BYLAWS

OF

LAKE POTNTE HOMEOWNERS ASSOCIATION, INC.

ARTICLE I

The name of the corporation is LAKE POINTE HOMEOV'INERS

ASSOCIATION, INC., herei-nafter referred to as the "Association". The

principal offi'ce of the corporation, if any, shall be in a location

designated by the Board of Directors. Meetings of Members and

directors may be held at such places within the State of North

Carolina as may be designated by the Board of Directors.

ARTICLE II

DEF]NITIONS

Section 1. "Association" shall mean and refer to Lake

Pointe Homeowners Association, Inc., its successors and assigns.

Secti-on 2. "Common Property" shall mean all real property

owned by the Association for the common use and enjoyment of the

Owners -

Section 3. "Declaration" shall mean and refer to the

Declaratj-on of Covenants, Conditions and Restrictions of Lake Pointe

Subdivision recorded in Book 334, Page 78 in the Office of the Caswel]

County Register of Deeds, as amended.

Section 4. "Lot" shall mean and refer to any plot of land

shown upon any recorded subdivision map of the Property with the

exception of the Common Property.

Seclion 5. "Member" shall mean and refer to any person

entitled to membership in the Lake Pointe Homeowners Association,

Inc., which is every Owner.

Section 6. "Owner" shall mean and refer to the record

' owner, whether one or more persons or entities, of the fee simple

title to any Lot which is a part of the Property, but excluding those

having such interest merely as security for the performance of an

obligation.

Section 7. "Property" shall mean that certain real-

property known as the Lake Pointe Subdivision as shown on plats

recorded in Map Book 12, Page 985; Map Book 13' Page 258 and Map Book

l-4, Page 39, Caswell County Registry, and any subsequent additions to

the Lake Pointe Subdivision which are made subject to the Decl-aration

and the Restrictive Covenants -

Secti-on B. "Restrictive Covenanls" shall mean the

Declaration of Restrictive Covenants of Lake Pointe Subdivision

recorded in Book 334, Page 71 in the Office of the Caswell County

Register of Deeds, as amended.

ARTICLE TI]

MEETINGS OF MEMBERS

Section 1. Annual Meetings. The annual- meeting of the

Members shall be held on the third Tuesday in the month of JuIy of

each year at 7:00 P.M. or on an alt.ernate day and time in the month of

July at a location specified in the notice to Members of the meeting.

Section 2. Special Meetings. Special meetings of the

Members may be call-ed at any time by the President or by the Board

Directors, or upon written request of the Members who are entitled

vote one-fourth (1/4) of al-l of the votes of the membership.

Section 3. Notice of Meetings. Writlen notice of each

meeting of the Members shall be.given by, or at the direction of, the

secretary or person authorized to call the meeting by hand delivery or

by mailing a copy of such notice, postage prepaid, at least 30 days

before such meeting to each Member entitled to vote thereat, addressed

to the Member's address last appearing on the books of the

Association, or supplied by such Member to the Association for the

purpose of notice- Such notice shal-l specify the place, day and hour

of the meeting and the items on the agenda, including nominees for

election of offlcers and directors in the case of an annual meeting.

Section 4. Quorum. The presence at the meeting of Members

or of proxies entitled to cast fifty-one percent (51%) of the votes of

the membership shall constitute a quorum for any action except as

otherwise provided in the Articfes of Incorporation or the Declaration

or by statute. If, however, such quorum shall- not be present or

represented at any meeting, the Members entitled to vote thereat shall

have power to adjourn the meeting from time to time, without notice

other than announcement at the meeting, until a quorum shal-l be

present or represented.

of

to

Section 5. Proxies. At. a1I meetinqs of Members, each

Member may vote in person or by proxy. All- proxies shal-l be in

writing and shall be filed with the Secretary. Every proxy shall be

revocable and shall automatically cease upon conveyance by the Member

of his Lot.

Section 5. Voting Rj-ghts. Each Owner of a Lot shall- be a

Member of the Association. Each Lot shall be entitled to one vote.

If more than one person or entity owns a Lot, they shall- determine how

their vote shall be cast in a writing signed by all of the Owners of

the Lot and filed with the secretary of the meeting at which the vote

is cast prior to the vote. If the annual assessment or any special

assessment levied under authority of the Declaration is unpaid 30 days

after its due date, then the voting rights of that Lot Owner or Owners

shall be automatically suspended. Such votj-ng rights shall be

reinstated upon receipt by t.he Association of payment of the

assessment in full together with any late charges and any expenses

incurred by the Association to enforce collection, including

reasonable attorney fees.

ARTICLE IV

BOARD OF DIRECTORS

Section 1. Number and Qual-ification. The affairs of this

Association shall be managed by a Board of five (5) directors, who

must be Members of the Association. The Members shall elect officers

at the annual meeting of Members in accordance with Article VIII of

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these Bylaws, and each officer elected sha1l by virtue of election as

an officer automatically become a director.

Section 2. Term of Office. At the 2004 annual meeting the

Members shalf elect two officer/directors for a term of one year and

three officer/directors for a term of two years. At each annual

meeting thereafter the Members shall elect officer/directors for the

terms expiring that year for a term of two years.

Section 3. Removal. Any offtcer/director may be removed

from the Board, with or without cause, by a majority vote of the

Members of the Association. Any officer/director may be removed by

Lhe remaining directors for failure to attend three (3) consecutive

meetings of the Board of Directors. In the event of death'

resignation or removaf of an officer/director, his successor shall be

selected by the remaining officer/directors and shal-l- serve for the

unexpired term of his predecessor.

Section 4. Compensation. No officer/director shal-l receive

compensation for any service he may render to the Association.

However, any officer/director may be reimbursed for his actual

expenses incurred in the performance of his duties.

ART]CLE V

NOMINATION AND ELECTION OF OEFICER/DIRECTORS

Section 1. Nomination. Nomination for election of officer/

directors shall be made by a Nominating Committee. Nominations may

also be made from the floor at the annual meeting. The Nominating

Committee shall consist of a Chairman, who shall be a Member of the

Board of Directors, and two or more Members of the Association. The

Nominating Committee shall be appointed by the Board of Directors six

months prior to each annual meeting of the Members and shall serve

until- the cl-ose of said meeting. The Board shall- notify the

membership of the name of the Chairman and invite the membership to

recoflrmend nominees. The Nominating Committee shall- make as many

nomi-nations for election of the officer/directors as it shall in its

discretion determine, but not less than the number of vacancies that

are to be filled. Such nominations must be made from among Members,

provided that a Member may not be nominated if el-ection of that Member

would or could resuft in two Members who own the same Lot being on the

Board simultaneously.

Section 2. EIection. Election of officer/directors shall

be by secret written baflot. At such el-ection the Members or their

proxies may cast one vote for each Lot owned in respect to each vacant

office. The person receiving the largest number of votes for an

office shal-I be elected to that office. Cumulative voting is not

permitted.

Section 1 -

of Direclors shall be

place and hour as may

Board.

ARTICLE VI

MEETINGS OF DIRECTORS

Regular Meetings. Regular meetings of the Board

hel-d at feast quarterly without notice, at such

be fixed from time to time by resolution of the

Section 2, Special Meetj-ngs. Special meetings of the Board

of Directors shall be held when called by the president of the

Association, or by any three directors, after not ress than seven (7)

days notice to each director.

Section 3. Quorum. A majority of the number of directors

shall- constitute a quorum for the transactj-on of business, except as

otherwise provj-ded by statute. lf, however, such quorum shall not be

present or represented at any meeting, the directors entitfed to vote

thereat shall have power to adjourn the meeting from time to time,

without notice other than announcement at the meeting, until a quorum

shall be present or represented. Every act or decision done or made

by a majority of the directors present at a duly held meeting at which

a quorum is present shalf be regarded as the act of the Board.

Section 4. Action Taken Without a Meeting. The directors

shall have the right to take any action in the absence of a meeting

which they coul-d take at a meetj-nS by obtaining the written approval

of all the direcLors. Any action so approved shall have the same

effect as though taken at a meeting of the directors.

ARTICLE VII

POWERS AND DUTIES OF THE BOARD OF DIRECTORS

Section 1. Powers. The Board of Directors shall have power

LU.

(a)

governing the

front yards of

adopt, publish and amend rules and regulations

use of the Common Property and facilities,

Iots, and the personal conduct of the Members and their

guests thereon, and to establish fines or

thereof;

(b) suspend the voting rights

recreational facilities of a Member during

Member shall be in default in the payment

the Association;

penalties for the infraction

and right to use the

any period in which such

of any assessment levied by

(c) exercise for the Association all powers, duties and

authority vested in or delegated to this Association and'not reserved

to the membership by other provisions of these Bylaws, the Articles of

Incorporati-on, the Restrictive Covenants or the Declaration;

(d) declare the office of a Menber of the Board of Directors

to be vacanL in the event such Member shall be absent from three (3)

consecutive regular meetings of the Board of Directors;

(e) employ a manager, an independent contractor, an

accountant, an attorney or employees as they deem necessary, and to

prescribe their dutj-es, and delegate to such persons or firms the

Board's powers listed under items (g) and (h) of this Section 1 as

wetl as j-ts duties under items (a) and (d) through (g) of Section 2 of

this Article;

(f) in addition to the Architectural Review Committee

established by the Declaration and the Nominating Committee mandated

by these Bylaws, establish such committees as it deems appropriate,

prescribing their composition, responsibilities and term, if any, to

assist the Board of Directors in carrying out its purposes;

Section 3. Term. Each officer shall hold office for two

(2) years unless he shall- sooner resign, shall be removed, or

otherwise be disqualified to serve. Notwithstanding the foregoing,

the terms of the officers elected at the 2004 annual meetinq shall be

as follows: president, secretary and architectural review officer two

years; vice-president and treasurer one year.

Section 4. Resignation and Removal. Any officer may be

removed from office with or without cause by a majority vote of the

Members. 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 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.

Section 5. Vacancies. A vacancy in any office may be

filled by appointment by the Board. The officer appointed to such

vacancy shall serve for the remainder of the term of the officer he

replaces.

Section 6. Multiple Offices. No person shall

simuftaneously hold more than one office except in the case of the

appointment of an officer to finish the term of an officer who has

resigned, been removed or otherwise ceased to serve.

Section 7. Duties. The duties of the officers are as

follows:

(a) The president

Board of Directors; shall see

shall preside at all meetings of the

that orders and resolutions of the Board

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(3) foreclose the lien against any property for which

assessments are not paid within thirty (30) days after

the due date and/or to bring an action at law against

the owner personally obligated to pay the same;

(d) issue, or to cause an appropriat.e officer to issue,

upon demand by any person (or person's representative) who has

contracted to buy a Lot, a certificate setting forth whether or not

any assessment has been paid. A reasonable charge may be made by the

Board for the issuance of these certificates. If a certificate states

an assessment has been paid, such certificate shall be conclusive

evidence of such payment;

(e) procure and maintain adequate liability insurance and

hazard insurance on property owned by the Association in the amount of

its replacement cost;

(f) cause all- officers or employees having fiscal

responsibilities to be bonded, as it may deem appropriate; and

(g) pay all ad valorem taxes and public assessments

relatinq to the Common ProPertY.

ARTICLE VIII

OFFICERS AND THEIR DUTTES

Section 1. Enrmeration of Officers. The officers of this

Association shal-I be a presidenL, vice president, secretary, treasurer

and architectural review officer. The officers must be Members.

Section 2. Election of Officers. The officers shall be

elected by the Members at the annual meetinq of the Members -

t0

(S) maintain Common Property, including landscaping,

recreational and boating facilities for Members, their families and

guests; and

(h) enforce the restrictions and requirements in the

Declaration, Restrictive Covenants, ByIaws, rules and regulations of

the Association, including but not limited to, the authority to

suspend member privileges and services, to suspend the use of

recreational and other facilities of the Association and to impose

fines, aII after notice and a hearing, as provided by statute.

Section 2. Duties. It shal-l be the duty of the Board of

Directors Lo:

(a) cause to be kept a complete record of all its acts and

corporate affairs and to present a statement thereof to the Members at

the annual meeting of the Members, or at any specj-al meeting when such

statement is requested in writing by one-fourth (7/4) of the Members

who are entitled to vote;

(b) supervise all officers, agents and employees of this

Association, and see that their duties are properly performed;

(c) as more fully provided in the Declaration, to:

(1) fix the amount of the annual assessment against

each 1ot at Ieast thirty (30) days in advance in each

annual assessment period;

(2) send written notice of each assessment to every

Owner subject thereto at least thirty (30) days in

advance of each annual assessment period; and

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are carried out; shall sign al1 contracts, leases, deeds, deeds of

trust, promissory notes and other written instruments and shalf co-

sign aII checks of the Association with either the vice-president,

secretary/ or the treasureri shall co-sign with the secretary all

amendments to the Declaration or RestricLive Covenants; shall cause i

annuaf internal audit of the association books to be completed by a

board member other than the treasurer and one other association

member, and shalf prepare or designate an officer or a committee to

prepare proposed amendments to the Declaration or Restrictive

Covenants and to edit proposed amendments from the membership to put

them into proper format.

(b) The vice-president shall act in the place and

stead of the president in the event of his absence, inability or

refusal to act, co-sign checks of the Association with either the

president or the treasurer, and shall exercise and discharge such

other duties as may be required of him by the Board.

(c) The secretary shall record the votes and keep the

minutes of all meetings and proceedinqs of the Board and of the

Members; keep the corporate seal of the Association and affix it on

all papers requiring said seal; serve notice of meetings of the Boar,

and of the Members; keep appropriate current records showing the

Members of the Association toqether with their addresses, and shafl

perform such other duties as required by the Board; shall co-sign wi

the president aIl- amendments to the Decfaration or Restrictive

Covenants; shall certify aII amendments to the Declaration or

Restrictive Covenants and shal-l- record the same with the Caswel-l-

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County Register of Deeds.

(d) The treasurer shall receive and deposit in

appropriate bank accounts all monies of the Association and shall

disburse such funds as directed by resolution of the Board of

Directors; shall co-sign aII checks of the Association with either the

president or the vice-president; keep proper books of account; cause

an annual audit of the Association books to be made by an independent

public accountant prior to the completion of each fiscal year; ensur.e

that tax returns are filed annually; and prepare an annual budget and

a statement of income and expenditures to be presented to the

membership at its annual meeting and shall deliver a copy of each to

the Members in advance of the annual meeting.

(e) The architectural review officer shalI preside at

meetings of the Architecturaf Review Committee, which will i)develop

standards for design, Iocation and construction of all improvements on

Lots; ii) develop standards for landscaping Lots, iii) review and

approve, reject or require modification of proposed improvements and

landscaping; iv) adopt procedures for its review process, and v)

provide Members its procedures and standards in writing.

ARTICLE IX

BOOKS AND RECORDS

The current books, records and papers of the Association along

with the Articles of fncorpolation, Decl-aration and Restrictive

Covenants shall be avail-abl-e for inspection by any Member at all-

regular meetings of the Board of Directors and at the annual meeting

13

of Members.

upon requesL

The

and

Association shal-l make copies avaifable to Members

may make reasonable charges for such copies.

ARTICLE X

ASSESSMENTS

As more fu1ly provided in the Declaration, each Member is

obligated to pay to the Association annua] and special assessments

which are secured by a continuing lien upon the property against which

the assessment is made. Any assessment which is not paid within 30

days of its due date shall be delinquent. If the assessment is not

paid within thirty (30) days after the due date, the assessment shall-

bear interest from the date of detinquency at the rate of eighteen

percent (18?) per annum, and a $25.00 late charge shalt be imposed.

The Association may bring an action at law against the Owner

personally obligated to pay the same and/or forecl-ose the l-ien against

the property. Interest, costs, and reasonable attorney fees of any

such action shall be added to the amount of such assessment. No Owner

may waive or otherwise escape liability for the assessments provided

for herein by nonuse of the Common Property or abandonment of his Lot.

Section 1.

ARTICLE XI

AMENDMENTS

These Bylaws may be amended at an annual or

special meeting of the Members by a vote of one-third (I/3) of the

Members.

Any member may present a proposed amendment.Section 2.

t4

It shall be the duty of the officer or committee designated by the

president to edit or rewrite proposed amendments to put them into

proper form. Any amendments that are approved by the membership shall

be signed by the president and the secrelary and shall be kept with

the Association's records.

Section 3. In the case of a conflict between the Articles

of Incorporation, the Declaration or the Restrictive Covenants and

these Bylaws, the former shall control the Bylaws.

Section 1.

ARTTCI,E XTI

MISCEILANEOUS

The Association shall have a seal in circular

form having within its circumference the words: Lake Pointe Homeowners

Associalion, Inc.

Section 2. The fiscal year of the Association shall begin

on the first day of January and end on the 31st day of December of

every year.

IN WITNESS wHEREOF, w€r being all of the directors of the

Lake Pointe Homeolrners Association, Inc., have hereunto set our handsnn'a'l

this dJ day of March, 2004.

l5

Linda Brighi

W*"*4*,ez-ffi

CERTIFTCATION

T, the undersigned, do hereby certify:

THAT I am the duly elected and acting secretary of the Lake

Pointe Homeowners Association, Inc., a North Carolina corporation,

and,

THAT the foregoing Bylaws constitut.e the ori-ginal Bylaws of

said Association, as duly adopted at a meeting of the Board of

Directors thereof, held on the 29'lr^v of March , 2004.

IN WITNESS WHEREOF' f have hereunto subscribed my name and

affixed the seal of said Association this 33'&a^V of March, 2004.

Linda Brighi, retary

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