RESTRICTIO PAGES201200013763 35

AMENDED AND RESTATED DECLARATION OFCOVENANTS, CONDITIONS AND RESTRICTIONS FOR

CASTLE HILL BURLESON HOMEOWNERSASSOCIATION, INC.

May 2012

JUL- 3 1 2012

JUl 2 5 2012

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TABLE OF CONTENTS

ARTICLE I RECITALS

ARTICLE II DEFINITIONS1.1 Association1.2 Board1.3 Builder1.4 City1.5 Committee1.6 Common Areas1.7 Counties1.8 Declarant1.9 Declaration1.10 Improvement1.11 Lot1.12 Member1.13 Owner1.14 Property1.15 Project1.16 Recreational Common Area

ARTICLE III COMPLIANCE WITH LAW

ARTICLE IV SUBMISSION;AMENDMENT; ANNEXATION4.1 Submisison4.2 Incorporation Of Declaration Into Documents4.3 Term Of Declaration's Existence4.4 Amendments4.5 Right To Annex4.6 Procedure For Annexation4.7 No Duty To Annex4.8 FHAlVAApproval Of Annexation

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ARTICLE V MEMBERSHIP, VOTING, DIRECTORS, BY-LAWS5.1 Governing Body5.2 Members5.3 Voting5.4 Board Of Directors5.5 fly-Laws5.6 Right To Inspect5.7 Control By Declarant

ARTICLI·: VI ASSESSMENTS. LIENS & FORECLOSURE6.1 Regular Assessments6.2 Special Assessments6.3 Allocation & L sc Of assessments6.4 Commencement Of Assessments6.5 Revised Assessments6.6 Personal Obligation6.7 Delinquentg Assessments. Fines & Remedies6.8 Alternative Payment Plans6.9 Third Party Collections6.10 Rigth To Hearing6.11 Priority Of Payrnenets6.12 Covenant To Pay Assessment Assessment6.13 Power or Sale6.14 Lien Filing6.15 Subordinated Lien To Secure Payment6.16 Notice Of Enforcement Action6.17 Foreclosure6.18 Notice After Foreclosure Sale6.19 Owner's Right or Redemption6.20 Reserve funds

ARTICLE VII COMMON AREA AND PROPERTY RIGHTS7.1 Conveyance Of Common Area To Association7.2 Common Area Easements7.3 Extent Of Members Easements7.4 Conveyance Of Additional Common Area To Association7.5 Utility Easements7.6 Ingress, Egress, And Maintenance By The Association7.7 Association Easements7.8 Rights Of Governmental Authority

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ARTICLE VIII INSURANCE: REPAIR AND RESTORArION8.1 Right To Purchase Insurance8.2 Insurance Proceeds8.3 Insufficient Proceeds

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ARTlCI.F IX USE RESTRICTIONS9.1 Single-Family Residential Use9.2 Garages9.3 Driveways9.4 Floor Area Restrictions9.5 Building Materials - Exterior Items And Surfaces9.6 Chimneys9.7 Fences & Walls9.8 Solar Devices9.9 Irrigation & Cornposting9.10 Flags & Religious Displays9.11 Landscapting9.12 Sidewalks9.13 Mailboxes9.14 Construction Of Improvements9.15 Uses Spccificallky Prohibited9.16 Utilities9.17 Restrictions On Re-Subdivision

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ARTICLE X ARCHITECTURAL CONTROL10.1 Committee Membership10.2 Declarant's Right Of Appointment10.3 Action Ry Committee10.4 Term10.5 Adoption or Rules10.6 Review Of Proposed Construction10.7 Variance10.8 No Waiver Of Future Approvals10.9 Work In Progress10.10 Non-Liability Of Committee Members

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ARTICLE XI MAINTEI\ACE11.1 Property And 1.01 Maintenance11.2 Maintenance or Improvements11.3 Costs

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ARTICLE XU DECLARANT'S RIGHTS12.1 Declarant's Rights Pagt! 25

ARTICLE XJIl GENERAL PROVISIOI\:S13.1 Remedies13.2 Miscellaneous ProvisionsJ 3.3 Headings)3.4 Conflicts13.5 Partial Invalidity

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ARTICLE I - RECITALS

This Declaralion ot Cm:enunls. Ccmdjr;vWi And ReslrjecjQns For Phase I ('as"!! /Jilll:;sfclles was originally made on October 12, 1999 by Browns Mountain LID. ("DeclaranC), andwas amended on January 1S. 2000,

I . Delcarant is the Owner of certain land ("the Property") situated in the City of Burleson inTarrant and Johnson Counties. State of Texas, which is described in Exhibit A attached heretoand incorporated herein.

2, Declarant intends to develope and improve the Property as a residential community to beknown as PHASE 1CASTLE HILL ESTAl"ES.

3. Declarant intends the Property shall be developed and improved in accordance with acommon scheme and general plan, Declarant desires to subject the Property to thecovenants. conditions, restrictions. casements. liens. charges, assessments and equitableservitudes set forth herein for the benefit of the Property and each O .....-ner thereof.

4. Declarant desires to incorporate Castle Hill Homeowners Association. Inc. as a non-profutcorporation under the laws of the State of Texas to administer and enforce the limitations,covenants. conditions. restrictions. casements, liens and equitable servitudes created by orimposed in accordance with the provisions hereof, and exercising such other powers as may beauthorized by this Declaration, By-Laws. or by its Articles Of Incorporation.

ARTICLE I I - DEFINJTIONS

I. "Association" means Castle Hill Burleson Homeowners Association, Inc., its successors andassigns.

2. "Board" means the Board Of Directors of the Association.

J, "Builder" means a person who acqures a Lot for the purpose of constructing a dwellingthereon for sale to another person.

4. KCi~'" means the City uf Burleson in Tarrant and Johnsun Counties in the State of Texas.

5. "Committee" means the "Architectural Control Committee' established and empowered inArticle X herein.

6. "Common Area" means all property, whether improved or unimproved, real and personal,or any easement usc, right. maintenance obligation, or other property right, or obligation therein.

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owned or held by the Association for the common use, enjoyment. or obligation of its Members,including without Jimitatin:

(a) Any "Recreational Common Area";(h) Any Project screening or decorative wall designed fOTcommon maintenance by

Declarant;(c) Any Project entrance monuments. right-of-way. landscaping. irrigation systems.

drainage facilities and such other improvements and facilities lying within orupon land owned by the Association or any casements for the benefit of theAssociation or lying within dedicated public easements or rights-of way within oradjacent to the Project as may be designated by the City for Associationmaintenance or as deemed appropriate hy the Board for the preservation,protection and enhancement of the Project. Common Area shall include thoseareas of the Property designated as such on the subdivision plats of Phase I CastleHill Estates as recorded in the Plat Records of the "Counties and on the recordedsubdivision plats of any other land to which the jurisdiction of the Associationshall be extended in accordance with the provisons of the Declaration.

7. "Counties" means Tarrant and Johnson Counties in the State of Texas.

8. "Declarant" means Browns Mountain Ltd., a Texas Limited Partnership and any successoror assign to whom it assigns its interest as Declarant hereunder in whole or in part by instrumentrecorded in the official records of the Counties.

9. "Declaration" means this Declaration and all amendments or supplements hereto.

1O. "Imprevement" means every structure and all appurtenances thereto of every type and kindincluding. but not limited to, buildings. outbuildings, patios, swimming pools. garages, storagebuildings. fences. screening walls, retaining walls, stairs. decks. poles, signs, exterior aireonditoning. antennas, towers. and any facilities used in connection with water, sewer, gas.electric. telephone. television, or other utilities.

11. "Lot" means any numbered lot together with any improvements thereon. as delineated byany recorded final subdivision plat of the Property or a part thereof, which contains or isintended to contain a single family residential dwelling.

12. "Member" means a member of the Association. The terms "Member' and "Owner" may heused interchangeably herein.

13. "Owner" means the record O",TIcr,whether one or more persons or entities. of a fee simpletitle to any J .ot, and shall include Declarant as to any J .ot owned by Declarant. "Owner"shall not include an person or entity that holds an interest in a Lot merely as security for the

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performance of an obligation or as a tenant. The terms "Member" and "Owner" may be usedinterchangeably herein.

14. "Prnperty" means the land which is described on Exhibit" A" and such other land to whichthe jurisdiction of the Association shall be extended in accordance with the provisions of thisDelcaration.

15. "Project" means the planned community which shall be developed and constructed as asingle-family subdivision and which shall include a subdivision of a portion of the Property intolots, streets, and common areas. in accordance with a certain plat bearing said name and recordedin the Plat Records of the Counties and such other land to which the jurisdiction of theAssociation shall be extended in accordance with the provisions of this Declaration.

16. "Recreational Common Area" means all property. whether improved or unimproved. realand personal, or any easement. use. maintenance obligation. or other property right or oligationtherein, owned or held by the Association tor recreational purposes including, without limitation,(a) any rights of use or occupancy in recreational property or facilities acquired by lease, license.or other use agreement and (b) such portion of the Project which Declarant shall complete andconveyor cause to be conveyed to the Association for the common use and enjoyment of itsmembers for rccreatinal purposes. together with any and all improvements constructed thereon.

ARTICLE III - COMPLIANCE WITH LAW

Nothing herein is intended to conflict with the provisions of the Texas Property Code orany other statute governing the organization and/or operation of the Association. If a conflictexists between a provision in this Declaration and any such statutes, the statutes shall prevail andthe subject provision of this Declaration shall be automatically construed to conform to suchstatute.

ARTICLE IV - SUBMISSION: AMENDMENT; ANNEXATION

Section 1. Submission. The property shall be held, conveyed, encumbered. sold, leased.rented, used, occupied and improved subject to each and all of the limitations. covenants,conditions, restrictions, casements, liens, charges, assessments and equitable servitudes set forthherein. all of which arc declared to be (a) in furtherance of a common scheme and general planfor the development, improvement and maintenance of the Project, and (b) for the purpose orenhancing. maintaining and protecting the value, dcsireability and attractiveness of the Project.All limitations, covenants, conditions. restrictions. easements, liens, charges, assessments andequitahle servitudes set forth herein shall run with, and be binding upon and inure to the benefitof the Property. shall he binding on and inure to the benefit of each and every person having oracquiring any right. title or interest in the Property, shall be binding on and inure to the benefit of

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the successors in interest of such persons, and shall inure to the benefit of the Association, itssuccessors and assigns.

Section 2. Incorporation Of Declaration Into Instruments. Any deed or otherinsturment by which the Property Of any portion thereof is conveyed shall be subject to theprovisions of this Declaration and shall be deemed to incorporate the provisions of thisDeclaration. whether or not the deed makes reference hereto.

Section 3. Term. This Declaration shall remain in force for a term of 20 years from the dateit is recorded after which time it shall be automatically extended for continuous successiveperiods of 10 years, unless sooner terminated by the affirmative vote of at least 75% of allmembers of all classes of the Association.

Section 4. Amendment. This Dccalaration may be amended only by vote of at least 67% ofthe votes of the Members. However, no such amendment shall be valid or effective until theearlier of (a) construction of dwellings on all Lots within the Property, or (b) 7 years after thefirst Lot with a dwelling thereon is conveyed to an Owner for use as a residence. If requred byFIlA and/or VA, amendments shall be subject to prior approval of FHA and/or VA.

Section 5. Right To Annex. Declarant shall have the right to annex to the Property, andthereby bring within the scheme of this Declaration and subject to the jurisdiction of theAssociation. part or the entire tract of that land described on Exhibit "8" attached hereto.Annexation of any land. other than that described on Exhibit "B", shall require the vote orwritten consent of at least 67% of all votes of each class of members. Notwithstanding anyprovision hereof to the contrary, so long as Declarant or its assignee shall OWTI any portion of theland described on Exhibit "8", Declarant or its assignee may cause any portion of the landdescribed on Exhibit "B", which it O\\TIS and which has not been previously annexed, to bereleased or excluded from the land which m3Y be annexed by tiling an instrument to such effectin the Real Property Records of the Counties, which instrument shall cross-reference therecording information of this Declaration.

Section 6. Procedure For Annexation. Annexation of additional property may beaccomplished in phases. Any annexation shall be made by recordation in the Real PropertyRecords of the Counties of a Supplemental Declaration covering the land to be annexed. TheSupplemental Declaration shall describe the land to be annexed and shall state that theannexation is being made pursuant to this Declaration for the purpose of extending thejurisdiction of the Association to cover the land being annexed. The Supplemental Declarationmay contain such complimentary additions and modifications to the terms of this Declaration asmay he necessary or desireable to reflect the different character, if any, of the land being annexedand as are not inconsistent with the general scheme of this Declaration. Annexation shall beeffective upon recordation of the Supplemental Declaration.

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Section 7. No Duty To Annex. Neither Declarant nor any member shall have anyobligation to annex any propery to this Declaration, and no Owner of the property excluded fromthis Declaration shall have any right to have such property annexed thereto.

Section 8. FHAIVA Approval. Notwithstanding any provision of Section 4 to the contrary,if any Lot in the Project is subject to an fIlA or VA mortgage loan. any annexation shall besubject to approval of FHA or VA. Declarant or the Association shall submit a written requestfor annexation to FHA and VA accompanied by a copy of the Supplemental Declaration. Ifneither FHA nor VA delivers notice of ohjection to the annexation within 15 days of the date ofDeclarant's request for approval, such approval shall he deemed to have heen granted.

ARTICLE V - MEMBERSHIP AND VOTING RIGHTS

Section 1. Governing Body. The Association shall be the governing body for all membersconcerning management, administration. maintenance, repair and replacement of the Project. asprovided by this Declaration, the Articles Of Incorporation and the By-Laws of the Association.The Association '5 authority, power and duties shall be carried out by a Board Of Directors, asmore specifically described in Section 4 below and in the Association's By-Laws.

Section 2. Mem bership. Membership in the Association shall he composed of and limitedto Owners as defined above in Article II (13). Each Owner. including Declarant, shallautomatically be a member of the Association and entitled to vote as described in Section 3below. Membership shall he appurtenant to and may not be separated from ownership of a Lot.Cpon termination of ownership. an Owner's membership shall automatically terminate andtransfer to the new Owner of the Lot.

Section 3. Voting. Members shall be entitled to I vote for each Lot owned. When morethan one person owns a Lot, all such persons are members but only 1 vote may be cast regardingsuch Lot. The vote for any such Lot shall be exercised as the Owners shall determine amongthemselves; absent an agreement, the member with a majority ownership in such r .ot shallgovern unless the Association is notified otherwise by a co-owner prior to the casting of thatvote. The vote of any owner shall be conclusively presumed to be the majority vote of all Lotowners.

Section 4. Board Of Directors. (a) The members shall select the Hoard subject to theprovisions of suhparagraph (b) hereof, and the Hoard shall, by majority vote, conduct allAssociation business, except when membership votes are required by this Declaration, theArticles Of Incorporation or the By-Laws. (b) Notwithstanding anything contained in thepreceding subparagraph (a) or elsewhere in this Declaration to the contrary, as long as theDeclarant owns any Lots in the Property, the Declarant shall be entitled to appoint at least 1member of the Board.

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Section 5. By-Laws. The Association may make and enforce whatever rules and By-Laws itdeems dcsircable to govern the Association and its members including, without limitation,enforcement through the imposition of fines; provided. however. any conflict between such By-Laws and this Declaration shall be controlled by this Declaration.

Section 6. Inspection Rights. The Association shall make available its hooks and records,including financial records. to all Members or to persons designated in writing signed by themember as the Member's agent. attorney or certified public accountant. The Association's By-Laws shall specify the procedures for such inspections, as a well as the Association's recordretention policy all of which shall comply with the By-Laws and with the provisions of theTexas Property Code and any other statutes governing such issues.

Section 7. Control By Declarant. Notwithstanding any other provision to the contrary inthis Declaration. in the Articles Of Incorporatiopn or in the By-Laws. Declarant or personsdesignated by Declarant may appoint and remove Board members and officers of the Associationother than Board members and officers elected by Members of the Association. On or beforcr120 days after 75% of the l.ots that may he created and made subject to this are conveyed toowners other than Declarant. at least 1/3 of the Hoard members must be elected by Owners otherthan Declarant. In determining the number of Lots owned by Declarant for purposes hereof, thetotal number of Lots covered by this Declaration, including Lots annexed hereto, shall beconsidered. If Declarant's right to control the Board hereunder shall have previously lapsed, butannexation of additonal property restores the ratio of Lots owned by Declarant to the numberrequired for Hoard control hereunder, such Declarant control shall be reinstated until it expirespursuant to the terms hereof. Upon the expiration of the period of Declarant's right to appointand remove directors and officers of the Association pursuant to the provisions of this Section.such right shall automatically pass to the Owners. including Declarant if Declarant then ownsone or more Lots; and a Special Meeting of the Association shall be called and held within 90days from the date of the expiration of Declarant's rights hereunder. At such Special Meeting.the Owners shall elect a new Board which shall undertake the responsibilities of running theAssociation and Declarant shall deliver the books. accounts, and records. if any, which Declaranthas kept on behalf of the.Association as well as any agreements or contracts executed by or onbehalf of the Association which may still be in effect oroperation.

ARTICLE VI - ASSESSMENTS. LIENS & FORECLOSURE

Section 1. Regular Assessments. The regular annual assessment for each Lot for the firstassessment year shall he a maximum of $240 per Lot (the 'Maximum Assessment Amount'). Ifan assessment year shall have fewer than twelve months, the Maximum Assessment Amountshall be appropriately prorated for the shorter period. For every assessment year after the first.the Maximum Assessment Amount shall automatically increase to 110% of the MaximumAssessment Amount for the preceding assessment year.

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The Board shall fix the amount and due date of the regular annual assessment on a yearly basis atleast 60 days in advance of each assessment year provided. however, that the amount of theregular annual assessment for the first shall be $240, and such amount shall be payable in semi-annual installments; and provided further that the Board may not impose a regular annualassessment which is more than the Maximum Assessment Amount for such assessment yearwithout the vote of at least 67% of Members of the Association who are voting in person or byproxy at a meeting duly called for such purpose at which a quorum is present. The notice andquorum requirements of such meeting shall he the same as those set forth in Section 2immediately below for special assessments. Written notice of the regular annual assessment shallhe sent to every Owner who is not present at the time the regular annual assessment is so fixed. Ifthe Board fails to so fix the regular annual assessment, the assessment applicable, for theprevious assessment year shall remain in effect until the Board shall fix a new regular annualassessment. Regular annual assessments shall be payable annually on the first day of eachJanuary or at such other time as the Board may fix. and may be payable in periodic (includingquarterly or semi-annual) installments if the Board so determines. The Association shall, upondemand and for a reasonable charge, furnish to any person having a legitimate interest acertificate signed by an officer of the Association stating whether the regular annual assessmentand special assessments, if any, on a specified Lot have been paid and, if not, the amount due.

Section 2. Special Assessments. In addition 10 regular annual assessments, the Hoard mayIcvy in any assessment year. a special assessment against the Owners applicable to that year onlyfor the purpose or defraying in whole or in part the cost of any construction, reconstruction.repair or replacement of capital improvements, and related fixtures, and personal property on orcomprising a part of the Common Area provided. however. that such special assessment shallhave been approved by vote of at least 67% of Members who arc voting. in person or by proxy,at a meeting duly called lor such purpose not less than 10 days nor more than 50 days in advanceof such meeting. At the first such meeting called, the presence of members (in person or byproxy) entitled to cast 51% of all the votes of members shall constitute a quorum, If the requiredquorum is not present, another meeting may be called subject to the same notice requirement,and the required quorum at the subsequent meeting shall be 112 of the required quorum at thepreceding meeting. No meeting for a special assessment shall he held more than 50 daysfollowing the preceding meeting.

Section 3. Allocation And Use of Assessments. Except as otherwise provided in thisDeclaration, all regular and special assessments shall be levied equally against all Owners.Regular annual or special assessments paid by Declarant and other Owners shall be used to payfor operation, maintenance, preservation. enhancement. repair and improvement of the CommonArea. other purposes reasonably related to the foregoing, and to promote the recreation, health.safety and welfare of the Owners. In addition, such assessments shall he uscd to pay the cost ofadministration of the affairs of the Association to the extent properly allocable to theperformance and exercise of the Association's duties and powers under this Declaration. The

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foregoing is intended as an authorization to the Association and shall not be construed to requireexpenditure of Association funds for any particular purpose.

Section 4. Commencement of Assessments. The regular annual assessments providedfor herein shall commence as to all Lots in the Property on the first day of the month nextfollowing the conveyance of the first Lot by Declarant. The first assessment year shall be theperiod commencing on the date regular annual assessments commence and ending on theDecember 31st. The regular annual assessment for the first assessment year shall be proratedfrom the amounts fixed by the Board for a full 12 month year, based on the number of months tohe contained in the first assessment year. Subsequent assessment years shall be each successivecalendar year provided. however. that at any time the Board may change the assessment year tocorrespond to a fiscal year selected by the Board.

Section 5. Revised Assessments. Subject to the provisions of Section I above, if at anylime during the course of any year the Board shall deem the amount of the regular annualassessment to he inadequate or more than adequate by reason of a revision of its estimate ofeither expenses or income or otherwise, the Board shall have the right. at a regular or specialmeeting, to revise the regular annual assessment for the balance of the assessment year. Any suchrevised assessment shall become effective on the first day of the month next following the dateof adoption. and additional amounts payable shall be due (or refunds of overages shall be madeby the Association) at such time as determined by the Board.

Section 6. Personal Obligations. Each regular or special assessment. together with anylate charges, interest collection costs and reasonable attorneys' fees. shall be the personalobligation of each person or entity. other than the holder of a mortgage or deed of trust lien. whoheld an Ownership interest for the Lot at the time such assessment was levied. If more than oneperson or entity held an Ownership interest in the Lot at such time, the personal obligation to paysuch assessment or installment respecting such Lot shall be joint and several. No Owner mayexempt himself from payment of assessments. or installments, waiver of the use or non use ofany Recreational Common Area within the Project or of any other portion of the Common Areaor by abandonment or leasing of his Lot. The personal obligation for delinquent assessmentsshall not pass to a successor Owner unless expressly assumed by such successor Owner.

Section 7. Delinquent Assessments, Fines, Remedies. Any assessment not paidwithin 30 days after the due date shall be delinquent, and shall hear interest from the due dateuntil paid in full at the rate of 15% per annum. but in no event in excess of the maximum rateallowed by Texas law. The Board may require that any delinquent assessment bear a late chargeto cover administrative expenses incurred as a result of the late payment of the assessment. TheAssociation may commence foreclosure proceedings and/or institute suit to collect such amountsand/or to foreclose its lien in accordance with the authority and requirements of the TexasProperty Code and any other applicable statutes. Each Owner, by acceptance of a deed or as aparty to any other type of a conveyance. vests in the Association or its agents the right and powerto bring all actions against such Owner personally for the collection of such change as a debt. or

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to enforce the lien by suit, judgment and such foreclosure as is authorized and required by theTexas Property Code and any other applicable statutes. In any legal action to enforce payment ofan assessment or fine. the Association shall be entitled to recover interest. costs and reasonableattorney, fees. All payments shall be applied first to costs, then to late charges. then to interestand then to delinquent assessments.

Section 8. Alternative Payment Plans. The Board shall adopt an alternative paymentschedule by which an Owner may make partial payments for delinquent amounts owing theAssociation, and shall file such alternative payment schedule guidelines in the real propertyrecords of each county in which the subdivision is located. Such alternative payment scheduleguidelines shall comply with the provisions of the Texas Property Code and any other applicablestatutes.

Section 9. Third Party Collections. An Owner shall not he liable for the tees of acollection agent unless the Association first provides written notice to the Owner. by certifiedmail, return receipt requested. which complies with the requirements of the Texas Property Codeand any other applicable statutes governing such issues.

Section 10. Right To Hearing. If entitled to cure an obligation or violation, an Ownermay submit a written request for a hearing before the Board or a committee appointed by theBoard. and such notice and hearing shall comply with the provisions of the Texas Property Codeand any other statutes.

Section) J. Priority Of Payments. Payments received by the Association on an Owner'sdelinquent account shall he applied in the following order: (a) any delinquent assessment; (b)any current assessment; (c) any attorney's lees or third party collection costs incurred by theAssociation relating solely to assessments or other charges that could provide the basis forforeclosure: (d) any attorney's fees not subject to (c) above; (c) any fines assessed by theAssociation; and (f) any other amount owed to the Association. However. if at the time theAssociation receives a payment the O\\-11cris in default under a payment plan agreed to by theOwner and the Association, the Association is not required to prioritize the payment as outlinedabove; however, an assessed fine may not be given priority over any other amount due theAssociation.

Section 12. Covenant to Pay Assessments. Subject to the terms of this Article.Declarant. for each Lot owned by Declarant. hereby covenants to pay, and every Owner or anyLot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed,covenants and agrees to pay to the Association such regular annual assessments or charges andsuch special assessments or charges as may be levied by the Association pursuant to theprovisions of this Declaration. To the extent permitted by the applicable statutes, the amount ofany such annual or special assessment plus any other charges thereon. such as interest, latecharges and costs (including attorneys fees) as such may be provided in this Declaration. shall be

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secured by u lien (,'Assessment Lien") on such Lot in favor of the Association. Such AssessmentLien shall be superior to all other liens and encumbrances on such Lot. except for (a) liens for advalorem taxes, or (b) liens for all sums unpaid on a debt validly secured by a mortgage or deed oftrust duly recorded in the land records of the Counties (and all amounts advanced pursuant tosuch mortgage or deed of trust and secured thereby in accordance. with the terms of suchinstrument). All other persons acquiring liens or encumbrances on any l.ot shall be deemed toconsent that such liens or encumbrances are inferior to the lien provided herein to secure thepayment of future assessments, as provided herein, whether or not prior consent is specificallyset forth in the instruments creating such liens or encumbrances.

Section 13. Power Of Sale. Regarding the Assessment lien created herein. each Ownerhereby grants to the Association. whether or not it is so expressed in the deed or otherconveyance to such Owner, a power or sale to be exercised in accordance with Texas foreclosurestatutes.

Section 14. Lien Filing. Although no further action is required to create or perfect theAssessment Lien, the Association may. as further evidence and notice of such lien, execute andrecord a document setting forth as to any Lot the amount of the delinquent sums due theAssociation at the time such document is executed and the fact that an Assessment Lien exists tosecure the repayment thereof; such document. when properly filed and recorded in the officialpublic records of a county is a legal instrument affecting title to real property. However, thefailure of the Association to execute and record any such document shall not. to any extent. affectthe validity, enforceability or priority of the Assessment Lien.

Section 15. Subordinated Lien to Secure Payment. The lien on any particular Lotfor payment of assessments as provided for herein shall be subordinate to the liens of any validpreviously recorded mortgage or deed of trust encumbering such I.ot sale or transfer of any Lotshall not impair the enforceability or priority of the assessment lien against such Lot.

Section 16. Notice Of Enforcement Action. Before the Association may suspend anOwner's right to usc a common area. file a suit against an Owner other than suit to collect aregular or special assessment or foreclose an Association lien, charge an Owner for propertydamage or levy a fine for violation of the restrictions or By-Laws of the Association. theAssociation or its agent must give written notice to the Owner by certified mail, return receiptrequested. Such notice must comply with the requirements of the Texas Property Code including.but not limited to. the requirement (hat the Association inform the Owner of special rights orreliefunder federal law. including the SeD'icemembers Civil RelidAcl.

Section 17. Foreclosure. Foreclosure of the lien described in this Article shall be governedby the following provisions:

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(A) The Association may not foreclose an Assessment Lien if the debt securing same consistssolely of fines or attorney's fees assessed by the Association. or amounts added to theOwners account as an assessment for costs of copying records or inspection as provided inthe Association's By-Laws.

(3) The Association may not foreclose its Assessment Lien unless it has provided written noticeof the total amount of the delinquency giving rise to the foreclosure to any other lien holderof record on the property whose lien is inferior or subordinate to the Association'sAssessment Lien and is evidenced by a deed of trust; and unless it has provided the recipientof the notice an opportunity to cure the delinquency before the 61 st day after the date therecipient receives the notice.

(C) Notices under Section 16 above must be sent by certified mail. return receipt requested. tothe lien holder's address shown inthe deed records relating to the property subject to theAssociation's Assessment Lien,

(D) Lxcept as provided by Subsection (E) below and subject to ~209.009. Texas Property Code,the Association may not foreclose its Assessment Lien unless the Association first obtains acourt order in an application for expedited foreclosure. as promulgated by the Texas SupremeCourt for expedited foreclosure proceedings for usc by property owners' associations inforeclosing assessment liens.

(I-:) Expedited foreclosure. as described above, is not required if the Owner of the subjectproperty agrees in \vriting at the time foreclosure is sought to waive expedited foreclosure.Such a wai ver may not be required as a condition of the transfer of title to real property.

(F) 1\ provision granting the right to foreclose an Assessment Lien may be removed from oradopted in a dedicatory instrument by a vote of at least 67% of the total votes allocated toOwners in the Association. Owners holding at least 10% of all voting interests in theAssociation may petition the Association and require a Special Meeting to be called tovote for the purposes of this Subsection.

(0) The Association shall have the power to bid on a Lot at any foreclosure sale or to acquire,hold, case, mortgage or convey the same. The Association may sue for unpaid assessmentsand other charges without foreclosing or waiving the lien securing the same. The sale ortransfer of any Lot shall not affect the assessment lien or relieve such Lot from the lien forany subsequent assessments. However, the sale or transfer of any Lot pursuant to foreclosureof a mortgage or deed of trust lien shall extinguish the lien as to any installments of suchassessments due prior to such sale or transfer. A mortgage or other purchaser of a Lot whoobtains title pursuant to foreclosure of the mortgage or deed of trust shall not be personallyliable for assessments on such Lot due prior to such acquisition of title. Such unpaidassessments shall be deemed to be common expenses collectable from Owners of all Lots

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subject to assessment under this Declaration, including such acquirer, its successors andassigns.

Section 18. Notice After Foreclosure Sale. Following the foreclosure sale of an Owner'sLot. the Association must send to the Owner and to each lien holder of record. by certified mail.return receipt requested, not later than the 30th day following the foreclosure sale. a writtennotice stating the date and time the sale occurred and informing the Owner and each lien holderof record of the Owner's right to redeem the Lot. Such written notice must be sent to:

(a) The Owner's last known mailing address, as shown in the Association's records.

(b) The address of each lien holder on the subject Lot as evidenced by the mostrecent deed of trust filed of record in the real property records of the county In

which the property is located.

(c) To the address of each transferee or assignee of a deed of trust described in (b) abovewho has provided notice to the Association of such transfer or assignment. Noticeprovided to the Association by a transferee or assignee must be in writing, mustcontain the mailing address of the transferee or assignee. and must be mailed bycertified mail. return receipt requested or united States mail with signatureconfirmation to the Association.

(d) If a recorded instrument does not contain the lien holder's address. the Associationhas no duty to notify the lien holder.

(c) For purposes of this Section, the Owner is deemed to have given the Associationapproval to notify the lien holder.

(f) Not later than the 30th day after the Association sends the notice required by thisSection, the Association must record an affidavit in the real property records of thecounty in which the Lot is located, stating the date on which the notice was sent andcontaining a legal descripti?n of the Lot. Anyone is entitled to rely conclusively onthe information contained in the recorded affidavit.

(g) The notice requirements of this Section also apply to the sale of an Owner's Lot by aSheriff or Constable conducted as provided by a judgment obtained by theAssociation.

Section 19. Owner's Right Of Redemption. Notwithstanding anything to the contrarycontained in this Declaration, in the By-Laws or in the Articles Of Incorporation, the Owner orLot foreclosed on by the Association to enforce its Assessment Lien or the lien holder of recordmay redeem the property from the foreclosure sale purchaser not later than 180 days after theAssociation mails notice of the foreclosure sale to the Owner and the lien holder. Any such

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redemption shall be in accordance with The Texas Property Code and any other statutesgoverning such redemptions.

Section 20. Reserve Funds. The Hoard shall establish and maintain reserves in accordancewith standard accounting practices and procedures tor Common Area replacements andmaintenance and the initial budget of the Association. Each budget subsequently adopted by theBoard shall provide for funds to be placed in reserves. Funds deposited in reserve for a particularpurpose shall be held for that purpose and shall not be expended for any other purpose, exceptthat if the Board determines that funds held in reserve for a particular purpose exceed an amountreasonably required as a prudent reserve for that purpose. then. without the vote or writtenconsent of Members, the excess may he allocated to any other reserve fund established by thebudget of the Association and expended for the purpose for which such other reserve fund hasbeen established.

ARTICLE YII - COMMON AREA AND PROPERTY RIGHTS

Section 1. Conveyance of Common Area to Association. The Declarant shall conveythe Common Area to the Association free and clear of any encumbrances except those created bythis Declaration or imposed by the City, Counties or other applicable governmental authority.prior to the sale: of the first Lot in the Project.

Section 2. Common Area Easements. Subject to the further provisions of this Article.each Owner shall have a non-exclusive right and easement of use and enjoyment in and to theRecreational Common Area and such easement shall be appurtenant to and shall pass with thetitle to every f .ot. Any Owner may delegate. in accordance with the By-Laws. his right ofenjoyment to the Recreational Common Area and facilities to the members of such Owner'sfamily or to persons residing on the J .ot under a lease or contract to purchase.

Section 3. Extent of Members Easements. The rights and easements of use andenjoyment created hereby shall be subject to the following:

(a) The right of the Association to prescribe rules and regulations governing the use, operationand maintenance of the Common Area and Recreational Common Area, including the right of theAssociation to charge reasonable fees for the use of any Recreational Common Area.

(b) The right of the Association to suspend any member's access and use of any of theRecreational Common Area for any period not to exceed 60 days for an infraction of theAssociation's Rules & Regulations.

(c) The right of the Association to dedicate or transfer all or any part of the Common Area to anymunicipal corporation. public agency, authority, or utility company for such purposes and uponsuch conditions as may be agreed upon hy the Board: provided. however. that no such dedication

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or transfer shall be effective unless an instrument signed by at least 67% of members agreeing tosuch transfer or dedication has been recorded; and

(d) Easements for ingress, egress, use and enjoyment over, in. to and throughout. the CommonArea for the benefit of Declarant.

Section 4. Conveyance of Additional Common Area to Association. Declarantshall have the right to convey title to any property owned by it. or any easement or interesttherein. to the Association as a Common Area, and the Association shall be required to acceptsuch conveyance. Any such conveyance shall be effective upon recording the deed or instrumentof conveyance in the public records of the Counties.

Section 5. Utility Easements. Any easements for installation. maintenance. usc or repairof public utilities or drainage facilities which are dedicated on any final subdivision plat of theProject or created in some other way shall be kept free of buildings. and within such easementsno structure shall be placed or permitted to remain which may damage or interfere with theinstallation, maintenance. use or repair of such public utilities or drainage facilities. or whichmay damage. interfere. or change the direction or flow of drainage in the casements. All sucheasements at all times shall be accessible to Declarant until the Project is completed and at alltimes shall be accessible to all persons installing. repairing. using or maintaining such utilitiesand drainage facilities.

Section 6. Ingress. Full rights of ingress and egress shall be had by the Association at alltimes over and upon the Common Area for the purpose of maintaining the Common Area as setforth herein.

Section 7. Association Easements.

(a) The Association is granted the right and casement to maintain. repair. replace and reconstructany Project screening waJl in substantially the same location as originally installed. Sucheasement rights shall include the right of access upon and across an)' portion of the Project asmay he reasonably necessary to allow the performance of any such maintenance. repair,replacement. or reconstruction to any portion of such screening wall.

(b) The Association is granted the right and casement to maintain, repair. replace. and reconstructany Project entrance monument and related facilities. including without limitation. landscaping,lighting, and irrigation systems, in substantially the same location as originally installed. Sucheasement rights shall include the right of access upon and across any portion of the Project asmay be reasonably necessary to allow the performance of any such maintenance repair.replacement. or reconstruction to any portion or such entrance monument casement area.

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(c) The Association is granted the right and casement to enter upon any easement area granted,dedicated or reserved. for the benefit of the Association, to maintain, repair. replace andreconstruct any improvements or other facilities within any easement area

Section 8. Rights of Governmental Authority. Any governmental authority or agency.including. but not limited to the City and the counties, their agents. and employees, shall have theright of immediate access to the Common Area at all times if necessary for the preservation ofpublic health, safety and welfare; provided, however, that neither the City nor the Counties shallbe responsible for any construction or maintenance in the Common Area. Notwithstanding theabove, in the event the City. through its officers. agents, servants or employees, determines thatthe Common Area is not being properly maintained in a manner necessary to protect the publichealth, safety and welfare. the City may direct the Association to remedy such condition within areasonable period of time as determined by the City. If such condition has not been properlyrepaired or remedied within the prescribed time period. the City may perform the necessary workand all costs associated therewith will be paid by the Association. It is specifically understoodthat the Declarant is installing non-conventional street and traffic signs in the Project atDeclarant's sole cost and expense, in the event such non-conventional street and traffic signs aredamaged or removed and the Association docs not take necessary steps to repair or replace suchdamaged or missing signs in a reasonable period of time as instructed by the City, the City mayremove such signs and install standard signs and all coals related thereof will be paid by theAssociation.

ARTICLE VIII - INSURANCE; REPAIR AND RESTORATION

Section 1. Right to Purchase Insurance. The Association shall have the right andoption to purchase carry and maintain in force insurance covering any or all portions of theCommon Area and any improvements thereon or appurtenant thereto. for the interest of theAssociation and its members, in such amounts and with such endorsements and coverage as shallbe considered prudent for properties similar in construction. location and usc to the CommonArea. Such insurance may include, but need not be limited to:

(a) Insurance against loss or damage by lire and hazards covered by a standard extendedcoverage endorsement in an amount which shall be equal to the maximum insurablereplacement value.

(b) Public liability and property damage insurance on a broad form basis.

(c) fidelity bond for all officers and employees of the Association having control over thereceipt and disbursement of funds.

(d) Officers' and Directors' liability insurance.

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