The Declaration of Covenants, Conditions, and Restrictions for West Ridge (CCR) is the primary legal document governing West Ridge. It defines terms, sets out home owner restrictions and obligations, provides the basis for the Homeowners Association's powers and authority, and describes how assessments shall work. The version below is a transcription of the original CCR as filed with Horry County, pages 5-27 and 39, with the changes made by Amendments 1 and 2 incorporated.

Go to a topic:
Article I: Properties Subject to this Declaration
Article II: Definitions
Article III: Property Rights
Article IV: Membership, Voting Rights, and Purposes
Article V: Covenant for Maintenance Assessments
      Section 5: Special Assessments
Article VI: Exterior Maintenance
Article VII: Architectural Control
Article VIII: Insurance
Article IX: Use Restrictions
Article X: Easements
Article XI: Declarant's Rights
Article XII: Dispute Resolutions and Limitations on Litigation
Article XIII: General Provisions
Exhibit A: Legal Description

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
for
WEST RIDGE

THIS DECLARATION is made this  23  day of  January , 2006, by PORTRAIT HOMES-WESTRIDGE LLC, an Illinois limited liability company (hereinafter referred to as the "Declarant").

W I T N E S S E T H:

WHEREAS Declarant is the owner of the real property in Horry County, South Carolina, more particularly described in Exhibit A attached hereto, and Declarant desires to create thereon an exclusive residential community of single family detached residential units to be named West Ridge Owners Association; and

WHEREAS, Declarant desires to insure[sic] the attractiveness of the community, to prevent any future impairment thereof, to prevent nuisances, to preserve, protect and enhance the appearance and amenities of all properties within the community and to provide maintenance and upkeep of the exterior of all residential units and the Common Areas, as hereinafter defined, and to this end, desires to subject the real property shown upon the attached Exhibit A, to the coverage of the covenants, conditions, restrictions, easements, charges and liens hereinafter set forth, each and all of which is and are for the benefit of said property described below, and each Owner and occupant thereof; and

WHEREAS, the Declarant has deemed it desirable, for the efficient preservation, protection and enhancement of the appearance and amenities in the community and to provide for the maintenance and upkeep of the Common Area, to create an organization to which will be delegated and assigned the powers of (i) owning, maintaining and administering the Common Area; (ii) maintaining the improvements which are the responsibility of the Association; (iii) administering and enforcing the covenants, conditions, and restrictions herein; (iv) collecting and disbursing the assessments and charges hereinafter created; and (v) performing all other activities as required or permitted hereunder.

WHEREAS, Declarant has incorporated or will incorporate under South Carolina law, West Ridge Owners Association, Inc., as a non-profit corporation for the purpose of exercising the aforesaid functions.

NOW, THEREFORE, Declarant hereby declares that all of the Properties, described in Article I, Section I below, and such additions thereto as may be hereafter made pursuant to Article I, Section 2 hereof, shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, which are for the purpose of protecting the appearance and desirability of, and which shall run with, the Properties and be binding on all parties having any right, title or interest in the Properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof.

ARTICLE I

PROPERTIES SUBJECT TO THIS DECLARATION

Section One.   Existing Property. The real property which is and shall be held, transferred, sold, conveyed and occupied subject to this declaration and within the jurisdiction of the Association is more particularly described in Exhibit A, which is attached hereto and incorporated herein by reference ("Properties").
Section Two.   Additions to Existing Property. Additional land may be brought within the scheme of this Declaration in the following manner:

(a)     Additional land may be annexed to the existing property by Declarant, in future stages or development, without the consent of any other Owner or any mortgagee, provided that said annexations must occur within seven (7) years after the date of this Declaration. Declarant may remove all or any property from the Exhibit A description by filing a written declaration of removal in the County Public Registry;

(b)     The additions authorized under Subsection (a) above shall be made by filing of record a Supplement to Declaration of Covenants, Conditions and Restrictions with respect to the additional land, which shall extend the scheme of this Declaration to such properties and thereby subject such additions to the benefits, agreements, restrictions and obligations set forth herein.

Section Three.   Replatting. Declarant shall have and hereby reserve the right, at any time or from time to time, to file a replat of all or any part of the Properties owned by Declarant to affect a reconfiguration of any Lots or Common Area in the Properties, subject to any necessary approval, joinder or consent of the appropriate county and/or municipal authorities.

ARTICLE II

DEFINITIONS

Section One.   "Association" shall mean and refer to West Ridge Owners Association, Inc., its successors and assigns.
Section Two.   "Owner" shall mean and refer to the record owner, whether or more persons or entities, of a fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having any interest merely as security for the performance of an obligation.
Section Three.   "Properties" shall mean and refer to that certain real property hereinbefore described in Article I, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.
Section Four.   "Lot" shall mean and refer to any plot of land shown upon the attached site plan or approved final plat, as reasonably amended by Declarant from time to time, with the exception of the Common Area, and shall include all improvements (including residential units) thereon. Each plot of land is the area for one (1) residential unit, designed for single family ownership.
Section Five.   [Changed by Amendment 2] "Declarant" shall mean and refer to THG Partners, LLC, a South Carolina Limited Liability Company, its successors and assigns, if such successors or assigns should acquire all of the Declarant's interest in the Properties.
Section Six.   "Common Area" shall mean all fixtures, real property and personal property owned by the Association for the common use and enjoyment of the Owners. Common Areas, with respect to the property subject to this Declaration shall be shown on the various plats of West Ridge recorded or to be recorded in the County Public Registry and designated thereon as "Common Areas", but shall exclude all Lots as herein defined and all public streets shown thereon. "Common Area" shall include but not limited to, the (i) completed permanent detention or retention pond(s); (ii) private water lines and sewer lines; (iii) all private streets shown on said plats as now recorded or shall be hereinafter recorded in the County Public Registry; (iv) street lighting and (v) pool amenity (recreational facilities). The Common Area to be owned by the Association at the time of the conveyance of the first Lot is more particularly shown on the plat(s) of the Properties to be recorded in the County Public Registry.
Section Seven.   "Board of Directors" shall mean and refer to the Board of Directors of the Association.
Section Eight.   "Member" shall mean and refer to an Owner who holds membership in the Association pursuant to Article IV of this Declaration.
Section Nine.   "County Public Registry" shall mean and refer to the office of the Register[sic] of Deeds of Horry County, South Carolina.
Section Ten.   [Added by Amendment 2] "Approved Builder" shall mean and refer to D.R. Horton, Inc.

ARTICLE III

PROPERTY RIGHTS

Section One.   Owners Easements of Enjoyment. Every Owner shall have a right and easement of enjoyment in and to the Common Area, which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:

(a)     The right of the Association to charge reasonable admission and other fees for the use of any facility situated upon the Common Area.

(b)     The right of the Association to suspend the voting rights and right of use of the recreational facilities by the Owner: (1) during any period for which the Owner is delinquent in the payment of applicable assessments; (2) for a period not to exceed sixty (60) days for any infraction of its published rules and regulations; and (3) during any period that an Owner is otherwise in default of the Owner's obligations under the Declaration, including but not limited to the obligation to comply with the architectural control provisions and protective covenants and restrictions contained herein.

(c)     The right of the Association to mortgage, dedicate or transfer all or any part of the Common Area to any public agency, authority, or utility, for such purposes and subject to such conditions as may be agreed by the Members. No such mortgage, dedication, or transfer shall be effective unless an instrument signed by two-thirds (2/3) of each class of Members agreeing to such dedication or transfer has been recorded;

(d)     The right of Owners to the exclusive use of parking spaces as provided in this Article.

(e)     The right of the Association to limit the number of guests of Members;

(f)     The right of the Association, in accordance with its Articles and Bylaws, to borrow money for the purpose of improving the Common Area and facilities and in aid thereof to mortgage said property, and the rights of such mortgagee in said properties shall be subordinate to the rights of the Owners hereunder;

(g)     The right of the Association to adopt, publish and enforce rules and regulations as provided in Article IX;

(h)     The right of the Association or its representative to enter any Lot in order to perform any maintenance, alteration or repair required herein to be performed by the Association, and the Owner of such Lot shall permit the Association or its representative to enter for such purpose at reasonable times and with reasonable advance notice;

(i)     The right of the Association or its representative to enter any Lot in the case of any emergency threatening such Lot or any other Lot for the purpose of remedying or abating the cause of such emergency. Such right of entry shall be immediate and shall not require prior notice; and

(j)     The rights of the Declarant reserved in Article X and Article XI of this Declaration and the Special Declarant Rights.

Section Two.   Title to the Common Area. The Declarant hereby covenants for itself, its heirs and assigns, that it will convey fee simple title to the Common Area depicted on maps of the Properties to the Association, free and clear of all encumbrances and liens, except those encumbrances and liens set forth in this Declaration, utility easements, and storm drainage easements. Following conveyance of Common Area to the Association, Declarant shall be entitled to a prorata credit for all expenses of the Association incurred by Declarant (including insurance and real estate taxes), which have not theretofore been reimbursed to Declarant. The Common Area shall be conveyed without any express or implied warranties, which warranties are hereby expressly disclaimed by Declarant.
Section Three.   Parking Rights. The automobile parking spaces for Lots shall be the garage and the appurtenant driveway. Owners hereby consent to and authorize the Association to tow any vehicle that is parked in violation of this Declaration or rules and regulations of the Association.
Section Four.   TV Antennas and Cablevision. The Association may provide one or more central television antennas for the convenience of the Members and may supply cablevision and the cost of these may be included in annual or special assessments.

ARTICLE IV

MEMBERSHIP, VOTING RIGHTS, AND PURPOSES

Section One.   Every Owner shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot.
Section Two.   The Association shall have two classes of voting membership:

Class A.      Class A Members shall be all Owners with the exception of the Declarant and shall be entitled to one (1) vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot.

Class B.      The Class B Member(s) shall be the Declarant and shall be entitled to six (6) votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier:

(a)      when eighty five percent (85%) of the Lots on the Properties are deeded to persons other than Declarant or Declarant's affiliate; or

(b)      seven (7) years after the later of the following: the date this Declaration is recorded in the County Pblic Registry or the date any amendment adding additional real estate is recorded.

Section Three.   Until the Blass B Members are converted to Class A Members, Declarant is entitled to appoint all Board of Directors members, and the Association need not hold a meeting to elect directors until conversion of the Class B Members.
Section Four.   The Association shall have the right, duty and responsibility to: (i) acquire, administer, maintain and care for the Common Area; (ii) administer, maintain and care for extermination and trash removal services; (iii) establish, levy and collect assessments; (iv) engage contractors, vendors, employees or agents as it deems necessary to carry out all rights, duties and responsibilities; (v) make payment to contractors, vendors, employees or agents for services provided in carrying out the purposes of the Association; (vi) enforce this Declaration; and (vii) perform all rights, duties and responsibilities set forth in the Declaration, Articles and Bylaws of the Association.

ARTICLE V

COVENANT FOR MAINTENANCE ASSESSMENTS

Section One.   Creation of the Lien and Personal Obligation of Assessments. Each Owner of any lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges, and (2) special assessments, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, late charges, costs and reasonable attorney's fees, shall be a charge on the Lots and shall be a continuing lien upon the Lots against which each such assessment is made. Each such assessment, together with interest, late charges, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment fell due. The personal obligation for the delinquent assessment shall not pass to his or her successors in title unless expressly assumed by them. If the Association should be dissolved or cease to exist, then in that event, every Owner of a Lot at the time of required maintenance shall be jointly and severally liable for any and all costs attendant thereto.
Section Two.   Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Properties and in particular for: (1) the improvement, maintenance, repair and reconstruction of the Common Areas and the landscaping on the Lots; (2) the maintenance, repair and reconstruction of (a) private water and/or sewer lines (and any meters or lift stations associated therewith), (b) any pond (detention or retention), (c) pool and pool house, (d) private streets, (e) street lights, entry monuments, perimeter fences, walks, and parking areas and such maintenance to include the cutting and removal of weeds and grass, the removal of trash and rubbish or any other maintenance and (f) irrigation system; (3) the use and enjoyment of the Common Area, including, but not limited to, the cost of repairs, replacements and additions; (4) the cost of labor, equipment, materials, management and supervision; (5) the payment of taxes and public assessments assessed against the Common Area; (6) the employment of attorneys to represent the Association when necessary; (7) the provision of adequate reserves for the replacement of capital improvements, including, without limiting the generality of the foregoing, roofs, paving, and any other major expense for which the Association is responsible; (8) extermination services; (9) contract for trash removal for the Lots; and (10) such other needs as may arise. [Added by Amendment 2:] (11) Notwithstanding anything contained in this Declaration to the contrary, the Association shall not be obligated to provide landscaping or extermination services on each Lot and the general annual assessments collected by the Association from the date of this Amendment shall not be used to provide landscaping or extermination services for an Owner's Lot. However, the Association may offer these services to an Owner and an Owner may accept such services upon payment of a Special Assessment in an amount to be determined by the Board.
Section Three.   Reserves. The Association shall establish and maintain an adequate reserve fund for the periodic maintenance, repair, and replacement of improvements to the Common Areas, and those other portion of properties which the Association may be obligated to maintain, and for unusual and unforeseen expenses of the Association. Such reserve fund is to be established, insofar as practicable, out of annual assessments for the common expense. Further, the reserve fund may be applied to operational deficits provided adequate reserves are maintained.
Section Four.   Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be One Thousand Six Hundred Dollars ($1,600.00) per Lot (except that pursuant to Section Seven of this Article, the maximum annual assessment for Lots owned by Declarant which are not occupied as a residence shall be Four Hundred Dollars ($400.00 per Lot). [Next sentence added by Amendment 2:] Lots owned by the Approved Builder shall be subject to the cap on Assessments equal to that of the Declarant.

(a)      From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased by the Board of Directors effective January 1 of each year without a vote of Membership, but subject to the limitation that any such increase shall not exceed the greater of twenty percent (20%) or the percentage increase in the Consumer Price Index (published by the Department of Labor, Washington, D.C.) for all cities over preceding twelve (12) month period which ended on the previous October 1).

(b)      From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, or until increased as provided for in (b) or (c) below, whichever last occurs, the maximum annual assessment may be increased above the increase permitted in Section 4(a) above by a vote of two-thirds (2/3) of each class of Members who are voting in person or by proxy, at a meeting duly called for this purpose.

(c)      The Board of Directors may fix the monthly assessment at an amount which shall not exceed one twelfth (1/12) of the maximum annual assessment.

Section Five.   Special Assessments. In addition to the annual assessments authorized above, the Association may levy in any assessment year a special assessment applicable to that year for the purpose of supplying adequate reserve funds for the replacement of capital improvements; for defraying, in whole or in part, the cost of any construction, reconstruction, restoration, repair or replacement of a capital improvement upon the Common Area or upon a Lot, and in connection with exterior maintenance, including fixtures and personal property related thereto; for insurance costs of the Association; or for unusual, unforeseen and non-recurring expenses of the Association, provided that any such shall have the assent of the Board of Directors by a vote called at a duly authorized public meeting. Any special assessment affecting or benefitting only particular Lots shall be equitably apportioned, by the Board, among the Lots affected or benefited.
Section Six.   Notice and Quorum for any Action Authorized Under Section Four. Written notice of any meeting called for the purpose of taking any action authorized under Section Four shall be sent to all Members no less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast fifty percent (50%) of all votes of each class of Membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.
Section Seven.   Uniform Rate of Assessment. Both annual and special assessments shall, except as herein otherwise specifically provided, be fixed at a uniform rate for all Lots and shall be collected on a monthly basis. Provided, however, that the assessment for Lots owned by Declarant which are not occupied as a residence, shall at all times be twenty-five percent (25%) of the assessments for other Lots. [Added by Amendment 2:] Lots owned by the Approved Builder shall be subject to the cap on Assessments equal to that of the Declarant.
Section Eight.   Date of Commencement of Annual Assessments: Due Dates. [This section replaced by Amendment 2] The annual assessments provided for herein shall commence as to each Lot on the date such Lot is conveyed by either the Declarant or the Approved Builder to a third-party purchaser for occupancy. Prior to conveying to such third-party purchaser for occupancy, Declarant and Approved Builder shall commence paying twenty five (25%) percent of the regular assessments for all Lots upon which either Declarant or Approved Builder has received a permit to construct a residential dwelling upon a Lot. Such annual assessments shall be paid ratably on a monthly basis. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. Non-related entity means an entity, which is not owned, managed, or operated by any common individuals.
Section Nine.   Effect of Nonpayment of Assessments; Remedies of the Association. A late charge of Twenty Five and No/100 Dollars ($25.00) shall be added to any assessment not paid within fifteen (15) days after the due date, together with interest from the due date at eight percent (8%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property, and in either event: interest, costs, and reasonable attorney's fees of any such action shall be added to the assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his or her Lot.
Section Ten.   Subordination of the Lien to Mortgages and Ad Valorem Taxes. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage and ad valorem taxes. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any lot pursuant to mortgage or tax foreclosure or any proceeding in lieu thereof shall extinguish the lien of such assessments as to payments, which became due prior to such sale or transfer. No such sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from lien thereof.
Section Eleven.   Working Capital Fund.

[This section replaced by Amendment 2] Upon acquisition of record title to a Lot by the first Owner thereof, other than Declarant or Approved Builder, a payment shall be made by or on behalf of the purchaser to the working capital of the Association in an amount equal to Five Hundered and no/100 ($500.00) Dollars per Lot . This amount shall be in addition to, not in lieu of, the general Assessment attributable to said Lot, and shall not be considered an advance payment of such assessment. This amount shall be deposited into the purchase and sales escrow at closing and disbursed therefrom to the Association. The Association shall deposit this amount into the operating account of the Association for use in covering operating expenses and other expenses incurred by the Association pursuant to this Declaration and the By-Laws, including but no[sic] limited to expenses incurred by Declarant in providing infrastructure or other Common Area to the Community. This amount may be increased or decreased in the sole and exclusive discretion of the Board; provided, however, that in no event shall this initial contribution equal more than the annual Assessment for the year in which the acquisition of title by the first Owner, other than Declarant or Approved Builder, occurs.

Section Twelve.   Default by the Association. Upon default by the Association in the payment to the jurisdiction entitled thereto of any assessments for public improvements or ad valorem taxes levied against the Common Areas, which default shall continue for a period of six (6) months, each Owner of a Lot shall become personally obligated to pay the jurisdiction a portion of the taxes or assessments in an amount determined by dividing the total taxes and/or assessments due to the jurisdiction by the total number of Lots in the Properties. If the sum is not paid by the Owner within thirty (30) days following receipt of notice of the amount due, the sum shall become a continuing lien on the property of the Owner, his or her heirs, devisees, personal representatives, and assigns. The taxing or assessing jurisdiction may either bring an action at law against the Owner personally obligated to pay the same, or may elect to foreclose the lien against the property of the Owner.

ARTICLE VI

EXTERIOR MAINTENANCE

Section One. [Amendment 2 changed the first sentence.] In addition to its obligation to maintain the Common Area, the Association may provide exterior maintenance upon each Lot upon the payment by an Owner of a Special Assessment, as follows: landscaping and extermination services. Further, the Owner of any Lot may, at his or her election, plant flowers in the front and rear beds established by Declarant in developing the Lot, provided that such maintenance by the Owner does not hinder the Association in performing its maintenance of the exterior of the residential unit and the remaining yard spaces. No maintenance by an Owner shall reduce the assessment payable by him or her to the Association. The Owner shall not plant any vegetation in the front yard except with the prior written approval of the Association.

In the event that the need for maintenance or repair is caused through the willful or negligent act of the Owner, his or her family, or guests, or invitees, the cost of such maintenance or repairs shall be added to and become a part of the assessment to which such Lot is subject, which is not subject to any maximum. The Association is hereby granted an easement right of access to go upon any Lot for performance of repairs or maintenance, the responsibility of which is the Association's hereunder.

Subject to the provision of the Declaration as expressly set forth in the obligations of this Assocation, all maintenance, repair or replacement of the Lot and all structures, and other improvements located within the Lot shall be the sole responsibility of the Owner thereof who shall perform such maintenance in a manner consistent with the community and the applicable provisions of this Declaration.

ARTICLE VII

ARCHITECTURAL CONTROL

No landscaping, building, fence, sign, wall, antenna, satellite dish, or other structure or improvement shall be commenced, erected, or maintained upon the Properties, nor shall any exterior addition to or change or alteration therein (including, but not limited to, color or painting or the exterior and type of exterior finish, any existing or builder-installed construction material, plant material or ground cover) be made, except in exceptional cases, when in such case, three copies of the plans and specifications showing the nature, kind, shape, height, materials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Board of Directs of the Association, or by an architectural committee composed of three (3) or more representatives appointed by the Board (said committee being hereinafter referred to as the "Architectural Control Committee"). Absent such approval, the proposed improvement may not be commenced.

In the event an Owner of any Lot in the Properties shall make unauthorized changes to the premises and the improvements situated thereon in a manner unsatisfactory to the said Board of Directors or the Architectural Control Committee, said Board of Directors or the Architectural Control Committee shall have the right, through its agents and employees, to enter upon said Lot and to repair, maintain and restore the Lot and the exterior of the buildings and any other improvements erected thereon. The cost of such restoration and exterior maintenance and any other costs or attorney's fees incurred in the enforcement of the rights under these provisions shall be added to and become a part of the assessments to which such Lot is subject. Any approval by the said Board of Directors or the Architectural Control Committee shall be in accordance with the requirements set forth hereafter, and must be in writing.

[Added by Amendment 2] Notwithstanding anything contained herein to the contrary, the Approved Builder shall not be required to obtain approval from the Board of Directors or the Architectural Control Committee prior to commencing construction of a single family residence on a Lot, provided the plans have been approved by the Declarant.

ARTICLE VIII

INSURANCE

Section One. Insurance coverage on the Property shall be governed by the following provisions:

(a)      Ownership of Policies. All insurance policies upon the Common Areas shall be purchased by the Association for the benefit of all the Association. Owners of Lots with detached residential units understand that they shall be obligated to obtain all insurance policies as it relates to those Lots and the detached residential units constructed thereon, including but not limited to: (i) their own personal property (ii) buildings and improvements to their Lot (iii) their personal liability and (iv) living expense and such other coverages, as they may desire.

(b)      Coverage. All buildings and improvements upon the Common Area and Lots and all personal property of the Association included in the Common Areas and facilities shall be insured in an amount equal to one hundred percent (100%) insurable replacement value. Such coverage shall provide protection against:

  1. Loss or damage by wind, flood, fire, and other hazards covered by a standard extended coverage endorsement as appropriate.
  2. Such other risks as from time to time shall be customarily covered with respect to buildings on the land; and
  3. Such policies shall contain clauses providing for waiver of subrogation.

(c)      Liability. Public liability insurance shall be secured by the Association with limts of liability of no less than One Million Dollars ($1,000,000) per occurrence and shall include an endorsement to cover liability of the Association, as applicable. There shall also be obtained such other insurance coverage, as the Association shall determine from time to time to be desirable and necessary.

(d)      Premiums. Premiums for insurance policies purchased by the Association shall be paid by the Association and shall be included as part of the annual assessment described in Article V above. Premiums for insurance policies purchased by the Owners shall be their own expense without reimbursement.

(e)      Proceeds. All insurance policies purchased by the Association shall be for the benefit of the Association, and shall provide that all proceeds thereof shall be payable to the Association as insurance trustee under this Declaration. The sole duty of the Association as insurance trustee shall be to receive such proceeds as are paid and to hold the same in trust for the purpose stated herein or stated in the Bylaws.

Section Two:   Fidelity Insurance or Bond. All persons responsible for or authorized to expend funds or otherwise deal in the assets of the Association or those held in trust, shall first be bonded by a fidelity insurer to indemnify the Association for any loss or default in the performance of their duties in an amount equal to six (6) months assessments plus reserves accumulated.

ARTICLE IX

USE RESTRICTIONS

Section One.   Rules and Regulations for the Common Area. The Board of Directors of the Association shall have the power to formulate, publish and enforce reasonable rules and regulations concerning the use and enjoyment of the Common Areas. Such rules and regulations may provide for imposition of fines or penalties for the violation thereof, or for the violation of any of the covenants and conditions contained in this Declaration.
Section Two.   Antennas and Satellite Dishes. No outside radio transmission tower, receiving antenna, or satellite dish shall be erected by an Owner within the Properties without the prior written approval of the Architectural Control Committee.
Section Three.   Quiet Enjoyment. No obnoxious or offensive activity shall be carried on upon the Properties, nor shall anything be done which may be or may become a nuisance or annoyance to the neighborhood.
Section Four.   Minimum Dwelling Size. The total square footage of the main structure located on a Lot exclusive of one-story open porches and garages shall not be less than 900 square feet.
Section Five.   Nuisances. No activity deemed noxious or offensive by the Architectural Control Committee or the Board shall be carried on upon any Lot or within the Common Area, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood as determined by said Architectural Control Committee or Board. Examples of such offensive activities shall include, but to[sic] be limited to, the origination or emissions of any loud or disturbing noise or vibrations; the maintenance of an auto repair site, the maintenance of unsightly outdoor storage of personal property (including toys, motorcycles or other motor vehicles, tricycles, bicycles, wood piles or other miscellaneous items) on porches, patios, terraces or yards; or similar unsightly activity not in keeping with the aesthetic character and high level of appearance of the community. The Architectural Control Committee or the Board of Directors may establish reasonable rules and regulations for enforcing the provisions of this Section Five.
Section Six.   Parking of Vehicles and Use of Property. Vehicles shall be parked only in the garages or in the driveways within Lots. [Next sentence added by Amendment 1] All vehicles parked on the roads and streets within the development during the hours of 12 a.m. to 6 a.m. shall be subject to being removed by towing services contracted by the Association without any further notice. Commercial vehicles (for example school buses, taxis, labor trucks, vehicles with lettering that is not removed while on the Properties, vehicles with racks and equipment attached thereto and as further defined in rules and regulations promulgated by the Architectural Control Committee), tractors, mobile homes, recreational vehicles of all types, trailers of all types (either with or without wheels), campers, camper trailers, boats and other watercraft, snowmobiles, all-terrain vehicles, and, boat, snowmobile and recreational vehicle trailers shall be parked only in garages. Public emergency vehicles, such as police and fire cars, are permitted at all times in the Properties. No inoperable vehicles of any kind and no passenger vehicles or other vehicles not currently licensed shall be parked or stored on any driveway. No vehicles of any kind shall be repaired or rebuilt anywhere within a Lot other than within the garage located thereon. The Architectural Control Committee shall have the right to grant variances from the foregoing restrictions in cases of hardship which variance shall be granted upon such terms and conditions and for such duration as the Architectural Control Committee may determine to be appropriate. Variances shall not inure to the benefit of subsequent Owners of the Lot. The foregoing restrictions do not apply to the parking of construction vehicles and trailers during construction on the Property so long as such vehicles and trailers are parked in accordance with Association's construction parking regulations. The Lot shall be used for residential purposes. No garage, outbuilding, or other appurtenant structure shall be used for residential purposes, either temporarily or permanently, nor shall any portion of the Property (except as expressly stated in the preceding sentence) be used except for residential purposes and for purposes incidental or necessary thereto. Home offices shall be allowed provided it does not create any traffic other than Owners and Occupants within the Properties. "Residential purposes" means residing in a Lot for any period of time.
Section Seven.   Signs and Visible Areas. With the exception of signs erected by Declarant pursuant to Article XII hereof, no sign of any kind whatsoever shall be erected upon or displayed or otherwise exposed to view on any Lot or any improvement thereon without the prior written consent of the Board of Directors of the Association. Nothing shall be caused or permitted to be hung or displayed on the outside or inside of windows (except inoffensive drapes and curtains) or placed on the outside walls of a Lot or otherwise outside of a Lot, or any part thereof, and no sign (except those of the Declarant), awning, canopy, shutter, or television or citizen's band or other radio antenna or transmitter, satellite dish or any other device or ornament shall be affixed to or placed on the exterior walls or roof or any part thereof, or in or on a patio or balcony unless authorized by the Board, and subject to such rules and regulations as the Board may adopt from time to time.
Section Eight.   Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept on any Lot: provided, however, dogs, cats or other household pets may be kept, not to exceed a total of two (2) such animals, provided they are not kept, bred or maintained for any commercial purposes. The foregoing limitation on the number of pets shall not apply to hamsters, small birds, fish or other constantly caged animals, nor shall it apply to require the removal of any litter born to a permitted pet to[sic] prior to the time that the animals in such litter are three (3) months old. If any animal may, in the sole discretion of the Board of Directors or its designated committee, make an objectionable amount of noise, endanger the health of the occupants of other Lots, or otherwise constitute a nuisance or inconvenience to the Owner of other Lots, such animal shall be removed upon the request of the Board of Directors or its designated committee. If the owner of such animal fails or refuses to honor such request, the animal may be removed at the direction of the Board of Directors. An Owner's failure to remove fecal matter or other solid waste left in any Common Area or Lot by the animal owned by an occupant of such Owner's Lot (or their guests or invitees) shall be conclusively deemed to be a nuisance, and shall subject such Owner to such reasonable penalties as may be determined by the Association, including without limitation, upon repeated violations, the removal of such animal as described above. The cost and expense of any removal of an animal under this Section Eight shall be the sole responsibility of the Owner of the Lot where the animal was kept (or was brought by a guest or invitee). In the event that such Owner fails to reimburse the Association for such cost and expense within twenty-one (21) days after the Association's demand for reimbursement, such cost and expense shall become part of the annual assessment against such Lot, and the amount of such cost and expense assessed against such Lot shall not be counted or considered in determining whether a maximum assessment has been made against such assessed Lot under Article V, Section Four of this Declaration.
Section Nine.   Control of Pets. Every person owning or having possession, charge, care, custody or control of any dog, cat or other uncaged pet shall keep such pet exclusively inside his own residential unit or inside the confines of such Owner's Lot; provided, however, that such pet may be off the Owner's Lot if it be under the control of a competent person and restrained by a chain, leash or other means of adequate physical control. All Owners must control their pets at all times, whether or not such Owner is present, in a manner that will prevent any pet from (i) making noise at objectionable sound levels for extended periods of time, whether continuously or intermittently, (ii) endangering the health or safety of other Owners, their families, guests or invitees, or creating fear in other Owners as to the safety of themselves, their families, guests or invitees, or (iii) otherwise constituting a nuisance or inconvenience to the Owner(s) of any other Lot; all of the foregoing as determined by the Association. Any pet identified by the Association as a potentially dangerous animal constituting an unreasonable risk or threat to any other Owner or as to other Owners generally, whether or not such risk or threat is deemed immediate or imminent, or as to the family, guests or invitees of any Owner or other Owners generally, whether due to the type, kind or species of such animal, or its size, natural proclivities or inherent nature, or as a result, whether in whole or in part, of the known tendencies, habits, disposition or history of such animal, or as a result of the manner in which such animal generally is supervised and controlled by its owner, or for any combination of any of the foregoing reasons, shall be subject to such further restrictions or control as the Association may in its absolute discretion deem appropriate, which further restrictions or control may include, without limitation, any one or more of the following additional requirements: (a) constant restraint of the animal by means of a cage, chain, leash or other means deemed appropriate and approved by the Association at all times while such animal is outside an Owner's residential unit, even while such animal is on such Owner's Lot; (b) limitations on the time periods or durations that such animal is permitted to be outside of its Owner's residential unit; (c) prohibiting the animal to be outside at any time without its Owner present; or (d) permanent removal of the animal from the Property.
Section Ten.   Garbage and Refuse Disposal. No Lot shall be used or maintained as a dumping ground for rubbish, and all trash, garbage or other waste shall be stored in sanitary containers in accordance with the rules and regulations of any health and public safety authority having jurisdiction over the property. The sanitary containers shall only be placed outside at the earliest the evening before garbage pickup day and shall be immediately returned inside an enclosed area after garbage has been picked up. All incinerators or other equipment shall be kept in a clean and sanitary condition. No trash, garbage or other waste may be placed within the Common Area, except in containers approved by the Board of Directors.
Section Eleven.   Oil and Mining Operations. No oil drilling, oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in any Lot, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon any Lot or within the Common Area. No derrick or other structure designated for use in boring for oil or natural gas shall be erected, maintained or permitted upon any Lot or within the Common Area.
Section Twelve.   Storage. No household furnishings, equipment, lawn furniture or related personal property, including children's play objects, grills, bicycles, and lawn ornaments of the Owner shall remain outside the residential unit or garage overnight, meaning it must be removed from the front yards, front porches and placed out of view of the public. Reasonable arrangements of seasonable flower pots and hanging baskets are permitted.
Section Thirteen.   Fines and Penalties. The Association, by the Board of Directors, may impose fines and penalties for any violation of this Declaration or this Article, pursuant to South Carolina law. The Owners and Members consent to the Board making such determination and the assessment of $50.00 per day fine for violations of the Declaration, Bylaws, Articles of Incorporation and Rules and Regulations and consent to the Association recording a lien against the Owner's or Member's Lot to collect such fines. The following procedure shall govern the imposition of fines: (i) the Association shall give written Notice of Violation of the Declaration, Bylaws, Articles of Incorporation, and Rules and Regulations adopted by the Board of Directors; (ii) if the Owner or Member does not respond within ten (10) days of receipt of the Notice of Violation, the Owner or Member shall be deemed to have agreed with such determination; (iii) if the Owner or Member objects to such Notice of Violation, it shall provide all written evidence as to why such act or omission does not constitute a violation of the Declaration, Bylaws, Articles of Incorporation, and Rules and Regulations within ten (10) days of receipt of the Notice of Violation; (iv) the Board shall consider all written evidence submitted by the Owner or Member and shall make a final determination thereon within fifteen (15) days of receipt of the Owner's or Member's written material; (v) the Association, through the Board of Directors, shall respond to an Owner's or Member's objection in writing with a final determination on the issue; (vi) if the Owner or Member does not adhere to the Association's initial determination or final determination, if applicable, the Association shall be entitled to levy a fine and immediately record a lien therefore against the Owner or Member, not exceeding $50.00 per day for as long as the violation of Declaration, Bylaws, Articles of Incorporation or Rules and Regulations continue. Upon the thirtieth (30th) day after recording a lien, the Association shall be entitled to initiate foreclosure proceedings against the Owner if the fines have not been fully paid.
Section Fourteen.   Rules and Regulations Concerning the Use of the Lot. Rules and Regulation concerning the use of the Lots may be promulgated by the Association acting by and through its Board of Directors, each of which shall be deemed to be incorporated herein by reference and made a part thereof, as amended from time to time. The Association shall deliver such rules and regulations to Owners prior to the time that they become effective. The rules and regulations promulgated from time to time shall be deemed to be reasonable and enforceable, so long as they bear any relationship to the safety, health, happiness and enjoyment of the Owners, and in furtherance of a plan to provide for the congenial occupation of the Lots, to promote and protect the cooperative aspects of ownership, the value of the Lots and/or facilitate the administration of the community as a first class, safe, healthy, happy, quiet and restful residential community. The Board of Directors of the Association is hereby granted specific power and authority to enforce said rules and regulations.

ARTICLE X

EASEMENTS

All of the Properties, including Lots and Common Areas, shall be subject to such easements for driveways, walkways, parking areas, water lines, sanitary sewers, storm drainage facilities, gas lines, telephone and electric power line, and other public utilities as shall be established by the Declarant or by its predecessors in title; further, the Association shall have the power and authority to grant and establish upon, over, under, and across the Common Areas conveyed to it, such further easements as are requisite for the convenient use and enjoyment of the Properties. In addition, there is hereby reserved in the Declarant and its agents and employees an easement and right of ingress, egress, and regress across all Common Areas, now or hereafter owned by the Association, for the purpose of construction of improvements within the Properties, including the right of temporary storage of construction materials on said Common Areas.

So long as Declarant owns any property described on Exhibit "A", Declarant reserves blanket easements and the right to grant such specific easements over all the Properties, including Lots and Common Areas, as may be necessary in conjunction with the orderly development of the property described on Exhibit "A" or any adjacent property (including without limitation the planning, construction, marketing, leasing, management and maintenance of improvements) for use, enjoyment, access, construction and maintenance of public or private utilities and storm drainage (whether subsurface or surface). No such easements may be located withn the area beneath any building located thereon.

Declarant reserves access easements over all Lots for construction, either for that Lot or any adjacent property and easements for the installation of public or private utilities and storm drainage (whether subsurface or surface).

ARTICLE XI

DECLARANTS'S RIGHTS

The right is reserved by Declarant, or its agents, to place and maintain on the Properties all model homes, sales offices, advertising signs and banners and lighting in connection therewith and other promotional facilities at such locations and in such forms as shall be determined by Declarant. There is also reserved unto Declarant, its agents and propsective purchasers and tenants, the right of ingress, egress and transient parking in and through the Properties for such sales purposes. Declarant also reserves the right to maintain on the Properties without charge (a) a general construction office for Declarant's contractors and (b) appropriate parking facilities for the employees of Declarant's agents and contractors. Notwithstanding any other provision to the contrary, no annual or special assessment shall be due for any models of the Declarant. Notwithstanding any provision herein to the contrary, the rights and easements created under this Declaration are subject to the right of Declarant to execute all documents and do all other acts and things affecting the Properties, which in the Declarant's opinion, are required to implement any right of Declarant set forth in this Declaration (including the making of any dedications or conveyances to public use) provided any such document or act is not inconsistent with the then existing property rights of any Owner.

Notwithstanding any provision to the contrary, Declarant reserves the right and power, and each Owner by acceptance of a deed to a Lot is deemed to and does give and grant to Declarant a power of attorney, which right and power is coupled with an interest and runs with the title to a Lot and is irrevocable (except by Declarant), without the consent, approval or signature of each Owner, to (i) amend the Declaration and all attachments, to the extent necessary to confirm[sic] to the requirements then governing the purchases or insurance of mortgages by The Mortgage Corporation, Federal National Mortgages Association, Governmental National Mortgages Association, Federal Home Loan Mortgage Corporation, Mortgage Guaranty Insurance Corporation, Department of Housing and Urban Development, the Federal Housing Administration, the Veterans Administration, or any other similar agency or organization, (ii) induce any such agencies or entities to make, purchase, sell, insure or guarantee first mortgages covering Lot ownership, (iii) to correct typographical errors, surveyor errors in descriptions or otherwise, or obvious factual errors or omissions, the correction of which would not impair the interest of any Owner or mortgagee, (iv) bring this Declaration into compliance with South Carolina law, (v) to amend any Exhibits, (vi) to exercise any Special Declarant Rights or development rights; or (vii) to amend this Declaration in any manner which does not materially affect an Owner's use and enjoyment of his or her Lot; and further provided that if there is an Owner other than the Declarant, the Declaration shall not be amended to increase the scope or the period of control of the Declarant. Each deed, mortgage, other evidence of obligation, or other instrument affecting a Lot and the acceptance thereof shall be deemed to be a grant and acknowledgment of, and consent to the reservation of, the power of Declarant to vote in favor of, make, execute and record any of the foregoing amendments. The rights of Declarant under this Section shall terminate at such time as Declarant no longer holds or controls title to a Lot and the right of Declarant to add the Additional Property has expired.

ARTICLE XII

DISPUTE RESOLUTION AND LIMITATION OF LIABILITY

Section one.   Agreement to Avoid Costs of Litigation and to Limit Rights to Litigate Disputes. The Association, Declarant, all persons subject to this Declaration, Owners and any Person not otherwise subject to the Declaration who agrees to submit to this Article (collectively "Bound Parties") agree to encourage the amicable resolution of disputes involving the Properties in order to avoid the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees that all claims, grievances or disputes between such Bound Party and any other Bound Party involving the Properties including, without limitation, claims, grievances or disputes arising out of or relating to interpretation, application, or enforcement of this Declaration, the By-laws, the Association rules, or the Articles (collectively "Claim"), except for those Claims authorized in Section Two, shall be resolved using the procedures set forth in Section Three in leiu of filing suit in any court or initiating proceedings before any administrative tribunal seeking redress or resolution of such Claim.
Section Two.   Exempt Claims. The following Claims ("Exempt Claims") shall be exempt from provisions of Section Three:
  1. Any suit by the Association against any Bound Party to enforce the provisions of Article V (Assessments);
  2. Any suit by the Association to obtain a temporary restraining order (or equivalent emergency equitable relief and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of Article VII (Architectural Control) and Article IX (Use Restrictions); and
  3. Any suit between Owners (other than Declarant) seeking redress on the basis of a Claim which would constitute a cause of action under federal law or the laws of the State of South Carolina in the absence of a claim based on the Declaration, By-Laws, Articles or rules of the Association, if the amount in controversy exceeds $5,000.00.

Any Bound Party having an Exempt Claim may submit it to the alternative dispute resolution procedures set forth in Section Three, but there shall be no obligation to do so. The submission of an Exempt Claim involving the Association to the alternative dispute resolution procedures of Section Three require the approval of the Association.

Section Three.   Mandatory Procedures for All Other Claims. All Claims other than Exempt Claims shall be resolved using the following procedures:
  1. Notice. Any Bound Party having a Claim ("Claimant") against any other bound Party ("respondent"), other than an Exempt Claim, shall notify each respondent in writing of the Claim (the "Notice"), stating plainly and concisely:
    1. The nature of the Claim, including date, time, location, persons involved and respondent's role in Claim;
    2. The basis of the Claim ("Claimant")[sic] (i.e., the provisions of this Declaration, the By-Laws, the Articles or rules or other authority out of which the claim arises);
    3. What Claimant wants Respondent to do or not to do to resolve the Claim;
    4. The Claimant wishes resolve the Claim by mutual agreement with Respondent and is willing to meet in person with Respondent at a mutually agreeable time and place to discuss in good faith ways to resolve the Claim.
  2. Negotiation.
    1. Each Claimant and Respondent (the "Parties") shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good negotiation.
    2. Upon receipt of a written request from any Party, accompanied by a copy of the Notice, the Board may appoint a representative to assist the Parties in resolving the dispute by negotiation, if in its discretion it believes its efforts will be beneficial to the Parties and to the welfare of the community.
  3. Mediation.
    1. If the Parties do not resolve the Claim through negotiation within 30 days of the date of the Notice (or within such other period as may be agreed upon by the Parties) ("Termination of Negotiations"), Claimant shall have 30 additional days within which to submit the Claim to mediation under the auspices of any dispute resolution center or other such independent agency providing similar services in the same geographical area upon which the Parties may mutually agree.
    2. If Claimant does not submit the Claim to mediation within 30 days after Termination of Negotiations, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to Persons not a Party to the foregoing proceedings.
    3. If the Parties do not settle the Claim within 30 days after submission of the matter to the mediation process, or within such time as determined reasonable or appropriate by the mediator, the mediator shall issue notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall set forth when and where the Parties met, that the Parties are at an impasse, and the date that mediation was terminated.
    4. Each Party shall, within five days of the Termination of Mediation, make written offer of settlement in an effort to resolve the Claim. The Claimant shall make a final written settlement demand ("Settlement Demand") to the Respondent. The Respondent shall make a formal written settlement offer ("Settlement Offer") to the Claimant. If the Claimant fails to make a Settlement Demand, Claimants[sic] original Notice shall constitute the Settlement Demand. If the Respondent fails to make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing" Settlement Offer.
  4. Final and Binding Arbitration. Notwithstanding any other provision herein to the contrary, any and all claims, disputes and controversies by and between the Declarant, Association, and/or Owners or any combination thereof arising from or related to the Properties (including Lots and Common Areas), any improvements to the Properties, the sale of any part of the Properties, including, without limitation, any claim of breach of contract or warranty, negligence, negligent or intentional misrepresentation or non disclosure in the inducement, execution or performance of any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealings, shall be submitted to arbitration by and pursuant to the rules of Construction Arbitration Services, Inc. ("CAS"), American Arbitration Association ("AAA"), or Demars & Associates, Ltd. ("Demars"), in effect at the time of the request for arbitration or by such other arbitration service as Declarant shall, in its sole discretion select, and pursuant to the rules of that arbitration service in effect at the time of the request for arbitration. This arbitration agreement shall inure to the benefit of, and be enforceable by all successors and assigns of the parties. Any party shall be entitled to recover reasonable attorneys' fees and costs incurred in enforcing this arbitration agreement, and the arbitrator shall have sole authority to award such fees and costs. The decision of the arbitrator shall be final and binding and may be entered as a judgement[sic] in any state or federal court of competent jurisdiction. This arbitration agreement shall be deemed to be a self-executing arbitration agreement. Any disputes concerning interpretation or the enforceability of this arbitration agreement, including without limitation, its revocability or voidability for any cause, the scope of arbitrable issues and any defense based on waiver, estopple or laches shall be decided by the arbitrator. The initiation of or participation by any party in any judicial proceeding concerning this arbitration agreement or any matter arbitrable hereunder shall not be deemed a waiver of the right to enforce this arbitration agreement, and nothwithstanding provision of law to the contrary, shall not be asserted or accepted as a reason to delay, to refuse to participate in, or to refuse to enforce this arbitration agreement. Any party who shall commence a judicial proceeding concerning a dispute that is arbitrable, however, shall also be deemed a party requesting arbitration within the meaning of this arbitration agreement. The arbitrator's compensation shall be borne equally by the arbitrating parties. Any additional fees may be assessed in accordance with the arbitration rules and fees. Parties expressly agree that this arbitration agreement involves and concerns interstate commerce and is governed by the provisions of the Federal Arbitration Act (9 USC 1 et seq.) now in effect as the same may from time to time be amended, supplanted or replaced, to the exclusion of any different or inconsistent state or local law, ordinance, or judicial rule; and to the extent that any local law, ordinance or judicial rule may be inconsistent with any provision of the rules of the arbitration service under which the arbitration proceeding shall be conducted, the latter rule shall govern the conduct of the proceedings. If any provisions of this arbitration agreement shall be determined by arbitrator or by any court to be (i) non-enforceable or (ii) have been waived, the remaining provision shall be deemed to be severable therefrom and enforceable according to their terms.
Section Four.   Allocation of Costs of Resolving Claims.
  1. Each Party shall bear its own costs incurred prior to and during the proceedings described in Section Three (a), (b) and (c), including the fees of its attorney or other representative. Each Party shall share equally all charges rendered by the mediator(s) pursuant to Section Three (c).
  2. Each Party shall bear its own costs (including the fees of its attorney or other representative) incurred after the Termination of Mediation under Section Three (c) and shall share equally in the costs of conducting the arbitration proceeding (collectively, ("Post Mediation Costs"), except as otherwise provided in subsection Section Four (c).
  3. Any award, which is equal to or more favorable to Claimant than Claimant's Settlement Demand shall add such Claimant's Post Mediation Costs to the Award, such Costs to be borne equally by all Respondents. Any Award which is equal to or less favorable to Claimant than Respondent's Settlement Offer to that Claimant shall also award to such Respondent its Post Mediation Costs, such Costs to be borne by all such Claimants.
Section Five.   Enforcement of Resolution. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with Section Three and any Party thereafter fails to abide by the terms of such agreement, or if any Party fails to comply with the terms of any Award following arbitration, then any other Party may file suit or initiate administrative proceedings to enforce such agreement or Award without the need to again comply with the procedures set forth Section Three, in such event, the Party taking action to enforce the agreement or Award shall be entitled to recover from the non-complying Party (or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in enforcing such agreement or Award, including, without limitation, attorneys fees and court costs.
Section Six.   Commencement of Litigation. (a) Any litigation by the Association (i) other than the "Exempt Claims" set out in Section Two or (b) any arbitration against the Declarant shall both require an affirmative vote of seventy five percent (75%) of the Members of the Association prior to the institution of such litigation. No lawsuit shall be permitted against Declarant, but any action against the Declarant shall be pursuant to arbitration as set forth in this Declaration. The Association and Owners agree to give the Declarant written notice of any claim or defect in the Properties, and further grant the Declarant a sixty (60) day period within which to investigate the claim or defect and respond to the Association and/or Owners, prior to requesting arbitration.

ARTICLE XIII

GENERAL PROVISIONS

Section One.   Enforcement. The Declarant, Association, or any Owner shall have the right to enforce, by proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Declarant, Association or any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.
Section Two.   Severability. Invalidation of any one of these covenants or restrictions by judgement[sic] or court order shall in no way affect any other provisions, which shall remain in full force and effect.
Section Three.   Amendment. The covenants and restrictions of this Declaration shall run with and bind the land perpetually. Except as provided herein, this Declaration may be amended by an instrument signed by not less than sixty-seven percent (67%) of the Lot Owners. No amendment in any circumstance may alter, amend, or eliminate any right, privilege, or benefit of Declarant, and further no amendment relating to the maintenance, repair, replacement and ownership of the permanent ponds on the Properties shall be permitted without the review and approval by the governmental office having jurisdiction for watershed protection.
Section Four.   Management and Contract Rights of the Association. Declarant shall enter into a contract with a management company or manager for the purposes of providing all elements of the operation, care, supervision, maintenance, and management of the Properties. Declarant contemplates that the initial manager may be the Declarant or a firm affiliated with the Declarant. The initial Board of Directors of the Association shall ratify and approve the management contract, which will provide for such manager or management company to act as a managing agent for the Association with respect to the Properties at a rate equal to the greater of: (i) Fourteen Dollars ($14.00) per month for each Lot that has become subject to an assessment by the Association under Article V, Section Eight of this Delcaration, or (ii) Four Hundred Dollars ($400.00) per month. Any such contract or lease entered into by Declarant or by the Association while Declarant is in control thereof shall contain a provision allowing the Association to terminate such contract, without justification or penalty, upon sixty (60) days notice.
Section Five.   Rights of Noteholders. Any institutional holder of a first mortgage on a Lot ("Mortgage Holder") will upon request, be entitled to (a) inspect the books and records of the Association during normal business hours, (b) receive an annual financial statement of the Association within ninety (90) days following the end of its fiscal year, (c) receive written notice of all meetings of the Association and the right to designate a representation[sic] to attend all such meetings, (d) receive written notice of any condemnation or casualty loss that effects either a material portion of the project or the unit securing its mortgage, (e) receive written notice of any sixty-day delinquency in the payment of assessments or charges owed by the Owner of any unit on which it holds the mortgage, (f) receive written notice of a lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Owners' Association, (g) receive written notice of any proposed action that requires the consent of a specified percentage of mortgage holders, and (h) be furnished with a copy of the master insurance policy.
Section Six.   Notices. Any notice required or desired to be given under the provisions of this Declaration shall be deemed to have been properly delivered when deposited in the United States mail, postage prepaid, directed to the last known Mortgage Holder or other party entitled to notice, at the last known address for each such party, all as shown on the books and records of the Association at the time such notice is given.
Section Seven.   Exculpation. It is expressly understood and agreed that nothing contained in this Declaration shall be interpreted or construed as creating any liability whatsoever, directly or indirectly, against Declarant or any of its officers, members, managers, employees, agents, attorneys, heirs, executors, legal representatives, successors or assigns (collectively the Declarant Related Parties) for monetary relief or damages. In particular, and without limiting the generality of the foregoing, if any proceeding shall be brought to enforce the provisions of this Declaration, the party instituting such proceeding shall not be entitled to take any action to procure any money judgment against the Declarant or any related parties.
Section Eight.   Conflict with South Carolina Law: Severability. Should any of the terms, conditions, provisions, paragraphs, or clauses of this Declaration conflict with any provisions of South Carolina law, the provisions of South Carolina law shall control unless South Carolina law permits the Declaration to override South Carolina law, in which event the Declaration shall control. The invalidity of any covenant, restriction, condition, limitation, provision, paragraph or clause of this Declaration, or any part of the same, or the application thereof to any person or circumstance, shall not impair or affect in any manner the validity, enforceability or affect of the rest of this Declaration, or the application of any such covenant, restriction, condition, limitation, provision, paragraph, or clause to any other person or circumstance.
Section Nine.   Disclaimer of All Warranties. Declarant and Developer hereby disclaim and exclude any and all warranties, expressed or implied (including, without limitation, any implied warranty of habitability, merchantability, quality or fitness for particular purpose), with respect to the Properties, Common Area and the Lots. The Association and any Lot Owner knowingly agree to waive any and all rights that they may have pursurant to the implied warranty of habitability. The Asociation and Lot Owners acknowledge and agree that the sole warranties that apply to the Properties, Common Area and the Lots are solely contained within the purchase agreement for the acquisition of the Lots.
Section Ten.   Disclaimer of Other Entities. Owners and the Association acknowledge and understand that their relationship is with the Declarant pursuant to the written terms of this Declaration, and no other entity notwithstanding anything to the contrary in advertising, promotional or other materials. Owners and the Association acknowledge that they have no claim against any entity including affiliates, subsidiaries, parents or otherwise under common control of Declarant, and Owners and the Association waive and release any such claims, if any.

IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has caused this instrument to be executed in its corporate name and its corporate seal to be hereunto affixed, by authority of the Board of Directors, the day and year first written above.


[Various signatures including that of the President and Secretary of PORTRAIT HOMES-WESTRIDGE LLC, notarized, 23 day of January, 2007 in Cook County, Illinois.]


EXHIBIT A

ALL AND SINGULAR, that certain piece, parcel, or tract of land situate, lying and being in Horry County, South Carolina, designated as 64.623 acres +/- as shown on that certain plat entitled "ALTA/ACSM Land Survey of a Portion of Burning Ridge Golf Course for Portrait Homes of South Carolina, LLC" by ETS-Engineering Services, Inc. dated February 8, 2005, revised July 1, 2005 recorded in Plat Book 206 at page 128 and 128-A, records of Horry County, South Carolina ("MAP").