The amount of the annual assessment and the budget shall become effective unless disapproved at a meeting by a Majority of the Total Association Vote. Notwithstanding the foregoing, however, in the event the membership disapproves the proposed budget or the Board fails for any reason so to determine the budget for the succeeding year, then and until such time as a budget shall have been determined, as provided herein, the budget in effect for the then current year shall continue for the succeeding year.Section 5. Initiation Fee.
Each time a Lot is sold, or title is otherwise transferred to a third party (other than to the Owner's spouse), the Association may charge a one-time initiation fee in an amount to be set by the Board, not to exceed the amount of the then current annual assessment. This fee shall be charged to any purchaser or transferee of a Lot, is in addition to the annual assessment, and shall not be considered an advance upon the payment o f the annual assessment. A delinquent initiation fee may be collected in the same manner as other assessments, including the filing of a lien.
Section 6. Special Assessments.
In addition to the other assessments authorized herein, the Association may levy special assessments any year for unexpected catastrophic losses or extraordinary maintenance, repair, and replacement costs that exceed current reserves. So long as the total amount of special assessments allocable to each Lot does not exceed the current amount of the annual assessment in any one fiscal year, the Board may impose the special assessment. Except as provided in Article VII, Section 2, hereof regarding damage & destruction of common property, any special assessment which would cause the amount of special assessments allocable to any Lot to exceed this limitation shall be effective only if approved by a Majority of the Total Association Vote. Special assessments shall be paid as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed.
Section 7. Specific Assessments.
The Board shall have the power to specifically assess pursuant to this Section as, in its discretion, it shall deem appropriate. Failure of the Board to exercise its authority under this Section shall not be grounds for any action against the Association or the Board of Directors and shall not constitute a waiver o f the Board's right to exercise its authority under this Section in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this Section. Fines levied pursuant to Article XII, Section I, of this Declaration and the costs of maintenance performed by the Association, which the Owner is responsible for under Article V, Section 2, of this Declaration, shall be specific assessments. The Board may also specifically assess Lots for the following Association expenses (except for expenses incurred for maintenance and repair of items which are the maintenance responsibility of the Association as provided herein):
(a) Expenses of the Association, which benefit less than all of the Lots, may be specifically assessed equitably among all of the Lots which are benefited according to the benefit received.
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(b) Expenses of the Association which benefit all Lots, but which do not provide an equalbenefit to all Lots, may be assessed equitably among all Lots according to the benefit received.
Section 8. Effect of Nonpayment of Assessments: Remedies of the Association
Any assessments or installments thereof, which are not paid when due shall be delinquent, and shall incur a late charge equal to the greater often dollars ($10.00) or ten (10%) percent of the amount not paid, or such higher amounts as may be authorized by the Act. lf the assessment is not paid when due, a lien, as herein provided, shall attach and, in addition, the lien shall include the late charge, and interest at the rate often percent (10%) per annum, or such higher amounts as may be authorized by the Act, on the principal amount due (including the late charge), all costs of collection, including reasonable attorney fees actually incurred, and any other amounts provided or permitted by law, including charges for returned checks due to insufficient funds or stopped payment. The Association may also file a Statement of Delinquent Assessments & Notice of Statutory Lien on the county lien records.
In the event that the assessment remains unpaid after sixty (60) days, the Association may, as the Board shall determine, institute suit to collect such amounts and/or to foreclose its lien. Each Owner, by acceptance of a deed or as a party to any other type of a conveyance, vests in the Association or its agents the right and power to bring all actions against him or her, personally, for the collection of such charges as a debt or to foreclose the aforesaid lien in the same manner as other liens for the improvement of real property. The lien provided for in this Article shall be in favor of the Association and shall be for the benefit of all other Owners. The Association, acting on behalf of the Owners, shall have the power to bid on the Lot at any foreclosure sale or to acquire, hold, lease, mortgage, or convey the same.
No Owner may waive or otherwise exempt themselves from liability for the assessments provided for herein, including, by way of illustration, but not limitation, abandonment of the Lot. No diminution or abatement of any assessment shall be claimed or allowed by reason of any alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or the Bylaws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken by the Association to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority, the obligation to pay assessments being a separate and independent covenant on the part of each Owner.
Partial payments shall not constitute payment in full, unless agreed to in writing by the Association. Any partial payments shall be applied in the following order of priority: attorney's fees, collection costs, late charges, interest, then to the oldest principal amount for delinquent assessments. The Association may allow any assessments, fines, or fees to be paid in installments, and may charge a reasonable service fee thereon.
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Article V MaintenanceSection 1. Association's Responsibility.
The Association shall maintain and keep in good repair the Common Property. This maintenance shall include, without limitation, maintenance, repair, and replacement, subject to any insurance then in effect, of all landscaping and improvements situated on the Common Property. The Association shall maintain all entry features for the Community and street signs and all drainage detention and retention areas, to the extent such signs or areas are not maintained on an ongoing basis by a local governmental entity, and there is hereby reserved to the Association a blanket easement upon, across, over, and under all property within the Community for access, ingress, and egress as necessary to permit the Association to perform such maintenance.
In addition, the Association shall have the right, but not the obligation, to maintain property not owned by the Association where the Board has determined that such maintenance would benefit all Owners. The foregoing maintenance shall be performed consistent with the Community-Wide Standard.
Section 2. Owner's Responsibility.
(a) Unless specifically identified herein as being the responsibility of the Association, all maintenance and repair of Lots, together with all other improvements thereon or therein, exterior or interior, shall be the responsibility of the Owner of such Lot. Each Owner shall be responsible for maintaining their Lot in a neat, clean and sanitary condition, and such responsibility shall include but not be limited to the maintenance and care of all interior and exterior surfaces of all improvements, buildings and other Structures located on the Lot including, but not limited to, repainting, mowing, edging, weeding, trimming, and keeping planting beds in good condition and free of weeds. In addition, each Owner shall maintain any public right of way located between the Owner's Lot and the curb of the street(s) bordering such Lot. Such maintenance shall be performed consistent with this Declaration and the Community-Wide Standard established pursuant hereto. Each Owner shall perform the Owner's responsibility hereunder in such manner so as not to unreasonably disturb other Lot Owners.
(b) As provided in Article XII, Section 7 Self-Help or Right ofAbatement, each Owner shall also be obligated to pay for the costs incurred by the Association for repairing, replacing, maintaining or cleaning any item which is the responsibility of such Owner but which responsibility such Owner fails or refuses to discharge. No Owner shall do any work to his Lot which, in the reasonable opinion of the Architectural Review Committee, would jeopardize the soundness and safety of the Subdivision, reduce the value thereof or impair any easement, without in every such case obtaining the prior written approval of the Architectural Review Committee. No Structure shall be permitted to fall into disrepair, and each Structure on a Lot shall at all times be kept in good condition and repair and adequately painted or otherwise finished.
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Section 3. Party Walls and Party Fences.(a) General Rules of Law to Apply.
Each wall or fence built as a part of the original construction of the Lots which shall serve and separate any two (2) adjoining Lots shall constitute a party wall or fence and, to the extent not inconsistent with the provisions ofthis Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto.
(b) Sharing of Repair and Maintenance.
The cost of reasonable repair and maintenance of a party wall or fence shall be shared by the Owners who make use of the wall or fence in equal proportions.
(c) Damage and Destruction.
If a party wall or fence is destroyed or damaged by fire or other casualty, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, any Owner who has used the wall may restore it, and if the other Owner or Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in equal proportions without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions.
(d) Right to Contribution Runs With Land.
The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's successors-in-title.
Article VI
Use Restrictions and Rules
Section 1. General.
This Article, beginning at Section 2, sets out certain use restrictions, which must be complied with by all Owners and Occupants. These use restrictions may be an1ended only in the manner provided in Article XII, Section 4, regarding amendment of this Declaration. The Board of Directors may, from time to time, without consent of the members, promulgate rules and regulations further defining said use restrictions, including Architectural guidelines. This authority shall include, but shall not be limited to, the right to limit the type and size and to set the maximum and minimum speeds of vehicles within the Community. The Board shall also have the authority to impose all other necessary traffic and parking regulations and to restrict the maximum noise levels of vehicles in the Community. A violation of Federal, State, County, or Municipal law on the part of any Owner, Occupant, or their Guests, or Lessees, that also negatively impacts other Owners or the community, shall also be considered a violation of this Declaration.
The Board of Directors may also, from time to time, without consent of the members, promulgate rules and regulations regarding the use of the Common Property. Such rules, regulations and use restrictions shall be distributed to all Owners and Occupants prior to the date that they are to become effective and shall thereafter be binding upon all Owners and Occupants.
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Section 2. Use of Lots & Maximum Occupancy.Subject to the requirements ofFederal or State law concerning fair housing opportunities, the maximum number of occupants in a Dwelling shall be limited to two (2) people per bedroom, or the maximum number of individuals permitted pursuant to any local government restriction, whichever number is less. For the purposes of this Section, an "Occupant" shall be defined as a person who stays overnight in a Dwelling for a total of more than thirty (30) days, either consecutively or nonconsecutively, in any calendar year.
Home offices are allowed under the following conditions:
a) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from the exterior of the building;
b) the business activity does not involve unreasonable visitation of the Lot, as determined in the discretion of the Board, by employees, clients, customers, suppliers, or other business invitees, provided however this provision does not preclude the delivery of materials or items by United Postal Service or by other customary parcel delivery services (UPS, FedEx, etc.);
c) the business activity conforms to all zoning requirements for the property;
d) the business activity does not unreasonably increase traffic in the Subdivision; and
e) the business activity does not increase the insurance premium paid by the association or otherwise negatively affect the ability of the association to obtain insurance coverage.
No other business or business activity shall be carried on or upon any Lot at any time except with the prior written approval of the Board. Leasing of a Lot shall not be considered a business, or business activity, but shall be subject to the restrictions contained in Section 5 of this Article.
Section 3. Signs.
No sign of any kind shall be erected by an Owner or Occupant within the Community without the written consent of the Board except such signs as may be required by legal proceedings, and not more than one (l) "For Sale" sign consistent with the Community-\Vide Standard, having a maximum area of four (4) square feet. Signs for political candidates or ballot proposals, may be allowed without the written consent of the Board, but only if the Board first passes guidelines and/or restrictions regulating the use of said signs. The Board may also pass further guidelines allowing temporary signs, such as for "yard sales." The Board shall have the right to erect any reasonable and appropriate signs.
Section 4. Vehicles & Parking.
Vehicles shall only be parked in the driveway or the garage. Vehicles shall not be parked on the Common Property, except as determined pursuant to regulation by the Board. Vehicles shall not be parked in the street, except as needed for brief entertaining of guests. All Owners and Occupants shall obey all posted speed limits and traffic control devices when driving vehicles within the
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community. The term "vehicles," as used herein, shall include, without limitation, motor homes, boats, trailers, motorcycles, mini bikes, scooters, go-carts, trucks, campers, buses, vans, automobiles, and any other motorized devices that are capable of being ridden.No commercial vehicle, house trailer, mobile home, motor home, recreational vehicle, camper, truck with camper top, boat, boat trailer, or like equipment shall be permitted in the Community on a permanent basis not to exceed forty-eight ( 48) consecutive hours. Notwithstanding the foregoing, any such vehicles or equipment may be stored in a garage. Garage doors shall be kept closed at all times, except during times of ingress and egress from the garage.
Section 5. Leasing.
In order to protect the equity of the Owners within the community, to carry out the purpose for which the community was formed by preserving the character of the community as a residential property of predominantly owner-occupied homes, to prevent the community from assuming the character of a renter-occupied complex, and to comply with any eligibility criteria for mortgages, including mortgages on the secondary mortgage market, insofar as such criteria provide that the community be substantially owner-occupied, leasing of Lots shall be expressly prohibited except for Owners who have applied for and received a "Hardship Leasing Permit" as provided herein. Leasing shall be governed by the restrictions imposed by this Section.
. (a) Leasing.
Leasing of the Lots is expressly prohibited, except as provided herein.
. (b) Definitions.
"Leasing" is defined as the regular, exclusive occupancy of a Lot by any
person or persons other than the Owner; provided, however, leasing shall not include exclusive occupancy by the spouse, child, or parent of an Owner and shall not include the occupancy by a roommate of an Owner who occupies the Lot as such Owner's primary residence.
(c) General.
Any Owner who desires to lease such Owner's Lot may do so only if the Owner has applied for and received from the Board ofDirectors a Hardship Leasing Permit. Such a permit, upon its issuance, will allow an Owner to lease the Owner's Lot, provided that such leasing is in strict accordance with the terms of the permit and this Section. All Hardship Leasing Permits shall be valid only as to a specific Lot Owner and Lot and shall not be transferable between either Lots or Lot Owners and shall not be transferrable to successor Owners.
(d) Hardship Leasing Permits. If the failure to lease will result in a hardship, an Owner who has resided in such Owner's Lot, as such Owner's primary residence for a period of at least twelve (12) consecutive months prior to his or her application, may seek to lease on a hardship basis by applying to the Board ofDirectors for a Hardship Leasing Permit. The Board of Directors shall have the authority to issue or deny requests for Hardship Leasing Permits in its discretion. In making such a determination, the Board may take any factor into account, including: (l) the nature, degree, and likely duration of the hardship, (2) the number of Hardship Leasing Permits which have been issued to other Owners, (3) the Owner's ability to cure the hardship, and (4) whether previous Hardship Leasing Permits have been issued to the Owner.
A "hardship" as described herein shall include, but not be limited to the following situations: (1) a Lot Owner must relocate his or her residence outside the greater Atlanta metropolitan area and
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cannot, within six months from the date that the Lot was placed on the market, sell the Lot except at a price below the current appraised market value, after having made reasonable efforts to do so; (2) where the Owner dies and the Lot is being administered by his or her estate; and (3) the Owner takes a leave of absence or temporarily relocates and intends to return to reside in the Lot.Hardship Leasing Permits shall be valid for a term not to exceed one year. Owners may apply for additional Hardship Leasing Permits. Unless the Owner has applied for and received a new Hardship Leasing Permit, the Owner's tenant must vacate the Lot on or before the expiration date of the Hardship Leasing Permit. Hardship Leasing Permits shall be automatically revoked upon the happening of the following events: (1) the sale or transfer of the Lot to a third party (excluding sales or transfers to an Owner's spouse, a person cohabitating with the Owner, or a corporation, partnership, company, or legal entity in which the Owner is a principal); or (2) the occurrence of the date referenced in a written notification by the Owner to the Association that the Owner will, as of said date, no longer need the Hardship Leasing Permit.
(e) Leasing Provisions.
Leasing shall be governed by the following provisions:
(i) Notice. At least fourteen (14) days prior to entering into the lease of a Lot, the Owner shall provide the Board of Directors with a copy of the proposed lease and such other information as the Board may reasonably require. The Board may approve or disapprove the form of the lease. In the event a lease form is disapproved, the Board shall notify the Owner of the requisite action to be taken in order to bring the lease form into compliance with the Declaration, any rules and regulations adopted pursuant thereto,and any criteria determined by theBoard. Within ten(10) days from the execution of the lease by both parties, the Owner shall provide the Board with a copy of the executed lease and the names and phone number of the lessees.
(ii) General.
Lots may be leased only in their entirety; no fraction or portion of a Lot may be leased (other than to an Owner's roommate, whi.ch shall not constitute leasing, as defined herein). There shall be no subleasing ofLots or assignment of leases unless approved in writing by the Board. All leases shall be for a period of one (l) year. The Lot Owner must provide the tenant copies of the Declaration, Bylaws, and Association rules and regulations.
(f) Entity Owners.
If the Owner of a Lot is a corporation, limited liability company, partnership, trust, or other legal entity not being a natural person, the entity shall designate in writing to the Board of the Directors the name(s) of the natural person(s) who will occupy the Lot. To constitute a valid designation in accordance with this subsection, the natural person must have a substantial relationship to the legal entity, including being a shareholder, director, or officer of the corporation, being a member of the limited liability company, being a partner in the partnership, or being a beneficiary of the trust. In no event shall the natural person(s) designated to occupy the Lot be changed during the term of the Hardship Leasing Permit.
If the entity Owner receives any consideration or benefit, including, but not limited to, rent, a fee, service, or gratuity from or on behalf of the designated person(s) occupying the Lot, then such arrangement shall be considered leasing, and the Owner shall be required to comply with the entirely of this Section. The express purpose of this subsection is to ensure that entity owners do not utilize
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the designation o f a natural person to occupy the Lot in order to circumvent the leasing restriction contained within this Section 5.Entity Owners shall be eligible to be Grandfathered-Owners in the event any Entity Owner complies with the grandfathering provisions within subsection (j) below.
(g) Liability for Assessments and Compliance With Declaration, Bylaws, and Rules
and Regulations. Any lease of a Lot (even if such lease is in violation of the Declaration) shall be deemed to contain the following provisions, whether or not expressly therein stated, and each Owner covenants and agrees that any lease of a Lot shall contain the following language and agrees that if such language is not expressly contained therein, then such language shall be incorporated into the lease by the existence of this covenant; and any lessee, by occupancy of a Lot, agrees to the applicability of this covenant and incorporation of the following language into the lease, whether or not expressly therein stated:
(i) Liability for Assessments.
Lessee agrees to be personally obligated for the payment of all assessments and all other charges against the Owner which become due during the term of the lease and any other period of occupancy by the lessee or which become due as a consequence of lessee's activities, including, but not limited to, activities which violate provisions of the Declaration, the Bylaws, or the rules and regulations adopted pursuant thereto. The above provision shall not be construed to release the Lot Owner from any obligation, including the obligation for assessments, for which he or she would otherwise be responsible.
When a Lot Owner who is leasing the Owmer's Lot fails to pay any assessment or any other charge for a period of more than thirty (30) days after it is due and payable, then the delinquent Lot Owner hereby consents to the assignment of any rent received from the lessee during the period of delinquency, and, upon demand by the Board of Directors, lessee shall pay to the Association all unpaid annual and special assessments and other charges, as lawfully determined and made payable during the remaining term of the lease and any other period of occupancy by lessee following such demand. All such payments made by lessee shall reduce, by the same amount, lessee's obligation to make monthly rental payments to lessor. If lessee fails to comply with the Board's demand to pay assessments or other charges to the Association, lessee shall be obligated to pay to the Association all late charges, fines, interest, and costs of collection, including, but not limited to, reasonable attorney's fees actually incurred, to the same extent lessee would be required to make such payments to the Association if lessee were the Owner of the Lot during the term of the agreement and any other period of occupancy by lessee, and including all amounts paid by lessee to lessor following the date of such demand from the Board.
(ii) Compliance with Declaration, Bylaws, and Rules and Regulations.
Lessee shall abide by and comply with all provisions of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto and shall control the conduct of all other occupants and guests in order to insure compliance with the foregoing. Lessee acknowledges that the violation by lessee or any occupant living with lessee of any provision of the Declaration, Bylaws, or rules and regulations adopted thereunder shall constitute a default under the lease. Owner shall cause all occupants of the Owner's Lot to comply with the Declaration, Bylaws, and the rules and regulations adopted pursuant
•l8•
thereto, and is responsible for all violations and losses caused by such occupants, notwithstanding the fact that such occupants of the Lot are fully liable and may be sanctioned for any violation of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto. If the lessee, or a person living with the lessee, violates the Declaration, Bylaws, or a rule and regulation for which a fine is imposed, such fine may be assessed against the lessee and/or the Owner; provided, however, if a fine is not paid by the lessee within the time period set by the Board ofDirectors, the Owner shall pay the fine upon notice from the Board of the Lessee's failure to do so. Unpaid fines shall constitute a lien against the Lot. Any lessee charged with a violation of the Declaration, Bylaws, or rules and regulations adopted pursuant thereto is entitled to the same procedure to which an Owner is entitled prior to the imposition of a fine or other sanction.Any violation o f the Declaration, Bylaws, or rules and regulations adopted pursuant thereto by lessee, any occupant, or any person living with lessee, including but not limited to, the leasing of a Lot without a Hardship Leasing Permit, is deemed to be a violation of the terms of the lease and authorizes the Owner to terminate the lease without liability and to evict the lessee in accordance with Georgia law. The Owner hereby delegates and assigns to the Association, acting through the Board, the power and authority of enforcement against the lessee for breaches resulting from the violation of the Declaration, Bylaws, and the rules and regulations adopted pursuant thereto, including the power and authority to evict the lessee on behalf and for the benefit of the Owner, in accordance with the terms hereof, or to require the Owner to do so. In the event the Association proceeds to evict the tenant, any costs, including attorney's fees and court costs, associated with the eviction shall be specially assessed against the Lot and the Owner thereof, such being deemed hereby as an expense which benefits the leased Lot and the Owner thereof; and the Owner's Hardship Leasing Permit shall automatically be revoked.
(h) Lease Administration Fee.
The leasing of Lots in Whitfield Woods Subdivision creates administrative burdens for the Association, including, but not limited to, updating the Association's records, issuing access control devices, if any, to the Common Property. Pursuant to this Declaration and the Act, the Association is authorized to assess individual Owners certain fees and expenses occasioned by and benefiting just those Owners. In accordance with those provisions, and in addition to annual assessments, special assessments, and other charges provided for in this Declaration and the Act, any Owner who receives a Hardship Leasing Permit shall be required to pay the Association a Lease Administration Fee. The initial Lease Administration Fee shall be one hundred and fifty dollars ($150.00) for the first calendar year in which the Lease Administration Fee goes into effect. Thereafter, the Board ofDirectors, in its sole discretion, and from time to time, may increase the Lease Administration Fee, not to exceed the annual assessment then in effect. The Lease Administration Fee shall constitute a specific assessment as described in this Declaration.
(i) Lawn Service.
To ensure appropriate maintenance of the Lot in accordance with the Declaration, and for the benefit of the Association, the Owner or Occupant shall be required to maintain a professional lawn service during the entire term of his or her Hardship Leasing Permit, unless such requirement is waived by the Board of Directors in writing. The professional lawn service company shall provide all mowing, edging, fertilizing and weeding of lawns, and all pruning, repair and maintenance of bushes, shrubs, trees and other landscaping on the Lot, as is necessary to
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keep such lawn and landscaping maintained in a condition which meets the Community-Wide Standard. The executed lawn service contract must accompany an Owner's hardship leasing request.(i) Applicability of this Section (Grandfathering of Existing Leases).
Leases existing on the date which this Amendment is recorded in the Cobb County, Georgia land records shall not be subject to the terms
of this Section and such leases may continue in accordance with the terms of the Declaration as it existed prior to the recording date of this Amendment; provided, however the following: (1) any assignment, extension, renewal, or modification of any lease agreement, including, but not limited to, changes in the terms or duration of occupancy, shall be considered a termination of the old lease and commencement of a new lease which must comply with this Section; and (2) any Owner of a Lot which is leased on the date which this Amendment is recorded in the Cobb County, Georgia land records must, within forty-five (45) days of such recording date, notify the Board of Directors in writing that the Owner's Lot is leased and provide a copy of the lease agreement in effect to the Board of Directors. Failure to provide such notice and lease to the Board shall disqualify the Owner from this grandfather provision.
(k) Applicability of this Article to Association Leases.
Notwithstanding the above, this Article shall not apply to any leasing transaction entered into by the Association. The Association shall be permitted to lease a Lot without first obtaining a Hardship Leasing Permit in accordance with this Article, and any such Lot shall not be considered leased.
Section 6. Occupants Bound. All provisions of the Declaration and of any rules and regulations or use restrictions promulgated pursuant thereto which govern the conduct of Owners and which provide for sanctions against Owners shall also apply to all Occupants of any Lot even though Occupants are not specifically mentioned. Fines may be levied against Owners or Occupants. If a fine is first levied against an Occupant and is not paid timely, the fine may then be levied against the Owner.
Section 7. Animals and Pets. No animals, livestock, or poultry of any kind may be raised, bred, kept, or permitted on any Lot, with the exception o f dogs, cats, or other usual and common household pets, and the maximum amount of dogs and cats allowed to be kept at any time on any one lot is four (4), unless prior written permission is obtained from the Board. No Owner or Occupant may keep, breed or maintain any pet for any commercial purpose. Dogs must be kept on a leash and be under the physical control of a responsible person at all times while outdoors in unfenced areas. Dogs may not be left chained, leashed or tethered to any post, tree, or object on an Owner's Lot. No structure for the care, housing, or confinement of any pet shall be constructed or maintained on a Lot without prior written ARC approval.
Feces left by any pet on the Common Property, or on any Lot, including the pet owner's Lot or dwelling, or anywhere in the Community must be removed promptly by the owner of the pet or the person responsible for the pet.
No dog determined in the sole discretion ofthe Board to be a dangerous dog may be brought into or kept in the Community at any time by any Lot Owner, Occupant, or guest of an Owner or
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Occupant. Any pet which endangers the health of any Owner or Occupant of any Lot or which creates a nuisance or unreasonable disturbance, as may be determined in the Board's sole discretion, must be permanently removed from the Community upon seven (7) days written notice by the Board. If the Owner or Occupant fails to comply with such notice, the Board may remove the pet and/or obtain a court order requiring the Owner or Occupant to do so. Any pet which, in the Board's sole discretion, presents an immediate danger to the health, safety or property of any member of the community may be removed by the Board without prior notice to the pet's owner. Fines may be imposed to enforce any provision of this entire Section.Any Owner or Occupant who keeps or maintains any pet on any portion of the Community shall be deemed to have indemnified and agreed to hold the Association, its directors, officers, and agents free and harmless from any loss, claim or liability of any kind or character whatever arising by reason of keeping or maintaining such pet within the Community.
Section 8. Nuisance. It shall be the responsibility of each Owner and Occupant to prevent the development of any unclean, unhealthy, unsightly, or unkempt condition on his or her Lot. No Lot shall be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or material be kept upon any Lot that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon tending to cause embarrassment, discomfort, annoyance, or nuisance to any Person using any property adjacent to the Lot. There shall not be maintained any plants or animals or device or thing of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Community. Without limiting the generality of the foregoing, no speaker, horn, whistle, siren, bell, amplifier or other sound device, except such devices as may be used exclusively for security purposes, shall be located, installed or maintained upon the exterior of any Lot unless required by law.
Section 9. Unsightly or Unkempt Conditions. The pursuit of hobbies or other activities, including specifically, without limiting the generality of the foregoing, the assembly and disassembly of motor vehicles and other mechanical devices, which might tend to cause disorderly, unsightly, or unkempt conditions, shall not be pursued or undertaken in any part of the Community. Garbage receptacles shall be stored in the back yard, and out of view of the street. Garbage receptacles shall be removed from the street within 24 hours of garbage pick-up.
Section 10. Architectural Standards. No exterior construction, alteration, addition, or erection of any nature whatsoever (including, without limitation, fences, pools, tennis courts, exterior lighting, tree houses and play equipment) shall be commenced or placed upon any part of the Community, except such as is originally installed by the developer, or as is approved in accordance with this Section, or as is otherwise expressly
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permitted herein. No exterior construction, addition, erection, or alteration shall be made unless and until the plans and specifications showing the nature, kind, shape, height, materials, and location shall have been submitted in writing to and approved by an Architectural Review Committee ("ARC"). The ARC may be established such that it is divided into two subcommittees, with one subcommittee having jurisdiction over modifications and the other having jurisdiction over new construction. The Board may employ architects, engineers, or other Persons as it deems necessary to enable the ARC to perform its review. The ARC may, from time to time, delegate any ofits rights or responsibilities hereunder to one or more duly licensed architects or other qualified Persons, which shall have the full authority to act on behalfofthe committee for all matters delegated. The Board, or its designees, may promulgate written architectural design standards or guidelines for the exercise of this review. The Board shall appoint the ARC, and may remove any member of the ARC, with or without cause.The ARC may withhold approval for any reason, including purely aesthetic considerations, and it shall be entitled to stop any construction in violation of these restrictions. An Owner may submit a written appeal to the Board from a decision of the ARC within 15 days of the denial. Any member of the Board or its designee or the representatives thereof shall have the right, during reasonable hours to enter upon any Lot to inspect any Lot and any improvements thereon for the purpose of ascertaining whether or not these restrictive covenants have been or are being complied with. Such Person or Persons shall not be deemed guilty of trespass by reason of such entry. In the event the Board or its designee fails to approve or to disapprove such design and location within sixty (60) days after the plans and specifications have been submitted to it, approval will not be required, and this Section will be deemed to have been fully complied with, provided that the proposed improvements are generally in harmony with the scheme of the Community-Wide Standards. The ARC or Board are entitled to stop any construction in violation of these restrictions. Upon approval of plans and specifications by the ARC, no further approval shall be required unless construction has not substantially commenced within six (6) months of the approval of such plans and specifications, or unless such plans and specifications are materially altered or changed.
All activities commenced pursuant to plans, which have been deemed approved shall be consistent with such plans. As a condition of approval under this Section, each Owner, on behalf of such Owner and such Owner's successors-in-interest shall assume all responsibilities for maintenance, repair, replacement, and insurance to and on any change, modification, addition, or alteration. In the discretion of the Board or its designee, an Owner may be made to verify such condition of approval by a recordable written instrument acknowledged by such Owner on behalf of such Owner and such Owner' successors-in-interest.
Plans and specifications are not approved for engineering or structural design or quality of materials, and by approving such plans and specifications neither the board, its designee, nor the Association assumes liability or responsibility therefore, nor for any defect in any structure constructed from such plans and specifications. Neither the Association, the board, the board's designee, nor the officers, directors, members, employees, and agents of any of them shall be liable in damages to anyone submitting plans and specifications to any of them for approval, or to any owner of property affected by these restrictions by reason of mistake in judgment, negligence, or
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nonfeasance arising out ofor in connection with the approval or disapproval or failure to approve or disapprove any such plans or specifications. Every person who submits plans or specifications and every owner agrees that such person or owner will not bring any action or suit against the Association, the board, the board's designee, or the officers, directors, members, employees, and agents of any of them to recover any damages and hereby releases, remises, quitclaims, and covenants not to sue for all claims, demands, and causes of action arising out of or in connection with any judgment, negligence, or nonfeasance and hereby waives the provisions of any law which provides that a general release does not extend to claims, demands, and causes of action not known at the time the release is given.Section 11. Satellite Dishes & Antennas. No exterior antennas, satellite dishes or multi-channel multi-port distribution service larger than one meter in length or diameter shall be place, allowed, or maintained upon any portion of a Lot. All above referenced devices measuring one meter or less shall be installed in accordance with FCC rules and regulations, and shall not be placed in plain view from the street, unless it is the only positioning that allows for reasonable reception of a signal. The Architectural Control Committee may request evidence from a qualified installer that the location of the device is the only position that allows for reasonable reception of a signal. In addition, if possible, such devices shall be painted in a fashion that does not interfere with reception so that such devices blend into the background against which such device is mounted. The Board reserves the right to (but shall not be obligated to) erect a master antenna, satellite dish or other similar master system for the benefit of the Community.
Section 12. Gardens, Basketball Goals, Etc. Grass, ornamental plants and shrubbery (and only the foregoing) may be planted in the front or side yard of any Lot. All other planting may be done only with prior written approval of the Board or its designee or in accordance with the guidelines previously established by the Board or its designee. Over seeding of fescue lawns and sodding of lawns with Bermuda or zoysia grasses shall not require prior approval pursuant to this section. No artificial flowers, hammocks, statuary, or recreational equipment may be placed, erected, allowed or maintained upon any Lot without the prior written consent of the Board or its designee, This provision shall include permanent or mobile basketball goals.
Section 13. Tree Removal. No trees, which are left on the Lot at closing shall be removed without the express consent of the Architectural Control Committee, Board or its designee, except for trees that have a diameter of six inches (6) or less as measured at a point twelve inches (12) above ground level that are diseased or dead.
Section 14. Lighting. Notwithstanding Article VI, Section 10 above, the following exterior lighting may be installed without the necessity of obtaining the prior approval of the Board or its designee: seasonal decorative lights during a holiday season (which must be taken down within a time as determined by rule of the Board). Plans for all other exterior lighting must be submitted and approved in accordance
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with Article VI, Section 10 hereof. Decorative post lights will not be approved unless they conform to established street lighting.Section 15. Drainage. Catch basins and drainage areas are for the purpose of natural flow of water only. No obstructions or debris shall be placed in these areas. No Owner or Occupant of any Lot may obstruct or rechannel the drainage flows after the location and installation of drainage swells, storm sewers, or storm drains. The Association reserves the right to prepare sloping banks, cut or fill, on a three (3) to one (1) slope on all streets and roads. The Association hereby reserves a perpetual easement across all Community property for the purpose of altering drainage and water flow. Rights exercised pursuant to such reserved easement shall be exercised with a minimum of interference to the quiet enjoyment of affected property, reasonable steps shall be taken to protect such property, and damage shall be repaired by the Person causing the damage at its sole expense.
Section 16. Sight Distance at Intersections. All property located at street intersections shall be so landscaped as to permit safe sight across the street comers. No fence, wall, hedge, or shrub planting shall be placed or permitted to remain at any comer where this would create a traffic or sight problem.
Section 17. Clotheslines. Garbage Cans. Woodpiles. Etc. All clotheslines, garbage cans, woodpiles, and other similar items shall be located or screened so as to be concealed from view of neighboring Lots, streets, and property located adjacent to the Lot. All rubbish, trash, and garbage shall be regularly removed from the Lot and shall not be allowed to accumulate thereon. Notwithstanding the foregoing, the Association reserves the right to provide and maintain a dumpster for the use of residents within the Community.
Section 18. Subdivision of Lot. No Lot shall be subdivided or its boundary lines changed except with the prior written approval of the Board or its designee. Any such division, boundary line change, or replatting shall not be in violation of the applicable subdivision and zoning regulations.
Section 19. Guns. The use of firearms in the Community is prohibited. The term "firearms" includes "B-B" guns, pellet guns, and firearms of all types.
Section 20. Solar Devices. No artificial or man-made device which is designed or used for collection of or heating by solar energy or other similar purposes shall be placed, allowed, or maintained upon any portion of the Community, including any Lot, without the prior written consent of the Board or its designee.
Section 21. Fences. No fence or fencing type barrier of any kind shall be placed, erected, allowed, or maintained upon any portion of the Community, including any Lot, without the prior written consent of the Board or its designee. No fence shall be placed, erected, allowed or maintained closer to any street
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than the rear of the residence constructed on such Lot, without written approval of the Board or its designee. The Board or its designee may issue guidelines detailing acceptable fence styles or specifications, but in no event may a chain link fence or hog wire fence be approved.Section 22. Exterior Colors. The exterior of all improvements, including, without limitation, residences, constructed, erected, allowed, or maintained upon any Lot must be painted or repainted in a color as approved by the Board or its designee.
Section 23. Mailboxes. All mailboxes and mailbox posts must be maintained in good condition as determined by the Architectural Control Committee, and shall be of a type and color as determined from time to time by the Board or its designee.
Section 24. Detached Structures. No detached structure shall be placed, erected, allowed, or maintained upon any Lot without the prior written consent of the Board or its designee. All detached structures must be consistent in design materials and color with the dwelling on the Lot.
Section 25. Entrv Features and Street Signs. Owners shall not alter, remove or add improvements to any entry features or street signs on any Lot, or any part of any easement area associated therewith without the prior written consent of the Board or its designee.
Section 26. Above Ground Pools. Above ground swimming pools shall not be permitted in the Community. The Board may pass rules and regulations allowing baby pools.
Article II
Insurance and Casualty Losses
Section 1. Insurance. The Association's Board of Directors or its duly authorized agent shall have the authority to and shall obtain insurance for all insurable improvements located on the Common Property or required to be maintained by the Association under Article V, Section I. hereof. This insurance shall cover loss or damage by fire or other hazards, including extended coverage, vandalism, and malicious mischief and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction in the event of damage or destruction from any such hazard. Alternatively, the Board may purchase "all-risk" coverage in like amounts.
If available at reasonable cost, as determined in the sole discretion of the Board, the Board shall obtain a public liability policy applicable to the Common Property insuring the Association and its members for all damage or injury caused by the negligence of the Association or any of its members or agents. The public liability policy shall have a combined single limit of at least One Million Dollars ($1,000,000.00)
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If available at reasonable cost, as determined in the sole discretion of the Board, the Board shall also obtain directors' and officers' liability insurance.Premiums for all insurance shall be common expenses of the Association. The policies may contain a reasonable deductible, and the amount thereof shall be added to the face amount of the policy in determining whether the insurance at least equals the full replacement cost.
All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association, as trustee, for the respective benefited parties, as further identified in subparagraph (b), below. Such insurance shall be governed by the provisions hereinafter set forth:
(a) All policies shall be written with a company authorized to do business in Georgia.
(b) Exclusive authority to adjust losses under policies obtained by the Association shall be vested in the Association's Board of Directors; provided, however, no Mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related thereto.
(c) In no event shall the insurance coverage obtained and maintained by the Association's Board of Directors hereunder be brought into contribution with insurance purchased by individual Ovrners, Occupants, or their Mortgagees, and the insurance carried by the Association shall be primary.
(d) All casualty insurance policies shall have an inflation guard endorsement and an agreed amount endorsement if these are reasonably available and all insurance policies shall be reviewed annually by one or more qualified Persons, at least one of whom must be in the real estate industry and familiar with construction in the county where the Community is located.
(e) The Association's Board ofDirectors shall be required to-make every reasonable effort to secure insurance policies that will provide for the following:
(i) a waiver of subrogation by the insurer as to any claims against the Association's Board ofDirectors, its manager, the Owners and their respective tenants, servants, agents, and guests;
(ii) a waiver by the insurer of its rights to repair and reconstruct instead of paying cash;
(iii) that no policy may be cancelled, subjected to nonrenewal, invalidated, or suspended on account o f any one or more individual Owners;
(iv) that no policy may be cancelled, subjected to nonrenewal, invalidated, or suspended on account of any defect or the conduct of any director, officer, or
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employee of the Association or its duly authorized manager without prior demand in writing delivered to the Association to cure the defect or to cease the conduct and the allowance of a reasonable time thereafter within which a cure may be effected by the Association, its manager, any Owner or Mortgagee;(v) that any "other insurance" clause in any policy exclude individual Owners' policies from consideration; and
(vi) that no policy may be cancelled, subjected to nonrenewal, or substantially modified without at least ten (10) days' prior written notice to the Association.
In addition to other insurance coverage required by this Section, the Board shall obtain workers compensation insurance, if and to the extent necessary to satisfy the requirements of applicable law, and, if available at reasonable cost, as determined in the sole discretion of the Board, a fidelity bond or employees dishonesty coverage covering directors, officers, employees, and other Persons handling or responsible for the Association's funds. The amount of fidelity or employees dishonesty coverage, if obtained, shall be determined in the directors' best business judgment. Such coverage if obtained, shall contain a waiver of all defenses based upon the exclusion of Persons serving without compensation and shall not be subject to cancellation, nonrenewal or substantial modification without at least ten (10) days' prior written notice to the Association. The Association shall also obtain construction code endorsements, steam boiler coverage, and flood insurance, if and to the extent necessary to satisfy the requirements of The Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association, the U.S. Department of Veterans Affairs ("VA") or the U.S. Department of Housing and Urban Development ("HUD").
Section 2. Damage and Destruction - Common Property.
(a) In General.
Immediately after the damage or destruction by fire or other casualty to all or any portion of any improvement covered by insurance written in the name of the Association, the Board of Directors or its duly authorized agent shall proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged or destroyed property. Repair or reconstruction, as used in this Section, means repairing or restoring the property to substantially the same condition and location that existed prior to the fire or other casualty allowing for any changes or improvements necessary to comply with applicable building codes. The Board ofDirectors shall have all enforcement powers specified in Article XII, Section l, of this Declaration necessary to enforce this provision.
(b) Repair and Reconstruction.
Any damage or destruction to property required to be covered by insurance written in the name of the Association shall be repaired or reconstructed unless, within sixty (60) days after the casualty, at least seventy-five percent (75%) of the Total Association Vote otherwise agree. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not made available to the Association within such period, then the period shall be extended until such information shall be made available; provided, however, such extension
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shall not exceed sixty (60) days. No Mortgagee shall have the right to participate in the determinationof whether damage or destruction shall be repaired or reconstructed.
If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are not sufficient to defray the cost thereof, the Board ofDirectors shall, without the necessity of a vote of the Association's members, levy a special assessment against all Owners in proportion to the number ofLots owned by such Owners. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction. If the funds available from insurance exceed the costs of repair or reconstruction or if the improvements are not repaired or reconstructed, such excess shall be deposited to the benefit of the Association.
In the event that it should be determined by the Association in the manner described above that the damage or destruction shall not be repaired or reconstructed and no alternative improvements are authorized, then and in that event the property shall be restored to its natural state and maintained as an undeveloped portion of the Community by the Association in a neat and attractive condition.
Section 3. Damage and Destruction - Lots.
The damage or destruction by fire or other casualty to all or any portion of any improvement on a Lot shall be repaired by the Owner thereof within seventy-five (75) days after such damage or destruction or, where repairs cannot be completed within seventy-five (75) days, they shall be commenced within such period and shall be completed within a reasonable time thereafter. Alternatively, the Owner may elect to demolish all improvements on the Lot and remove all debris there from within seventy-five (75) days after such damage or destruction. In the event of noncompliance with this provision, the Board of Directors shall have all enforcement powers specified in Article XII, Section 1 of this Declaration.
Section 4. Insurance Deductible.
The deductible for any casualty insurance policy carried by the Association shall, in the event of damage or destruction, be allocated among the Persons who are responsible hereunder, or under any declaration or contract requiring the Association to obtain such insurance, for maintenance of the damaged or destroyed property.
Article VIII
Condemnation
Whenever all or any part of the Common Property shall be taken (or conveyed in lieu of and under threat of condemnation by the Board, acting on its behalf or on the written direction of all Owners of Lots subject to the taking, if any) by any authority having the power of condemnation or eminent domain, the Association shall represent the Owners. The award made for such taking shall be payable to the Association as trustee for all Owners. The provisions of Article VII, Section 2, above, applicable to Common Property improvements damage or destruction, shall govern replacement or restoration and the actions to be taken in the event that the improvements are not restored or replaced.
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Article IX
Annexation of Additional PropertySection 1. Annexation.
Subject to the consent o the owner thereof, and upon the affirmative vote or written consent, or any combination thereof, of Owners of at least two-thirds (2/3) of the Lots, the Association may annex other real property to the provisions of this Declaration and the jurisdiction of the Association by filing for record in the Office of the Clerk of the Superior Court of the county in which the property to be annexed is located a Supplementary Declaration describing the property being annexed. Any such Supplementary Declaration shall be signed by the President and Secretary of the Association, and any such annexation shall be effective upon the filing for record of such Supplementary Declaration, unless a later effective date is provided therein.
Article X
Mortgagee Provisions
The following provisions are for the benefit of holders of first Mortgages on Lots in the Community. The provisions of this Article apply to both this Declaration and to the Bylaws, notwithstanding any other provisions contained therein.
Section 1. Notices of Action.
An institutional holder, insurer, or guarantor of a first Mortgage, who provides written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the Lot number), (therefore becoming an 'eligible holder"), will be entitled to timely written notice of:
(a) Any condemnation loss or any casualty loss which affects a material portion of the Community or which affects any Lot on which there is a first Mortgage held, insured, or guaranteed by such eligible holder;
(b) Any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to the Mortgage of such eligible holder, where such delinquency has continued for a period of sixty (60) days; provided, however, notwithstanding this provision, any holder o f a first Mortgage, upon request, is entitled to written notice from the Association of any default in the performance by an Owner of a Lot of any obligation under the Declaration or Bylaws of the Association which is not cured within sixty (60) days;
(c) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association; or
(d) Any proposed action, which would require the consent of a specified percentage of Mortgage holders.
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Section 2. No Priority.No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Common Property.
Section 3. Notice to Association.
Upon request, each Lot Owner shall be obligated to furnish to the Association the name and address of the holder of any Mortgage encumbering such Owner's Lot.
Section 4. Amendments by Board.
Should the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, HUD or VA subsequently delete any of their respective requirements, which necessitate the provisions of this Article or make any such requirements less stringent, the Board, without approval of the Owners, may cause an amendment to this Article to be recorded to reflect such changes.
Section 5. Applicability of Article X.
Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under the Declaration, Bylaws, or Georgia law for any of the acts set out in this Article.
Section 6. Failure of Mortgagee to Respond.
Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be deemed to have approved such action if the Association does not receive a written response from the Mortgagee within thirty (30) days of the date of the Association's request.
Article XI
Easements
Section l. Easements for Encroachment and Overhang.
There shall be reciprocal appurtenant easements for encroachment and overhang as between each Lot and such portion or portions of the Common Property adjacent thereto or as between adjacent Lots due to the unintentional placement or settling or shifting of the improvements constructed, reconstructed, or altered thereon (in accordance with the terms of this Declaration) to a distance of not more than five (5) feet, as measured from any point on the common boundary between each Lot and the adjacent portion of the Common Property or as between adjacent Lots, as the case may be, along a line perpendicular to such boundary at such point; provided, however, in no event shall an easement for encroachment exist if such encroachment occurred due to willful conduct on the part of an Owner, tenant, or the Association.
Section 2. Easements for Use and Enjoyment.
(a) Every Owner of a Lot shall have a right and easement of ingress and egress, use and enjoyment in and to the Common Property, which shall be appurtenant to and shall pass with the title to his Lot, subject to the following provisions:
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(i) the right of the Association to charge reasonable admission and other fees for the use of any portion of the Common Property, to limit the number of guests of Lot Owners and tenants who may use the Common Property, and to provide for the exclusive use and enjoyment of specific portions thereof at certain designated times by an Owner, his family, tenants, guests, and invitees;(ii) the right of the Association to suspend the voting rights of a Lot Owner and the right of an Owner to use the recreational facilities available for use by the Community, if any, for any period during which any assessment or fine against his Lot remains unpaid; and, for a reasonable period of time for an infraction of the Declaration, Bylaws, or rules and regulations;
(iii) the right of the Association to suspend services paid for as a common expense and being provided to a Lot or Lot Owner by the Association including but not limited to water, gas, electricity, heat, air conditioning services and cable television for any period during which any assessment against his Lot which is hereby provided for remains unpaid; and, for a reasonable period of time for an infraction of the Declaration, Bylaws, or rules and regulations subject to the suspension standards and notice requirements imposed on the institutional providers providing such services to the subdivision, only after a final judgment or final judgments in excess of a total of $750.00 are obtained in favor of the Association from a court of competent jurisdiction.
The services shall not be required to be restored until the judgment or judgments are paid in full. All common expenses for suspension of or reconnection of services shall be an assessment and a lien against the Lot.
(iv) the right of the Association to borrow money for the purpose of improving the Common Property, or any portion thereof, or for construction, repairing or improving any facilities located or to be located thereon, and give as security for the payment of any such loan a Mortgage conveying all or any portion of the Common Property; provided, however, the lien and encumbrance of any such Mortgage given by the Association shall be subject and subordinate to any rights, interests, options, easements and privileges herein reserved or established for the benefit of the Association, or any Lot or Lot Owner, or the holder of any Mortgage, irrespective of when executed, given by the Association or any Lot Owner encumbering any Lot or other property located within the Community (Any provision in this Declaration or in any such Mortgage given by the Association to the contrary notwithstanding, the exercise of any rights therein by the holder thereof in the event of a default thereunder shall not cancel or terminate any rights, easements or privileges herein reserved or
established for the benefit of the Association, or any Lot or Lot Owner, or the holder of any Mortgage, irrespective of when executed, given by the Association or any Lot Owner encumbering any Lot or other property located within the Community.) (No such Mortgage shall be effective unless an instrument agreeing to such Mortgage has been approved by Owners of at least two-thirds (2/3) of the Lots; and
(v) the right of the Association to dedicate or transfer all or any portion of the Common Property subject to such conditions as may be agreed to by the members of the Association. No such dedication or transfer shall be effective unless an instrument agreeing to such dedication or
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transfer has been approved by the Association and Owners representing at least two-thirds (2/3) ofthe Total Association Vote.
(b) Any Lot Owner may delegate his or her right of use and enjoyment in and to the Common Property and facilities located thereon to the members of his family, his tenants and guests and shall be deemed to have made a delegation of all such rights to the Occupants of such Owner's Lot if leased.
Section 3. Easements for Utilities.
There is hereby reserved to the Association blanket easements upon, across, above and under all property within the Community for access, ingress, egress, installation, repairing, replacing, and maintaining all utilities serving the Community or any portion thereof, including, but not limited to, gas, water, sanitary sewer, telephone and electricity, as well as storm drainage and any other service such as, but not limited to, a master television antenna system, cable television system, or security system which the Association might decide to have installed to serve the Community. It shall be expressly permissible for the Association, or its designee, to install, repair, replace, and maintain or to authorize the installation, repairing, replacing, and maintaining of such wires, conduits, cables and other equipment related to the providing of any such utility or service. Should any party furnishing any such utility or service request a specific license or casement by separate recordable document, the Board shall have the right to grant such easement.
Section 4. Easements for Association Maintenance.
There is hereby reserved to the Association a perpetual easement across such portions of the Community, determined in the sole discretion of the Association, as are necessary to allow for the maintenance required under Article V. Such maintenance shall be performed with a minimum of interference to the quiet enjoyment of Owners' property, reasonable steps shall be taken to protect such property, and damage shall be repaired by the Person causing the damage at its sole expense.
Section 5. Easements for Maintenance and Repair.
There shall be reciprocal appurtenant easements between adjacent Lots for the purpose of maintaining or repairing the improvements, including, without limitation, landscaping located on each Lot which easement shall extend to a distance of not more than five (5) feet as measured from any point on the common boundary between the Lots and along a line perpendicular to such boundary at such point. The easement shall be used only for such period of time as is reasonably necessary in order to complete the needed maintenance or repair.
The Lot Owner exercising this easement right shall be liable for the prompt repair of any damage to the Lot over which this easement is exercised which is caused by the maintenance or repair work. The damaged portions of such Lot shall be restored to substantially the same condition as existed prior to the damage.
Section 6. Easement for Entry.
In addition to the right of the Board to exercise sell-help as provided in Article XII, Section 2 hereof, the Board shall have the right, but shall not be obligated, to enter upon any property within
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the Community for emergency, security, and safety reasons, which right may be exercised by the manager, and all policemen, firemen, ambulance personnel, and similar emergency personnel in the performance of their respective duties. Except in an emergency situation, entry shall only be during reasonable hours and after notice to the Owner, and the entering party shall be responsible for any damage caused. This right of entry shall include the right of the Board to enter to cure any condition, which may increase the possibility of a fire, slope erosion, or other hazard in the event an Owner or Occupant fails or refuses to cure the condition upon request by the Board.Section 7. Easements for Entry Features and Street Signs.
There is hereby reserved to the Association an easement over and upon each Lot for ingress, egress, installation, construction, landscaping and maintenance of entry features and street signs for the Community. The easement and right herein reserved shall include the right to cut, remove and plant trees, shrubbery, flowers and other vegetation around all entry features and the right to grade the land under and around the entry features.
Section 8. Easements for Common Drives.
There is reserved a joint and reciprocal easement in perpetuity for vehicular and pedestrian traffic in, upon, over, and across those areas, if any, shown on any plat for the Community recorded by the Association, or prior Declarant, in the land records of the county where the Community is located as a common drive (or such similar or equivalent language as would indicate that such area is a common drive among two or more Lots) (hereinafter referred to as a "Common Drive"). These easements shall be for the benefit of any Owner of a Lot upon which a Common Drive is located and shall be for access to and ingress and egress to and from such Owner's Lot by such Owner, and his or her family members, invitees, and designees, in, upon, over, and across the Common Drive, or portion thereof, located on such Owner's Lot. Any Common Drive shall continue to be used for this purpose by the Owners of the Lots upon which such Common Drive is located and by the subsequent Owners and successors-in-title to such Lots. In connection with the reservation of these easements, it is acknowledged and agreed that the Owner of a Lot burdened by these easements will be required to utilize the easements for access to and ingress and egress to and from such Owner's Lot and that such easements are critical to the 'future use and enjoyment' of such Owner's Lot. No Owner shall be allowed to change, alter or diminish the rights of an Owner of a Lot burdened by these easements to the use and enjoyment of the Common Drive located on such Owner's Lot.
Each Common Drive shall be cleaned, maintained, repaired and replaced as a joint effort by the Owners of the Lots upon which such Common Drive is located. This responsibility shall be shared on an equal basis by each of said Owners, notwithstanding the respective use of the Common Drive by the Owners of the Lots upon which the Common Drive is located. In order to protect the value of the respective Lots and to insure the proper use and enjoyment of the respective Lots, the Owner of a Lot upon which a Common Drive is located shall have the full and unrestricted right to cause the cleaning, maintenance, repair and replacement to be made to the Common Drive located on such Owner's Lot as may be necessary to insure that such Common Drive is maintained in good, proper, and functional condition and appearance. The failure by any Owner of a Lot upon which such Common Drive is located to pay when due his or her portion of any such expense incurred by another Owner of a Lot upon which such Common Drive is located for cleaning, maintenance, repair
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and replacement of such Common Drive shall be a violation of the covenants and restrictions set forth in this Declaration and such nonpaying Owner shall be liable to the Ovmers who performed such cleaning, maintenance, repair, and replacement for such amount plus costs and expenses, including reasonable attorney's fees actually incurred by such Owner in collecting said amount.Section 9. Easements for Use and Maintenance of Retention Pond.
(a) There is hereby reserved to the Association a perpetual easement across such portions of the Community, determined in the sole discretion of the Association, as is reasonably required for maintenance of any retention pond, lake, lakebed or shoreline (hereinafter referred to as the "retention pond") that is located within the Community. Such maintenance shall be performed with a minimum of interference to the quiet enjoyment of the property adjacent to the retention pond, reasonable steps shall be taken to protect the Community, and damage to the Community shall be repaired by the Person causing the damage at is sole expense.
(b) There is hereby reserved to the Association a perpetual pedestrian easement for access to the retention pond within the Community for the Benefit of the Association and Owners if and to the extent any such easement is shown on any plat for the Community recorded by the Association, or the prior Declarant, in the land records of the county where the property is located.
(c) OWNERS ON BEHALF OF THEMSELVES AND THEIR OCCUPANTS, HEREBY ACCEPT NOTICE THAT THEY ENTER THE RETENTION PONDS, DETENTION PONDS, OR OTHER GREEN AREAS AT THEIR OWN RISK, AND HEREBY WAIVE ANY CLAIM THEY MA Y HAVE AGAINST THE ASSOCIATION, ITS DIRECTORS, OFFICERS, VOLUNTEERS, EMPLOYEES, AGENTS, OR ASSIGNS THAT ARISE AS THE RESULT OF ANY PERSONAL INJURY OR PROPERTY DAMAGE, AND RELEASE SAME FROM ALL LIABILITY.
(d) The following restrictions apply to Owners, Occupants, or Guests regarding use of the retention pond area: Residents and Invited Guests Only (Guests must be accompanied by resident.) No Swimming; No Dumping; and, No Feeding of Birds.
Article XII
General Provisions
Section 1. Rights of Enforcement.
Each Owner and every Occupant of a Lot shall comply strictly with the covenants, conditions, and restrictions set forth in the Declaration, By-Laws, Architectural Design Standards, and the Association's Rules and Regulations, and their amendments. In addition to any other enforcement rights set forth within the Declaration or the By-Laws, the Association, acting through the Board of Directors, shall have the right to enforce any violation of the Declaration, By-Laws, Architectural Design Standards, or Rules and Regulations of the Association by imposing fines as provided for in this Article, or by instituting a proceeding at law or in equity. Owners may enforce the Declaration against other Owners by a proceeding at law or in equity.
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Section 2. Fines and Use Suspensions.The Board shall have the power to impose reasonable fines, which shall constitute a lien upon the Owner's Lot, for any violation of the Declaration, By-Laws, Architectural Design Standards, or any Association Rules and Regulations, and such fines and liens shall be collected in the same manner as provided for in this Declaration for the collection of assessments. The Board may establish and promulgate a fining schedule. The Board shall further have the power to suspend the use of any Common Property for any violation of the Declaration, By-Laws, Architectural Design Standards, or any Association Rules and Regulations. If any Occupant violates the Declaration, By- Laws, Architectural Design Standards, or Association Rules and Regulations and a fine is imposed, the fine may be imposed against the Owner and/or the Occupant.
Section 3. Violation Procedure.
Except with respect to the failure o f an Owner to pay assessments, the Board shall not impose a fine, suspend voting rights or infringe on the rights of an Owner, or Occupant, for violations of the Declaration, the By-Laws, Architectural Design Standards, or Rules and Regulations of the Association, unless and until the following procedure is followed:
(a) Notice and Continuing Violations. If any provision of the Declaration, By-Laws, Architectural Design Standards, or the Association's Rules and Regulations is violated, the Board shall serve the violator with written notice which shall state:
(i) the nature of the alleged violation;
(ii) the proposed sanction to be imposed;
(iii) a statement that the violator may challenge the fact of the occurrence of a violation, the proposed sanction, or both;
(iv) the name, address, and telephone number of a person to contact to challenge the proposed action; and
(v) a statement that the proposed sanction shall be imposed as contained in the notice unless a challenge is begun within ten (10) days of date of the notice.
If a challenge is not made, the sanction shall be imposed ten (10) days from the date of the notice; provided, the Board may, in its discretion, waive any sanction if the violation is cured within such ten (10) day period. In the event of a continuing violation, each day the violation continues beyond the ten (10) day period constitutes a separate offense, and fines may be imposed on a per diem basis without further notice to the violator; or if the same violation reoccurs within twelve (12) months from the date of the first ten (10) day notice of intent to fine, then fines maybe imposed on a per diem basis without further notice to the violator.
(b)Hearing.
If the alleged violator timely challenges the proposed action, a hearing before the Board of Directors shall be held in executive session affording the violator a reasonable
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opportunity to be heard. The hearing shall be set at a reasonable time and date by the Board, and notice of the time, date (which shall be not less than ten (10) days from the giving of notice), and place of the hearing, and an invitation to attend the hearing and produce any statements, evidence, and witnesses, shall be sent to the alleged violator. Proof of such notice shall be placed in the minutes of the meeting. The notice requirement shall be deemed satisfied if the violator appears at the meeting. The minutes of the meeting shall contain a written statement of the results of the hearing and the sanction, if any, imposed. This Section shall be deemed complied with if a hearing is held and the violator attends and is provided an opportunity to be heard, notwithstanding the fact that the notice requirements contained herein are not technically followed.Section 4. Suspension of Voting.
A member's right to vote and use the common areas shall automatically be suspended during any period in which a member is more than thirty (30) days delinquent on any assessment, fine or charge. The Association shall not be required to provide any notice to such member that the member's voting rights have been automatically suspended.
Section 5. Recordation of Violation.
The Association shall have the authority to record in the County land records a notice of violation identifying any uncured violation of the Declaration, By-Laws, Architectural Design Standards, or Rules and Regulations regarding a Lot.
Section 6. Enforcement Costs.
The Owner or Occupant responsible for a violation shall be liable for all costs incurred in enforcement, including reasonable attorney's fees actually incurred, whether or not a legal proceeding in law or equity is filed in connection with the violation. The costs shall become a lien against the Owner's Lot.
Section 7. Self-Help or Right of Abatement.
In addition to any other remedies provided for herein, the Association or its duly authorized agents shall have the power to enter upon a Lot to abate or remove, using such force as may be reasonably necessary, any erection, thing or condition which violates this Declaration, the By-Laws, the Rules and Regulations, the use restrictions or the Architectural Design Standards, including, but not limited to, the towing of vehicles that are in violation of the Association's parking Rules and Regulations. Unless an emergency situation exists, the Board shall give the violating Owner ten (10) days' written notice of its intent to exercise self-help. If the Owner shall not have taken reasonable steps toward the cure or remediation of the violation complained of within such ten (10) day period, then the Association shall have the right to exercise self-help without further notice or any hearing. All costs of self-help, including court costs and reasonable attorney's fees actually incurred, shall be assessed against the violating Owner and payable on demand. Such costs and expenses shall be added to and become a part of the Assessment to which the Owner and his Lot are subject and shall be collected as provided for herein for the collection of annual assessments.
Section 8. Waiver.
The failure of the Board to enforce any provision of the Declaration, Bylaws, Architectural
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Design Standards, or any Association Rule or Regulation shall not be deemed a waiver of the right ofthe Board to do so thereafter.
Section 9. Duration.
The covenants and restrictions of this Declaration shall run with and bind the Community perpetually to the extent provided for in the Act.
Section 10. Amendment.
This Declaration may be amended upon the affirmative vote or written consent, or any combination thereof, of at least two-thirds of the eligible voting Owners in good standing.
Section 11. Partition.
The Common Property shall remain undivided, and no Lot Owner nor any other Person shall bring any action for partition or division oft he whole or any part thereof without the written consent o f all Owners o f all portions o f the property located within the Community and without the written consent of all holders of all Mortgages encumbering any portion of the property, including, but not necessarily limited to, the Lots located within the Community.
Section 12. Gender and Grammar.
The singular, wherever used herein, shall be construed to mean the plural, when applicable, and the use of the masculine pronoun shall include the neuter and feminine.
Section 13. Severability.
Whenever possible, each provision of this Declaration shall be interpreted in such manner as to be effective and valid, but if the application of any provision of this Declaration to any Person or to any property shall be prohibited or held invalid, such prohibition or invalidity shall not affect any other provision or the application of any provision which can be given effect without the invalid provision or application, and, to this end, the provisions of this Declaration are declared to be severable.
Section 14. Captions.
The captions of each Article and Section hereof, as to the contents of each Article and Section, are inserted only for convenience and are in no way to be construed as defining, limiting, extending, or otherwise modifying or adding to the particular Article or Section to which they refer.
Section 15. Preparer.
This Second Amended and Restated Declaration was prepared by Timothy J. Guilmette, Esq., Lueder, Larkin & Hunter, LLC, 5900 Windward Parkway, Suite 390, Alpharetta, Georgia, 30005.
Section 16. Perpetuities.
If any of the covenants, conditions, restrictions, or other provisions of this Declaration shall be considered unlawful, void, or voidable for violation of the rule against perpetuities, then each automatic renewal of said covenants as per Section 9 of this Article, shall be considered a new restated Declaration, containing all the same terms as the prior Declaration.
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Section 17. Indemnification.In accordance with the Georgia Nonprofit Corporation Code and to the full extent allowed, the Association shall indemnify every Person who was or is a party or who is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the Association), by reason of the fact that such Person is or was serving as a director or officer of the Association against any and all expenses, including attorneys' fees, imposed upon or reasonably incurred in connection with any action, suit, or proceeding, if such Person acted in a manner reasonably believed to be in or not opposed to the best interests of the Association and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Any indemnification hereunder shall be made by the Association only as authorized in a specific case upon a determination that indemnification of the Person is proper under the circumstances.
Section 18. Books and Records.
(a) Inspection by Members and Mortgagees. Books and records of the Association may be inspected and copied, pursuant to the provisions of Section 14-3-1602 of the Georgia Nonprofit Corporation Act, by any member of the Association or by their duly appointed representative, and by holders, insurers, or guarantors of any first Mortgage.
(b) Rules for Inspection.
The Board shall establish reasonable rules with respect to:
(i) the written notice to be given to the custodian of the records;
(ii) hours and days of the week when such an inspection may be made; and (iii) payment of the cost of reproducing copies of documents.
(c) Inspection by Directors.
Every director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a director includes the right to make extra copies of documents at the reasonable expense of the Association.
Section 19. Financial Statements.
Financial statements for the Association shall be compiled annually in the manner as the Board of Directors may decide; provided, however, after having received the Board's financial statements at the annual meeting, the Owners, by a Majority vote, may require that the financial statements of the Association be audited as a common expense by a certified public accountant. Upon written request of any institutional holder of a first Mortgage and upon payment of all costs associated therewith, such holder shall be entitled to receive a copy of the audited financial statements of the Association within ninety (90) days of the date of the request.
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Section 20. Notice of Sale.In the event an Owner sells or otherwise transfer's title to his or her Lot, the Owner shall give to the Association, in writing, the name of the purchaser or transferee of the Lot and such other information as the Board may reasonably require.
Section 21. Agreements.
All agreements and determinations, including settlement agreements regarding litigation involving the Association, lawfully authorized by the Board of Directors shall be binding upon all Owners, their heirs, legal representatives, successors, assigns, and others having an interest in the Community or the privilege of possession and enjoyment of any part of the Community.
Section 22. Variances.
Notwithstanding anything to the contrary contained herein, the Board of Directors or its designee shall be authorized to grant individual variances from any of the provisions of this Declaration, the Bylaws and any rule, regulation or use restriction promulgated pursuant thereto if it determines that waiver of application or enforcement of the provision in a particular case would not be inconsistent with the overall scheme of the Community, and the Variance is given in a dated writing.
Section 23. Litigation.
No judicial or administrative proceeding shall be commenced or prosecuted by the Association unless approved by at least seventy-five percent (75%) of the Total Association Vote. This Section shall not apply, however, to (a) actions brought by the Association to enforce the provisions of this Declaration (including, without limitation, the foreclosure of liens), (b) the imposition and collection o f assessments and fines as provided in Article IV hereof, (c) proceedings involving challenges to ad valorem taxation, or (d) counterclaims brought by the Association in proceedings instituted against it.
Section 24. Implied Rights.
The Association, through its Board of Directors, may exercise any right or privilege given to it expressly by this Declaration, the Bylaws, the Articles of incorporation, any use restriction or rule, and every other right or privilege reasonably to be implied from the existence of any right or privilege given to it therein or reasonably necessary to effectuate any such right or privilege.
Section 25. Use of Recreational Facilities and Common Areas By Nonmembers &
Suspension of Rights of Members.
(a) The extent and duration of nonmember use of the recreational facilities and common areas, and the fee to be charged for any such use shall be determined solely by the Board. Nonmember user fees shall be paid to the Association.
The Association shall not be liable for and is hereby held harmless from any failure of any nonmember to pay a nonmember user fee to the Association where required to do so by this Section. In such case, the Association's sole remedy shall be to suspend the use right of the nonmember who
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has not timely paid until all amounts owed are paid. The Association shall also not be liable for and is hereby held harmless from any personal injury or property damage caused by a nonmember entitled to use the Community recreational facilities.The Association shall have the sole right to grant use rights to the Community recreational facilities and common areas to nonmembers. The provisions of this Section shall apply notwithstanding any contrary provisions in this Declaration, the Bylaws, Articles of Incorporation, rules and regulations, use restrictions and any amendments to any of the foregoing.
(b) The Association may suspend the rights of Owners or Occupants to use any of the recreational facilities or common areas, if said Owner or Occupant is delinquent in paying any Assessments or Fines to the Association.
Section 26. Dispute Resolution and Limitations on Litigation.
A. Agreement to Avoid Litigation.
The Association, its officers, directors and committee members, all Persons subject to this Declaration, and any Person not otherwise subject to this Declaration who agrees to submit to this Article (collectively, "Bound Parties") agree to encourage the amicable resolution of disputes involving the Community, without the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees that those claims, grievances or disputes described in paragraph "B" below ("Claims") shall be resolved using the procedures set forth below in lieu of filing suit in any court.
B. Claims.
Unless specifically exempted below, all claims, grievances, or disputes arising out of or relating to the interpretation, application, or enforcement of the Governing Documents, or the rights, obligations, and duties of any Sound Party under the Governing Documents or relating to the design or construction of improvements on the Community shall be subject to the below provisions.
Notwithstanding the above, unless all parties otherwise agree, the following shall not be Claims and shall not be subject to the provisions of this Section:
(i) Any suit by the Association against any Bound Party to enforce the provisions of Article IV (Assessments);
(ii) Any suit by the Association to obtain a temporary restraining order (or equivalent emergency equitable relief) and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of Article VI (Use Restrictions and Rules);
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(iii) Any suit between Owners, which does not include the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents;(iv) Any suit in which any indispensable party is not a Bound Party; and
(v) Any suit as to which any applicable statute of limitations would expire within l 80 days of giving the Notice required by this Section.
With the consent of all parties thereto, any of the above may be submitted to the alternative dispute resolution procedures set forth in this Section.
C. Mandatory Procedures.
(a) Notice. Any Bound Party having a Claim ("Claimant") against any other Bound Party ("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"), stating plainly and concisely:
the Claim; arises);
(i) The nature of the Claim, including the Persons involved and Respondent's role in
(ii) The legal basis of the Claim (i.e., the specific authority out of which the Claim
(iii) Claimant's proposed resolution or remedy; and
(iv) That Claimant's desire to meet with Respondent to discuss in good faith ways to resolve the Claim.
(b) Negotiation. The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy ofthe Notice, the Board may appoint a representative to assist the Parties in resolving the dispute by negotiation.
(c) Mediation. If the Parties do not resolve the Claim within 30 days of the date of the Notice (or within such other period as may be agreed upon by the Parties), Claimant shall have 30 additional days to submit the Claim to mediation under the auspices of Henning Mediation and Arbitration Services or, if the Parties otherwise agree, to an independent agency providing dispute resolution services in the County area. Each Bound Party shall present the mediator with a summary of the Claim prior to the mediation session.
If Claimant does not submit the Claim to mediation within such time, or does not appear for and participate in good faith in the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of
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such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any Person other than the Claimant.Any settlement of the Claim through mediation shall be documented in writing by the mediator. lf the Parties do not settle the Claim within 30 days after submission of the matter to the mediation process, or within such time as determined by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date mediation was terminated ("Termination of Mediation"). Except as provided below in subparagraph (d), the Claimant shall then be entitled to file suit or initiate administrative proceedings on the Claim as appropriate.
Each Bound Party shall bear its own costs of mediation and each Party shall share equally all fees charged by the mediator.
(d) Final and Binding Arbitration.
If the Parties do not agree in writing to a settlement of the Claim within 15 days of the Termination of Mediation, the Claimant shall have 15 additional days to submit the Claim to arbitration in accordance with the Official Code ofGeorgia Annotated, Section 9-9-1, et seq. If the Parties do not voluntarily agree on an arbitrator, Henning Mediation and Arbitration Services shall be the arbitrator. If not timely submitted to arbitration or if the Claimant fails to appear for the arbitration proceeding, the Claim shall be deemed abandoned, and Respondent shall be released and discharged from any and all liability to Claimant arising out of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to Persons other than Claimant.
This subsection (d) is an agreement to arbitrate and is specifically enforceable under the applicable arbitration laws of the State of Georgia. The arbitration award (the "Award'~shall be final and binding, and judgment may be entered upon it in any court of competent jurisdiction to the fullest extent permitted under the laws of the State of Georgia.
(e) Allocation of Costs of Resolving Claims.
Subject to subparagraph (d) above, each Party shall hear its own costs, including any attorneys' fees incurred, and each Party shall share equally all charges rendered by the mediator(s) and all filing fees and costs of conducting the arbitration proceeding ("Post Mediation Costs").
Any award which is equal to or more favorable to Claimant than Claimant's Settlement Demand shall add Claimant's Post Mediation Costs to the Award, such costs to be borne equally by all Respondents. Any Award which is equal to or less favorable to Claimant than any Respondent's Settlement Offer shall award to such Respondent its Post Mediation Costs.
(f) Enforcement of Resolution.
After resolution of any Claim, if any party fails to abide by the terms of any agreement or Award, then any other Party may file suit or initiate administrative proceedings to enforce such agreement or Award without the need to again comply with the procedures set forth in this Section. In such event, the Party taking action to enforce the agreement or Award shall be entitled to recover from the non-complying Party (or if more than one non-complying
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IN WITNESS WHEREOF, the undersigned hereby certify that this Amendment was properly approved.
Dated this 3rd day of August, 2017
WHITFIELD WOODS HOMEOWNERS ASSOCIATION, INC
Signature of President (See original document for signatures)
Signature of Secretary (See original document for signatures)
Sworn to and subscribed before me this 3rd day of August, 2017
Witness: (See original document for signatures)
Notary Public
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EXHIBIT "A"Definitions
The following words, when used in this Declaration or in any amendment thereof (unless the context shall prohibit), shall have the following meanings:
(a) "Act"
shall mean the Georgia Property Owners' Association Act, O.C.G.A. Section 44-3-220, et seq. (Michie 1982), as may be amended.
(b) "Association"
shall mean and refer to Whitfield Woods Homeowners Association, Inc., a nonprofit Georgia corporation, its successors and assigns.
(c) "Board of Directors" or "Board"
of the Association shall be the appointed or elected body, as applicable, having its normal meaning under Georgia corporate law.
(d) "Bylaws"
shall refer to the Bylaws of Whitfield Woods Homeowner Association, lnc. which are attached to this Amended and Restated Declaration, and incorporated therein by reference, as Exhibit "B."
(e) "Common Area" or "Common Property"
shall mean any and all real and personal property and easements and other interests therein, together with the facilities and improvements located thereon, now or hereafter owned by the Association for the common use and enjoyment of the Owners.
(f) "Community"
shall mean and refer to that certain real property and interests therein described in Article II, of the Declaration, and such additions thereto as may be made by the Association of other real property.
(g) "Community-Wide Standard"
shall mean the standard of conduct, maintenance, or other activity generally prevailing in the Community. Such standard may be more specifically determined by the Board of Directors of the Association. Such determination, however, must be consistent with the Community-Wide Standard originally established by the Declarant.
(h) "Lot"
shall mean any plot of land within the Community, whether or not improvements are constructed thereon; which constitutes or could constitute, after the construction of improvements, a single dwelling site as shown on the plat for the Community, or amendments thereto, recorded in the land records of the county where the Community is located. If a vacant Lot adjoins another Lot upon which there is a dwelling, and both Lots are owned by the same person, the two Lots shall only constitute one Lot for purposes of assessments and voting. The ownership of each Lot shall include, and there shall pass with each Lot as an appurtenance thereto, whether or not separately described, all of the right, title, and interest of an Owner in the Common Property, which shall include, without limitation, membership in the Association.
(i) "Majority"
means those eligible votes, Owners, or other group as the context may indicate totaling more than fifty percent (50%) o f the total eligible number,
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(j) "Mortgage"
means any mortgage, deed to secure debt, and any and all other similar instruments used for the purpose of conveying or encumbering real property as security for the payment or satisfaction of an obligation.(k) "Mortgagee"
shall mean the holder of a Mortgage.
(l) "Occupant"
shall mean any Person occupying all or any portion of a Lot or other property located within the Community for any period of time, regardless of whether such Person is a tenant of the Owner of such property.
(m) "Owner"
shall mean and refer to the record owner, whether one or more Persons, of the fee simple title to any Lot located within the Community, excluding, however, any Person holding such interest merely as security for the performance or satisfaction of any obligation.
(n) "Person"
means any natural person, as well as a corporation, joint venture, partnership (general or limited), association, trust, or other legal entity.
(p) "Structure"
shall mean and refer to any object or thing, the placement of which upon any Lot may affect the appearance of such Lot, including by way of illustration and not limitation, any building or part thereof, garage, porch, gazebo, shed, greenhouse or bathhouse, covered or uncovered patio, swimming pool, tennis court, basketball goal, fence, curbing, paving, wall, tree, shrub, sign, signboard, mailbox, driveway, temporary or permanent living quarters or any other temporary or permanent improvement to such Lot.
(q) "Supplementary Declaration"
means an amendment or supplement to this Declaration which subjects additional property to this Declaration or imposes, expressly or by reference, additional restrictions and obligations on the land described therein, or both.
(r) "Total Association Vote"
means all of the votes attributable to members of the Association, but does not include those Lot Owners who have had their right to vote suspended pursuant to Article XII, Section 4 o f the Declaration.
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EXHIBIT "B"SECOND AMENDED AND RESTATED BYLAWS
OF
WHITFIELD WOODS HOMEOWNERS ASSOCIATION, INC.
LUEDER, LARKIN & HUNTER, LLC Attorneys
5900 Windward Parkway
Suite 390
Alpharetta, Georgia 30005 770-685- 7000
TABLE OF CONTENTS ARTICLE and SECTION PAGEI GENERAL
. 1.1. Applicability ........................................................................................ 4
. 1.2. Name .................................................................................................... 4
. 1.3. Definitions ........................................................................................... 4
. 1.4. Membership ......................................................................................... 4
. 1.5. Voting .................................................................................................. 4
. 1.6. Entity Members ................................................................................... 5
. 1.7. Electronic Communications ................................................................ 5
II MEETINGS OF MEMBERS
. 2.1. Annual Meetings ................................................................................. 5
. 2.2. Special Meetings ................................................................................. 5
. 2.3. Notice ofMeetings .............................................................................. 6
. 2.4. Waiver of Notice ................................................................................. 6
. 2.5. Quorum ................................................................................................ 6
. 2.6. Adjournment ........................................................................................ 6
. 2.7. Proxy .................................................................................................... 6
. 2.8. Action Taken Without a Meeting ....................................................... 7
. 2.9. Order of Business ................................................................................ 7
III BOARD OF DIRECTORS
3.1.Composition ........................................................................................ 7
3.2 Election and Term of Office ............................................................... 8
3.3 Nomination .......................................................................................... 8
3.4.Removal of Directors .......................................................................... 8
3.5 Vacancies ............................................................................................. 8
3.6 Compensation ...................................................................................... 8
3.7 Director Conflicts of Interest .............................................................. 8
3.8 Regular Meetings ................................................................................ 9
3.9 Special Meetings .................................................................................. 9
3.10 Waiver of Notice ................................................................................. 9
3.11 Quorum and Conduct of Meetings...................................................... 9
3.12 Open Meetings ..................................................................................... 9
3.13 Action Without a Meeting ................................................................... 9
2
Table of Contents (Continued)ARTICLE and SECTION
3.14 Powers and Duties .............................................................................10
3.15 Management Agent ........................................................................... 11
3.16 Borrowing .......................................................................................... 11
3.17 Liability and Indemnification of Officers and Directors .................. 11
IV OFFICERS
4.1 Designation ........................................................................................ 12
4.2 Appointment of Officers ................................................................... 12
4.3 Removal o f Officers .......................................................................... 12 4.4Vacancies........................................................................................... 12
4.5 President ............................................................................................ 12
4.6 Vice President. ................................................................................... 12
4.7 Secretary ............................................................................................ 12
4.8 Treasurer ............................................................................................ 12
4.9 Other Officers .................................................................................... 12
4.10 Agreements, Contracts Deeds, Leases, Etc...................................... 12 4.11Resignation........................................................................................ 13
V. AMENDMENT
VI. MISCELLANEOUS
6.1 Committees ........................................................................................ 13
6.2 Notices ............................................................................................... 13
6.3 Severability ........................................................................................ 14
6.4 Captions ............................................................................................. 14
6.5 Fiscal Y ear ......................................................................................... 14
6.6 Financial Review ............................................................................... 14
6.7 Conflicts ............................................................................................. 14
6.8 Books and Records ............................................................................ 15
6.9 Preparer .............................................................................................. 15
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SECOND AMENDED AND RESTATED BYLAWS OF and
FOR WHITFIELD WOODS SUBDIVISIONArticle l
General
1.1. Applicabilitv.
These Bylaws provide for the self-government of the Whitfield Woods Homeowners Association, Inc., in accordance with the Georgia Property Owners' Association Act, the Articles of Incorporation filed with the Secretary of State and the Second Amended and Restated Declaration of Covenants for Whitfield Woods Subdivision (hereafter referred to as the "Declaration").
1.2. Name.
The name of the corporation is the Whitfield Woods Homeowners Association, Inc. (hereafter referred to as the "Association").
1.3. Definitions.
The terms used herein shall have their generally accepted meanings or the meanings specified in Exhibit A of the Declaration.
1.4. Membership.
Each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, shall be a member of the Association. This is not intended to include Persons who hold an interest merely as security for the performance of an obligation, and the giving of a security interest shall not terminate the Owner's membership. No Owner, whether one or more Persons, shall have more than one (I) membership per Lot owned. ln the event of multiple Owners of a Lot. votes and rights of use and enjoyment shall be as provided in the Declaration and in these Bylaws. Membership shall be appurtenant to and may not be separated from ownership of anyLot. The rights and privileges of membership, including the right to vote and to hold office, may be exercised by a member or the member's spouse, but in no event shall more than one (1) vote be cast for each Lot owned.
1.5. Voting.
Members shall be entitled to one (1) equal vote for each Lot owned. When more than one (1) Person holds an ownership interest in any Lot, the vote for such Lot shall be exercised as those Owners determine among themselves. In the absence of such advice. the Lot's vote shall be suspended if more than one (1) Person seeks to exercise it. A member's right to vote shall automatically be suspended during any period in which a member is more than thirty (30) days delinquent on any assessment or charge, and the member shall be ineligible to vote on any matter until the member's account balance has been paid in full.
No Owner shall be eligible to vote, either in person or by proxy, or to be elected to the Board of Directors, if that Owner is shown on the books or management accounts of the Association to be more than thirty (30) days delinquent in any payment due the Association or if the Owner has had its voting rights suspended for any reason. If an Owner's voting rights have been suspended, that Owner shall not be counted as an eligible vote for purposes of establishing a quorum.
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1.6. Entity Members.
In the event an Owner is a corporation,
partnership, trust, or other legal entity not being a natural person or persons, then any natural person who is an officer, director, or other designated agent of such corporation, partner of such partnership, beneficiary, or other designated agent of such trust, or manager of such other legal entity shall be eligible to represent such entity in the affairs of the Association. Such person's relationship with the Association shall terminate automatically upon the termination of such person's relationship with the entity which is the Owner of the Lot. The membership rights of an Owner which is a corporation, partnership, or other legal entity shall be exercised by the individual designated from time to time by the Owner in a written instrument provided to the Secretary of the Association.1.7. Electronic Communications.
(a) Records and Signatures.
Whenever the Declaration or these Bylaws require that a document, record or instrument be written or in writing, the requirement is deemed satisfied by an electronic record pursuant to the Georgia Electronic Records and Signatures Act. Whenever the Declaration or these Bylaws require a signature on a document, record or instrument, an electronic signature, in accordance with the Georgia Electronic Records and Signatures Act, satisfies that requirement.
(b) Verification and Liability for Falsification.
The Board of Directors may require reasonable verification of any electronic signature, document, record, or instrument. Absent or pending verification, the Board of Directors may refuse to accept any electronic signature or electronic record that, in the Board's sole discretion, is not authentic. Neither the Board of Directors nor the Association shall be liable to any Owner or any other Person for accepting or acting in reliance upon an electronic signature or electronic record that the Board of Directors reasonably believes to be authentic, or rejecting any such item which the Board of Directors reasonably believes not to be authentic. Any Owner or Person who negligently, recklessly or intentionally submits any falsified electronic record or unauthorized electronic signature shall fully indemnify the Association for actual damages, reasonable attorneys' fees actually incurred and expenses incurred as a result of such acts.
Article II
Meetings of Members
2.1. Annual Meetings.
The regular annual meeting of the members shall be held each year with the date, hour, and place to be set by the Board.
2.2. Special Meetings.
Special meetings of the members may be called for any purpose at any time by the President, the Secretary, or by request of any two (2) or more Board members, or upon written petition of twenty-five percent (25%) of the total members of the Association. Any such written petition by the members must be submitted to the Association's Secretary. The Secretary shall then verify that the required number o f members have joined in the petition and shall submit all proper petitions to the Association's President. The President shall then promptly call a special meeting for the purpose stated in the petition, at a date, time and location selected by the President, and the Secretary shall send notice of such meeting in accordance with these Bylaws and within thirty (30) days o f the date o f delivery o f the petition to the Secretary.
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2.3. Notice of Meetings.
The Secretary shall mail or deliver to each member of the Association a notice of each Association meeting at least twenty-one (21) days prior to each annual meeting and at least seven (7) days prior to each special meeting. The notice shall state the time and place of the meeting, and, for any special meeting, the purpose of the meeting. Mailing or delivering notice as provided in this Section shall be considered proper service of notice .2.4. Waiver ofNotice.
Waiver of notice of an Association meeting shall be deemed the equivalent of proper notice. Any Association member may, in writing, waive notice of any meeting of the membership, either before or after such meeting. Attendance at a meeting by a member, whether in person or represented by proxy, shall be deemed waiver by such member of notice of the time, date, and place thereof unless such member specifically objects to lack of proper notice at the time the meeting is called to order. Attendance at a special
meeting shall also be deemed waiver of notice of all business transacted at such meeting unless objection to lack of notice is raised before the business, of which proper notice was not given, is put to a vote.
2.5. Quorum.
The presence, in person or by proxy at the beginning of the meeting, of members entitled to cast at least ten percent (10%) of the eligible votes of the Association shall constitute a quorum. Once a quorum is established for a meeting, it shall conclusively be presumed to exist until the meeting is adjourned and shall not need to be reestablished. Members whose voting rights have been suspended pursuant to the Declaration or these Bylaws shall not be counted as eligible votes toward the quorum requirement.
2.6. Adjournment.
Any meeting of the Association members may be adjourned from time to time for periods not exceeding ten (10) days by vote of the members holding the majority of the votes represented at such meeting, regardless of whether a quorum is present. Any business which could have been transacted properly at the original session of the meeting with a quorum present may be transacted at a reconvened session with a quorum present, and no additional notice of such reconvened session shall be required.
2.7. Proxy.
Any Association member entitled to vote may do so by written proxy duly executed by the member setting forth the meeting at which the proxy is valid. The term "proxy" shall mean the written document in which the member authorizes any other person to attend a membership meeting on behalf of the member and vote the member's vote at the meeting. The written proxy document shall not be required to be in any particular form; but to be valid, the proxy must be signed, dated, and filed with the Secretary prior to the opening of the meeting for which it is to be used. The member giving the proxy shall be the "proxy giver", and the person holding the proxy and authorized to attend on behalfofthe proxy giver and vote for the proxy giver shall be the "proxy holder." Proxies may be delivered by either the proxy giver or the proxy holder by personal delivery, U.S. Mail, facsimile transmission, email, or other electronic means to any Board member or the property manager, if any. Proxies may be revoked only by written notice of the proxy giver delivered to the Secretary, except that the presence in person by the proxy giver at a meeting for which the proxy is given shall automatically invalidate the proxy for that meeting. A proxy holder may not appoint a substitute proxy holder unless expressly authorized to do so in the proxy. At the signing-in prior to each membership meeting, each proxy holder shall be given one ballot for the meeting for each proxy held.
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2.8. Action Taken Without a Meeting.
In the Board's discretion, any action that may be taken by the Association members at any annual, regular, or special meeting may be taken without a meeting if the Board delivers a written consent form or written ballot to every member entitled to vote on the matter.(a) Ballot. A written ballot shall set forth each proposed action and provide an opportunity to vote for or against each proposed action. Approval by written ballot shall be valid only when (I) the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and (2) the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot.
All solicitations for votes by written ballot shall: (1) indicate the number of responses needed to meet the quorum requirements; (2) state the percentage of approvals necessary to approve each matter other than election of directors; and (3) specify the time by which a ballot must be received by the Board in order to be counted. A written ballot may not be revoked. The Association shall maintain such ballots in its file for at least three (3) years.
(b) Written Consent.
Approval by written consent shall be valid only when the number of written consents received equals or exceeds the requisite majority of the voting power for such action. Executed written consents shall be included in the minutes or filed with the Association's records. lf an action of the members is approved by written consent hereunder, the Board shall issue written notice of such approval to all members who did not sign written consents. Membership approval shall be effective ten (10) days after written notice is issued; provided, however, if the consent is to an amendment to the Declaration or Bylaws which must be recorded, the effective date shall be no earlier than the date of recording of such amendment.
2.9. Order of Business.
At all meetings of the Association, Roberts Rules of Order (latest edition) shall govern when not in conflict with the Declaration, these Bylaws or the Articles of Incorporation, unless the members present at a particular meeting vote to suspend Robert's Rules at that meeting.
Article III
Board of Directors
3.1. Composition.
The affairs of the Association shall be governed by a Board of Directors. The Board shall be composed of five (5) persons. The directors shall be Owners of Lots or spouses of such Owners; provided, however, no Owner and his or her spouse may serve on the Board at the same time, and no co-owners may serve on the Board at the same time.
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3.2. Election and Term.Those directors serving on the date these Bylaws are recorded in the Cobb County, Georgia land records shall remain in office until the terms for which they were elected expire. Successor directors shall be elected by the vote of those members present in person or proxy at the annual meeting of the membership of the Association, a quorum being present. At the first election of directors of the Association at the annual meeting following the date these Bylaws are recorded in the Cobb County, Georgia land records, two (2) directors shall be elected for one (1) year, and three (3) directors shall be elected for two (2) years. At the expiration of the term of each such director, and at each annual meeting thereafter, a successor shall be elected to serve for a term of two (2) years. The expressed purpose of this Section is to provide for staggered terms of directors. Directors shall remain on the Board until their respective successors are elected. Each newly elected Board shall meet within ten (10) days following the meeting at which the election occurred for the purpose of appointing officers and any other business that comes before the Board.
3.3. Nomination.
Nomination for election to the Board shall be made from the floor at the meeting. Nominations also may be made by a nominating committee, if appointed by the Board.
3.4. Removal of Directors.
At any valid regular or special Association meeting, anyone or more directors may be removed with or without cause by a majority of the total vote of the Association members and a successor may then and there be elected to fill the vacancy created. In addition, any director who has had three (3) consecutive unexcused absences from regularly scheduled Board meetings or is more than sixty (60) days past due in the payment of any assessment or charge may be removed by the vote of a majority of the other directors. Any director whose removal has been proposed shall be given at least ten (10) days' notice of the calling of the meeting to consider his or her removal and shall be given an opportunity to be heard at the meeting.
3.5. Vacancies.
Vacancies on the Board caused by any reason, except the removal of a director by vote of the membership as provided in Section 3.4 of this Article, shall be filled by a vote of the majority of the remaining directors, even though less than a quorum, at any Board meeting. The successor selected shall hold office for the remainder of the term of the director being replaced.
3.6. Compensation.
Directors shall not be compensated for services. However, directors may be reimbursed for the expenses incurred in carrying out their duties as directors upon Board approval of such expenses. Directors also may be given nominal gifts or tokens of appreciation by the Association for recognition of services performed not to exceed a value of $100.00 per calendar year. For purposes hereof, reasonable food and beverages purchased for Board meetings shall not be considered compensation.
3.7. Director Conflicts of Interest.
Nothing herein shall prohibit a director from entering into a contract and being compensated for services or supplies furnished to the Association in a capacity other than as director, provided the director's interest is disclosed to the Board and the contract is approved by a majority of the directors who are at a meeting of the Board of Directors at which a quorum is present, excluding the director with whom the contract is made. The interested director shall not count for purposes of establishing a quorum of the Board. The interested director
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shall be entitled to be present at the meeting at which the proposed contract is discussed, but the director must leave the room during the discussion on such matter.3.8. Regular Meetings.
Regular Board meetings may be held at such time and place as determined by the majority of the Board, but at least once every three (3) months.
3.9. Special Meetings.
Special Board meetings may be called by the President on three (3) days' notice to each director given by mail, in person, by telephone, by facsimile transmission, or by email, which notice shall state the time, date, location, and purpose of the meeting. Special Board meetings shall be called by the President, Vice President, Secretary, or Treasurer in like manner and on like notice upon the written request of at least two (2) directors.
3.10. Waiver of Notice.
Any director at any time, in writing, may waive notice of any Board meeting, and such waiver shall be deemed equivalent to the giving of such notice. The waiver of notice need not specify the purpose of the meeting. Attendance by a director at any Board meeting shall also constitute a waiver of notice by him or her of the time and place of such meeting. If all directors are present at any Board meeting, no notice shall be required and any business may be transacted at such meeting.
3.11. Quorum and Conduct of Meetings.
The President shall preside over all Board meetings, and the Secretary shall keep a minute book recording therein all resolutions adopted by the Board and a record of all transactions and proceedings occurring at such meetings. The presence of directors entitled to cast one-half of the votes of the Board shall constitute a quorum for the transaction of business. One or more directors who participate in a meeting by means of telephone or electronic communication shall be deemed present and in attendance for all purposes at such meeting, provided all persons participating in the meeting can hear each other.
3.12. Open Meetings.
All Board meetings shall be open to all Association members, but members other than directors may not participate in any discussion or deliberation unless expressly authorized by the Board. Notwithstanding the above, the Board may adjourn a meeting and reconvene in executive session to discuss and vote upon personnel matters, delinquent assessments, litigation in which the Association is or may become involved, and orders of business of a similar nature. The nature of any and all business to be considered in executive session shall first be announced in open session.
3.13. Action Without a Meeting.
Any Board action required or permitted to be taken at any meeting may be taken without a meeting if a majority of the directors consent in writing to such action. The written consents must describe the action taken. The written consents shall be filed with the minutes of the Board. The written consent may be by email or other electronic means; a copy of the consents shall be printed and filed with the minutes of the Board.
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3.14. Powers and Duties.
The Board shall manage the affairs of the Association and shall have all the powers and duties necessary for the administration of the Community and may do all such acts and things as are not by the Act, the Declaration, the Articles of Incorporation, or these Bylaws directed to be done and exercised exclusively by the members. In addition to the duties imposed by these Bylaws, the Board shall have the power to and shall be responsible for the following, in the way of explanation, but not limitation:(a) preparation and adoption of an annual budget, in which there shall be established the contribution of each Owner to the common expenses;
(b) making assessments to defray the common expenses, establishing the means and methods of collecting such assessments;
(c) providing for the operation, care, upkeep, and maintenance of all of the Common Property;
(d) designating, hiring, and dismissing the personnel necessary for the operation of the Association and the maintenance, repair and replacement of the Common Property, and, where appropriate, providing for the compensation of such personnel and for the purchase of equipment, supplies and material to be used by such personnel in the performance of their duties;
(e) collecting the assessments, depositing the proceeds thereof in a financial depository or institution which it shall approve, or otherwise investing the proceeds in accordance with any limitations set forth in O.C.G.A. Section 14-3-302, and using the proceeds to administer the Association;
(f) making and amending rules and regulations for the Common Property and imposing sanctions for violation thereof, including reasonable monetary fines;
(g) opening of bank or other financial accounts on behalf of the Association and designating the signatories required;
(h) making or contracting for the making of repairs, additions and improvements to, or alterations of, the Common Property after damage or destruction by fire or other casualty, in accordance with the other provisions of the Declaration and these Bylaws;
(i) enforcing by legal means the provisions of the Declaration, these Bylaws, and the rules and regulations adopted by it, and bringing any proceedings which may be instituted on behalf of or against the Owners concerning the Association;
j) obtaining and carrying insurance against casualties and liabilities, as provided in the Declaration, and paying the premium cost thereof;
(k) paying the costs of all services rendered to the Association or its members and not directly chargeable to specific Owners;
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(l) keeping books with detailed accounts of the receipts and expenditures affecting the Association and its administration, specifying the maintenance and repair expenses and any other expenses incurred; and(m) contracting with any Person for the performance of various duties and functions. The Board shall have the power to enter into management agreements. Any and all functions of the Association shall be fully transferable by the Board, in whole or in part, to any other entity.
3.15. Management Agent.
The Association may, but shall not be required to, hire a professional management agent or agents, at a compensation established by the Board, to perform such duties and services as the Board of Directors shall authorize.
3.16. Borrowing. The Board shall have the power to borrow money for the purpose of maintenance, repair, restoration or improvement to the Common Property or for any other purpose; provided, however, if the total amount of such borrowing exceeds or would exceed the total annual assessment for all Lots within the Community, for the then current fiscal year, of outstanding debt at any one time, such borrowing must first be approved by members of the Association holding a majority of the total Association vote. By way of example, if the total annual assessment for the 2017 fiscal year is thirty-two thousand five hundred dollars ($32,500.00), the Board shall have the power, without a vote of the membership, to borrow up to but not exceed $32,500.00.
3.17. Liability and Indemnification of Officers and Directors. The Association shall indemnify every officer and director against any and all expenses, including, without limitation, attorney's fees, imposed upon or reasonably incurred by any officer or director in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which such officer or director may be a party by reason of being or having been an officer or director. The officers and directors shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the Association, and the Association shall indemnify and forever hold each such officer and director free and harmless against any and all liability to others on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer or director, or former officer or director, may be entitled. The Association shall maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such coverage is reasonably available.
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11New Paragraph
ARTICLE IV OFFICERS4.1. Designation.
The principal officers of the Association shall be the President, Vice President, Secretary, and Treasurer, and one or more Vice Presidents if the Board so designates. The President, Vice President and Secretary must be directors. The Treasurer shall be elected by the Board, but need not be a director. The Board may appoint one or more Assistant Treasurers, Assistant Secretaries, and such other subordinate officers as in its judgment may be necessary. Any assistant or subordinate officers shall not be required to be directors. Except for the offices of Secretary and Treasurer, which may be held by the same person, no person may hold more than one (1) office.
4.2. Appointment of Officers.
The Association officers shall be appointed annually by the Board of Directors at the first meeting of the Board following each annual meeting of the members and shall hold office at the pleasure of the Board and until a successor is elected.
4.3. Removal of Officers.
Upon the affirmative vote of a majority of the Board members at any Board meeting at which a quorum is established, any officer may be removed, either with or without cause, and a successor may be elected.
4.4. Vacancies.
A vacancy in any office arising because of death, resignation, removal, or otherwise may be filled by the Board for the unexpired portion of the term.
4.5. President.
The President shall be the chief executive officer of the Association and shall preside at all Association and Board meetings. The President shall be considered a Principal Officer.
4.6. Vice President
The Vice President shall act in the President's absence and shall have all powers, duties, and responsibilities provided for the President when so acting.
4.7. Secretary.
The Secretary shall keep the minutes of all Association and Board meetings and shall have charge of the Association's books and records.
4.8. Treasurer.
The Treasurer shall have the responsibility for the Association's funds and securities and shall be responsible for keeping full and accurate financial records and books of account showing all receipts and disbursements, for preparing all required financial statements and tax returns, and for the deposit of all monies and other valuable effects in the name of the Association or the managing agent in such depositories as may from time to time be designated by the Board.
4.9. Other Officers.
Other offices may be created by the Board, and the Board members which hold such offices shall have such titles and duties as are defined by the Board.
4.10. Agreements, Contracts, Deeds, Leases, Etc.
All agreements, contracts, deeds, leases, checks, promissory notes, and other instruments of the Association shall be executed by at least two (2) officers or by such other person or persons as may be designated by Board resolution.
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4.11. Resignation.
Any officer may resign at any time by giving written notice to the Board, the President or the Secretary. Such resignation shall take effect on the date of the receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.ARTICLE V
AMENDMENTS
These Bylaws may be amended by the affirmative vote, written consent, or any combination of affirmative vote and written consent of the members of the Association holding at least two-thirds (2/3) of the total vote of the Association membership. Notice of a meeting, if any, at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. No amendment shall be effective until certified by the President and Secretary of the Association and recorded in the Cobb County, Georgia land records. Any amendment duly certified and recorded shall be conclusively presumed to have been duly adopted in accordance with these Bylaws.
Notwithstanding the foregoing, the Board of Directors, without the necessity of a vote from the owners, may amend these Bylaws to comply with any applicable state, city or federal law, including but not limited to, compliance with applicable guidelines of the Federal National Mortgage Association ("Fannie Mae"), the Department of Housing and Urban Development ("HUD") and the Veterans Administration ("VA").
Any action to challenge the validity of these Bylaws or an amendment adopted under this Article must be brought within one (1) year of the recording of same in the Cobb County, Georgia land records. No action to challenge these Bylaws or any such amendment may be brought after such time.
ARTICLE VI
MISCELLANEOUS
6.1. Committees.
The Architectural Control Committee shall be a standing committee of the Association. The Board may establish a nominating committee and any other committee as the Board deems desirable with the powers and duties that the Board shall authorize. Each committee shall be composed and shall operate in accordance with the terms of the resolution of the Board of Directors designating the committee or with rules adopted by the Board. Members of any committee shall be appointed by the Board and shall serve at the pleasure of the Board. Any committee member may be removed with or without cause at any time and with or without a successor being named.
6.2. Notices.
(a) Method of Giving Notice. All notices, demands, bills, statements, or other communications shall be in writing and shall be given:
(1) Personal delivery to the addressee;
(2) Via United States mail, first class, postage prepaid;
(3) Via electronic mail; or
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(4) Via facsimile; or
(5) Via any other legal means.
(b) Addressee. Notice sent by one ofthe methods described herein shall be deemed to have been duly given:
(1) If to an Owner, at the address, electronic mail address or facsimile number which the Owner has designated in writing and filed with the Secretary, or if no such address has been designated, at the address of the Owner's Lot;
(2) lf to an Occupant, to the electronic mail address or facsimile number which the Occupant has designated in writing, or if no such address has been designated, at the address of the Lot occupied; or
(3) If to the Association, the Board or the managing agent, if any, at the postal address, facsimile, or electronic mail address of the principal office of the Association or the managing agent, if any, or at such other address as shall be designated in writing and filed with the Secretary.
6.3. Severability.
The invalidity of any part of these Bylaws shall not impair or affection any manner the validity, enforceability, or effect of the balance of these Bylaws or the Declaration.
6.4. Captions.
The captions herein are inserted only as a matter of convenience and for reference and in no way define, limit, or describe the scope of these Bylaws or the intent of any provision thereof.
6.5 Fiscal Year.
The fiscal year of the Association may be set by Board resolution or, in the absence thereof, shall be March lst through February 28th (29th if a leap year).
6.6. Financial Review.
A financial review of the accounts of the Association shall be performed annually in the manner provided by the Board. However, after having received the Board's financial review at the annual meeting, the members may, by a majority of the Association members present at such meeting, in person or proxy, require that the Association accounts be audited as a common expense by an independent accountant.
6. 7. Conflicts.
The duties, powers, and obligations o f the Association, including the members, directors, and officers, shall be those set forth in the Georgia Property Owners' Association, the Georgia Nonprofit Corporation Code, the Declaration, these Bylaws, the Articles of Incorporation, and the rules and regulations of the Association. If there are conflicts or inconsistencies between such, then the provisions of the Georgia Property Owners' Association, the Georgia Nonprofit Corporation Code, the Declaration, these Bylaws, the Articles of Incorporation, and the rules and regulations of the Association, in that order, shall prevail; and each Owner of a Lot, by acceptance of a deed or other conveyance therefor, covenants to vote in favor of such
amendments as will remove such conflicts or inconsistencies.
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Deed Book 15468 Rebecca. KeatonClerk of Superior Court Cobb County. GA.
6.8. Books and Records.
To the extent provided for, and restricted in, O.C.G.A. § 14-3- 1602 of the Georgia Nonprofit Corporation Code, as such Code Section may be amended from time to time, all Association members and any institutional holder of a first Mortgage shall be entitled to inspect Association records at a reasonable time and location specified by the Association, upon written request at least five (5) business days before the date on which the member wishes to inspect and copy. The Association may impose a reasonable charge, covering the cost of labor and material, for copies of any documents provided to the member. Notwithstanding anything to the contrary, the Board may limit or preclude member inspection of confidential or privileged documents, including attorney/client privileged communications, executive session meeting minutes, and financial records or accounts of other members. Minutes for any Board or Association meetings do not become effective as an official Association record until approved by the Board or Association membership, as applicable, at a subsequent meeting. All Board members may inspect and copy any book or record of the Association.
6.9. Preparer.
These Bylaws were prepared by Timothy J. Guilmette, Esq. with Lueder, Larkin & Hunter, LLC, 5900 Windward Parkway, Suite 390, Alpharetta, Georgia 30005.
This 3rd day of August, 2017
DARSHNIKA PATEL
Notary Public
(See original documents for signatures)
THE WHITFIELD WOODS HOMEOWNERS ASSOCIATION, INC.
Signature of President (See original documents for signatures)
Signature of Secretary (See original documents for signatures)
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