HomeMy WebLinkAboutSPINNAKER BAY HOA DEEDSFILED
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BY AND MAIL TO: 1907 +'art
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ASSIGNIOZNT TO TRA`NhFEA I AU RIGHTS OF LICENSE
TO BOAT SLIP AT SPINNAKER SAY CONDOMINIUM
For and in consideration of the sum of ONE AND N01100 DOLLARS
(S1.00) and other good and valuable consideration, including the
transfer of subject property, I (we) do by these presents bargain,
sell, assign, and set over unto Robert M. Farmer of 7831 Spinnaker
Bay, Sherriils Ford, N.C. 28673, his heirs and assigns, all my
(our) estate, right, title, interest, claim and property in and to
the boat slip and improvements placed thereon under a license
agreement with Seawood properties and the Spinnaker Bay Homeowners
Association, Inc., dated June 21, 1988, for Boat Slip 14, lying and
being in Catawba County, State of North Carolina, Lake Norman,
subject nevertheless to the covenants and conditions contained in
said License Agreement (attached hereto as Exhibit A).
Assignor (s)Ecovenants that there has been no prior unreleased
assignment of the 1'icense interest and that the license interest is
transferred free 'of any lien, encumbrance or assignment.
This�3lat day of August, 1994.
0'
y e (SEAL)
Herman A. Zi e , Assignor
, r . t �•
(SEAL)
Barbara R. Siegler ianor
I (we) accept the foregoing assignment and agree to carry out
and abide by the termaand conditions contained in said License
Agreement.
This 31st day of August, ° '1994
(SEAL)
Robart' Assignee
4 1 „ E
Spinnakez`Bay Homeowners Association,
Inc., accepts the foregoing aesigtusent to Assignee, and release
Assignor from all further obligati' ns under the License.
This X 1 4) " day day of 0C_& be' , 1994.
M
,/prepared by Spinnaker Bay llomeowncrs Assoc.
7831 Spinnaker Bay Drive
Sherrills Ford N. C. 28673
14 � " , 800d553 - ±;F 400
AMENDMENT TO BYLAWS
OF
SPINNAKER RAY HOMEOWNERS ASSOCTATION, INC.
This is to certify that the Bylaws of Spinnaker. Ray Homeowners
A .oclation, inc_, a copy of which arP recorded in the Office of the Register of
Deed of atawba County in deed honk 1418 at. page 39, and pages following, were
duly amended at a special .joint meeting of. the members of the Board of Directors
of the Association and of the membership, as follows:
Subparagraph A ,.of paragraph 4 of the Bylaws of
Spinnaker. Bav Homeowners Association, Inc., which
deals with the number of directors shall be
amended to read as follows! "The Board of
Directors of the Associar.t.on shall consist of
five (5) persons. At least a majority of the
Board of Directors shall be members or employees
of a corporate member of the Association ".
It is further certified that the originally recorded Bylaws of the
Association contained an Incorrect page numbered .A4 1 ; and the correct i4 of
the Bylaws which should have been recorded is hereto attached as exhibit A. /
In witness wh reof r s stat•ment is executed on behalf of the Association
this � M day of , 1988.
STATE OF .
COUNTY OF , '
�xhi.s is to certify that
/� / leflsll'� L.SeG�lJ111��! and
� 9Lr�/____ personally appeared before me, a notary
public, and each bef g duly sworn, declared that they signed r.he.•Ft�Y�'�tYi��
statement in the capacity indicated, that they were authorized so �{•.,,
t. L at the statements therein contained are true and cor.r. .1• '•__•,►}
N N T
a . Publi
v'Vii. is ii
My Commission Expires-
My CaMalS51on 4plres lung ZO 140 �'•��� �'���
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•,ttTO :,(.ACKIE
'88 APR 1.1 AH 8 54
;ttE7: >I -TER )F DEEDS
C.;.,TA %YflA CO., H-G-
SPTNNAKE AY ROMEO ERS ASSOCIATION, INC.
"
: � :: : . • -: p c,
President
, 1i i
?!' •'1 is i
• :e:�
'fit: ��•'�
B y :
__ - ��
.� •• -" ''r.'►, ?'4 ..`
Secretary
STATE OF .
COUNTY OF , '
�xhi.s is to certify that
/� / leflsll'� L.SeG�lJ111��! and
� 9Lr�/____ personally appeared before me, a notary
public, and each bef g duly sworn, declared that they signed r.he.•Ft�Y�'�tYi��
statement in the capacity indicated, that they were authorized so �{•.,,
t. L at the statements therein contained are true and cor.r. .1• '•__•,►}
N N T
a . Publi
v'Vii. is ii
My Commission Expires-
My CaMalS51on 4plres lung ZO 140 �'•��� �'���
�i1.L. D
•,ttTO :,(.ACKIE
'88 APR 1.1 AH 8 54
;ttE7: >I -TER )F DEEDS
C.;.,TA %YflA CO., H-G-
EXHIBIT A
401
assessments come due, the amounts paid upon the
account and balance due upon assessments.
B. The Board of Directors shall adopt a
budget for each calendar year which shall contain
estimates of the cost of performing the functions
of the Association, including, but not limited to
the following:
1. Common Expense budget, which may
include, without limiting the generality of
the foregoing, the estimated amounts
necessary for maintenance and operation of
and capital improvements to the Common
Property including landscaping, street and
walkways, office expense, utility services,
casualty insurance, liability insurance,
administration and reserves (operating and
Capital Improvement Replacement), manage-
ment fees and costs of maintaining lease-
holds, memberships and other possessory or
use interests in lands or facilities
whether or not contiguous to the lands of
the Condominium, to provide enjoyment,
recreation or other use or benefit to the
Unit Owners; and
2. Proposed assessments against each
member and his Unit.
Copies of the proposed budget and proposed
assessments shall be transmitted to each member
prior to January 1 of the year for which the budget
is made. If the budget is subsequently amended
before the assessments are made, a copy of the
amended budget shall be furnished each member
concerned. Non - delivery of a copy of any budget or
amended budget to each member shall not affect the
liability of any member for any such assessment,
nor shall delivery of a copy of such budget or
amended budget be considered as a condition prece-
dent to the effectiveness of said budget- and
assessments levied pursuant thereto and nothing
herein contained shall be construed as restricting
the right of the Board of Directors, at any time in
their sole discretion, to levy any additional
assessments in the event that the budget originally
adopted shall appear to be insufficient to pay
costs and expenses of operation and management, or
in the event of emergencies.
C. The Board of Directors shall retain
professional management services to be primarily
13
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Tir1RTH...?�ApOI.I�TA'... r'•' a,'. r''r `"".'"',"- �+►,s- +w�a^tu�.� -. AWBA - COMITY :•- .. , ..�F•u�rs�*�,..- .:•••,;.:••.,�.
CA..
The foregoing certificate of Patricia J. Henneman, a Notary Public of
Mecklenburg County, North Carolina is certified to be correct. This
instrument was filed for registration this 11th O..ay of April, 1988 at
8:54 a.m., and duly recorded in the office of the Register of Deeds of
Catawba County, North Carolina in BOOK 1553 at PAGE 400.
This 11th day of April, 1988.
Ruth kie
Register of Deeds
f
/Kennedy & Black 5
NORTH CAROLINA Condo Book 1 Unit 34
DECLARATION OF SPINNAKER BAY CONDOMINIUMS
MECKLENBURG COUNTY
Seawood Properties, a North Carolina general partnership
with its principal place of business in Charlotte, Mecklen-
burg County, North Carolina (herein "Declarant ") does hereby
make, declare and establish this Declaration of Condominium
as and for the plan of dwelling ownership of Spinnaker Bay
Condominiums being the property and improvements hereinafter
described.
1. ESTABLISHMENT OF CONDOMINIUM. Declarant is the
owner of the fee simple title to that certain real property
situate in Catawba County, State of North Carolina, and which
property is more particularly described'in Exhibit "A"
attached hereto and incorporated herein by reference, and on
which property there has been constructed a building of three
stories containing a total of 39 condominium living units and
their supporting facilities and other appurtenant improve-
ments. The buildings are constructed of frame and
materials. The property contains sufficient parking space to
accommodate at least 2 automobile(s) for each Condominium
Unit. Each Unit Owner has the right to the use, for at least
2 automobile(s), of such space. Declarant does hereby submit
the above described property and improvements to condominium
ownership under the provision of Chapter 47A of the General
Statutes of North Carolina (Unit Ownership Act), and hereby
declares the same to be a condominium to be known and iden-
tified as Spinnaker Bay Condominiums (herein "Condominium ").
2. SURVEY AND DESCRIPTION OF IMPROVEMENTS. Filed I ll 11! 11
simultaneously erew.it and expressly made a part hereof as
Unit Ownership File No. .7,rL� (herein "Unit Ownership
File "), consisting of 4 pages, is a Survey of the land and
graphic descriptions and plans of the improvements
constituting the Condominium, identifying the Condominium
Units and Common Areas and Facilities, as said terms are
hereinafter defined, and their respective locations and
approximate dimensions. Each Condominium Unit is identified
by specific numerical designation on said Unit Ownership
File, and no Condominium Unit bears the same designation as
any other Condominium Unit.
3. DEFINITIONS. The Condominium consists of 39
Condominium Units and Common Areas and Facilities, as said
terms are hereinafter defined.
1, Condon'�inium Units as (!0fj1"rnt1 11'""11 shall comp�-i..3e
the separate numerically identified Dwelling Units which are
designated in said Unit ownership File, excluding all spaces
and improvements lying:
mo ' G
(1) Beneath the subflooring material of all
floors;
(2) Beneath the interior surfacing material
of all perimeter walls, interior bearing walls
and /or bearing partitions;
(3) Above the interior surfacing material of
the ceilings;
and further excluding all pipes, ducts, wires, conduits and
other facilities for the furnishing of utilities and other
services to Condominium Units and Common Areas and Facilities
up to and including the point of entry of such pipes, ducts,
wires, and conduits through the interior surfacing material
for walls and ceilings and subflooring surfacing material for
floors. All pipes, ducts, wires, conduits and other such
facilities within the interior surfacing materials shall be a
part of the respective Condominium Unit.- The decoration and
painting of the exterior surface of doors and window frames
shall be the responsibility of the Association, as herein-
after defined.
B. Common Areas and Facilities (herein "Common Pro-
perty") Ehall comprise all of the real property, improvements
and facilities of the Condominium other than the Condominium
Units and all personal property held and maintained for the
use and enjoyment of all the Owners of Condominium Units.
The terms "Association of Unit Owners ", "Building ",
"Common Areas and Facilities ", "Common Expenses ", "Common
Profit ", "Condominium ", "Declaration ", "Limited Common Areas
and Facilities ", "Majority" or "Majority of Unit Owners ",
" "Property" "Recordation ", "Unit" or "Condominium
"Person", , ,
Unit ", "Unit Designation ", and "Unit owner ", unless it is
plainly evident from the context of this Declaration that a
different meaning is intended, shall, have the meaning set
out in Section 3, Article I, Chapter 47A of the General
Statutes of North Carolina. The terms "75% of the members"
or "75% of the membership," (or 0 3/4" in lieu of "75 % ") when
used in the context of membership voting rights, shall mean
the owners of at least 75% of the aggregate interest in the
Common Areas and Facilities.
4. OWNERSHIP OF CONDOMINIUM UNITS AND APPURTENANT
INTEREST IN COMMN O PROPERTX. Each i;ondon i.nxum unit shall. bc:
conveye and treated as an individual property capable of
independent use and fee simple ownership, and the Owner of
each Unit shall also own, as an appurtenance to the ownership
of each said Condominium Unit, an undivided interest in the
Common Property. The undivided interest appurtenant to each
Condominium Unit shall be as set ,)ut .i.t) l:xl�i.f�it 11 13 " attached
hereto and made a part hereof. The proportional interest in
the Common Property that is appurtenant to each Condominium
, UD441 - 8 :. '
Unit has been determined by a ratio formulated upon the
approximate relation that the fair market value of each Unit
at the date of the Declaration bears to the then aggregate
fair market value of all of the Units having an interest in
the Common Property. The fair market value of each Unit and
the aggregate fair market value of all the Units have been
determined by the Declarant, and are binding upon all Unit
Owners. The percentage of undivided interest in the Common
Property assigned to each Condominium Unit shall not be
changed except with the unanimous consent of all of the
owners of all of the Condominium Units and with the consent
of all of the Lenders holding first mortgages or deeds of
trust on the Condominium Units.
5. RESTRICTION AGAINST FURTHER SUBDIVISIO OF CONDO—
MINIUM UNITS: SEPARATE CONVL•'YANCE OF APPURTENANT COMMON
PROPERTY PROHIBITED. No Condominium Unit may a divided or
subdivR into a smaller Unit or Units than as shown in the
Unit Ownership File nor shall any Condominium Unit or portion
thereof be added to or incorporated into any other Condomin-
ium Unit. The undivided interest in the Common Property de-
clared to be an appurtenance to each Condominium Unit shall
not be conveyed, devised, encumbered or otherwise dealt with
separately from said Condominium Unit, and the undivided
interest in Common Property appurtenant to each Condominium
Unit shall be deemed conveyed, devised, encumbered or other-
wise included with the Condominium Unit even though such
undivided interest is not expressly mentioned or described in
the instrument conveying, devising, encumbering or otherwise
dealing with such Condominium Unit. Any conveyance, mortgage
or other instrument which purports to grant any right,
interest or lien in, to or upon a Condominium Unit, shall be
null and void insofar as it purports to affect any interest
in a Condominium Unit and its appurtenant undivided interest
in Common Property, unless it purports to convey, devise, or
encumber the entire Condominium Unit. Any instrument con-
veying, devising, or encumbering any Condominium Unit, which
describes said Condominium Unit by the numerical designation
assigned thereto in the Unit ownership File shall be con-
strued to affect the entire Condominium Unit and its appurte
nant undivided interest in the Common Property. No limita-
tion is placed on the ownership of any Condominium Unit by
any person as tenants in common, joint tenants, or as tenants
by the entirety. Nothing contained herein shall be construed
as limiting the right of a Slip owner to� transfer r his
.s right
to use a Slip t tenBoazd of unit
pi�ectorsp
p romulgated by the
6. THE CONDOMINIUM SUBJECT TO RESTRICTIONS. The
Condominium Units, Common Property and Limited Common Areas
are hereby declared to be subject to the restrictions,
easements, conditions and covenants prescribed and esta—
blished Herein governing the use of said Condominium Units,
Common Property and Limited Common Areas and setting forth
the obligations and responsibilities incident to ownership of
each Condominium Unit and its appurtenant undivided interest
in the Common Property, and said Condominium Units, Common
Property and Limited Common Areas are further declared to be
subject to the restrictions, easements, conditions, and
limitations now of record affecting the land and improvements
of the Condominium.
7. PERPETUAL NON - EXCLUSIVE EASEMENT IN COMMON PRO-
PERTY. Except as provided to the contrary with respect to
the Boat Slips (hereinafter defined) and other Limited Common
Areas and Facilities, the Common Property is hereby declared
to be subject to a perpetual non- exclusive easement in favor
s of Condominium Units for their use and
of all of the Owner
the use of their immediate families, guests and invitees, for
all property purposes, and for the furnishing of services and
facilities for which they are intended, and for the enjoyment
of the Owners. Notwithstanding the foregoing, the Associa-
tion, hereinafter defined, shall have the exclusive right to
establish the rules and regulations pursuant to which the
Owner of any Condominium Unit, his family, guests and invit-
ees, may be entitled to use the Common Property, including
the right to assign parking spaces, and to establish regula-
tions concerning their use and maintenance.
g. EASEMENT FOR UNr,T3TF.NTTONAL A shall
ENCROACHMENTS. In the event thaany or any other Condominium
encroach upon any Common Property,
Unit for any reason not caused by the purposeful sor negligent
act of the Condominium Unit owner, or agents
then an easement appurtenant to such Condominium Unit shall
exist for the continuance of such encroachment upon the
Common Property or upon a Condominium Unit for as long as
such anny shall
common Property v exist; and, in
that operty shall encroach upon
ay p
any Condominium Unit, then an easement shall exist for the
continuance of such encroachment as he commooachmeert upon
any Condominium Unit for so long
naturally exist. If any Condominium Unit or Common Property
shall be partially or totally destroyed as a result of fire of condemnaton or einen
or other casualty, or as a resnl�econstructionxof suchmUnitt
domain proceedings, and if up o
and /or Common Property in accordance with Article 21 hereof,
there exist encroachments of portions of the Common Property
upon any Condominium Unit, or of any Condominium Unit upon
any other Condominium Unit or upon any portion of the Common
Property, then such encroachments shall be permitted and a
long maintenance thereof shall
remain.
so
long
9. RESTRAINT UPON SEPARAT er use RofTaOCon Fominiuum
PROPERTY Recognizlnq that the p p P
Unit by an Owner or Owners is dependent upon t:he use and
e njoyment of the Common Property in common with the Owners of
all other Condominium Units, and that it is in the interest
of all Owners that the ownership of the Common Property be
retained in common by the Owners, it is hereby declared that
the proportional undivided interest in the Common Property
appurtenant to each Condominium Unit shall remain undivided
and no Unit owner shall bring or have any right to bring any
action for partition or division.
10. LIMITED COMMON AREAS AND FACILITIES, BOAT SLIPS.
Limited Common. Areas and Facilitles shall mean and include
those Common Areas and Facilities (including the boat slips
described below) reserved for use by a certain Unit or Units
to the exclusion of other Units, including any deck, patio,
balcony, and /or storage room appurtenant to such of the Units
as are shown on the plans. Each Unit owner is hereby granted
an exclusive and irrevocable license to use and occupy such
Limited Common Areas and Facilities as are associated with
such Unit Owner's Unit. The cleanliness and orderliness of
the Limited Common Areas and Facilities shall be the respon-
sibility of the individual Unit Owner, but the responsibility
.for maintenance, painting, repair and replacement, together
with control over the exterior decoration, shall remain with
the Association. References hereunder to Common Areas and
Facilities shall include Limited Common Areas and Facilities
unless the context clearly indicates otherwise.
It is the intention of Declarant to construct certain
structures to be used as boat slips (the "Boat Slips ") to be
built and moored on Lake Norman, within an area leased from
Duke Power Company, adjacent to portions of the Condominium.
The Boat Slips will be so designated on the plans. Declarant
will offer exclusive irrevocable rights to use designated
slips (the "Slips ") within the Boat Slips for sale to Unit
owners. Unit owners who elect to purchase such Slips ( "Slip
Owners ") shall be purchasing a license to use the Slips
during the term of the Duke Power Company lease, and any
extensions thereof, and not fee ownership thereof. The Slips
shall be Limited Common Area and Facilities, and each of such
Slips shall be reserved to the use of the Unit Owner who
purchases the license to use same. The license to use a Slip
may be transferred to any other Unit Owner. Any Unit Owner
may convey his Unit to a purchaser thereof while retaining
the license to use a Slip, but such conveying Unit Owner
shall be required to first offer to transfer such license to
the Association for the use of any Unit owner desiring to
purchase such license. If the Board of Directors of the
Association desires to accept such offer, i.t :shall. acquire
it Owner's license upon the same terms and
the transferring Un
conditions as shall then be offered by a disinterested third
party desiring to purchase such license, and such license
shall be transferred upon the same terms and conditions to
the Unit Owner desiring to purchase same. If the Board of
Directors of the Association does nut ac;c(!pt. such offe) then
the selling Unit owner may retain his license and shall be
5
ecAM
and become a Non- Member Licensee (hereinafter defined) for
the purposes of this Declaration from and after such convey-
ance. The license shall terminate automatically upon the
transfer by a Slip Owner of his Unit (unless the license to
use such Slip is retained by the transferring Unit owner as
provided or is transferred to the transferee of the Unit or
to another Unit owner; in such event the license shall
continue, subject to the terms and provisions hereof, in such
former Unit Owner, transferee or other Unit Owner), and upon
termination, such license shall revert to the Association.
The Board of Directors of the Association may promulgate
rules and regulations governing the use and maintenance of
the Boat Slips.
To the extent that the total number of Boat Slips
exceeds the number for which Unit owners - desire to purchase
licenses for use, the Declarant, or upon any assignment to or
other acquisition by the Association, the Association, may
sell exclusive licenses for the use of such excess Slips to
third parties who are not members of the Association (the
"Non- Member Licensees ") at such prices and upon such terms
and conditions as the Declarant or the Board of Directors of
the Association shall deem proper, and such licenses for the
use of such excess Slips shall include a license to use the
other Common Areas and Facilities to the extent reasonably
necessary to the use and enjoyment of the licensed Slip;
provided, however, that the Board of Directors of the Asso-
ciation shall require any Non- Member Licensee to comply with
all rules and regulations imposed upon Slip owners and Unit
Owners relating to the use and enjoyment of the comiona yeas
and Facilities and and to ear a and
share of the Boat Slip lip Expenses ranted to a Non - Member
further provided that no license g
Licensee shall be transferable unless epurchasessuchtlicensel
first be given the for
opportunity to purchase same upon the
the use of a Unit Owner desiring
same terms and conditions u s ar offered b lia bon fide
prospective third party purchaser such
licenses sold to Non - Member Licensees shall be revocable, of
pursuant to rules and regulations promulgated by y e
l be
Directors of the Association, but such revocation shaloppor-
effected only after a reasonable period an
tunity to cure specified in such rules and regulations, and
the only grounds for such revocation shall be failure to pay
Boat Slip Assessments (hereinafter defined) or failure to
comply with the terms and conditions ofulhi this
a Declaration or
to otherwise observe duly promulgated
relating to use of the Boat Slips or other Common Areas and
Facilities.
11. ADMINISTRATION OF THE CONDOMINIUM B an Sp effec R DAY
HOMEOWNRRS ASSOCIATION INC. To efficient y
provide or team nistration of the Condominium by the
6
A
Owners of the Condominium Units, a non- profit North Carolina
corporation known and designated as Spinnaker Bay Homeowners
Association, Inc. (herein "Association ") has been organized,
and said corporation shall administer the operation and
management of the Condominium and undertake and perform all
acts and duties incident thereto in accordance with the terms
of its Articles of Incorporation and Bylaws. A true copy of
said Bylaws and Articles of incorporation are annexed hereto
and expressly made a part hereof as Exhibits "C" and "D ",
respectively. The owner or Owners of each Condominium Unit
shall automatically become members of the Association upon
acquiring an ownership interest in title to any Condominium
Unit and its appurtenant undivided interest in Common Proper-
ty, such membership shall terminate automatically upon the
Owner or Owners being divested of such ownership interest in
the title to such Condominium Unit, regardless of how such
ownership may be divested. No person, firm or corporation
holding any lien, mortgage or other encumbrance upon any
Condominium Unit shall be entitled, by virtue of such lien,
mortgage or other encumbrance, tomembership f Assoc ia-
tion or to any of the rights or privileges
ship. In the administration of the operation and management
of the Condominium, the Association is hereby granted the
authority and power to enforce the provisions of this Decla-
ration, to levy and to collect assessments in the manner
hereinafter provided, and to adopt, promulgate and enforce
such rules and regulations governing the use of the Condo-
minium Units and Common Property as its Board of Directors
may deem to be in its best interest.
12. RESIDENTIAL USE RESTRICTIONS APPLICABLE TO CONDO-
MINIUM UNITS. Each Condominium Unit is hereby re ut
residential use by its Owner, his immediate family, g
invitees and lessees. with the exception o a Lender iina
possession of a Condominium Unit following a
first deed of trust, a foreclosure proceeding or any deed in
lieu of foreclosure, no Unit owner shall lease his Unit for
transient, hotel or commercial purposes except pursuant to
such rules and regulations as may adopted y
ciation. No Unit owner may lease less than the entire Unit.
Any lease agreement must provide that it shall be subject to
the provisions of thi With c the a terms hereofashall beiaudefault
the lessee to comply
under the lease, and shall be in writing. There is no other
restriction on the right of any Unit Owner to lease his Unit.
13. USE OF COMMON PROPERTY SUBJECT TO RULES OF ASSO-
CIATION. The use and ma ntenance o all Common Property by
t e Owner or Owners of all Condominium Units, and all other
parties authorized to use the same, iandNtheMuse an d maint
nance of Boat Slips by p
shall be subject to such rules and A regulation
tions as may be
blished by the
prescribed and esta
14. THE CONDOMINIUM TO BE USED FOR LAWFUL PURPOSES:
RESTRICTION AGAINST NUISANCES. No immoral, improper, offen-
sive or unlawtul use shalf be made of any Condominium Unit or
of the Common Property, and all laws, zoning ordinances and
regulations of all governmental authorities having jurisdic-
tion of the Condominium shall be observed. No Owner of any
Condominium Unit shall permit anything to be done or kept in
his Condominium Unit, or on the Common Property, which will
increase the rate of insurance on the Condominium, or which
will interfere with the rights of other occupants of the
Condominium or annoy them by unreasonable noises, nor shall
any Owner undertake any use which shall constitute a nuisance
to any other Owner of a Condominium Unit, or which interferes
with the peaceful possession and proper use of any other
Condominium Unit or the Common Property.
15. RIGHT OF ENTRY INTO CONDOMINIUM UNITS IN EMER-
GENCIES AND FOR MKINTENANCE OF COMMON PROPERTY.
In case o any emergency originating in or threatening any
Condominium Unit, regardless of whether the Owner is present
at the time of such emergency, the Board of Directors of the
Association, or any other person authorized by it, shall have
the right to enter such Condominium Unit for the purpose of
remedying or abating the cause of such emergency, and such
right of entry shall be immediate.
Whenever it may be necessary to enter any Condominium
Unit in order to perform any maintenance, alteration or
repair to any portion of the Common Property, the Owner of
each Condominium Unit shall permit other Owners or their
representatives, or an agent of the Association, the
such Condominium Unit for such purpose, provided that
entry shall be made only at reasonable times and with reason-
able advance notice.
16. LIMITATION UPON RIGHT OF OWNERS TO ALTER AND MODIFY
CONDOMINIUM UNITS: NO RIGHT TO ALTER COMMON PROPERTY. No
Owner o a Condominium Un t sha 1 permit any structural
modification or alteration to be made to such Condominium
Unit without first obtaining the written consent of the
Association, which consent may be withheld in the event that
a majority of the Board of Directors of the Association shall
determine that such structural modifications or alterations
would adversely affect or in any manner endanger the Condo-
minium in part or ir► its entirety. No Owner shall cause any
improvements or changes to be made on the exterior of the
Condominium (including painting or other decoration, or the
installation of electrical wiring, television or radio
antennae or any other objects or machines which may protrude
through the walls Condominium) or in
portion of any
manner alter the a any
pp
building without the written consent of the Association being
first obtained. No Unit owner shall ca any Common to be
fixed to the Common Property Y
br, 04418 . �.3
(including the location or construction of fences and the
planting or growing of flowers, trees, shrubs or any other
vegetation) or in any manner change the appearance of the
Common Property or Limited Common Area without the written
consent of the Association being first obtained.
17. RIGHT OF ASSOCIATION TO ALTER AND IMPROVE COMMON
PROPERTY AND ASSESSMENT THEREOF. The Association shall have
the right to make such alterations or improvements to the
Common Property which do not prejudice the rights of the
owner of any Condominium Unit in the use and enjoyment of his
Condominium Unit, provided the making of such alterations and
improvements are approved by the Board of Directors of the
Association, and their costs shall be common expenses to be
assessed and collected from all of the Owners of Condominium
Units. However, where any alterations and improvements are
exclusively or substantially for the benefit of the Owner or
Owners of certain Condominium Unit or Units requesting them,
then the cost of such alterations or improvements shall be
assessed against and collected solely from the Owner or
Owners of the Condominium Unit or Units exclusively or
substantially benefited, the assessment to be levied in such
proportion as may be determined by the Board of Directors of
the Association.
18. MAINTENANCE AND REPAIR BY OWNERS OF CONDOMINIUM
UNITS. Every Owner s all perform promptly all maintenance
and repair work within his Condominium Unit which, if omit-
ted, would affect the Condominium, either in its entirety or
in a part belonging to other Owners, every Owner being
expressly responsible for the damages and liability which his
failure to do so may engender. The Owner of each Condominium
Unit shall be liable and responsible for the maintenance,
repair and replacement of all heating and air conditioning
equipment, stoves, refrigeraforst fans, or otheir appliances
or equipment, including any
required to provide water, light, power, telephone, sewage
and sanitary service to his Condominium Unit. Such owner
shall further be responsible and liable for the maintenance,
repair and replacement of the interior surfaces of all walls,
ceilings and floors within his Unit including painting,
decorating and furnishings, and all other accessories which
such Owner may desire to place or maintain in his Condominium
Unit. Whenever the maintenance, repair and replacement of
any item for which the Owner is obligated to maintain,
replace or repair at his own expense isanccaymain any
-
loss or damage which may be covered by r insurance proceeds of the
tained in force by the Association, the p
insurance received by the Association shall be used for the
purpose of making such maintenance, repair or replacement
except that the Owner of such Condominium Unit shall be, in
said instance, required to pay such portion of the costs of
such maintenance, repair and replacement as shall, by reason
of the applicability of any deductibility provision of such
9
0
R
eu4418
insurance, exceed the amount of the insurance proceeds
applicable to such maintenance, repair or replacement. The
Owner of a Condominium Unit who has exclusive use of any
Limited Common Area shall maintain such at his own expense.
All doors, window frames, panes and screens are a part of the
respective Condominium Units and shall be maintained by the
respective Unit Owners.
19. MAINTENAN AND REPAIR OF COMMON PROPERTY AND BOAT
SLIPS BY THE ASSOCIATION. The Association, at its expense,
shall be responsible for the maintenance, repair and
replacement of all of the Common Property, including those
portions thereof which contribute to the support of the
buildings, and all conduits, ducts, plumbing, wiring and
other facilities located in the Common Property for the
furnishing of utility and other services to the Condominium
Units and said Common Property, and should any incidental
damage be caused to any Condominium Unit by virtue of any
work which may be done or caused to be done by the
Association in the maintenance, repair or replacement of any
Common Property, the Association shall, at its expense,
repair such incidental damage. Whenever the maintenance,
repair and replacement of any item for which the Association
is obligated to maintain, replace or repair at its expense is
occasioned by any act of a Condominium Unit Owner, his
immediate family, guests, or invitees,.and such loss or
damage may be covered by any insurance maintained in force by
the Association, the proceeds of the insurance received by
Association shall be used for the purpose of making such
maintenance, repair or replacement, except that the Unit
Owner who is responsible for the act causing the damage
(whether done by himself or by his family, guests or
invitees) shall be required to pay such portion of the cost
of such maintenance, repair and replacement as shall, by
reason of the applicability of any deductibility provision of
such insurance, exceed the amount of the insurance proceeds
applicable to such maintenance, repair or replacement.
All maintenance, repairs and replacements to the Boat
Slips (unless necessitated by the negligence, misuse or
neglect of a slip Owner or Non- Member Licensee, in which case
such expense shall be charged to and paid by such Slip Owner
or Non - Member Licensee), shall be made by the Board of
Directors of the Association and be charged to all the Slip
Owners and Non - Member Licensees as a Boat Slip Expense, as
the case may be; provided, however, there is excluded from
the provisions contained in this Section any repairs neces-
sitated by casualty insured against by the Board of Directors
to the extent the Board receives insurance proceeds for such
repairs.
20. INSURANCE. AND AUT11ORITY '1'O PURCHASE: INSURANCE.
Insurance policies upon the Property otier than title
insurance) shall be purchased by the Association in the name
10
of the Board of Directors of the Association, as Trustees for
the Condominium Unit Owners and their respective mortgagees
as their interests may appear, and shall provide for the
issuance of certificates or mortgage endorsemcntn to the
holders of first mortgages on the Condominium Units or any of
them, and if the companies writing such policies will agree,
the policies shall provide that the insurer waives its rights
of subrogation as to any claims against Condominium Unit
Owners, the Association and their respective servants, agents
and guests. Each Condominium Unit owner may obtain insur-
ance, at his own expense, affording coverage upon his Condo-
minium Unit, his personal property and for his personal
liability and as may be permitted or required by law, but all
such insurance shall contain the same waiver of subrogation
referred to above if available.
21.• INSURANCE COVERAGE TO BE MAINTAINED: USE AND
DISTRIBUTION O F INSURANCE PROCEEDS
A. The following insurance coverage shall be main-
tained in full force and effect by the Association covering
the operation and management of the Condominium Units and
Common Property:
(1) Casualty Insurance covering the build-
ings, all improvements, and all personal property upon
the land described in Exhibit " A " except such personal
property as may be owned by others, shall be procured in
an amount equal to but not less than eighty percent
(808) of the 100% insurable replacement value thereof
(exclusive of excavation, foundations, streets and
parking facilities) as determined annually. If coverage
is provided by an insurance policy in which there is a
co- insurance clause applying, every effort will be made
to obtain an agreed amount endorsement or its equiva-
lent. Such coverage shall afford protection against:
(a) loss or damage by fire and other hazards covered by
the standard extended coverage endorsement; (b) such
other risks as from time to time customarily shall be
covered with respect to buildings similar in
construction location and use including vandalism and
malicious mischief.
(2) Bodily Injury Liability and property
damage liability insurance in such amounts and in
such forms as shall be required by the Association,
covering all premises and all operations necessary
or incidental to the conduct of the business of the
Association including hired automobile and non -
owned automobile bodily injury and property damage
liability coverages.
11
era`: � `✓ _, As -.;,,: - d .� '.e 3 E,$Y4
(3) All liability policies shall contain a
severability of interest (cross - liability) endorse-
ment. The insurance afforded under the liability
section of the policy shall be applied separately
to each insured against whom claim is made or suit
is brought except with respect to this company's
limit of liability.
(4) Fidelity coverage protecting against
dishonest acts by Association officers, directors,
trustees, and employees and all others who are
responsible for handling funds of the Association
in the amount of one year's operating budget, plus
projected reserve balances during the budget year.
If professional management is obtained by the
Association and it has this coverage and it handles
the funds, then this requirement will be satisfied.
(5) In the event it is determined, by survey
or otherwise, that the Condominium is located
within an area having special flood hazards and if
flood insurance has been made available under the
National Flood Insurance Program ( "NFIP "), the
Association shall obtain and pay, as a common
expense, the premiums upon a policy Of flood
insurance on the Property in such amount as may
from time to time be deemed appropriate by the
Board of Directors of the Association; provided,
however, that such coverage shall not be less than
the lesser of: (a) the maximum coverage available
under the NFIP for that portion of the Property
within a designated flood hazard area or (b) 100%
of the current replacement cost of such portion of
the Property.
B. Premiums upon insurance policies purchased by the
Association shall be paid by the Association as common
expenses to be assessed and collected from all of the owners
of Condominium Units.
C. All insurance policies purchased by the Association
shall be for the benef�h
Non zMember Licensees,
Unit Owners, the S owners, ear,
their mortgagees, as their respective interestsamay app ar,
and shall provide that all proceeds payable as of
casualty losses shall be paid to the Association. The
Association shall hold such proceeds in trust for the benefit
of the Association, the Condominium Unit owners, the Slip
Owners, the Non - Member Licensees, and their respective
mortgagees in the following shares:
(i) Proceeds on account OIL damage to Common
Property: in undivided shares for each Condominium
12
Unit owner and his mortgagee, if any, which shares
are shown on Exhibit "B."
(2) Proceeds on account of damages to Condo-
minium Units shall be held in the following un-
divided shares:
(a) Partial destruction when the
Condominium is to be restored: for the
owners of damaged Condominium Units in
proportion to the costs of repairing the
damage suffered by each damaged Condo-
minium Unit;
(b) Total destruction of the Condo-
minium or where the Condominium is not to
be restored: for all Condominium Unit
Owners and their mortgagees, the share of
each being set forth in Exhibit "B."
(3) Proceeds on account of damage to Boat
Slips shall be held in undivided shares for each
Slip Owner and Non - Member Licensee and his mort-
gagee, if any, each Slip Owner's or Non - Member
Licensee's sharp to be the same as such Slip
Owner's or Non- Member Licensee's share of the Boat
slip Expenses.
D. In the event a mortgagee endorsement has been issued
as to a Condominium Unit, the share of the Condominium Unit
Owner shall be held for the mortgagee and the Condominium
Unit Owner as their interests may appear, but no mortgagee
shall have the right to participate in the determination of
reconstruction or repair.
E. Proceeds of insurance policies received by the
Association shall be distributed to or for the benefit of the
beneficial Condominium Unit owners in the following manner:
(1) If the damage for which the proceeds were
paid is to be repaired or reconstructed, the
proceeds shall be paid to defray the costs. Any
proceeds remaining after defraying such costs shall
be distributed to the beneficial Condominium Unit
owners, all remittances to Condominium Unit Owners
and their mortgagees being payable jointly to them.
This is a covenant for the benefit of any mortgagee
of a Condominium Unit and may be enforced by him.
(2) If it is determined that the damage for
which the proceeds are paid shall not be recon-
structed or repaired, the proceeds shall be distri-
buted to the beneficial Condominium Unit owners,
remittances to Condominium Unit Owners and their
13
EcJ4418 1.3
mortgagees being payable jointly to them. This is
a covenant for the benefit of any mortgagee of a
Condominium Unit and may be enforced by him.
F. Each Unit Owner, at his expense, shall keep in
force comprehensive personal liability insurance covering
liability for damages to person or property of others located
within such Owner's Unit, or another Unit, or upon the Common
Area and facilities in such amounts as the Board of Directors
shall, from time to time, determine, but in no case less than
$100,000 for each occurrence.
22. RECONSTRUCTION OR REPAIR OF CASUALTY DAMAGE; DAMAGE
TO COMMON PROPERTY; DAMAGE TO CONDOMINIUM UNITS.
A. If any part of the Common Property shall be damaged
by casualty, the determination of whether or not to recon-
struct or repair it shall be made as follows:
(1) Partial destruction shall be destruction
of two - thirds (2/3) or less of the building. In
the event of partial destruction, the Common
Property shall be reconstructed or repaired unless
this Declaration is terminated by the unanimous
vote of all of the Condominium Unit Owners at a
meeting of the members of the Association called
and held prior to commencement of such reconstruc-
tion or repair.
(2) Total destruction shall be destruction of
more than two - thirds (2/3) of the building. In the
event of total destruction, the Common Property
shall not be reconstructed or repaired if, at a
meeting which shall be called within thirty (30)
days after the occurrence of the casualty, or if by
such date the insurance loss has not been finally
adjusted, then within thirty (30) days after such
adjustment, Condominium Unit owners who own three -
fourths (3/4) or more of the building vote against
reconstruction or repair.
(3) Any such reconstruction or repair shall
be substantially in accordance with the plans and
specifications contained herein.
B. If the damage is only to those parts of one or more
Condominium Units for which the responsibility for mainten-
ance and repair is that of the Unit owner, then the Condomin-
ium Unit Owner shall be responsible for reconstruction and
repair after casualty. In all other instances, the responsi-
bility of reconstruction and repair after casualty shall be
that of the Association as follows:
14
(1) Immediately after the casualty causing
damage to property for which the Association has
the responsibility for maintenance and repair, the
Association shall obtain reliable and detailed
estimates of the cost to place the damaged property
in condition as good as that before the casualty.
Such costs may include professional fees and
premiums for such bonds as the Board of Directors
deems appropriate.
(2) When the damage is to both Common Pro-
perty and Condominium Units, the insurance proceeds
shall be applied first to the costs of repairing
the common Property and the balance to the Condo -
minium Units.
C.' In the event of damage to or destruction of
the Boat Slips as a result of fire or other casualty to
the extent of less than two - thirds in value of the Boat
Slips, the Board of Directors of the Association shall
arrange for the prompt repair and restoration of the
Boat Slips, and the Board of Directors shall disburse
the proceeds of all insurance policies to the contrac-
tors engaged in such repair and restoration in appropri
ate progress payments.
Any payment for repair and restoration in excess of the
insurance proceeds shall constitute a Boat Slip Expense.
Any reconstruction or repair shall be in accordance with
the original plans for the Boat Slips or as the Board of
Directors of the Association shall otherwise approve.
The determination of whether the damage or destruction
"exceeds two - thirds" the value of the Boat Slips for
purposes herein stated shall be determined by an ap-
praisal of the value of such Boat Slips as of the day
immediately preceding the damage obtained by the Board
of Directors of the Association from a licensed app
er when rtsond restoration
as determined by the Hoard of Directors.
D. Each Condominium Unit Owner delegates to the Board
of Directors of the Association his right to adjust with
insurance companies all losses rwherecthe damage is
the Association, except in any case
restricted to one Condominium Unit.
23. ASSOCIATION TO MAINTAIN REGISTER OF OWNERS AND
MORTGAGEES. The Associat on Eli al maintain a Register
setting forth the names of the Owners of all of the Condo-
minium Units. In the event of the transfer of any
minium Unit to a third party, the ransfereecshallnotify mhe
Association in writing
Unit, together instrument information
identify the
15
-441-8 20
his interest. The Owner of each Condominium Unit shall also
notify the Association of the parties holding any mortgage on
any Condominium Unit, the amount of such mortgage and the re-
cording information necessary to identify the mortgage. The
holder of any mortgage upon any Condominium Unit may notify
the Association of the existence of any mortgage and the
Association shall register in its records all pertinent
information relating thereto.
24. ASSESSMENTS: LIABILITY, LIEN AND ENFORCEMENT. The
Association is given the authority to administer the opera-
tion and management of the Condominium as being in the best
interest of the Owners of all Condominium Units. To properly
administer the operation and management of the Condominium,
the Association will incur for the mutual benefit of all of
the Owners of Condominium Units, costs and expenses (herein
"common expense "). To provide the funds necessary for such
proper operation, management and capital improvement, the
Association has been granted the right to make, levy and
collect assessments against the Unit Owners and their Condo-
minium Units. In furtherance thereof, the following provi-
sions shall be operative and binding upon the Owners of all
Condominium Units:
A. All assessments levied against the Unit Owners and
their Condominium Units shall be uniform and, unless specifi-
cally otherwise provided for herein, all assessments made by
the Association shall be in such an amount that any assess-
ment levied against a Unit Owner and his Condominium Unit
shall bear the same ratio to the total assessment made
against all Unit Owners and their Condominium Units as the
undivided interest in Common Property appurtenant to each
Condominium Unit bears to the total undivided interest in
Common Property appurtenant to all Condominium Units. Should
the Association be the owner of a Condominium Unit or Units,
the assessment which would otherwise be due and payable to
the Association by the Owner of such Unit or Units, reduced
by the amount of income which may be derived from the leasing
of such Unit or Units by the Association, shall be appor-
tioned and assessment therefor levied ratably among the
Owners of all Units which are not owned by the Association,
based upon their proportionate interests in Common Property
exclusive of the interests therein appurtenant to any Unit or
Units owned by the Association.
B. Assessments provided for herein shall be payable in
monthly installments, or in such other manner as the Board of
Directors of the Association shall determine and shall
commence when determined by the Board of Directors.
C. The Board of Directors of the Association shall
establish an Annual Budget in advance for each fiscal year
(which shall correspond to the calendar year, except that in
the initial year of operation of the Condominium, the fiscal
16
�.
,��
Bcad41 ;,-i el
year shall commence with the closing of the sale of the first
Condominium Unit). Such budget shall project all expenses
for the forthcoming year which may be required for the proper
operation, management and maintenance of the Condominium,
including a reasonable allowance for contingencies and
reserves, such budget to take into account anticipated income
which is to be applied in reduction of the amounts required
to be collected as an assessment each year. The Board of
Directors shall keep separate, in accordance with paragraph
"D" hereof, items relating to operation and maintenance from
items relating to capital improvements. Upon adoption of
such Annual Budget by the Board of Directors of the Associa-
tion, copies shall be delivered to each Owner of a Condomin-
ium Unit and the assessment for said year shall be esta-
blished based upon such budget, although the non - delivery of
a copy of it to each Owner shall not affect the liability of
any owner for such assessment. Should the Board of Directors
at any time determine that the assessments levied are insuf-
ficient to pay the costs of operation and management of the
Condominium, or in the event of emergencies, the Board of
Directors shall have the authority to levy such additional
assessments as it may deem necessary.
D. The Board of Directors of the Association, in
establishing the Annual Budget for operation, management and
maintenance of the Condominium, shall designate a sum to be
collected and maintained as a reserve fund for replacement of
and capital improvements to the Common Property (herein
"Capital Improvement Fund ") for the purpose of enabling the
Association to replace structural elements and mechanical
equipment constituting a part of the Common Property, and the
replacement of personal property constituting a portion of
the Common Property held for the joint use and benefit of the
Owners of Condominium Units. The amount to be allocated to
the Capital Improvement Fund may be established by the Board
of Directors who shall collect and maintain a sum reasonably
necessary to anticipate the need for replacement of Common
Property. The amount collected for the Capital Improvement
Fund shall be maintained in a separate account by the Associ-
ation and shall be used only to make capital improvements to
Common Property. Any interest earned on the Capital Improve-
ment Fund may be expended for current operation and mainten-
ance.
E. All funds collected by the Association shall be
treated as the separate property of the Association, and such
funds may be applied by the Association to the payment of any
expense of operating and managing the Condominium, or to the
proper undertaking of all acts and duties imposed upon it by
this Declaration, the Articles of incorporation and the
By -laws of the Association. Although all funds and common
surplus, including other assets of the Association, and any
increments thereto or profits derived therefrom or from the
leasing or use of Common Property, shall be held for the
17
t
.��r rr�r ��s W ii �■ i i �r.■ri i iii ■■�■ .. � ��■ ■
--r3 -F _t.> U� e� #�i� :,,vp,•AyY�; Y.: �r •��"�sr --' .•.�• _ t �v:Yu -v '• - Tit - .s. ^ cra+is . __: }v..�
benefit of the members of the Association, no member of the
Association shall have the right to assign, hypothecate,
pledge or in any manner transfer his membership interest
therein, except as an appurtenance to his Condominium Unit.
When the Owner of a Condominium Unit shall cease to be a
member of the Association, the Association shall not be
required to account to such Owner for any share of the fund
or assets of the Association, or which may have been paid to
the Association by such owner, as all funds which any Owner
has paid to the Association shall constitute an asset of the
Association which may be used in the operation and management
of the Condominium.
F. The payment of any assessment or installment
thereof shall be in default if such assessment or installment
is not paid to the Association within thirty (30) days of its
due date. When in default, the delinquent assessment or
delinquent installment thereof due to Association shall bear
interest at twelve percent (12 %) until paid in full to the
Association.
G. The Owner or owners of each Condominium Unit shall
be personally liable, jointly and severally, to the Associa-
tion for the payment of all assessments, regular or special,
which may be levied by the Association against such Condomin-
ium Unit while such party or parties arc Owner or Owners of a
Condominium Unit. In the event that any Unit Owner or Owners
are in default in payment of any assessment or installment
owed to the Association, such Unit owner or Owners shall be
Personally liable, jointly and severally, for interest on
such delinquent assessment or installment thereof as above
Provided, and for all costs of collecting such assessment or
installment and interest thereon, including reasonable
attorney's fees, whether suit be brought or not.
H. No Owner of a Condominium Unit may exempt himself
from liability for any assessment levied against him or his
Condominium Unit by waiver of the use of enjoyment of any of
the Common Property, or by abandonment of the Condominium
Unit or in any other way.
I. Recognizing that proper operation and management of
the condominium requires the continuing payment of costs and
expenses therefor, and that such proper operation and main-
tenance results in benefit to all of the Owners of Condomin-
ium Units, and that the payment of such common expenses
represented by the assessments levied and collected by
Association is necessary in order to preserve and protect the
investment of each Unit Owner, the Association is hereby
granted a lien upon each Condominium Unit and its appurtenant
undivided interest in Common Property, which lien shall
secure the funds due for all assessments now or hereafter
levied against the owner of each such Condominium Unit, which
lien shall also secure all costs and expenses, including a
18
n544is 23
reasonable attorney's fee, which may be incurred by the
Association in enforcing this lien upon said Condominium
Unit. The lien granted to the Association may be foreclosed
in the same manner that real estate deeds of trust and
mortgages may be foreclosed in the State of North Carolina,
and in any suit for the foreclosure of said lien, the Associ-
ation shall be entitled to reasonable rental from the Owner
of any Condominium Unit from the date on which the payment of
any assessment or installment thereof became delinquent, and
shall be entitled to the appointment of a Receiver for said
Condominium Unit. The lien granted to the Association shall
further secure such advances for taxes, and payments on
account of superior mortgages, liens or encumbrances which
may be required to be advanced by the Association in order to
preserve and protect its lien, including interest at twelve
(12 %) percent on any such advances so made. All persons, who
shall acquire any interest in the ownership of any Condomin-
ium Unit, or who may be given or acquire a mortgage, lien or
other encumbrance thereon, are hereby placed on notice of the
lien rights granted to the Association, and shall acquire
such interest in any Condominium Unit expressly subject to
such lien rights.
J. The lien herein granted to the Association shall be
enforceable from the time of recordinq a claim of lien in the
Public Records of Catawba County, North Carolina, which claim
shall state the description of the Condominium Unit encum-
bered thereby, the name of the record owner, the amount due
and the date when due. The claim of lien shall be recordable
any time after default and the lien shall continue in effect
until all sums secured by said lien shall have been fully
paid. Such claims of lien shall include only assessments
which are due and payable when the claim of lien is recorded,
plus interest, costs, attorney's fees, advances to pay taxes
and prior encumbrances and interest thereon. it shall be
signed and verified by an officer or agent of the Asso-
ciation. Upon full payment of all sums secured by such claim
of lien, it shall be satisfied of record.
The lien provided for herein shall be subordinated to
the lien of any mortgage or deed of trust. Any person, firm
or corporation acquiring title to any Condominium Unit and
its appurtenant undivided interest in Common Property by any
foreclosure, deed in lieu of foreclosure, or judicial sale,
shall be liable and obligated only for assessments as shall
accrue and become due and payable for said Condominium Unit
and its appurtenant undivided interest in common Property
subsequent to the date of acquisition of such title, and it
shall not be liable for the payment of any assessments which
were in default and delinquent at the time it acquired such
title. In the event of the acquisition of title to a Condo-
minium Unit by foreclosure, deed in lieu of foreclosure, or
judicial sale, any assessment for which the party so ac-
quiring title shall not be liable shall be absorbed and paid
19
acodM ;
by all Owners of all Condominium Units as a part of the
common expense, although nothing herein contained shall
release the party liable for such delinquent assessment from
the payment thereof or the enforcement of collection of such
payment by means other than foreclosure.
K. Whenever any Condominium Unit may be leased, sold
or mortgaged by the Owner thereof, the Association, upon
written request, shall furnish to the proposed lessee, pur-
chaser or mortgagee, a statement verifying the status of
payment of any assessment which shall be due and payable to
the Association by such Unit. Such statement shall be
executed by any officer of the Association, and any lessee,
purchaser or mortgagee may rely upon such statement in
concluding the proposed lease, purchase or mortgage trans-
action, and the Association shall be bound by such statement.
In the event that a Condominium Unit is to be leased,
sold or mortgaged at the time when payment of any assessment
against the Owner of said Condominium Unit and such Condomin-
ium Unit due to the Association shall be in default (whether
or not a claim of lien has been recorded by the Association),
then the rent, proceeds of such purchase or mortgage pro-
ceeds, shall bp applied by the lessee, purchaser or mortgagee
first to the payment of any then delinquent assessment or
installments thereof due to the Association before the
payment of any rent, proceeds of purchase or mortgage pro-
ceeds to the Owner of any Condominium Unit who is responsible
for payment of such delinquent assessment.
In any voluntary conveyance of a Condominium Unit, the
purchaser thereof shall be jointly and severally liable with
seller for all unpaid assessments against seller made prior
to the time of such voluntary conveyance, without prejudice
to the rights of the purchaser to recover from seller the
amounts paid by purchaser therefor.
Institution of a lawsuit to attempt to collect the
payment of any delinquent assessment shall not be an election
by the Association which shall prevent it from thereafter
seeking, by foreclosure action, enforcement of the collection
of any sums remaining owing to it, nor shall proceeding by
foreclosure to attempt such collection be deemed to be an
election precluding the institution of a suit at law to
collect any sum then remaining owing to Association.
25. BOAT SLIP ASSESSMENTS: LIABILITY LIED AND ENFORCE-
MENT. Eac S i Owner shall contribute, in accordance with
tTie formula set forth below, toward the expenses of admini-
stration, care of, maintenance and repair of the Boat Slips
(i.e., the "Boat Slip Expenses "). Each Slip Owner's share of
such expenses shall be equal to a fraction, the numerator of
which is the number of Slips which the Slip Owner is licensed
to use, and the denominator of which is the total number of
20
ccOr:HIS
Boat Slips. Due date for payment of such Boat Slip Expenses
shall be established by the Board of Directors of the
Association and such Boat Slip Expenses shall be collected at
least monthly. In order to enforce the collection of the
Boat Slip Expenses, the Association shall have lien rights as
more fully described below; provided, however, that such lien
for unpaid Boat Slip Expenses becoming payable on or after
the date of recordation of any mortgage which is a lien on
any Unit and all fees, late charges, fines and interest
levied by the Association in connection with any such unpaid
assessment for Boat Slip Expenses, shall be and is hereby
subordinated to the lien of such mortgage. Assessments for
Boat Slip Expenses shall commence upon the conveyance of the
first Slip. Non - Member Licensees shall be assessed and
liable for and shall pay Boat Slip Assessments in the same
manner as is hereinabove provided for Slip Owners. No liens
shall attach to the interest in a Slip of any Non - Member
Licensee for failure to pay the proportionate share of the
Boat Slip Expenses assessed against such Non - Member Licensee,
but the Association shall have the power, in accordance with
rules and regulations promulgated by the Association, to
revoke the license of a Non- Member Licensee for failure to
pay its proportionate share of Boat slip Expenses.
A. The Board of Directors of the Association shall from
time to time and at least annually prepare a budget for the
Boat Slips, determine the amount of common charges payable by
the Slip Owners and Non - Member Licensees to meet the Boat
slip Expenses, and allocate and assess such Boat Slip Ex-
penses among the Slip Owners and Non - Member Licensees accord-
ing to the formula set forth above. Boat Slip Expenses shall
include, among other things, the cost of all insurance
premiums on all policies of insurance obtained by the Board
of Directors of the Association on the Boat Slips. The Boat
Slip Expenses shall also include such amounts as the Board of
Directors of the Association shall deem proper for the
operation and maintenance of the Boat Slips, including
without limitation, a reserve fund for periodic aintethece,
repair and replacement, and to make up y deficit in
Boat Slip Expenses for any prior year. The Board of Direc-
tors of the Association shall advise all Slip Owners and
Non - Member Licensees promptly and in writing the amount of
the Boat Slip Expenses payable by each of them, respectively,
as determined by the Board of Directors of the Association,
as aforesaid, and shall furnish copies of each budget on
which such Boat Slip Expenses are based, to all Slip owners
and Non- Member Licensees.
B. All Slip Owners and Non - Member Licensees shall be
obligated to pay the Boat Slip Expenses assessed by the Board
of Directors of the Association at such time or times as the
Board shall determine.
21
IC3441$ 0
C. No Slip owner or Non - Member Licensee shall be liable
for the payment of any part of the Boat Slip Expenses as-
sessed against its Slip subsequent to a sale, transfer or
other conveyance by him (made in accordance with the pro-
visions of this Declaration and applicable rules and regu-
lations) of the license to use such Slip. The obligation of
a Slip owner or Non - Member Licensee to pay the Boat Slip
Expenses assessed during his ownership of such Slip is a
personal obligation and shall not pass to any purchaser of
the license to use such Slip unless expressly assumed by such
purchaser.
D. The Board of Directors of the Association shall
assess Boat Slip Expenses against the Slip owners and Non -
Member Licensees from time to time and at least monthly and
shall take prompt action to collect any Boat Slip Expenses
which remain unpaid for more than 30 days after the due date
for payment thereof. The Board of Directors of the Associa-
tion shall notify the holder of any first lien security
interest in any Boat Slip license (of which it has notice)
for which any Boat Slip Expenses assessed pursuant to this
Declaration remain unpaid for more than 30 days from the due
date for payment thereof and in any other case where the Slip
owner or Non - Member Licensee of such Boat Slip is in default
with respect to the performance of any other obligation
hereunder for a period in excess of 30
E. In the event of default by any Slip owner in paying
to the Board of Directors of the Association the Boat Slip
be
Expenses as determined by the Board, such Slip Expenses shall the
obligated to pay interest on such Boat Slip P es
due date thereof at the rate of 12% per annum;
together with
all expenses, including reasonable attorneys' fees, incurred
by the Board in any proceeding brought to collect such unpaid
Boat Slip Expenses. The Board of Directors of the Associa
tion shall have the right with interest t� and the
recover such
Boat Slip Expenses, together
expenses of the proceedings, including reasoable a
fees, in an action to recover a money judgment same
brought against such Slip owner, or by foreclosure of the
lien on his Unit in like manner as a deed of trust or mort-
gage of real property. The Board of Directors shall also
have the right to impose uniform late payment for
delinquent Boat Slip Expense ments, which c charges shall
also be recoverable by proceedings
F. In the event of default by any Nan - Member Licensee
in paying to the Board of Directors of the Association the
Boat Slip Expenses as determined by the Board, such Non -
Member Licensee shall be obligated to pay interest on such
of
Boat Slip Expenses from the due date thereof the r reason-
121 per annum; together with all expenses, g
able attorneys' fees, incurred by the Board in any proceeding
brought to collect such unpaid Boat Slip Expenses. The Board
22
A
of the Association shall have the right and duty to attempt
to recover such Boat Slip Expenses, together with interest
thereon, and the expenses of the proceedings, including
reasonable attorneys' fees, in an action to recover a money
judgment for the same brought against such Non - Member Licens-
ee. The Board of Directors of the Association shall be
permitted to revoke the license of a Non - Member Licensee for
non - payment of Boat Slip Expenses as herein permitted and in
accordance with procedures therefor set forth in the License
agreement whereby a Non - Member Licensee acquires the right to
use a Boat Slip. The Board of Directors of the Association
shall also have the right to impose on Non - Member Licensees
uniform late payment charges for delinquent Boat Slip Expense
payments, which charges shall also be recoverable by the pro-
ceedings specified above, and the Board of Directors shall
have the further right to commence or to continue any pro-
ceedings permitted hereby against a Non - Member Licensee for
non- payment of Boat Slip Expenses notwithstanding the
revocation of the license relating thereto. After revocation
of the license of a Non - Member Licensee, the Board of Direc-
tors of the Association shall have the right to resell such
license on such terms and conditions as it shall in good
faith deem proper and to deduct from
the proceeds or revenue of such sale all the reasonable
costs, fees and expenses of whatever nature incurred by the
Association in the revocation of such license and in the
repair or refurbishing, if any, of the Slip for which such
license has been revoked, together with all theretofore
uncollected Boat Slip Expenses relating thereto. The remain-
der of such revenue or proceeds, if any, shall be paid to the
former Non - Member Licensee by the Board of Directors of the
Association as and when received.
G. All Boat slip Expenses, together with the interest
and expenses, including reasonable attorneys' fees, as
provided for herein, shall be a charge on and a continuing
lien upon the Unit of the Unit owner against whom the assess-
ment for Boat Slip Expenses is made, which such lien shall be
prior to all other liens excepting only (a) tax liens on the
Unit in favor of any assessing authority, (b) all sums unpaid
on mortgages of record against the Unit prior to the docket-
ing of such lien and (c) materialmen's and mechanics' liens.
such lien shall become effective when a notice thereof has
been filed in the office of the Clerk of Superior Court for
Catawba County, North Carolina, provided such notice of lien
shall not be recorded until such sums assessed remain unpaid
for a period of not more than 30 days after the same shall
become due. Such notice of lien shall also secure all
assessments against the Slip owner becoming due
until the lien has been satisfied. in addition, each Slip
owner shall be personally liable for any such assessment. No
Slip Owner may exempt himself from such liability by the
abandonment or transfer of his Slip.
23
aGOx14IS ., : 28
H. In any action brought by thn Board to foreclose on a
Unit because of unpaid Boat Slip Expenses, the Unit owner
shall be required to pay a reasonable rental for the use of
his Slip, and the plaintiff in such foreclosure action shall
be entitled to the appointment of a receiver to collect the
same. The Board of Directors of the Association, acting on
behalf of all Unit owners, or on behalf of any one or more
individual Unit Owners if so instructed, shall have the power
to purchase such Unit at the foreclosure sale and to acquire,
hold, lease, mortgage, vote the votes appurtenant to, convey
or otherwise deal with the same, subject, however, to appli-
cable restrictions of record. A suit to recover a money
judgment for unpaid Boat Slip Expenses shall be maintainable
without foreclosure or waiving the lien securing the same.
I. In the event a mortgagee or other purchaser (other
than the Association) purchases and takes title to a Unit as
a result of a foreclosure, or proceedings held in lieu of
foreclosure by the Mortgagee, with respect to the first
mortgage on such Unit, such purchaser, his successors and
assigns, shall not be liable for the share of the assessment
for Boat Slip Expenses which became due prior to the acquisi-
tion of title to such Unit by such purchaser. however, such
unpaid share of Boat Slip Expenses shall be deemed as general
Boat Slip Expenses collectible pro rata from all of the Slip
Owners including such purchaser, his successors and assigns.
J. In the event of revocation of the license of a Non -
Member Licensee, no subsequent licensee of the Boat Slip
subject to such revoked license shall be liable for the share
of the assessment for Boat Slip Expenses which became due
prior to revocation of such .license. However, such unpaid
share of Boat Slip Expenses shall be deemed as general Boat
Slip Expenses collectible pro rata from all of the remaining
Slip Owners and Non - Member Licensees including such subse-
quent licensee, his successors and assigns.
K. The Hoard of Directors of the Association shall
promptly provide any Slip owner or Non - Member Licensee so
requesting the same in writing, with a written statement of
all unpaid Boat Slip Expenses due from such Slip Owner or
Non - Member Licensee. The Board may charge a reasonable fee
providing such written report.
26. COMMON SURPLUS. "Common Surplus ", meaning all
funds and other assets of the Association (i.ncluding excess
of receipts of the Association, including but not limited to
assessments, rents, profits and revenues from whatever source
over amount of the common expense), shall be owned by the
at
Owners of all Condominium Units in the same proportion
the undivided interest in Common Property appurtenant
Owner's Condominium Unit bears to the total of .111 undivided
interest in Common Property appurtenant to all Condominium
Units; provided, however, that said common surplus shall be
24
�i
ecaK 1fS 29
held by the Association in the manner, and subject to the
terms, provisions and conditions of this Declaration, im-
posing certain limitations and restrictions upon the use and
distribution thereof. Except for distribution of any insur-
ance indemnity herein provided, or upon termination of the
Condominium, any attribution or distribution of common
surplus which may be made from time to time shall be made to
the then Owners of Condominium Units in accordance with their
percentage interest in common surplus as declared herein.
27. TEMINAT The Condominium shall be terminated,
if at all, in the following manner:
A. The termination of the Condominium may be effected
only by the unanimous agreement of all Condominium Unit
Owners expressed in an instrument duly recorded; and, pro-
vided that the holders of all liens affecting any of the
Condominium Units consent thereunto, or agree, by instrument
duly recorded, that their liens be transferred to the per-
centage of the undivided interest of the Condominium Unit
Owner in the Property as provided in subparagraph "C" below.
The termination shall become effective when such agreement
has been recorded in the public records of Catawba County,
North Carolina.
B. If it is determined in the manner elsewhere pro-
vided that the Condominium shall not be reconstructed after
casualty, the Condominium plan of ownership shall be termi-
nated and the Declaration of Condominium revoked. The
determination not to reconstruct after casualty shall be
evidenced by a Certificate of the Association certifying as
to the facts effecting the termination, which Certificate
shall become effective upon being recorded in the public
records of Catawba County, North Carolina.
C. After termination of the Condominium, the Condo-
minium Unit Owners shall own the Property as tenants in
common in undivided shares and the holders of mortgages and
liens against the Condominium Unit or Units formerly owned by
such Condominium Unit Owners shall have mortgages and liens
upon the respective undivided shares of the Condominium Unit
Owners. The undivided share or interest owned as tenants in
common shall be that percentage of the undivided interest in
the Common Property previously owned by each Unit Owner. All
funds held by the Association and insurance proceeds, if any,
shall be held for the Unit Owners in the same proportion.
The costs incurred by the Association in connection with the
termination shall be a Common Expense.
D. Following termination, the property may be parti-
tioned and sold upon the application of any Condomi»ium Unit -
Owner. Following a termination, if the Board of Directors
determines by not less than a three - fourths (3/4) vote to
accept an offer for the sale of the property, each
25
aco -4,z 3Q
Condominium Unit Owner shall be bound to execute such deeds
and other documents reasonably required to effect such sale
at such times and in such form as the Board of Directors
directs. In such event, any action for partition or other
division of the property shall be held in abeyance pending
such sale, and upon the consummation thereof shall be discon-
tinued by all parties thereto.
E. The members of the Board of Directors acting
collectively as agent for all Condominium Unit Owners, shall
continue to have such powers as granted herein, even though
the Association may be dissolved upon a termination.
28. AMENDMENT OF DECLARATION OF CONDOMINIUM. This
Declaration of Condominium may be amende in the following
manner:
A. 'An Amendment to this Declaration of Condominium may
be proposed by the Board of Directors of the Association
acting upon a vote of a majority of the Directors, or by the
members of the Association owning a majority of the Condomin-
ium Units, whether meeting as members or by instrument in
writing signed by them. Upon any Amendment to this Declara-
tion being proposed by the Board of Directors or members,
such proposed Amendment shall be transmitted to the President
of the Association, or other officer of the Association in
the absence of the President, who shall thereupon call a
Special Meeting of the members of the Association for a date
not sooner than twenty (20) days nor later than sixty (60)
days from receipt by him of the proposed Amendment. It shall
be the duty of the Secretary to give to each member written
notice of such Special Meeting, stating the time and place,
and reciting the proposed Amendment in reasonably detailed
form, which notice shall be mailed not less than ten'(10)
days nor more than thirty (30) days before the date set for
such Special Meeting. if mailed, such notice shall be deemed
to be properly given when deposited in the United States Mail
addressed to the member at his Post Office address as it
appears on the records of the Association, the postage
thereon prepaid. Any member may, by written waiver of notice
signed by such member, waive such notice, and such waiver,
when filed in the records of the Asso shall o be deemed
or after the holding of the meeting,
lent to the giving of notice to such member. At the meeting,
the Amendment proposed must be approved by an affirmative
vote of seventy -five (75 %) percent of the members owning
Units in the Condominium in order for such Amendment to
became effective. Thereupon such Amendment off this
tion shall be transcribed and certified by the
Secretary of the Association as having dulentdsoted.
The-original or an executed copy
certi-
fied and executed with the same formalities as a deed, shall
be recorded in the Catawba Public Registry within ten (10)
days from the date on which the same became effective. At
26
>:
kco..Ai8 3l
any meeting held to consider such Amendment, the written vote
of any member of the Association shall be recognized if such
member is not in attendance at such meeting or represented
thereat by proxy, provided such written vote is delivered to
the Secretary of the Association prior to such meeting or at
such meeting.
B. No alteration in the percentage of ownership in
Common Property appurtenant to each Condominium Unit, or
alteration of the basis for sharing common expenses and other
apportionment of assessments which may be levied by the
Association in accordance with the provisions hereof, or
alteration of basis of ownership of Common Surplus, or
alteration of voting rights in the Association, shall be made
without the prior written consent of all of the owners of all
Condominium Units and all of the Lenders holding first
mortgages or first deeds of trust on the Condominium Units.
C.' No alteration, amendment or modification of the
rights and privileges granted and reserved hereunder in favor
of Lender shall be made without prior written consent of all
Lenders holding mortgages on Condominium Units in the Condo-
minium being first had and obtained.
D. No alteration, amendment or modification of the
rights and privileges granted and reserved hereunder in favor
of Declarant shall be made without the written consent of
said party being first had and obtained.
29. REMEDIES IN EVENT OF DEFAULT. The owner or Owners
of each Condominium Unit shall be governed by and shall com-
ply with the provision of this Declaration and the Articles
of Incorporation and Bylaws of the Association, as they may
be amended from time to time. A default by the Owner of any
Condominium Unit shall entitle the Association or the Owner
of other Condominium Units to the following relief:
A. Failure to comply with any of the terms of this
Declaration or other restrictions and regulations contained
in the Articles of Incorporation or Bylaws of the Associa-
tion, or which may be adopted pursuant thereto, shall be
grounds for relief including without limitation an action to
recover sums due for damages, injunctive relief, foreclosure
of lien, or any combination thereof. Such relief may be
sought by the Association or, if appropriate, by an aggrieved
Unit Owner.
B. Each Unit owner shall be liable for the expense of
any maintenance, repair or replacement rendered necessary by
his act, neglect or carelessness, or by that of any member of
his family, or his or their guests, employees, agents or
lessees, but only to the extent that such expense is not met
by the proceeds of insurance carried by the Association.
Such liability shall include any increase in fire insurance
27
ss
..9E
k-co,4418 -.<< 32
rates occasioned by use, misuse, occupancy or abandonment of
a Condominium Unit or its appurtenances. Nothing herein
contained, however, shall be construed so as to modify any
waiver by insurance companies of rights of subrogation.
C. In any proceeding arising because of an alleged
default by a Unit Owner, the Association shall be entitled to
recover the costs of the proceeding and reasonable attorney's
fees.
D. The failure of the Association or any Unit Owner to
enforce any right, provision, covenant or condition which may
be granted by this Declaration or the other above - mentioned
documents shall not constitute a waiver of the right of the
Association or of the Unit Owner to enforce such right,
provision, covenant or condition in the future.
E. All rights, remedies and privileges granted to the
Association or the Owner or owners of a Condominium Unit
pursuant to any terms, provisions, covenants or conditions of
this Declaration or other above - mentioned documents, shall be
cumulative, and the exercise of any one or more shall not
constitute an election of remedies, nor shall it preclude the
party thus exercising the same from exercising such other and
additional rights, remedies or privileges as may be available
to such party at law or in equity.
F. The failure of Declarant to enforce any right,
privilege, covenant or condition which may be granted to it
by this Declaration or other above - mentioned documents shall
not constitute a waiver of the right of Declarant to there-
after enforce such right, provision, covenant or condition in
the future.
G. The failure of a Lender to enforce any right,
provision, privilege, covenant or condition which may be
granted to it or them by this Declaration or other above -
mentioned documents, shall not constitute a waiver of the
right of said party or parties to thereafter enforce such
right, privilege, covenant or condition in the future.
30. RIGHTS RESERVED UNTO LENDERS. As long as any
Lender shall ho any mortgage upon any Condominium Unit or
Units, or shall be the Owner of any Condominium Unit or
Units, such Lender shall have the following rights:
A. To approve the company or companies with whom
casualty insurance is placed.
B. To examine, upon request and at reasonable times
and upon reasonable notice, the books and records of the
Association; and to be furnished at least one copy of the
Annual Financial of z
Accountant designated ation by
28
cle k•S r..c'- u r:� '�.`'" ';4'' +"ii�r rF'•, "fi + 't "`�"i?-t n nP i :s•K ss ." , 't e..k v - ' t w?. s+..� exi acv .-?`:
the Association, such Financial Statement and Report to be
furnished by April 1 of each calendar year.
C. To be given written notice by the Association of
the call of any meeting of the membership, which notice shall
state the purpose of such meeting; and to designate a repre-
sentative to attend.
D. To be given written notice of default by any Owner
owning a Condominium Unit encumbered by a mortgage held by
the Lender, such notice to be sent to the place which it may
designate in writing.
E. To be given written notice of any loss to or taking
of, the common elements of the Condominium if such loss or
taking exceeds $10,000 or damage to a Condominium Unit in
excess of $1,000.
F. To receive written notice of any condemnation or
eminent domain proceeding or proposed acquisition by a
condemning authority.
Whenever any Lender desires the provisions of this
Article to be applicable to it, it shall serve written notice
of such fact upon the Association by Registered Mail or
Certified Mail addressed to the Association and sent to its
address stated herein, identifying the'Condominium Unit or
or
Units upon which any such Lender holds any mortgage b
with
identifying any Condominium Units owned by it, toget
sufficient facts to identify such mortgage and which notice
shall designate the place to which notices are to be given by
the Association to such Lender.
31. RIGHT OF DECLARANT TO REPRESENTATION ON BOARD OF
DIRECTORS OF THE ASSOCIATION. So long as Declarant owns our
or more Condominium Units In the Condominium, but in any
event, no longer than July 1, 1986, Declarant shall have the
shall servesasnmembers se ofyDirectorseofo w ho
the
Association.
In the event of dissolution of Declarant at the time
when it is the Owner of a Condominium Unit, then the rights
of the Declarant shall pass to and may be exercised by its
successors receiving ownership of any such Condominium Unit
in dissolution.
Whenever Declarant shall be entitled to designate and
select any person to serve on the Board of Directors of the
Association, the manner povided which shall -
of Incorporation
Hated shall be as p
and /or Bylaws of the Association, and Declarant shall have
the right to remove any person selected by it to act and
serve on said Board of Directors and to replace such person
29
-
- - '�.(a�t��"d' +9Y��!& v..�. �ra,x'-� ..� s �:z .� - � f+�`T.� .:i. �+, f —� ..� t „ _ ,. •M - .y, ny 4 .,s..�xa ,�'r - -- ,.,..
m ' 34
with another person to act and serve in the place of any
Director so removed for the remainder of the unexpired term
of any Director so removed. Any Director designated and
selected by Declarant need not be a resident in the Condomin-
ium. However, Declarant shall be responsible for the payment
of any assessments which may be levied by the Association
against any Condominium Unit or Units owned by the said
Declarant and for complying with the remaining terms and
provisions hereof in the same manner as any other Owner of a
Condominium Unit or Units.
32. MISCELLANEOUS.
A. In the event that any of the terms, provisions or
covenants of this Declaration are held to be partially or
wholly invalid or unenforceable, such holding shall not
affect, alter, modify or impair in any manner any of the
other terms, provisions or covenants hereof or the remaining
portions of any terms provisions or covenants held to be
partially invalid or unenforceable.
B. The provisions of this Declaration shall be liber-
ally construed to effectuate its purpose of creating a
uniform plan of Condominium ownership. Throughout this
Declaration wherever appropriate the singular shall include
the plural and the masculine gender the feminine or neuter.
The Article headings are for convenience of reference only
and shall not be considered terms of this Declaration.
C. The restrictions and burdens imposed by the cove-
nants of this Declaration shall constitute covenants running
with the land, and shall constitute an eq uitable
upon each oCommon1Property. This Declaration shall be
interest in
binding upon Declarant, its succebecomeaownersios
fCondominium
all parties who may subsequently
Units in the Co nd o minium,
rs th respective heirs, legal
representatives
D. The following named individ is de as the
person to receive service of p ro c ess
David T. Seaford
Slanting Bridge Road
Sherrills Ford
Catawba County
North Carolina 28673
30
bcDdUS Z.
IN WITNESS WHEREOF, Seawood Properties has caused these
presents to he executed in its name, by a Reneral Partner,
and under its seal, this __)_2� day of
1485, at Charlotte, North Carolina.
SEAWOOD PROPERTIES, a North Carolina
Partnership
By: Seaford Enterprises, Inc., as
General Partner
By:
Dave T. Searo resident .
ATTEST: y
Secretary(—/
= �QmItAQRATE SEAL)
s
IM 3
� v
31
35
-, , .., zs.�'r.•:9c ,X."�� ��i F..g"�s- 4ch, �.Y.�tt.t �'�i'�r Sn a c� �a �., t N�.+t . ,� _
_ .�: -- .;H... ;...,.._, .... .. .. e ;.._. ., •Sn7. ., .. ar."'�- .:Y;a:.'+'..1., a..a....... � ._...i.._.,,. . ,..:., ...,: .. L� �___ .,c. .... __ ?�:.�a'�,��. �'.'.'.'�. ._�_�:.:; .'ar, f't .ti :,,.....
r
STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG
Er,M418 : ' 36
I, filoliv. sj',AJLZ I , a notary public in
and pr sail co nt ar}d state do hereby certify that
4 personally came before me this day
an acknowle ged hat he' is Secretary of SEAFORD
ENTERPRISES, INC. and that, by authority duly given and as
the act of the corporation, the foregoing instrument was
signed in its name by its President, sealed with its
corporate seal and attested by himself as its Secret ' ary.•.,
2 L %a ;
_L j(� J
wIT ESS my hand and official seal this the � as fl .� j•:...
1985. .�.. JJ.
-- �Pogary Public
My Commission Expires:
Southeastern Savings & Loan Company, as holder of a promissory
note secured by a deed of trust on the property described in
Exhibit A attached, joins in the execution hereof for the pur-
pose of subjecting the aforesaid deed of trust to the terms and
provisions of this Declaration of Condominium.
(CORPORATE SEAL) SOUTHEASTERN SAVINGS & LOAN COMPANY
ATTEST:
H y :
�. -'-President
A e , ,Secretary
\.,
FORTH CAROLINA
MEC.KLENBURG
a notary public in
"'•,,��'�itZ••f�1t?,' county and state do he certify that
al
personally came before me this day
and accnow edged t atahe is ( Secretary of SOUTHEASTERN
SAVINGS & LOAN COMPANY and t at, by authority duly given and as
the act of the corporation the foregoinq instrument was
signed in its name by its U.APresident, scal.••d with its
corporate seal and atteste y himself as its __ Q"_"'
WITNESS m hand and official
etazy.
seal this the �`�.
nn /' ���1fl0�•
;.
,
��� �7 /'��'���lCc� •'` • .. 'l,'':.
(JI Notary Publib a ` -� ?•: ��•
My Commission Expires: ," .f
32
bov14j'.S 37
EXHIBIT _ BIT A
PROPERTY OF SEAWOOD PROPERTIES
MOUNTAIN CREEK TOWNSHIP
CATAWBA COUNTY, NORTH CAROLINA
BEGINNING at a R.R. spike in the centerline of Slanting
Bridge Road (S.R. #1844), which spike is in the southeasterly
corner of Lot 31 as shown in Plat Book 15 at Page 12 in the
Catawba County Registry, which spike is also the westerly
corner of property now or formerly owned by Joan Moore, as
described in Book 1325 at Page 909 in the Catawba County
Registry, and which spike is located S. 83 -15 -30 W.-116.61
feet from an •iron at the center of a Duke Power steel power
line tower; thence from this POINT OF BEGINNING S. 71 -11 -18
E. 301.01 feet to an iron; thence S.56 =47 E. 27.77 feet to an
iron; thence S. 51 -19 -42 E. 182.47 feet to an iron; thence
S. 39 -33 -24 W. 11.85 feet to an iron; thence S. 23 -24 -06
W. 92.48 feet to an iron; thence S. 43- •08 -42 W. 78.36 feet
to an iron; thence S. 25- 23--54 W. 93.55 feet to an iron;
thence S. 52 -48 -12 W. 100.77 feet to an iron; thence S.
34 -38 -06 W. 172.13 feet to an iron; thence S. 61 -24 -06 W.
30.3 feet to an iron; thence S. 61 -24 -06 W. 110.20-feet to
an iron; thence S. 68 -06 -06 W. 39.18 feet to a nail in the
centerline of Slanting Bridge Road (S.R. #1844); thence with
the centerline of Slanting Bridge Road (S.R. #1844) N.
1 -56 E. 746.80 feet to a spike in the centerline of Slanting
Bridge Road (.S.R. #1844), the point and place of beginning;
as shown on a Boundary Survey for Spinnaker Bay dated
rebruary 4, 1985, prepared by D. R. Woods, N.C.R.L.S.
BEING the same property conveyed to Seawood Properties by
deeds recorded in Book 1382 at Page 761, in Book 1367 at
Page 897 and in Book 1371 at Page 512 in the Catawba Public
Registry.
STATE OF NORTH CAROLINA
CATAWBA COUNTY
The foregoing certificates of Angie Foster, Notary Public of
Lincoln County, N.C. and of Linda B. Honeycutt, Notary Public of Mecklenburg Co. N.C.
are certified to be correct.
Filed this 15th day of October, 1985 at 11:57 A.M. and duly
recorded in BOOK 1418 at Page 5 and Condo Book 1 at Unit 34.
Ruth Mackie, Register of Deeds
B60d4iS
EXHIBIT B TO DECLARATION OF .
SPINNAKER BAY CONDOMINIUMS
a t • �
Unit Number
101
102
103
105
106
107
108
110
111
112
113
114
201
202
203
205
206
207
208
209
210 .•
211
212
213
214
301
302
303
305
306
307
308
309
310
311
312
313
314
Percentage Ownership of
Common Areas and Facilities
3.85
2.33
2.36
3.28
1.95
2.39
2.45
2.45
2.39
2.33
1.95
2.45
3.91
2.41
2.45
3.36
1.98
2.48
2.53
3.48
2.53
2.48
2.45
1.98
2.53
3.97
2.47
2.50
3.42
2.01
2.53
2.59
.1.54
2.59
2.53
2.50
2.01
'2.59
100%
ft
EXHIBIT C
bu-14 39
BYLAWS
OF
SPINNAKER BAY HOMEOWNERS ASSOCIATION, INC.
A corporation not for profit under
the laws of the State of North Carolina
1. IDENTITY. These are the Bylaws of Spinnaker Bay
Home Owners Association, Inc., a non - profit corporation under
the laws of the State of North Carolina, the Articles of
Incorporation of which were filed in the Office of the
Secretary of State (herein "Association "). It has been
organized for the purpose of administering the operation and
management of Spinnaker Bay Condominiums, a condominium to be
established in accordance with the laws of the State of North
Carolina upon the property situate, lying and being in
Mountain Creek Township, Catawba County, North Carolina, and
described in Exhibit "A" of the Declaration of Condominium
and incorporated herein by reference (herein "Condominium ").
A. The provisions of these Bylaws are appli-
cable to the Condominium, and the and provi-
sions hereof are expressly subject to the terms,
provisions, conditions and authorization contained
in the Articles of Incorporation and in the Decla-
ration of Condominium which will be recorded in the
Catawba County Public Registry, North Carolina, at
the time said property and the improvements now
situated thereon are submitted to the plan of
condominium ownership, the terms and provisions of
said Articles of Incorporation and Declaration of
Condominium to be controlling wherever they may be
in conflict herewith.
B. All present or future owners, tenants,
future tenants, or their employees, or any other
person that might use the Condominium or any of the
facilities thereof in any manner, are subject to
the regulations set forth in these Bylaws and in
said Articles of Incorporation and Declaration of
Condominium.
C. The office of the Association shall be at
such place in Catawba County, North Carolina, as
the Board of Directors shall designate from time to
time.
A. The fiscal year of the Association shall
be the calendar year, except that in the initial
year of operation of the Condominium, the fiscal
F t' �srs �;-•'i is i' 3`r :.l:.. �t'y14rK kl
, s_ crr�.x... M .:,�fa ...a�rr.�. sc•1,�st._. a..
booi X 4 ia • , 40
year shall commence with the closing of the sale of
the first Condominium Unit.
2. MEMBERSHIP, VOTING, QUORUM, PROXIES
A. The qualification of members, the manner
of their admission to membership and termination of
such membership, and voting by members, shall be as
set forth in Article VI of the Articles of Incorpo-
ration of the Association, the provisions of which
said Article VI of the Articles of Incorporation
are incorporated herein by reference.
B. A quorum at members' meetings shall
consist of persons entitled to cast a majority of
the votes of the entire membership. The joinder of
a member in the action of a meeting signing and
concurring in the minutes thereof shall constitute
the presence of such person for the purpose of
determining a quorum.
C. The vote of the Owners of a Condominium
Unit owned by more than one person or by a corpo-
ration or other entity shall be cast by the one
person named in a Certificate signed by all of the
Owners of the Condominium Unit and filed with the
Secretary of the Association, and such Certificate
shall be valid until revoked by subsequent Certifi-
cate. If such a Certificate is not on file, the
vote of such owners shall not be considered for any
purpose.
D. Votes may be cast in person or by proxy,.
Proxies shall be valid only for the particular
meeting designated thereon and must be filed with
the Secretary before the appointed time of the
meeting.
E. Approval or disapproval of a Unit owner
upon any matter, whether or not the subject of an
Association meeting, shall be by the same person
who would cast the vote of such owner if in an
Association meeting.
F. The terms 0 758 of the members" or "758 of
the membership ", (or "3 /4" in lieu of "758 ") when
used in the context of membership voting rights,
shall mean the owners of at least 758 of the
aggregate interest in the Common Areas and Facil-
ities.
G. Except where otherwise required under the
provisions of the Articles of Incorporation of the
Association, these Bylaws, the Declaration of
2
bca!14 - W ; :; 41
Condominium, or whether the same may otherwise be
required by law, the affirmative vote of the
persons entitled to cast a majority of the votes at
any duly called members' meeting at which a quorum
is present shall be binding upon the members.
3. ANNUAL AND SPEC MEETING OF MEMBERSHIP
A. The Annual Members' Meeting shall be held
at a time and place designated by the Board of
Directors, on the first Tuesday in March of each
year that is not a legal holiday for the purpose of
electing Directors and of transacting any other
business authorized to be transacted by the mem-
bers.
B. Special Members' Meetings shall be held
whenever called by the President or Vice - President
or by a majority of the Board of Directors and must
be called by such Officers upon receipt of written
request from members of the Association owning a
majority of the Condominium Units.
C. Notice of all members' meetings, regular
or special, shall be given by the President, Vice -
President or Secretary of the Association, or other
Officer of the Association in absence of said
officers, to each members unless waived in writing,
such notice to be written and to state the time and
place and purpose for which the meeting is called.
Such notice shall be given to each member not less
than ten (10) days nor more than sixty (60) days
prior to the date set for such meeting, which
notice shall be mailed or delivered personally to
each member within said time. If delivered per-
sonally, receipt of such notice shall be signed by
the member, indicating the date on which such
notice was received by him. If mailed, such notice
shall be deemed to be properly given when deposited
in the United States Mail addressed to the member
at his post office address as it appears on the
Register of Owners of the Association as of the
date of mailing such notice, the postage thereon
prepaid. Proof of such mailing shall be given by
the Affidavit of the person giving the notice. Anv
member may, by signed written waiver of notice,
waive such notice and, when filed in the records of
the Association, whether before or after the
holding of the meeting, such waiver shall be deemed
equivalent to the giving of notice to the member.
If any members' meeting cannot be organized because
a quorum has not attended, or because the greater
percentage of the membership required to constitute
a quorum for particular purposes has not attended
bUil4i8 42
(wherever the latter percentage of attendance may
be required as set forth in the Articles of Incor-
poration, these Bylaws or the Declaration of
Condominium) the members who are present, either in
person or by proxy, may adjourn the meeting from
time to time until a quorum, or the required
percentage of attendance, if greater than a quorum,
is present.
D. The order of business as far as practical
at any members' meetings, shall be:
1. Calling of the roll and certi-
fying of proxies;
2. Proof of notice of meeting or
waiver of notice;
3. Reading and disposal of any
unapproved minutes;
4. Reports of Officers;
5. Reports of Committees;
6. Appointment of Inspectors of
Election by Chairman;
7. Unfinished business;
Q. New business; and
9. Adjournment.
4. BOARD OF DIRECTORS
A. The initial Board of Directors of the
Association and each succeeding Board of Directors
shall consist of three (3) persons. At least a
majority of the Board of Directors shall be members
or employees of a corporate member of the Associa-
tion. Notwithstanding the foregoing, so long as
the declarant, Seawood Properties, a North Carolina
general partnership (herein "Declarant ") owns four
or more Condominium Units in Spinnaker Bay Condo-
miniums, but in any event no longer than July 1,
1986, the Declarant shall have the right to select
a majority of the persons who shall serve as
members of each Board of Directors of the Associa-
tion. Any Director selected by Declarant need not
be a resident in the Condominium.
B. Election of Directors shall be conducted
in the following manner:
1. Declarant shall, at the beginning
of the election of the Board of Directors
select that number of the members of the
Board of Directors which it shall be
entitled to select in accordance with the
provisions of these Bylaws, and upon such
selection of Declarant by written
,Y
) F
BGAU8 43
instrument presented to the meeting at
which such election is held, said individ-
uals so selected by Declarant shall be con-
sidered Directors of the Association, and
shall thenceforth perform the offices and
duties of such Directors until their
successors shall have been elected these
accordance with the provisions
Bylaws.
2. All members of the Board of
Directors whom Declarant shall not be
entitled to select under the terms and
provisions of these Bylaws, shall be cast at
elected by a plurality of the votes
the Annual Meeting of the members of the
Association immediately following the
selection of the members of the Board of
Directors whom Declarant shall be entitled
to select.
3. Vacancies in the Board of Direc-
tors may be filled until the d of the
next Annual Meeting by the Directors, except that should any vacancy
in the Board of Directors be created in any
Directorship previously filled by any
person selected by Declarant, such vacancy
shall be filled by Declarant selecti f , by
written instrument d Che v successor Director
of the Association,
to fill the vacated Directorship for the
unexpired term thereof.
q. The initial Board of Directors
will consist of the three members whose
names are set forth in the Articles of
Incorporation. From and after the sdate of
the first annual meeting f
shall be three Directors. The initial
Board shall serve until their successors at
the first Annual Meeting o Director shall
elected and qualify. year or
hold office for a term of one (1) Y
, re signation until his deathioor untilehist,
removal, disq ualification, ua lifies. If at
successor is elected and q
the time of the first Annual CMeeting,
Declarant owns or more
Units in the ConSO—minium, then Declarant
shall select two to designate and
two (2) Directors.
3
44
S. In the election of Directors,
there shall be appurtenant to each Condo-
minium Unit a total vote equal to the
number of Directors to be elected multi-
plied by the Unit's appurtenant undivided
interest in the Common Area as set forth in
Exhibit "B" of the Declaration; provided,
however, that no member or Owner of one (1)
Condominium Unit may cast a vote greater
than the Unit's appurtenant undivided
interest in the Common Area for any one
person nominated as a Director so that
voting for Directors shall be noncumula-
tive. Notwithstanding the fact that
Declarant may be entitled to select a
majority of the members of the Board of
Directors, it shall still be entitled to
cast the vote for each Condominium Unit
owned by it in the elections of other
Directors; provided, however, that the
other Directors elected are persons other
than Officers, Directors, stockholders and
Employees of Declarant, or wives and
relatives of any said persons.
6. In the event that Declarant, in
accordance with the rights herein esta-
blished, selects any person to serve on any
Board of Directors of the Association,
Declarant shall have the absolute right at
any time, in its sole discretion, to
replace such person with another person to
serve on any Board of Directors. Replace-
ment of any person designated by Declarant
to serve on any Board of Directors of the
Association shall be made by written
instrument delivered to any officer of the
Association, which instrument shall specify
the name of the person to be replaced and
the name of the person designated as
successor to the person so removed from the
Board of Directors. The removal of any
Director and designation of his successor
shall be effective immediately upon de-
livery of such written instrument by
Declarant to any officer of the Associ-
ation.
C. The organizational meeting of each newly
elected Board of Directors shall be held within ten
(10) days of their electio ", at such time and at
such place as shall be fixed by the Directors at
the meeting at which they were elected, and no
6
further notice of the organizational meeting shall
be necessary, provided a quorum shall be present.
D. Regular meetings of the Board of Directors
may be held at such time and place as shall be
determined from time to time by a majority of the
Directors. Notice of regular meetings shall be
given to each Director, personally or by mail,
telephone or telegram, at least three (3) days
prior to the day named for such meeting, unless
notice is waived.
E * Special meetings of the Directors may be
called by the President, and must be called by the
Secretary at the written request of one -third of
the votes of the Board. Not less than three (3)
days' notice of a meeting shall be given to each
Director, personally or by mail, telephone or
telegram, which notice shall state the time, place
and purpose of the meeting.
F. Any Director may waive notice of a meeting
before or after the meeting, and such waiver shall
be deemed equivalent to the giving of notice.
G. A quorum at a Directors' meeting shall
consist of the Directors entitled to cast a ma-
jority of the votes of the entire Board. The acts
of the Board approved by a majority of the votes
cast at a meeting at which a quorum is present
shall constitute the acts of the Board of Direc-
tors, except as specifically otherwise provided in
the Articles of Incorporation, or these Bylaws or
the Declaration of Condominium. If any Directors'
meeting cannot be organized because a quorum has
not attended, or because the greater percentage of
the Directors required to constitute a quorum for
particular purposes has not attended, wherever the
latter percentage of attendance may be required as
set forth in the Articles of Incorporation, these
Bylaws or Declaration of Condominium, the Directors
who are present may adjourn the meeting from time
to time until a quorum, or the required percentage
of attendance if greater than a quorum, is present.
At any adjourned meeting, any business that might
have been transacted at the meeting as originally
called may be transacted without further notice.
The joinder of a Director in the action of a
meeting by signing and concurring in the minutes
thereof shall constitute the presence of such
Director for the purpose of determining a quorum.
H. The Presiding Officer of Directors'
meetings shall be the Chairman of the Hoard, if
EGO4418 46
such an Officer has been elected; and if none, then
the President of the Association shall preside. In
the absence of the Presiding officer, the Directors
present shall designate one of their number to
preside.
1. Directors' fees, if any, shall be deter-
mined by the members.
J. All of the powers and duties of the
Association shall be exercised by the Board of
Directors, including those existing under the
common law and statutes, the Articles of Incorpo-
ration of the Association, these Bylaws and the
Declaration of Condominium. such powers and duties
shall be exercised in accordance with said Articles
of Incorporation, these Bylaws and the Declaration
of Condominium, and shall include, without limiting
the generality of the foregoing, the following:
1. To make, levy and collect assess-
ments against members and members' Condo-
minium Units to defray the costs of the
Condominium, as provided for in Article 23
of the Declaration of Condominium which
Article is herein incorporated by refer-
ence, and to use the proceeds of said
assessments in the exercise of the powers
and duties granted unto the Association;
2. To maintain, repair, replace,
operate and manage the Common Areas and
Facilities wherever the same is required to
be done and accomplished by the Association
for the benefit of its members; and further
to approve any expenditure made or to be
made for said purposes;
3. To reconstruct any part of the
Common Property after casualty in accor-
dance with Article 21 of the Declaration of
Condominium, and to make further improve-
ment to the Common Property, real and
personal, and to make and to enter into any
and all contracts, necessary or
to accomplish said purposes;
q. To make, amend and enforce regula-
tions governing the use of the Common
Property and Condominium Units so long as
such regulations or amendments thereto do
not conflict with the restrictions and
limitations which may be placed upon the
use of such property under the terms of the
8
800.(1415 : 47
Articles of Incorporation and Declaration
of Condominium;
5. To acquire, operate, lease, manage
and otherwise trade and deal with property,
real and personal, including Condominium
Units in the Condominium as may be neces-
sary or convenient in the operation and
management of the Condominium, and in
accomplishing the purposes set forth in the
Declaration of Condominium, provided that
the acquisition of real property other than
Condominium Units shall require the ap-
proval of the Association;
6. To acquire now or at any time
hereafter, and to enter into leases and
agreements whereby the Association acquires
leaseholds, memberships, and other posses-
sory or use interests in lands or facil-
ities including, but not limited to,
swimming pools, tennis and other recrea-
tional facilities whether or not contiguous
to the lands of the Condominium to provide
enjoyment, recreation or other use or
benefit to the Owners of Condominium Units;
7. To contract for the management of
the Condominium and to designate to such
contractor all of the powers and duties of
the Association, except those which may be
required by the Declaration of Condominium
to have approval of the Board of Directors
or membership of the Association;
a. To enforce by legal means or pro-
ceedings the provisions of the Articles of
Incorporation and Bylaws of the Associ-
ation, the Declaration of Condominium and
the regulations hereinafter promulgated
governing use of the Common Property in the
Condominium;
9. ,To pay all taxes and assessments
which are or may become liens against any
part of the Condominium, other than Condo-
minium Units and the appurtenances thereto,
and to assess the same against the members
and their respective Condominium Units
subject to such liens;
10. To purchase insurance for the
protection of the members and the Associa-
tion against casualty and liability in
9
accordance with Article 20 of the Declara-
tion of Condominium;
11. To pay all costs of power, water,
sewer, and other utility services rendered
to the Condominium and not billed to the
owners of the separate Condominium Units;
and
12. To designate and remove personnel
necessary for the maintenance, repair, re-
placement and operation of the Condominium
including the Common Property.
13. To determine the Boat Slip
Expenses and to collect Boat Slip Expenses
from the Slip Owners and Non - Member Li-
censees.
14. To adopt and amend such reason-
able rules and regulations as it may deem
advisable for the operation and maintenance
of the Boat Slips, and for the health,
comfort, safety and general welfare of the
slip Owners and Non - Member Licensees, of
the Boat Slips. written notice of such
rules and regulations shall be given to all
Slip owners and Non - member Licensees, and
the Boat Slips shall at all times be
operated and maintained subject to such
rules and regulations.
15. To purchase or otherwise acquire
in the name of the Board of Directors or
its designee, corporate or otherwise, on
behalf of all Unit owners, Slips offered
for sale by their Slip Owners and Non -
Member Licensees to the Board or acquired
by the Board by revocation of the license
relating thereto, as provided by the
Declaration.
K. The initial Board of Directors of the
Association shall be comprised of the three (3)
persons designated to serve as Directors in the
Articles of Incorporation, which persons shall
serve until their successors are elected at the
first Annual meeting of the members of the Associa-
tion called after the Declaration of Condominium
has been recorded
Catawba Public
Registry, member of the
initial Board of Directors be unable to serve for
any reason, the remaining members of the Board of
10
Directors shall have the right to designate a party
to serve as a Director for the unexpired term.
L. The undertakings and contracts authorized
by the initial Board of Directors shall be binding
upon the Association in the same manner as though
such undertakings and contracts had been authorized
by any Board of Directors duly elected by the
membership after the Declaration of Condominium has
been recorded, so long as such undertakings and
contracts are within the scope of the powers and
duties which may be exercised by the Board of
Directors of the Association in accordance with all
applicable condominium documents.
M. Any one or more of the members of the
Board of Directors may be removed, either with or
without cause, at any time by a vote of the members
owning a majority of the Condominium Units in the
Condominium, at any Special Meeting called for such
purpose, or at the Annual Meeting. Provided,
however, that only the Declarant shall have the
right to remove a Director appointed by it.
S. OFFICERS
A. The executive officers of the Association
shall be a President, who shall be a Director, a
Vice - President, a Treasurer, a Secretary and an
Assistant Secretary, all of whom shall be elected
annually by the Board of Directors and who may be
peremptorily removed by a vote of the Directors at
any meeting. Any persons may hold two or more
offices, except that the President shall not also
be Vice - President, Secretary or an Assistant
Secretary. The Board of Directors shall from time
to time, elect such other officers and designate
their powers and duties as the Board shall find to
be required to manage the affairs of the Associa-
tion.
B. The President shall be the chief executive
officer of the Association. He shall have all of
the powers and duties which are usually vested in
the office of the president of any association,
including the power to appoint committees from
among the members as he may determine appropriate
to assist in the conduct of the affairs of the
Association.
C. The Vice - President shall, in the absence
or disability of the President, exercise the powers
and perform the duties of President. Ile shall also
generally assist the President and exercise such
11
other powers and perform such other duties as shall
be prescribed by the Directors.
D. The Secretary shall keep the minutes of
all proceedings of the Directors and the members.
He shall attend to the giving and serving of all
notices to the members and Directors, and such
other notices required by law. He shall have
custody of the seal of the Association and affix
the same to instruments requiring a seal when duly
signed. He shall keep the records of the Associa-
tion, except those of the Treasurer, and shall
perform all other duties incident to the office of
secretary of an association and as may be required
by the Directors or the President. The Assistant
Secretary shall perform the duties of Secretary
when the Secretary is absent.
E. The Treasurer shall have custody of all of
the property of the Association, including funds,
securities and evidences of indebtedness. He shall
keep, or supervise the keeping of, detailed,
accurate records in chronological order of the
receipts and expenditures affecting the common
areas and facilities, specifying and identifying
the maintenance and repair expenses of.the common
areas and facilities and any other expense in-
curred.
F. The compensation of all officers and
employees of the Association shall be fixed by the
Directors. This provision shall not preclude the
Board of from employing a Director as an
employee of the Association, nor preclude the
contracting with a Director for the management of
the Condominium.
G. All officers shall serve at the pleasure
of the Board of Directors and any Officer may be
removed from office at any time, with or without
cause, by a majority vote of the Board of Direc-
tors.
6. FISCAL MANAGEMENT. The provisions for fiscal
management o t e Association set forth in the Declaration of
Condominium and Articles of Incorporation shall. be supple-
mented by the following provisions;
A. The assessment roll shall be maintained in
a set of accounting books in which there shall be
an account for each Condominium Unit. such account
shall designate the name and address of the Unit
Owner or owners, the amount of each assessment
against the owners, the dates and amounts in which
12
Unit Owner and his mortgagee, if any, which shares
are shown on Exhibit "B."
(2) Proceeds on account of damages to Condo-
minium Units shall be held in the following un-
divided shares:
(a) Partial destruction when the
Condominium is to be restored: for the
owners of damaged Condominium Units in
proportion to the costs of repairing the
damage suffered by each damaged Condo-
minium Unit;
(b) Total destruction of the Condo-
minium or where the Condominium is not to
be restored: for all Condominium Unit
owners and their mortgagees, the share of
each being set forth in Exhibit "B."
(3) Proceeds on account of damage to Boat
Slips shall be held in undivided shares for each
Slip Owner and Non - Member Licensee and his mort-
gagee, if any, each slip owner's or Non - Member
Licensee's share to be the same as such Slip
Owner's or Non - Member Licensee's share of the Boat
slip Expenses.
D. in the event a mortgagee endorsement has been issued
as to a Condominium Unit, the share of the Condominium Unit
owner shall be held for the mortgagee and the Condominium
Unit owner as their interests may appear, but no mortgagee
shall have the right to participate in the determination of
reconstruction or repair.
E. Proceeds of insurance policies received by the
Association shall be distributed to or for the benefit of the
beneficial Condominium Unit owners in the following manner:
(1) if the damage for which the proceeds were
paid is to be repaired or reconstructed, the
proceeds shall be paid to defray the costs. Any
proceeds remaining after defraying such costs shall
be distributed to the beneficial Condominium Unit
owners, all remittances to Condominium Unit owners
and their mortgagees being payable jointly to them.
This is a covenant for the benefit of any mortgagee
of a Condominium Unit and may be enforced by him.
{2} If it is determined that the damage for
which the proceeds are paid shall not be recon-
structed or repaired, the proceed, shall be distri-
buted to the beneficial Condominium Unit owners,
remittances to Condominium Unit owners and their
13
804418 -. j 52
responsible for fiscal management of the Associ-
ation and maintaining the Condominium. Any manage-
ment agreement for the Condominium will be termin-
able by the Association for cause upon 30 days'
written notice thereof, and the term of any such
agreement may not exceed one year, renewable by
agreement of the parties for successive one -year
periods.
The prior written approval of lenders holding
608 of the first mortgages will be required for the
effectuation of any decision by the owners' associ-
ation to terminate professional management and
assume self- management of the project.
D. The depository of the Association shall be
such bank or banks as shall be designated from time
to time by the Directors and in which the funds of
the Association shall be deposited. Withdrawal of
funds from such accounts shall be only by checks
signed by such persons as are authorized by the
Directors.
E. The books and all supporting documentation
shall be available for examination by all Unit
owners and their Lenders or their, agents during
normal business hours.
F. An audit of the accounts of the ASSOCia-
tion shall be made annually by a Certified Public
Accountant, and a copy of the report shall be
furnished to each member not later than April 1 of
the year following the year for which the report is
made. '
G. Fidelity bonds shall be required by the
Board of Directors from all officers and employees
of the Association or from any contractor handling
Association funds. The amount of such bonds shall
be equal to the annual Association budget. The
premiums on such bonds shall be paid by the Associ-
ation.
g„ PARLIAMENTARY RULES. Roberts Rules of Order
(latest edition s a govern the conduct of corporate
proceedings when not in conflict with the Articles of incor-
poration and these Bylaws or with the statutes of the State
of North Carolina.
8. AMENDMENTS To BYLAWS. the following to these erBylaws
shall be proposed an idop in
A. Amendments to these Bylaws may be Proposed
by the Board of Directors of the Association acting
14
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upon a vote of the majority of the Directors, or by
members of the Association owning a majority of the
Condominium Units in the Condominium, whether
meeting as members or by instrument in writing
signed by them.
B. Upon any amendment to these Bylaws being
proposed by said Board of Directors or members,
such proposed amendment shall be transmitted to the
President of the Association, or other Officer of
the Association in the absence of the President,
who shall thereupon call a Special Joint Meeting of
the members of the Board of Directors of the
Association and the membership for a date not
sooner than twenty (20) days or later than sixty
(60) days from receipt by such Officer of the
proposed amendment and it shall be the duty of the
Secretary to give to each member written notice of
such meeting in the same form and in the same
manner as notice of the call of a Special Meeting
of the members is required as herein set forth.
C. In order for such amendment to become
effective, it must be approved by an affirmative
vote of a majority of the entire membership of the
Board of Directors and by an affirmative vote of
the members owning not less than three- fourths of
the Condominium Units in the Condominium. There-
upon, such amendment or amendments to these Bylaws
shall be transcribed, certified by the Secretary of
the Association, and a copy thereof shall be
recorded in the Catawba County Public Registry,
North Carolina, within twenty (20) days from the
date on which any amendment has been approved by
the Directors and members. No amendment shall
become effective until it is duly recorded.
D. Upon the approval and proper recording of
any amendment, it shall become binding upon all
Unit Owners.
E. At any meeting held to consider any
amendment to the By -laws, the written vote of any
member of the Association shall be recognized if
such member is not in attendance at such meeting or
represented thereat by proxy, provided such written
vote is delivered to the Secretary of the Associ-
ation at or prior to such meeting.
P. Notwithstanding the foregoing provisions
of this Article 8, no amendment to these Bylaws
which shall abridge, amend or alter the right of
the each D Board a of Directors of the Association, as
15
:Gu.14ib 54
provided in Article 4 hereof, may be adopted or
become effective without the prior written consent
of the Declarant.
G. Notwithstanding the foregoing provisions
of this Article 8, no amendment to these Bylaws
which shall abridge, amend or alter the rights of
the Veterans Administration as holders of deeds of
trust on Lots shall be made.
9. RULES OF CONDUCT
A. No resident of the Condominium shall post
any advertisements or posters of any kind in or on
the Common Property except as authorized by the
Association.
B. Residents shall exercise extreme care
about making noises or the use of musical instru-
ments, radios, television sets and amplifiers that
may disturb other residents. Those keeping do-
mestic animals will abide by the sanitary regula-
tions of Catawba County.
C. No garbage or trash shall be thrown or
deposited outside the disposal installations
provided for such purposes.
D. No Unit owner shall cause any improvements
or alterations to be made to the exterior of the
Condominium (including painting or other decora-
tion, or the installation of electrical wiring,
television or radio antennae, or any other objects,
machines or air conditioning units which may
protrude through the walls or roof of the Condo-
minium) or in any manner alter the appearance of
any portion of the exterior surface of any building
without the prior written permission of the Board
of Directors or a duly appointed Architectural
Control Committee. No Unit Owner shall cause any
object to be fixed to the Common Property or to any
Limited Common Area (including the location or con-
struction of fences or the planting or growing of
flowers, trees, shrubs or other vegetation) or in
any manner change the appearance of the Common
Property or Limited Common Area without the prior
written permission of the Board of Directors or a
duly appointed Architectural Control Committee.
10. COMPLIANCE. These Bviaws are set forth to comply
with the requirements of the Unit Ownership Act, Chapter 47A
of the General statutes of the State of North Carolina. In
the event that any of these Bylaws conflict with the
16
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