the Corporation of
reasonable rental for such Lot and Dwelling Unit, and the Board shall be entitled to the
appointment of a receiver for the purpose of preserving the Lot and Dwelling Unit and to collect
the rentals and other profits therefrom for the benefit of the Corporation to be applied to the
unpaid Regular Assessments or Special Assessments. The Board may, at its option, bring a suit
to recover a money judgement for any unpaid Regular Assessment or Special Assessmcnt
without foreclosing (and without thereby being deemed to have waived) the licn sccuring the
same. In any action to recover a Regular Assessment or Special Assessmcnt, or any other debts,
dues or charges owed the Corporation, whether by foreclosure or otherwise, the Board, for and
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on behalf of the Corporation, shall be entitled to recover from the Owner of the respective Lot
and Dwelling Unit all of the costs and expenses of such action incurred (including but not limited
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to reasonable attorneys' fees) and interest from the date such Assessments or charges were due,
until paid, at a rate equal to the "prime interest rate" then in effect as publicly quoted or
published by Bank One, Indianapolis, N.A., of Indianapolis, Indiana (or ifsaid Bank is no longer
in existcncc, then such ratc chargcd by another national bank in Marioll COUllty, Indiana selcctcd
by the Board).
(b) Notwithstanding anything contained in this Section or elsewhere in this
Declaration, the Articles or the By-Laws, and sale or transfer of a Lot and Dwelling Unit to a
,
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Mortgagee pursuant to a foreclosure on its mortgage or conveyance in lieu thereof, or a
conveyance to any person at a public sale in the manner provided by law with respect to
mortgage foreclosures, shall extinguish the lien of any unpaid installment of any Regular
Assessment or Special Assessment or other charges as to sLlch installments which became due
prior to such sale, transfer or conveyance; pr<;>vided, however, that the extinguishment of such
lien shall not relieve the prior owner from personal liability therefor. No such sale, transfer or
conveyance shall reliever the Lot and Dwelling Unit or the purchaser at such foreclosure sale, or
grantee in the event of conveyance in lieu thereof, from liability for any installments of Regular
Assessments or Special Assessments or other charges thereafter becoming due or from the lien
therefor. Such unpaid share of any Regular Assessments or Special Assessments or other
charges, the lien for which has been divested as aforesaid, shall, if not collected from the party
personally liable therefor, be deemed to be a Common Expense, collectible from all Owners
(including the party acquiring the subject Lot and Dwelling Unit from which it arose).
Section 6.
Initial Budgets and Assessments. Notwithstanding anything to the
contrary contained herein, in the Articles, in the By-Laws, in the Act or otherwise, until the
Applicable Date the annual budget and all Regular Assessments and Special Assessments shall
be established by the Initial Board without meeting of or concurrence ofthe Owners. The
agency, power of attorney and proxy granted. to the Declarant by each Owner pursuant to Section
2 of Article V hereof shall be deemed to cover and include each Owner's right to vote on and
approve the annual budget and any Regular Assessments and Special Assessments unti I the
Applicable Date.
Further, until the Applicable Date alH.lnotwithstanding the foregoing or anything else
contained herein, no Regular Assessments, Special Assessments or other charges shall be owed
or payable by Declarant with respect to any Lot or other portion of the Real Estate owned by
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Declarant while the same is owned by Declarant, nor shall any such Assessments or charges
become a lien on any such Lot or other portion of the Real Estate owned by Declarant.
Assessments against a Lot shall commence to accrue from the date each Lot is conveyed by
Declarant to an Owner other than Declarant (either by deed or by installment sale, conditional
sale or land contract sale), and a prorated portion of the Regular Assessment for the balance of
the fiscal year of the Corporation against each Lot soconveyed by Declarant shall be paid by
each purchaser upon such conveyance.
Section 7.
Initial Working Capital and Start-Up Fund. Upon the closing or the initial
conveyance of each Lot by Declarant to anotI1er Person (either by deed or by installment sale,
conditional sale or land contract sale), the pUljchaser of such Lot shall pay to the Corporation, in
I
addition to any other amounts then owed or due to the Corporation, as a contribution to its
working capital and start-up fund, an amount'equal to one-fourth (1/4th) of the then current
annual Regular Assessment against such Lot,which payment shall be non-refundable and shall
not be considered as an advance payment of any Assessment or other charge owed the
Corporation with respect to such Lot. Such working capital and start-up fund shall be held and
used by the Corporation for payment of, or reimbursement to Declarant for advances made to
pay, expenses of the Corporation for its early period of operation of the Real Estate, to enable the
Corporation to have cash available to meet unforeseen expenditures, or to acquire additional
equipment or services deemed necessary by the Board.
ARTICLE X
Mortgages
Section I.
Notice to Corporation. Any Owner who places a first mortgage lien upon
his Lot, or the Mortgagee, shall notify the Secretary orthe Corporation thereorand provide the
name and address of the Mortgagee. A record 0 f each such fi rst mortgage, and name and address
of the Mortgagee, shall be maintained by the Secretary and any notice required to be given to the
Mortgagee pursuant to he terms of this Declaration, the By-Laws or otherwise shall be deemed
effectively given ifmailed 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 this Declaratioh, the By-Laws or otherwise shall be required and
no Mortgagee shall be entitled to vote on any: matter to which he otherwise may be entitled by
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virtue of this Declaration, the By-Laws, a proxy granted to such Mortgagee in connection with
the mortgage, or otherwise.
The Corporation shall, upon request of a Mortgagee who has furnished the Corporation
with its name and address as hereinabove provided, furnish such Mortgagee with written notice
of any default in the perfonnance by its borrower of any obligations of such borrower under this
Declaration or the By-Laws which is not cured within sixty (60) days.
Section 2.
1
Notice of Unpaid Assessments. The Corporation shall, upon request of a
Mortgagee, a proposed mortgagee, or a proposed purchaser who has a contractual right to
1
purchase a Lot, furnish to such Mortgagee or:purchaser a statement setting forth the amount of
the unpaid Regular Assessments or Special Assessments or other charges against the Lot, which
statement shall be binding upon the Corporation 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 or charges in excess of the amounts set forth in such statement or as such
Assessments may be adjusted upon adoption of the linal annual budget, as referred to in Section
3 or Article IX hereof.
ARTICLE Xl
Insurance
Section 1.
Casualty Insurance. The Corporation shall purchase a master casualty
insurance policy affording fire and extended coverage insurance insuring the Common Areas in
an amount consonant with the full replacement value of the improvements, if any, which, in
whole or in part, comprise the Common Areas. If the Board of Directors can obtain such
coverage for reasonable amounts they shall a1so obtain "all risk" coverage. The Board of
Directors shall be responsible for reviewing at least annually the amount and type of such
insurance and shall purchase such additional insurance as is necessary to provide the insurance
required above. If deemed advisable by the Board, the Board may cause such full replacement
value to be deternlined by a qualified appraiser. The cost of any such appraisal shall be a
Common Expenses. Such insurance coverag~ shall name the Corporation as the insured, for the
benefit of each Owner (to the extent, if any, that individual Owners have an independent interest
in the property covered thereby).
All proceeds payable as a result of casualty losses sustained which arc covered by
insurance purchased by the Corporation as hereinabove set forth shall be paid to it or to the
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Board of Directors. In the event that the Board of Directors has not posted surety bonds for the
faithful performance of their duties as such Directors or if such bonds do not exceed the funds
which will come into its hands, and there is damage to a part or all of the COl11mon Areas
resulting in a loss, the Board of Directors shall obtain and post a bond for the faithful
performance of its duties in an amount to be determined by the Board, but not less than 150(% of
the loss, before the Board shall be entitled to receive the proceeds of the insurance payable as a
result of such loss. The sole duty of the Board in connection with any such insurance proceeds
shall be to receive such proceeds as are paid and to hold the same for the purposes elsewhere
stated herein, and for the benefit of the Owners. The proceeds shall be used or disbursed by the
Corporation or the Board, as appropriate, only in accordance with the provisions of this
Declaration.
Such master casualty insurance policy, and "all risk" coverage if obtained, shall (to the
extent the same are obtainable) contain provisions that the insurer (a) waives its right to
subrogation as to any claim against the Corporation, the Board of Directors, its agents and
employees, Owners, their respective agents and guests, and (b) waives any defense based on the
invalidity arising from the acts of the insured, and providing further, if the Board of Directors is
able to obtain such insurance upon reasonable terms (i) that the insurer shall not be entitled to
contribution against casualty insurance which may be purchased by individual Owners, and (ii)
that notwithstanding any provision thereof giving the insurer an election to restore damage in
lieu of a cash settlement, such option shall not be exercisable in the event the Corporation does
not elect to restore.
Section 2.
Public Liability Insurance. The Corporation shall also purchase a masler
comprehensive public liability insurance policy in such amount or amounts as the Board of
Directors shall deem appropriate from time to time, but in any event with a minimum combined
limit of $1,000,000.00 per occurrence. Such comprehensive public liability insurance policy
shall cover all of the Common Areas and shall insure the Corporation, the Board of Directors,
any committee or organ of the Corporation or Boarel, any Managing Agent appointed or
employed by the Corporation, all persons acting or who may come to act as agents or employees
of any of the foregoing with respecllo the Real Estate, all Owners of Lots and all other persons
entitled to occupy any Lot or Dwelling Unit. Such public liability insurance policy shall contain
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a "severability of interest" clause or endorsement which shall preclude the insurer from denying
the claim of an Owner because of negligent acts of the Corporation or other Owners.
Section 3.
Other Insurance. The Corporation shall also obtain any other insurance
required by law to be maintained, including but not limited to worker's compensation and
occupational disease insurance, and such other insurance as the Board 0 f Directors may from
time to time deem necessary, advisable or appropriate, including but not limiled. liability
insurance on vehicles owned or leased by the Corporation and officers' and directors' liability
policies. Such insurance coverage shall also provide for and cover cross liability claims of one
insured party against another insured party. Such insurance shall inure to the benefit of each
Owner, the Corporation, the Board of Directors and any Managing Agent acting on behalf of the
Corporation. Each Owner shall be deemed to have delegated to the Board of Direclors his right
to adjust with the insurance companies all losses under the policies purchased by the Board of
Directors the proceeds of which are payable to the Board or the Corporation.
Section 4. General Provisions. The premiums for all insurance hereinabove
described shall be paid by the Corporation as part of the Common Expenses. When any such
policy of insurance hereinabove described has been obtained by or on bchal f of thc Corporation,
written notice of the obtainment thereof and of any subsequent changes therein or tcrmination
thercof shall be promptly furnished to each Owner or Mortgagee whose intcrest may bc affccted
thereby, which notice (accompanied by copies of such policies of any changes thereto, or
certi ficates indicating the coverages included therein) shall be furnished by the officer of the
Corporation who is required to send notices of meetings of the Corporation.
In no event shall any distribution of insurance proceeds by made by the Board of
Directors directly to an Owner where there is a mortgagee endorsement on Ihe certificate of
insurance or insurance policy as it applies to such Owner's share of such proceeds. In such event
any remittances shall be to the Owner and his Mortgagee jointly. The same method of
distribution shall also apply to the distribution of any condemnation awards in connection with
any taking of any of the Common Areas. Notwithstanding the foregoing, under no
circllmstances shall any distribution of insurance proceeds or condemnation awards by made by
the Corporation to any Owners or Mortgagees if to do so would be in violation of the Act or if
the same would constitute a distribution of e<~rnings, profits or pecuniary gain to the mcmbers of
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the Corporation; in any such event, any such insurance proceeds or condel11nation awards shall
be retained by the Corporation for use in the payment of its expenses of operation.
Section 5.
Insurance by Owners. Each Owner shall be solely responsible for and
may obtain such additional insurance as he deems necessary or desirable, at his own expense,
affording coverage upon his personal property, his Lot, his Dwelling Unit, the contents of his
Dwelling Unit, his personal property stored anywhere on the Real Estate, and for his personal
liability, but all such insurance shall contain the same provisions for waiver of subrogation as
referred to in the foregoing provisions for the master casualty insurance policy to be obtained by
the Corporation.
ARTICLE XII
Casualty and Restoration
In the event of damage to or destruction of any of the Common Areas due to fire or any
other casualty or disaster, the Corporation shall promptly cause the same to be repaired and
reconstructed. The proceeds of insurance carried by the Corporation, in any, shall be applied to
the cost of such repair and reconstruction.
I f the insurance proceeds, if any, received by the Corporation as a result of any such fire
or any other casualty or disaster are not adequate to cover the cost f repair and reconstruction of
.
the C0l111110n Areas, or in the event there are no insurance proceeds, the cost for restoring the
damage and repairing and reconstructing the Common Areas so damaged or destroyed (or the
costs thereofin excess of insurance proceeds received, ifany) shall be assessed by the
Corporation against all of the Owners in equal shares. Any such amounts assessed against the
Owners shall be assessed as part of the Common Expenses and shall constitute a lien frol11 the
time of assessment as provided herein.
For purposes of this Article, repair, reconstruction and restoration shall mean
construction or rebuilding the Common Areas to as near as possible the same condition as they
existed immediately prior to the damage or destruction.
Il11mediately after a fire or other casualty or disaster causing damage to any property for
which the Board of Directors or Corporation has the responsibility of maintenance and repair
hereunder, the Board shall obtain reliable and detailed estimates of the cost to place the damaged
property in a condition as good as that before the casualty. Such costs may include professional
fees and premiums for such bonds as the Board of Directors desires or deems necessary.
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Encroachmcnts upon any Lot which may be created as a result or such reconstruction or
repair of any of the Common Areas shall not constitute a claim or basis or a procecding or action
by the Owner upon whose Lot such encroachment exists, provided that such reconstruction was
either substantially in accordance with the plans and speci fications or as the Common Arcas
were originally constructed.
ARTICLE XIII
Restrictions. Covenants and Regulations
Section 1.
Restrictions on Use. The following covenants and restrictions on the use
and cnjoymcnt of the Lots, Dwelling Units and common Areas shall bc in addition to any other
covenants or restrictions contained herein and in any subdivision plats of any part of the real
Estate heretofore or hereafter recorded, and all such covenants and restrictions are for the mutual
benefit and protection of the present and future Owners and shall run with the land and inure to
the benefit of and be enforceable by any Owner, or by the Corporation. Present or future Owners
or the Corporation shall be entitled to injunctive relief against any violation or attempted
violation of any such covenants and restrictions, and shall, in addition, be entitled to damages for
any injuries or losses resulting from any violations thereof, but there shall be no right of
reversion or forfeiture resulting from such violation. These covenants and restrictions are as
follows:
(a) All Lots and Dwelling Units shall be used exclusively for residential purposes and
for occupancy by a single family.
(b) Nothing shall be done or kept by an Owner in any Dwelling Unit, or on any Lot,
or on any of the Common Areas, which will cause an incrcasc in thc ratc of
insurance on any Common Areas. No Owner shall permit anything to be done or
kept in his Dwelling Unit or on his Lot which will result in a cancellation of
insurance on any part of the Common Areas, or which would be in violation of
any law or ordinance or the requirements of any insurance underwriting or rating
bureau.
(c) No nuisance shall be permitted and no waste shall be cOl11mitted in any Dwelling
Unit or on any Lot.
(d) No Owner shall cause or pemlit anything to be hung or displayed on thc outside
of the windows of his Dwelling Unit or placed on the outside walls of any
building, and sign, awning, canopy, shutter or radio or television antenna or other
attachment or thing shall be affixed to or placed upon the exterior walls or prior
consent of the Committee unless otherwise expressly authorized herein, or in any
recorded subdivision plat, or by the rules, regulations and guidelines of the Committee.
(e) No Dwelling Unit or Lot shall be used in any unlawful manner or in any manner
which might cause injury to the reputation of the subdivision developed or to be
developed on the Real Estate, or which might be a nuisance, annoyance,
inconvenience or damage to other Owners and occupants of Dwelling Units or
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neighboring property including without limiting the generality of the foregoing,
noise by the use of any musical instruments, radio, television, loud speakers,
electrical equipment, amplifiers or other equipment or machines or loud speakers.
(f) No clothes, sheets, blankets, rugs, laundry or other things shall be hung out or
exposed on, or so as to be visible fi'om, any part of the Common Areas. The
Common Areas shall be kept free and clear of rubbish, debris amI other unsightly
materials.
(g) No industry, trade, or other commercial or religious activity. educational or
othelwise, designed for profit. altruism or otherwise. shall be conducted. practiced
or pemlitted on the Real Estate unless and except as otherwise authorized oi'
pennitted by any subdivision plats of the Real Estate.
(h) All Owners and members of their families, their guests, or invitees, and all
occupants of any Dwelling Unit or other persons entitled to use the same and to
use and enjoy the Common Areas or any part thereof, shall observe and be
govemed by such rules and regulations as may from time to time be promulgated
and issued by the Board goveming the operation, use and enjoyment of the Coml11on Areas.
(i) No Owner shall be allowed to plant trees, landscape or do any gardening in any of
the Common Areas, except with express permission from the Board.
(j) Common Areas shall be used and enjoyed only for the purposes for which they
are designed and intended, and shall be used subject to the rules and regulations
from time to time adopted by the Board. Without limiting the generality of the
foregoing, the lakes or ponds to be installed on the Real Estate, as shown on the
site plan, are and will be an integral part of the storm water drainage system
serving the Real Estate and are intended to be used for such purpose and primarily
as visual and aesthetic amenities and not as recreational amenities. Accordingly,
no use shall be made of such lakes or ponds which in any way interferes with their
proper functioning as part of such storm water drainage system. No boating,
swimming, diving, skiing or ice skating shall be permitted in or on said lakes or
ponds. No sewage, garbage, refuse, or other solid, liquid, gaseous or other
materials or items (other than storm and surface water drainage) shall be put into
said lakes or ponds except the Corporation may take steps to clear and puri fy the
waters thereof by the addition of chemicals or other substances commonly used
for such purposes or by providing therein structures and equipment to aerate the
same. Fishing from the shores of such lake or ponds adjacent to an Owner's Lot
by the Owner thereof and his invited guests and family shall be pennitted subject
to obeyance and compliance with all applicable fishing and game laws,
ordinances, rules and regulations. The Corporation shall be responsible for the
maintenance of the lakes or ponds and the banks of the lakes or ponds above the
water level to the Lot lines. The maintenance costs of the lakes or ponds and such
banks shall be assessed as an assessment against all Lots subject to assessment as
part of the Common Expenses. No dock, pier, wall or other structure may be
extended in to the lakes or ponds.. Except for such loss or damage as may result
from the act or omission of the Corporation or its agents in the course of
maintaining the lakes or ponds and the adjoining banks, each Owner of a Lot
abutting the lakes or ponds shall indemnify and hold harmless 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 result of any other cause, arising
from or related to use of, or access to, the lakes or ponds by any person who gains
access thereto from, over or across such Owner's Lot. Declarant shall have no
liability to any person with respect to any damage to any Lot resulting from the
lakes or ponds or the proximity of a Lot thereto, including loss or damage from
erosion.
Notwithstanding anything to the contrary contained herein or in the Articles or By-Laws,
including but not limited to any covenants and restrictions set forth herein or otherwise,
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Declarant shall have, until the Applicable Date, the right to use and maintain any Lots and
Dwelling Units owned by Declarant and other portions of the Real Estate (other than individual
Dwelling Units and Lots owned by Persons (other than Declarant), all or such number and size
and at such locations as Declarant in its sole discretion may determine, as Declarant may deem
advisable or necessary in its sole discretion to aid in the sale of Lots and the construction of
Dwelling Units, or for the conducting orany business or activity attendant thereto. or lor the
construction and maintenancc ol'Common Areas. including. but not limited 10, modcl I)\\'clling
Units, storage areas, construction yard, signs, construction offices, sales offices, management
offices and business offices. Declarant shall have the right to relocate any or all of the same
from time to time as it desires. At no time shall any of such facilities so used or maintained by
Declarant be or become part of the Common Areas, unless so designated by Declarant, and
Declarant shall have the right to remove the same from the Real Estate at any time.
Section 2.
Non-applicabilitv to Corporation. Notwithstanding anything to the
contrary contained herein, the covenants and restrictions set forth in Section 1 of this Article XIll
shall not apply to or be binding upon the Corporation in its ownership, management,
administration. operation. maintenance, repair, replacement and upkeep of the Common Areas,
to the extent the application thereof could or might hinder, delay or otherwise adversely affect
the Corporation in the performance of its duties, obligations and responsibilities as to the
Common Areas.
ARTICLE XIV
Amendment of Declaration
Section I.
Generally. Except as otherwise provided in this Declaration, amcndments
to this Declaration shall be proposed and adopted in the following manner:
(a) Notice. Notice of the subject matter of any proposed amendment shall be
included in the notice of the meeting at which the proposed amendment is to be
considered.
(b) Resolution. A resolution to adopt a proposed amendment may be proposed by the
Board or Directors or Owners having in the aggregate at least a majority of the
votes of all Owners.
(c) Meetin~. The resolution concerning a proposed amendment must be adopted by
the designated vote at a meeting duly called and held in accordance with the
provisions of the By-Laws.
(d) Adoption. Any proposed amendment to this Declaration must be approved by a
vote of not less than seventy-five percent (75<.10) in the aggregate or the voles or
all Owners. In the event any Lot or Dwelling Unit is subject to a first mortgage.
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the Mortgagee shall be noti fied 0 f the mceti ng and the proposcd amendmcnt in
the same manner as an Owner if the Mortgagee has given prior notice of its
mortgage interest to the Board of Directors in accordance with the provisions
hereof.
(e)
Special Amendments. No amendment to this Declaration shall be adopted which
changes (I) the applicable sharc of an Owner's liability lor thc Coml1lon
Expenses, or the method of detennining the same, or (2) thc provisions of Article
XI of this Declaration with respect to casualty insurance to be maintained by the
Corporation, or (3) the provisions of Article XII of this Declaration with respect
to reconstruction or repair of the Common Areas in the event of fire or any other
casualty or disaster, or (4) the provisions of this Declaration establishing the
Committee and providing for its functions, without, in each and any of such
circumstances, the unanimous approval of all Owners and of all Mortgagees
whose mortgage interests have been made known to the Board of Directors in
accordance with the provisions of this Dcclaration.
(f)
Recording. Each amendment to the Declaration shall be executed by the
President and Secretary of the Corporation and shall be recorded in the office of
the Recorder of Hamilton County, Indiana, and such amendment shall not become
effective until so recorded.
Section 2.
Amendments by Declarant Only. Notwithstanding the foregoing or
anything elsewhere contained herein, the Declarant shall have and hereby reserves the right and
power acting alone and without the consent or approval of the Owners, the Corporation, the
Board of Directors, any Mortgagees or any other Person to amend or su pp lement th i s Dee laration
at any time and from time to time if such amendment or supplement is made (a) to comply with
requirements of the Federal National Mortgage Association, the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the Department of Housing and
Public Development, the Veterans Administration or any other governmental agency or any
other public, quasi-public or private entity which perfol111S (or may in the future perform)
functions similar to those currently performed by such entities, (b) to induce any of such
agencies or entities to make, purchase, sell, insure or guarantee first mortgages covering Lots and
Dwelling Units, (c) to bring this Declaration into compliance with any statutory requirements,
(d) to comply with or satisfy the requirements of any insurance underwriters, insurance rating
bureaus or organizations which perform (or may in the future perform) functions similar to those
performed by such agencies or entities, (e) to correct clerical or typographical errors in this
Declaration or any Exhibit hereto or any supplement or amendment thereto, or (f) to implement
the rights and options of Declarant (or its nominee) as set forth in Section 2 of Article \I hereof
and in Section 3 of Article III hereof. In furtherance of the foregoing, a power coupled with an
interest is hereby reserved by (and granted by each Owner to) the Declarant to vote in favor of,
make, or consent to any amendments described in this Section 2 on behal f of each Owner as
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proxy or attorney-in-fact, as the case may be. Each deed, mortgage, trust dccd, othcr evidence of
obligation, or othcr instrument affecting a Lot or Dwelling Unit and the acceptance thereof shall
be deemed to be a grant and acknowledgment of, and a consent to the reservation of, the power
to the Declarant to vote in favor of, make, execute and record any such amendments. The right
of the Declarant to act pursuant to rights reserved or granted under this Scction 2 shall terminate
at such ti me as the Declarant no longer holds or controls ti tIe to an part or port ion 0 f the Parcel.
ARTICLE XV
Acceptance and Ratification
All present and future Owners, Mortgagees, tenants and occupants of the Lots and
Dwelling Units, and other Persons claiming by, through or under them, shall be subject to and
shall comply with the provisions of this Declaration, the Articles, the By-Laws and thc rules,
regulations and guidelines as adopted by the Board of Directors and (to the extent of its
jurisdiction) the Committee, as each may be amended or supplemented from time to timc. The
acceptance of a deed of conveyance or the act of occupancy of any Lot or Dwelling Unit shall
constitute an agreement that the provisions of this Declaration, the Articles, the By-Laws and
rules, regulations and guidelines, as each may be amended or supplemented from time to time,
are accepted and ratified by such Owner, tenant or occupant, and all such provisions shall be
covenants running with the land and shall bind any Person having at any timc any intercst or
estate in a Lot or Dwelling Unit or the Real Estate, all as though such provisions were recited
and stipulated at Icngth in each and every deed, conveyance, mortgage or lease thereof. All
Persons who may own, occupy, use, enjoy or control a Lot or Dwelling Unit or any part of the
Real Estate in any manner shall be subject to this Declaration, the Articles, the By-Laws, and the
rules, regulations and guidelines applicable thereto as each may be amended or supplemented
from timc to time.
ARTICLE XVI
Negligence
Each Owner shall be liable for the expense of any maintenance, repair or rep lacement
rendered necessary by his negligence or by that of any member of his family or his or their
guests, employees, agents, invitees or lessees, to the extent that such expcnse is not covered by
the proceeds of insurance carried by the Corporation. An Owner shall pay the amount of any
increase in insurance premiums occasioned by his violation of any of the Restrictions or any
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violation thereof by any member of his family or his or their guest, employees, agents, invitees
or tenants.
ARTICLE XVII
Benefit and Enforcement
This Declaration and the Restrictions shall run with and bind the Real Estate for a term
commencing on the date this Declaration is recorded in the office of the Recorder of Hamilton
County, Indiana and expiring January 1,2030, after which time they shall be automatically
extended for successive periods of tcn ( I 0) ycars each, unlcss by votc 0 f a majority of the then
Owncrs oCthc Lots it is agrecd to change this Declaration or the Restrictions in whole or in part,
or to terminate the same. The failure or delay at any time of Declarant, the Corporation, the
Owners, the Committee, or any other Person entitled to cnforce this Declaration and thc
Restrictions, to enforce any of the same shall in no event be deemed a waiver of the same, or of
the right to enforce the same at any time or from time to time thereafter, or an estoppel against
the enforcement thereof.
ARTICLE XVIII
M iscel laneous
Section I.
Costs and Attorney's Fees. In any proceeding arising because of failure of
an Owncr to make any payments required by this Declaration, the Articles or the By-Laws, or to
comply with any provision of this Declaration, the Articles, the By-Laws, or the rules,
regulations and guidelines adoptcd pursuant thcreto, as each may be amended n'om timc to time,
the Corporation shall be entitled to recover its costs and reasonable attorneys fees incurred in
conncction with such default or fai lure.
Section 2.
Waiver. No Owner may exempt himsclf from liability for his contribution
toward the Common Expenses by waiver of the use or enjoyment of any of the Common Areas
or by abandonment of his Lot or Dwelling Unit.
Section 3.
Severability Clause. The invalidity of any covenant, restriction, condition,
limitation or other provision of this Declaration, the Articles or the By-Laws shall not impair or
affect in any manner the validity, enforceability or effect of the rest of this Declaration, the
Articles or the By-Laws and each shall be enforceable to the greatest extent permitted by Jaw.
Section 4.
Pronouns. Any reference to the masculine, feminine or neuter gender
herein shall, unless the context clearly requires the contrary. be deemed to refer to and include all
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genders. Words in the singular shall include and refer to the plural, and vice versa, as
apprupriate.
Section 5.
Interpretation. The captions and titles of the various articles, sections,
sub-sections, paragraphs and subparagraphs of this Declaration are inserted herein for each and
convenicnce of reference only and shall not be used as an aid interpreting or construing this
Declaration or any provision hereof.
IN WITNESS WHEREOF, SPRINGMILL BUILDERS, INC., Declarant herein, has
executed this Declaration on the day and year first hereinabove set forth.
SPRINGMILL BUILDERS, INC.
By ~p~ \\4.r."\.-. "'(t..~
Marvin Taylor, rcsider-k
STATE OF INDIANA )
) SS:
COUNTY OF HAMILTON )
Before me, a Notary Public in and for said County and State, personally appeared Marvin
Taylor, the President of SPRING MILL BUILDERS, INC., an Indiana Corporation, who
acknowledged the execution of the above and foregoing instrument as his voluntary act and deed
as such officer for and on behalf of said corporation, for the uses and purposes therein set forth.
..IN WITNESS WHEREOF, I have hereunto affixed my hand and Notarial Seal thi~
day 0~kUUUZ(1 ~OtJ3.. .j
My COlllmission Expires: j-t:.16 -tf l/' tl
My County or Residence: ;!ltll" fA
This instrument was prepared by Kent Shipley, Esq., P.c.
8455 Keystone Crossing Drive, Suite 125, Indianapolis, IN 46240.
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EXHIBITS TO RESTRICTIVE COVENANTS
OF
TAYLOR TRACE SUBDMSION
EXHIBIT A- LEGAL DESCRIPTION
The legal description for the Parcel shall be the description that appears on the Secondary Plat
recorded on January 15, 2003 in the Hamilton County Recorder's office.
t n~ JJ. JDJ3COCOUxY I
EXHIBIT B- SITE PLAN
The site plan for the Parcel shall be as appears on the Secondary Plat recorded on January 15,
2003 in the Hamilton County Recorder's office.