Instrument#: 2011000095108, DEED BK:
3542 PG: 908 DOCTYPE: 069 09/20/2011 at
10:53:52 AM, 1 OF 121 BALLERY V.
SKIPPER, HORRY COUNTY, SC
REGISTRAR OF DEEDS

This Amended and Restated Declaration of Restrictions and Protective Covenants is made this 20^th day of September, 2011.

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BACKGROUND

On January 1, 1991, Heather Lakes, Inc., a South Carolina Corporation (the “Declarant”) caused to be executed a “Declaration of Restrictions and Protective Covenants for Heather Lakes” (the “Original Declaration”) affecting certain real property described therein.  The Original Declaration was recorded in the office of the Clerk of Courts for Horry County, South Carolina, on January 2, 1991 in Deed Book 1443, page 469.  The Original Declaration has been amended seven times through January 22, 2002, incorporating additional properties subject to the terms of the Original Declaration.  All of the property covered by the Original Declaration has been subdivided for the construction of single family residential dwellings.

By Deed dated September 28, 1994, and recorded in the office of the Clerk of Courts for Horry County, South Carolina in Deed Book 1761, page 475, the Declarant conveyed the area designated as “common area” to the Heather Lakes Homeowners Association, Inc., a South Carolina non-profit corporation, consisting of all owners of properties subject to the terms of the Original Declaration, as amended.  By virtue of that conveyance, the Declarant has no further right, title or interest in the properties covered by the Original Declaration.

Because of these and other changes which have occurred over the intervening period of time, the Association and the property owners have determined that it is in the best interest of all parties to amend and restate the Original Declaration.

NOW THEREFORE, in consideration of the foregoing, the Original Declaration of Restrictions and Protective Covenants for Heather Lakes is hereby Amended and Restated as follows:

ARTICLE I

DEFINITIONS

The following words and terms when used in this Declaration or any supplemental Declaration shall have the following meanings:

Section 1. Association.

"Association" shall mean and refer to Heather Lakes Homeowners Association, Inc., a South Carolina non-profit corporation, its successors and assigns.  The Association is the successor in interest to the original Declarant.

Section 2. Owner or Member.

"Owner" or "Member" shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot which is a part of the Properties, but excluding those having such interests merely as security for the performance of an obligation.

Section 3. Properties.

"Properties" shall mean and refer to the property described in Article II, Section 1 hereof, and any additions thereto as are or shall become subject to this Declaration and brought within the jurisdiction of the Association under the provisions of Article II hereof.

Section 4 . Common Area.

"Common Area" shall mean all the real property owned by the Association for the common use and enjoyment of the Owners. The Common Area to be owned by the Association includes, but is not limited to, certain open areas shown on the map referenced in Exhibit "A", as well as the pool and amenity center and such facilities as may be built.

Section 5. Lot.

"Lot" shall mean and refer to any plot of land, with delineated boundary lines appearing on any recorded subdivision map of the Properties with the exception of any Common Area shown on a recorded map. In the event any Lot is increased or decreased in size by re-subdivision, the same shall nevertheless be and remain a Lot for the purposes of this Declaration. This definition shall not imply, however, that a Lot may be subdivided if prohibited elsewhere in this Declaration. In the event that an Owner desires to combine two (2) or more adjoining Lots for the purpose of constructing and maintaining a single residence thereon, the resulting combined Lots shall, from that date forward, be deemed one Lot for the purposes of this Declaration.

Section 6. Setback.

"Setback" shall mean an area along the boundary of a Lot where no buildings shall be permitted except with the express written permission of the Board of Directors of the Homeowners Association.

Section 7. Annual Assessment.

"Annual Assessment" shall mean an equal assessment established by the Board of Directors for common expenses as provided for in Article VI, Section 2A, or by a subsequent amendment which shall be used for the purpose of promoting the recreation, common benefit and enjoyment of the Owners and occupants of all Lots.

Section 8. Special Assessment.

"Special Assessment" shall mean and refer to assessments levied in accordance with Article VI, Section 2B, of this Declaration.

Section 9. Specific Assessment.

“Specific Assessment” shall mean and refer to an assessment levied on the Owner of a particular Lot, and not all Owners of property subject to these Covenants, as a result of violation or non-compliance as provided for in Article VI, Section 2C.

Section 10. Subsequent Amendment.

"Subsequent Amendment" shall mean an amendment to this Declaration which adds property to this Declaration and makes it subject to the Declaration. Such Subsequent Amendment may, but is not required to, impose, expressly or by reference, additional restrictions and obligations on the land submitted by that Subsequent Amendment to the provisions of the Declaration.

ARTICLE II

PROPERTY SUBJECT TO THIS DECLARATION

AND WITHIN THE JURISDICTION OF THE

HEATHER LAKES HOMEOWNERS ASSOCIATION, INC.

Section 1. 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 located in Horry County, South Carolina, and described in Exhibits A, B and C.

Section 2. Merger or Consolidation. Upon a merger or consolidation of any association referred to herein with any other association as provided in its Articles of Incorporation, its properties, rights and obligations may, by operation of law, be transferred to another surviving or consolidated association or, alternatively, the properties, rights, and obligations of any association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the covenants and restrictions established by this Declaration within the Properties together with the covenants and restrictions established upon any other properties as one scheme. No such merger or consolidation, however, shall affect any revocation, change or addition to the covenants established by this Declaration within the Properties.

ARTICLE III

ANNEXATION OF ADDITIONAL PROPERTY

Annexation with Approval of Membership. Subject to the consent of the Owner thereof, upon the affirmative vote of voting Members or alternates representing a majority of votes of the Association at a meeting duly called for such purpose, the Association may annex real property other than that shown on Exhibit "B".  The properties shown on Exhibit 'B", may be submitted to the provisions of this Declaration and the jurisdiction of the Association by filing of record in the Public records of Horry County, South Carolina, a Subsequent Amendment in respect to the properties being annexed. Any such Subsequent Amendment shall be signed by the President and the Secretary of the Association, and the Owner of the properties being annexed, and any such annexation shall be effective upon filing unless otherwise provided therein. The relevant provisions of the By‑Laws dealing with regular or special meetings, as the case may be, shall apply to determine the time required for and the proper form of notice of any meeting called for the purpose of considering annexation of property pursuant to this Article and to ascertain the presence of a quorum at such meeting.

ARTICLE IV

MEMBERSHIP AND VOTING RIGHTS

Section 1. Members.  Every Owner of a Lot, which is subject to Assessment, shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to Assessment.

Section 2. Voting Rights.  The voting rights of the membership shall be appurtenant to the ownership of the Lots.  Each Member shall be entitled to one (1) vote for each Lot owned. When more than one person owns an interest (other than a leasehold or security interest) in any Lot, all such persons shall be Members, and the voting rights appurtenant to said Lot shall be exercised as they, among themselves, determine, but in no event shall more than one vote be cast with respect to any one Lot.

ARTICLE V

PROPERTY RIGHTS

IN THE COMMON AREAS

Section 1. Members Easements.

Each Member, and each tenant, agent and invitee of such Member shall have a permanent and perpetual easement for ingress and egress for pedestrian and vehicular traffic over and across the roadways from time to time laid out on the Common Areas, for use in common with all other such Members, their tenants, agents, and invitees. The portions of the Common Areas not used from time to time for roadways shall be for the common use and enjoyment of the Members of the Association and each Member shall have a permanent and perpetual easement for pedestrian traffic across all such portions of such tracts as may be regulated by the Association.

Section 2. Easements Appurtenant.

The easements provided in Section 1 shall be appurtenant to and shall pass with the title to each Lot.

Section 3. Public Easements.

Fire, police, health and sanitation, and other public service personnel and vehicles shall have a permanent and perpetual non-exclusive easement for ingress and egress over and across the Common Areas.

Section 4.  Maintenance.

The Association shall at all times maintain in good repair, and shall repair or replace as often as necessary, the paving, drainage structures, street lighting fixtures, landscaping, and amenities (except utilities) situated on the Common Areas. The Board of Directors acting on its majority vote shall order all work to be done and shall pay for all expenses including all electricity consumed by the lighting located in the Common Areas and all other common expenses. All work pursuant to this Section 4 and all expenses hereunder shall be paid for by such Association through Assessments imposed in accordance with Article VI. Excluded herefrom shall be paving and maintenance of individual Lot driveways, which shall be maintained by each Owner. Nothing herein shall be construed as preventing the Association from delegating or transferring its maintenance obligations to a governmental authority under such terms and conditions as the Board of Directors may deem in the best interest of the Association.

Section 5. Utility Easements.

Use of the Common Areas for utility easements, shall be in accordance with the applicable provisions of this Declaration.

Section 6. Delegation of Use Subject to the Rules and Regulations of the Association as Established by the Board of Directors:

(a)    Family.  The right and easement of enjoyment granted to every Owner in Section 1 of this Article V may be exercised by members of the Owner's family who occupy the residence of the Owner within the Properties.

(b)    Tenants.  The right and easement of enjoyment granted to every Owner in Section 1 of this Article V may be delegated by the Owner to his tenants who occupy a residence within the Properties.

(c)    Guests.  Recreational facilities, if any, situated upon the Properties may be utilized by guests of Owners or tenants.

ARTICLE VI

COVENANT FOR ASSESSMENTS

Section 1. Creation of the Lien and Personal obligation of Assessments.

The Association, for each Lot owned within the Properties, hereby covenants and 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 the Association  (1) Annual Assessments or charges and (2) Special Assessments for capital improvements, such assessments to be established and collected as hereinafter provided and fines imposed for the violations of these Restrictions and of the rules and regulations of the Association, as may be promulgated from time to time.

Section 2. Assessments.

The assessments levied by the Association shall be used for the promotion of the comfort and livability of the residents of the Properties.  There shall be three types of assessments: an Annual Assessment, a Special Assessment, and Specific Assessment.

A.  Annual Assessment.   An Annual Assessment shall be made by the Board of Directors for the acquisition, improvement and maintenance of properties, services and facilities devoted to these purposes.  With regard to the Common Areas, such actions shall include, but shall not be limited to:

(a)    The cost of repair, replacement and additions;

(b)    The cost of labor, equipment, materials, management and supervision thereof;

(c)    The payment of taxes assessed against the Common Areas;

(d)    The procurement and maintenance of insurance;

(e)    The employment of attorneys to represent the Association when necessary; and such other needs as may arise.

The Annual Assessments shall commence on the first day of January and shall be for the calendar year.  Each Lot shall be assessed an equal Annual Assessment which shall be payable in monthly, quarterly, semi-annual or annual installments as determined periodica1ly by the Board of Directors of the Association.  The assessment amount may be changed at any time by said Board from any other assessment that is adopted.

B.   Special Assessments.  Funds necessary for purposes approved by the Board of Directors including, but not limited to, capital improvements, repairs and/or replacement of the Common Areas may be raised by Special Assessments levied by such Association, upon the approval of a majority of the Board of Directors of such Association and upon approval by a majority of the Members except that the Board may levy Special Assessments which annually shall not exceed either Five Thousand ($5,000) Dollars or Five percent (5%) of the annual budget, whichever is greater, without the approval of the membership.  Each Lot shall be assessed an equal portion of the gross amount which shall become due on a date to be specified by the Board of Directors.

C.   Specific Assessments.   Specific Assessments shall be applied to the Owner of a particular Lot and not all Owners of property subject to these Covenants.

(a)    Owner’s Obligation for Grounds Maintenance.  The Owner shall maintain the grounds on each Lot at all times in a neat and attractive manner so as not to create a nuisance. Upon the Owner's failure to do so, the Association shall give the Owner ten (10) days written notice, sent to the Owner’s last known address, directing that the offensive condition be corrected either by the cutting of grass, weeds, shrubs and vegetation, or by the removal of dead trees, shrubs and plants from the Lot.  Such corrective work may include the replacement of trees, shrubs and plants or the resodding or landscaping of the Lot area.

(b)    Owner’s Obligation for Structure Maintenance.   The Owner shall maintain the structures on each Lot at all times in a neat and attractive manner so as not to create a nuisance. Upon the Owner's failure to maintain the exterior of any structure in good repair and appearance, the Association shall give the Owner thirty (30) days written notice, sent to the Owner’s last known address, directing that repairs to and maintenance of the structure be performed.

(c)   Failure to Comply.   Upon failure of the Owner to comply with the above written notice(s), the Association may enter upon the premises and cause such corrective work to be performed.  The cost of any of the work performed by the Association upon the Owner's failure to do so shall be immediately due and owing from the Owner of the Lot and shall constitute an assessment against the Lot on which the work was performed, collectible in a lump sum and secured by a lien against the Lot as herein provided.

(d)  Access at Reasonable Hours.  For the purpose solely of performing the maintenance authorized by this Article, the Association, through its duly authorized agents, employees, or independent contractors, shall have the right to enter upon any Lot at reasonable hours on any day, except Sunday, or at any time in case of an emergency. Such entry shall not be deemed a trespass.

Section 3.  Obligations of Purchasers of Lots

(a)    Certificate of Assessment - Prior to taking title, the purchaser of a Lot shall obtain a Certificate of Assessment from the Association to determine whether there are unpaid Assessments upon the Lot to be acquired.  The failure to obtain such Certificate shall not excuse liability for the payment of any outstanding Assessments.

(b)    Capital Contribution - Upon the sale of any Lot, a contribution to the Association shall be made, at closing, by the purchaser as a capital contribution.  The amount of such contribution shall be fifty percent (50%) of the Annual Assessment for the year in which the transfer takes place and shall be designated as a contribution to the Association’s Reserve Fund.  This amount shall be in addition to the Annual Assessment and shall not be considered an advance payment of such assessment. If any adjoining Lots are combined as provided in Article VIII, Section 3, the Owner of such Lot shall be assessed one (1) capital contribution.

Section 4. Duties of the Board of Directors with respect to Annual Assessments.

The Board of Directors of the Association shall fix the due date and the amount of the Annual Assessment against the Lots subject to the Association's jurisdiction for each assessment period at least thirty (30) days in advance of such date or period.  The Board shall also prepare a roster of the properties and assessments applicable thereto which shall be kept in the office of the Association and shall be open to inspection by any Owner.  Any increase in the Annual Assessment applicable to the Lots which is equal to or less than an increase of twenty percent (20%) over the immediately preceding year's assessment may be made by the Board of Directors without the consent or approval of the Members and any such increase that exceeds twenty percent (20%) of total budget excluding insurance, reserves, utilities and Acts of God, shall be effective only if approved by a majority of Members.

Written notice of the assessment shall be sent to every Owner at least 30 days prior to the due date.

The Association shall, upon demand at any time, furnish to any Owner liable for an assessment, a certificate in writing signed by an officer of the Association, setting forth whether such assessment has been paid as to that Owner’s Lot.  Such certificate shall be conclusive evidence of payment of any assessment to the Association therein stated to have been paid.  The Association shall have the right to charge a reasonable fee to the Owner for said certificate of assessment.  The Association, through the action of its Board of Directors, shall have the power, but not the obligation, to enter into an agreement or agreements from time to time with one or more persons, firms or corporations for management services. The Association shall have all other powers provided in its Articles of Incorporation and By‑Laws.

Section 5.  Collection of Assessments.  It shall be the legal duty and responsibility of the Association to enforce payment of the assessments hereunder.

(a)    Interest and Late Fees.  If the assessments are not paid within thirty (30) days after the due date as specified above, then such assessment shall become delinquent.  Delinquent assessments shall incur interest at a rate of 1¼ % per month.  The Board is hereby authorized to additionally establish a late penalty for any assessment not paid within fifteen (15) days after the due date.

(b)    Personal Obligation.  All delinquent assessments shall become the personal obligation of the Owner, his heirs, successors and assigns.

(c)    Property Lien.  In addition to being the personal obligation of the Owner, delinquent assessments shall become a continuing lien upon the property until satisfied.

(d)    Association Action.  The Association may cause a lien to be recorded against the property for the amount of any delinquent assessment and may foreclose the lien against the Lot in the same manner as provided for mortgage foreclosure.  In addition, the Association may bring suit against the Owner of the property to collect the personal obligation for payment of the delinquent assessment.  In either case, the Owner shall be obligated to pay all costs incurred by the Association including, without limitation, reasonable attorney fees.

(e)    Use of Common Facilities. During the period of any delinquency, the Owner and all persons acquiring the title to or an interest in a Lot, specifically including, but not limited to guests, invitees or tenants, as to which the assessment is delinquent, including, without limitation, persons acquiring title by operation of law and by judicial sales, shall not be entitled to the enjoyment and use of recreational facilities, if any, until such time as all unpaid and delinquent assessments have been fully paid.

Section 6. Subordination of the Lien to Mortgages. The lien of the assessments shall be subordinate to the lien of any mortgage now or hereafter encumbering any Lot.  Sale or transfer of any Lot shall not affect the assessment, however, the sale or transfer of any Lot pursuant to mortgage foreclosure or deed or proceeding in lieu of foreclosure (other than foreclosure by the Association of its own lien) shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.  No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

ARTICLE VII

ARCHITECTURAL REVIEW

Purpose.  The purpose of architectural review is to maintain and enhance the character and value of properties and homes and to ensure compatibility, consistency and conformity within Heather Lakes.

Section 1.   Architectural Review Committee.

There shall be an Architectural Review Committee (ARC) which shall be appointed by the Board of Directors of the Association.

Section 2.   Committee Members and Terms.

The ARC shall consist of five individuals who shall be Members of the Association and residents of the community. Three members shall be appointed for two (2) year terms and two members for a one (1) year term and they shall serve without compensation for services performed.  Thereafter, the Board shall appoint such members as vacancies exist.  The ARC shall elect a Chairperson from among its members and adopt procedural rules and regulations for its proceedings and they shall develop all forms and other documents required to carry out the functions of the ARC.  ARC members shall be reimbursed, with the approval of the Board of Directors, for expenses including the hiring of professional personnel and consultants to advise it in performing its duties.  A majority of the ARC may take any action said Committee is empowered to take.  In the event of death, disability or resignation of any member of the ARC, the Board of Directors shall appoint a successor to serve the unexpired term.  Members of the ARC may be removed at any time, with cause, by majority vote of the Board of Directors.

Section 3.   Duties of the ARC.

The ARC shall have the following duties:

(a)    To review and to approve or disapprove all plans submitted to it pursuant to the provisions of Section 4, below.

(b)    To review the Guidelines for architectural review and to recommend to the Board of Directors such changes, additions and modifications as they deem necessary and proper.

(c)    To perform such other duties as may be assigned to it by the Board of Directors.

Section 4.   Review of Plans.

No building, wall, fence, dock, ornamentation or other structure or improvements of any nature shall be erected, placed or altered on any Lot until the construction plans and specifications showing the location of the structure(s) and landscaping have been approved by the ARC.  Each such building, wall, fence, dock or other structure or improvements of any nature, together with any ornamentation or landscaping, shall be erected, placed or altered upon the premises only in accordance with the approved plans and specifications.   Refusal of approval of plans, specifications and plot plans, or any of them, may be based on any ground, including purely aesthetic grounds which, in the sole and uncontrolled discretion of the ARC, seem sufficient.  Any change in the appearance of any building, wall, fence, dock, ornamentation or other structure or improvements shall be deemed an alteration requiring approval.

No houses shall be approved which do not include a garage and which do not meet the minimum size requirements which shall be as follows:

·         Homes built on lots that are 8,000 square feet or more have a minimum size requirement of 1,500 heated square feet for a one floor unit and 1,800 heated square feet for a two-story unit.

·         Homes built on lots that are less than 8,000 square feet have a minimum size requirement of 1,100 heated square feet for a one floor unit and 1,500 heated square feet for a two-story unit.

No building may be more than three (3) stories or a height of thirty-five (35) feet.

The paint, coating, stain and other exterior finishing colors on all buildings and exterior surfaces to include, but not be limited to, roofs, fences, walls, driveways, patios and walkways, may be maintained as that originally installed, without prior approval of the ARC, but prior approval by the ARC shall be necessary before any such exterior finishing color is changed.

Section 5.  Procedure before the ARC.

All applications for the review of plans or for changes as provided in the Guidelines shall be in writing.  A fee schedule, where applicable, for all proceedings before the ARC shall be adopted by the Board of Directors.  The ARC shall act upon all applications and shall communicate its decision to the applicant within ten (10) business days, twenty (20) business days for new construction, after filing unless extended by written agreement.  The failure of the ARC to act within these periods shall be considered as an approval of the application.  All decisions of the ARC shall be in writing and shall be made by a majority of the committee members.

Section 6.  Appeals from the ARC.  Any Owner aggrieved by a decision of the ARC may appeal the decision to the Board of Directors.  Such appeals shall be filed within ten (10) business days of the date of communication of the decision in such form as the Directors may prescribe and shall include all grounds for the appeal.  After review of the appeal, a majority of the Directors must affirm, reverse, modify or amend the decision of the ARC, attaching such reasonable conditions as it deems necessary and proper under the circumstances.  All appeals to the Board of Directors shall be acted upon and communicated to the appellant within twenty (20) business days from the date of receipt of the appeal.  The decision of the Board of Directors shall be final.

ARTICLE VIII

USE RESTRICTIONS

Section 1. Use of Common Areas.

The Common Areas shall not be used in any manner except as shall be approved or specifically permitted by the Board of Directors.

Section 2. Common Areas Regulations.

Reasonable regulations governing the use of the Common Areas shall be established and amended from time‑to‑time by the Board of Directors. Copies of such regulations and amendments thereto shall be furnished to each Member and posted at the Amenity Center.

Section 3. Land Use.

All Lots shall be used for residential purposes only. No Lot may be subdivided or its boundaries changed where the result would be a decrease in the size of any Lot. In the event that the Owner combines two (2) or more adjoining Lots for the purpose of constructing a single residence thereon, from that date forward, the resulting Lot shall not be subdivided or its boundaries changed so as to result in a decrease in the size of the Lot.

Section 4. Lake Watercraft and Lake Use.

• Watercraft – Boats up to nineteen (19) feet in length shall be permitted.  The use of gas or diesel powered craft shall be strictly prohibited.  Maximum of two (2) watercraft per Lot.

• Maintenance of Watercraft – All watercraft shall be kept in good working order and neat in appearance.

• Registration of Watercraft – Prior to the use of watercraft on the lakes, the Owner must submit a registration form available from the Board of Directors.

• Storage of Watercraft – When not in use or stored within the confines of a residence:

• Water Lot Owners’ registered watercraft shall be secured to the rear of their property, in the water, or be stored flat on the ground near the water's edge.

• Non-water Lot Owners’ registered watercraft may be stored in the designated area on Lake Luck Island.

• At no time shall watercraft be leaned upright against any objects or sides of buildings on the Property.  During high winds and storm warnings, all watercraft must be sufficiently secured so as not to become dangerous flying objects.

• Liability - All watercraft using the lakes shall be fully insured by the Owner for liability for damage caused to the Common Areas or Lots abutting the Lakes or the watercraft Owner must agree to save, defend, indemnify and hold the Association harmless from any and all liability, loss, claim or damage arising out of the use, operation and/or storage of the watercraft by signing the hold harmless clause of the watercraft registration form.

• Lake Use - All lake use is subject to lake rules/regulations as may be issued from time to time by the Board of Directors.

Section 5. Water and Sewer Systems.

No individual water or sewer system, with the exception of an irrigation system, shall be installed on any Lot. Each Lot must be connected to a public water and sewer system in lieu of any individual systems whatsoever. Water may not be diverted or taken from the lakes for yard maintenance or for any other purposes.

Section 6. Oil and Mining Operations.

No oil drilling, oil development operations, oil refining, or mining operations of any kind shall be permitted upon any Lot, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon any Lot. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted upon any Lot.

Section 7. Nuisance.

Noxious, dangerous or offensive activities shall not be conducted upon any Common Property, Lot or in any dwelling nor shall anything be done thereon or therein which may be or may become an annoyance or nuisance to the neighborhood.

Section 8. Access to Lot.

In addition to easements granted elsewhere, agents and employees of the Association shall have access to all Lots from time to time during reasonable working hours, upon oral or written notice to the Owner, as may be necessary for the maintenance, repair or replacement of any portion of the Common Area, or facilities situated upon such Lot which serve another Owner's Lot. The agents and employees of the Association shall also have access to each Lot at all times without notice as may be necessary to make emergency repairs to prevent damage to the Common Area or another Lot.

Section 9. Rentals.

No rentals of a shorter period than six (6) months shall be allowed.  Rental information must be provided by the Owner to the Board of Directors.

Section 10. Vehicle Parking and Storage.

No travel trailers, motor homes, campers, school buses, boats, boat trailers, commercial vehicles, motorcycles, junk or non-mobile vehicles shall be kept, stored or parked on any Lot or Common Area that is open to view unless written permission has been given by the Board of Directors.  No inoperative vehicle, unregistered vehicle or vehicle in a state of noticeable disrepair shall be kept or stored upon any Lot or Common Area nor may any repair work be done to any vehicle, boat or trailer upon any Lot or Common Area except for very minor repair work.  For the purposes of this section, minor repair work shall be defined as that work which shall not require that the vehicle be inoperable or in a state of disrepair for more than two days.  Each Owner shall provide paved space for off-street parking. No parking of any type of vehicle shall be allowed on any unpaved space.

• Section 11.  Driveways, Walkways and Patios.

• All new and replacement driveways, walkways, patios and turn around areas shall be paved with concrete, exposed aggregate, brick pavers or stamped concrete.  Asphalt shall not be permitted.  All driveways must be paved to the beginning of the curb.  Any change to driveways, walkways, patios or turn around areas shall be deemed an alteration requiring prior written approval from the ARC.

Section 12. Temporary Structures.

No structure of a temporary nature including, but not limited to, tents, canopies, inflatables, storage pods and roll-off dumpsters, shall be erected or allowed to remain on any Lot unless and until permission for the same has been granted by the ARC, or its designated agent or representative.

Section 13. Sheds.

Stand-alone garden/storage sheds are prohibited.

Section 14. Fences, Docks and Other Structures.

No fences, docks, gazebos or other structures of any kind may be located on any Lot without the prior written permission of the ARC. Said permission may not be unreasonably withheld as long as all the requirements of the ARC have been satisfied.  No fence over six (6) feet in height shall be allowed.  No privacy fence shall be allowed on waterfront Lots.  On any corner Lot, no wall, fence or other structure shall be erected or altered and no hedge, tree, shrub or other growth shall be permitted which may obscure the view of drivers using the roadways.  Chain link and wood fences are not permitted.

Section 15. Mailboxes.

No mailbox may be placed on any Lot until prior written approval has been received from the Architectural Review Committee.  Mailboxes shall be maintained in a neat, clean and attractive manner.

Section 16. Garbage/Trash Storage.

All garbage/trash shall be stored within the residence of each Owner or in storage facilities provided for said residence at the time of construction. The storage area must be visually screened in order to conceal it from view from the road and adjacent properties.  No Owner may change or supplement the garbage/trash storage facilities provided unless the ARC shall first approve in writing the change or addition to the method of storage.

• Section 17. Pets.

• No Owner may keep exotic cats, non‑human primates, horses or other farm livestock or zoo-type animals on the property.

• Owners may keep as pets: companion pets such as birds, domesticated cats, fish, dogs and other small mammals.

• Pets shall not be permitted to run at large and must be on a leash or carried when on Common Property.  A pet not on a leash on Common Property shall be deemed a nuisance.

• It shall be the Owner's obligation to properly dispose of waste material from pets.  Failure to do so shall be deemed a nuisance. The Board of Directors of the Association shall have the right to order the removal of any pet which, in the Board's sole discretion, is considered a nuisance, and the same shall be done without compensation to the Owner.  In such event, the Board shall give written notice thereof to the pet owner, and the pet shall immediately thereafter be permanently removed from the Property.

• Pets shall not be permitted to create any excessive noise or other actions which would detract from the peaceful enjoyment of the neighborhood by other Owners.

Section 18. Trees.

Trees of less than four (4) inches in diameter, at the base, or less than ten (10) feet in height may be removed without approval of the ARC.  Trees that interfere with construction of improvements, are dead or diseased, or present a hazard to persons or property may also be removed without approval of the ARC.  No trees of four (4) or more inches in diameter, at the base, or more than ten (10) feet in height may be removed without approval of the ARC.

Section 19. Gardens.

No fruit or vegetable gardens shall be permitted in the front or side yard areas of any Lot.

• Section 20.  Landscaping and Ornamentation.

• Landscaping.  With the exception of those areas of the front yard surfaced with approved walkways and driveways, a minimum of fifty percent (50%) of the remaining area of the front yard shall be covered with mature sod.  No portions of any developed Lot shall be allowed to grow wild or lack some form of ground cover.  Any grass must be installed as mature sod.  Landscaping must be fully installed within sixty (60) days of the issuance of final approval by the Horry County Building Inspector, unless a waiver is granted by the ARC for extenuating circumstances.  All landscaping shall be maintained in a healthy and attractive manner.

• Ornamentation.  Statues, figurines, silhouettes, fountains or ornamental objects exceeding 24” in height shall not be erected or placed on any Lot without prior approval of the ARC.  No more than five (5) such objects, less than 24 inches in height, are permitted to be displayed as part of the front landscaping of any Lot.

• Section 21.  Flags, Banners and Windsocks.

• One American flag and/or three other flags, banners or windsocks, as described below, may be displayed.  The American flag shall not exceed 3’x5’.  The maximum height of a flagpole, excluding finial, shall not exceed twenty (20) feet.  Additional flags, banners or windsocks may not exceed a total of fifteen (15) square feet.

• Section 22.  Birdhouses, Birdfeeders and Birdbaths.

• A single decorative birdbath or birdhouse may be part of the front landscaping. Other birdhouses, birdfeeders and birdbaths shall be installed in the rear or side yards.

• Section 23.  Propane Tanks.

• All non-portable, above-ground propane tanks of 125 gallons or less are required to be screened from view of the public street adjacent to the front yard, (front and side yards for corner Lots) with landscaping or fencing material compatible with the house.  All screening must receive prior written approval from the ARC.  All larger propane tanks must be buried.

• Section 24.  Irrigation Pumps and Plumbing.

• All irrigation pumps and plumbing are required to be screened from view of the public street adjacent to the front yard, (front and side yards for corner Lots) with landscaping or fencing material compatible with the house.  All screening must receive prior written approval from the ARC.

Section 25.  Signs.

Except as set forth below, no signs or advertising devices of any kind which are visible from the exterior of the dwelling thereon or from the Common Areas, or in the facilities thereon, shall be displayed upon any Lot.  Commercial signs displayed on vehicles may not remain outside overnight unless they are removed or covered.

Temporary signs for special events, lasting no longer than three (3) days, shall be permitted with approval of the Board of Directors.

The following signs may be placed upon a Lot without prior written approval by the Board of Directors, if the stated guidelines are followed:

• For Sale – When a home or Lot is for sale, one (1) uniform For Sale sign, approved and purchased in accordance with the resolution of the Board of Directors, may be placed upon the Lot.  The sign shall be located in the approximate center of the front lawn ten (10) feet from the curbing.  The bottom of the sign shall be one (1) foot from the ground.

• New Construction – During the construction of a NEW home, one (1) sign, not to exceed six (6) square feet, advertising the home for sale and the name of the construction company shall be permitted.  Upon completion of construction, the sign must be removed but may be replaced with the uniform For Sale sign (see (a) above).

• Open House – Open House signs are permitted.  One (1) Open House sign may be placed upon a Lot on the day of a scheduled Open House.  The sign must be removed the same day, immediately following the Open House.

•  

• Safety and Security – One (1) small security sign of one (1) square foot or less may be displayed in the front and rear of the Lot.  Small window signs or decals providing information on security protection and/or emergency information for the location and safety of residents, children and pets may be placed in or upon the appropriate windows. (Examples: Child Finder Rescue Decal and “Oxygen in Use”)

• Section 26.  Window and Door Appearance.

• No mirror-like reflective materials shall be used on any windows or doors for blinds, shades or other window treatments that are visible from the exterior.

• Section 27.  Air Conditioning and/or Heating Units.

• Window-mounted and through-the-wall air conditioning and/or heating units are prohibited, except through-the-wall air conditioning and/or heating units may be permitted in the rear of the house upon approval of the ARC.

• Section 28.  Clotheslines.

• Clothesline use is permitted in rear yards only between the hours of 7 AM – 3 PM.  All other exterior drying on fences, decks or porch banisters and railings is strictly prohibited.

• Section 29.  Sports Equipment.

• Sports equipment may be placed in rear yards at Owner’s discretion.  Requests for placement of sports equipment, including, but not limited to, basketball hoops, outdoor gyms, swing sets, or trampolines, must be submitted to the ARC for written approval prior to location in front or side yards.  When the equipment is no longer in use or falls into disrepair, so as to diminish the appearance of the Lot and neighborhood, it shall be removed by the Owner.

Section 30. Lighting.

No mercury vapor or similar high-intensity, commercial or industrial-type lighting, whether free-standing or attached, shall be permitted on any Lot.  Only residential-type lighting and flood lamps shall be allowed.

Section 31.  Satellite Dishes.

The installation and use of all outside antennae shall be in strict accordance with FCC regulations and subject to the following standards:

(a)    “Dish-type” antennae shall be limited to one meter (39.37") or less in diameter.

(b)    All “dish-type” antennae shall be placed in the least conspicuous area as long as such placement does not prevent reception of an acceptable quality signal or impose unreasonable expense or delay.

ARTICLE IX

EASEMENTS AND SETBACKS

Section 1.  Recorded Easements.

Easements for the installation and maintenance of driveways, walkways, parking areas, water lines, gas lines, telephone lines, communication lines, electric power lines, sanitary sewers, drainage facilities, and for other utility installations are reserved.  In addition, the Association may reserve and grant additional easements for the installation and maintenance of sewerage, cable, utility and drainage facilities over the Properties. Within any such easements above provided for, no structure, planting or other material shall be placed or permitted to remain which may interfere with the installation of sewerage disposal facilities and utilities, or which may change the direction of flow or drainage channels in the easements or which may obstruct or retard the flow of water through drainage channels in the easements. In addition, the Association shall have the continuing right (but not the obligation) and easement to maintain all sewer and water lines located on the Lots.

Section 2.  Street Right-of-Way Easement/Setback

There is reserved across the front of each Lot an "Easement Area" or "Setback" as shown on the plats of the Properties, a portion of which area represents the area which may be needed for a street right‑of‑way should the Association elect to dedicate the abutting Common Area street or road to the public authorities by acceptance of a deed to a Lot, every Owner, for him, her, and/or itself and for him/her/itself, their respective heirs, successors and assigns, and hereby appoints the Association as such Owner(s) attorney‑in‑fact for the purpose of deeding, transferring and/or dedicating said "Easement Area" to the proper public authorities, their successors and assigns, for street dedication purposes pursuant to, and subject to, such terms and conditions, if any, as may be contained in the dedication agreement respecting the portion of the street or road which is comprised of a Common Area.

Section 3.  Reserved Easements.

The Association reserves unto itself, its successors, and assigns, a perpetual, alienable and releasable easement and right on, over, and under the ground to erect, maintain and use poles, wires, cables, data transmission lines, conduits, sewers, water mains, and other suitable equipment for the conveyance and use of C.A.T.V., security cable equipment, telephone equipment, communication equipment, gas, sewer, water or other private or public convenience or utilities. Said easements, which constitute building setbacks, shall be as shown on the recorded subdivision plat. Moreover, the Association may cut, at its own expense, drainways for surface water wherever and whenever such action may appear to the Board of Directors to be necessary in order to maintain reasonable standards of health, safety and appearance utilizing the easements and setbacks outlined above.  The use of these easement areas by the Association, its successors and assigns, shall not be deemed a trespass.

ARTICLE X

INSURANCE AND CASUALTY LOSSES

Section 1. Insurance on the Common Areas.

(a)    Casualty Insurance.

The Association's Board of Directors, or its duly authorized agent, shall have the authority to and shall obtain blanket all‑risk insurance, if reasonably available, for all insurable improvements on the Common Areas. If blanket all‑risk coverage is not reasonably available then, at a minimum, an insurance policy providing fire and extended coverage shall be obtained. This insurance shall be in an amount sufficient to cover one hundred (100%) percent of the replacement cost of any repair or reconstruction in the event of damage or destruction from any insured hazard.

(b)    Liability Insurance.

If reasonably available, the Board shall also obtain a public liability policy covering the Common Areas, the Association and its Members for all damage or injury caused by the negligence of the Association or any of its Members or agents. If reasonably available, the public liability policy shall have at least a One Million ($l,000,000) Dollar single person limit as respects bodily injury and property damage, a Three Million ($3,000,000) Dollar limit per occurrence, if reasonably available, and a Five Hundred Thousand  ($500,000) Dollar minimum property damage limit.

(c) Insurance Premiums and Deductibles.

Premiums for all insurance on the Common Areas shall be common expenses of the Association and shall be included in the assessment as described in Article VI, Section 2.  This policy may contain a reasonable deductible, and the amount thereof shall be added to the face amount of the policy in determining whether the insurance at least equals the full replacement cost. The deductible shall be paid by the party who would be responsible for the repair in the absence of insurance and, in the event of multiple parties, shall be allocated in relation to the amount each party's loss bears to the total.

(d) Insurance Policies and their Provisions.

All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association.  Such insurance shall be governed by the provisions hereinafter set forth:

1.Company and Rating.  All policies shall be written with a company licensed to do business in South Carolina which has a Best's rating of A or better and is assigned a financial size category of XI or larger as established by A. M. Best Company, Inc., if reasonably available or, if not available, the most nearly equivalent rating.

2.Benefit of the Association.  All policies on the Common Areas shall be for the benefit of the Association.

3.Authority to Adjust Losses.  Exclusive authority to adjust losses under policies in force on the Properties obtained by the Association shall be vested in the Association's Board of Directors; provided, however, no mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related thereto.

4.Relationship to Other Insurance.  In no event shall the insurance coverage obtained and maintained by the Association's Board of Directors hereunder be brought into contribution with insurance purchased by individual Owners, occupants, or their mortgages.

5.Inflation Guard Endorsement.  All casualty insurance policies shall have an inflation guard endorsement, if reasonably available, and an agreed amount endorsement with an annual review by one or more qualified persons, at least one of whom must be in the real estate industry and familiar with construction in Horry County, South Carolina.

6.Other Provisions.  The Association's Board of Directors shall be required to make every reasonable effort to secure insurance policies that will provide for the following:

(i)   a waiver of subrogation by the insurer as to any claims against the Association's Board of Directors, its manager, the Owners, and their respective tenants, servants, agents, and guests;

(ii)  a waiver by the insurer of its rights to repair, and reconstruct, instead of paying cash;

(iii)  that no policy may be cancelled, invalidated or suspended on account of any one or more individual Owner;

(iv)  that no policy may be cancelled, invalidated, or suspended on account of the conduct of any Director, officer, or employee of the Association or its duly authorized manager without prior demand in writing delivered to the Association to cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured by the Association, its manager, any Owner, or mortgagee;

(v)   that any "other insurance" clause in any policy exclude individual Owners' policies from consideration;  and

(vi)  that no policy may be cancelled or substantially modified without at least ten (10) days' prior written notice to the Association.

Section 2.  Workers' Compensation Insurance.

In addition to the other insurance required by this Section, the Board shall obtain, as a common expense, worker's compensation insurance, if and to the extent necessary, and a fidelity bond or bonds on directors, officers, employees, and other persons handling or responsible for the Association's funds. The amount of fidelity coverage shall be determined in the Directors' best business judgment but may not be less than three (3) months' assessments, plus reserves on hand. Bonds shall contain a waiver of all defenses based upon the exclusion of persons serving without compensation and may not be cancelled or substantially modified without at least ten (10) days prior written notice to the Association.

Section 3.  Officers' and Directors' Liability Insurance.

The Association shall purchase officers' and directors' liability insurance if reasonably available, and every Director and every Officer of the Homeowners Association shall be indemnified by the Association against all expenses and liabilities, including attorney's fees, reasonably incurred by or imposed upon the individual in connection with any proceeding to which the individual may be a party, or in which the individual may become involved, by reason of the individual being or having been a Director or Officer of the Association, whether or not the individual is a Director or Officer at the time such expenses are incurred, except in such cases wherein the Director or Officer is adjudged guilty of willful misfeasance or malfeasance in the performance of  the individual’s duties; provided, that in the event of any claim for reimbursement or indemnification thereunder based upon a settlement by the Director or Officer seeking such reimbursement or indemnification, the indemnification herein shall only apply if the Board of Directors approves such settlement and reimbursement as being in the best interest of the Association. The foregoing right of indemnification shall be in addition to, and not exclusive of, all other rights to which such Director or Officer may be entitled.

Section 4.  Individual Insurance.

By virtue of taking title to a Lot subject to the terms of this Declaration, each Owner covenants and agrees with all other Owners and with the Association that each Owner shall carry blanket all‑risk casualty insurance on his Lot(s) and structures constructed thereon. Each Owner further covenants and agrees that in the event of a partial loss or damage and destruction resulting in less than total destruction of structures comprising his Lot, the Owner shall proceed promptly to repair or to reconstruct the damaged structure in a manner consistent with the original construction. In the event that the structure is totally destroyed and the Owner determines not to rebuild or to reconstruct, the Owner shall immediately clear the Lot of all debris and return it to substantially the natural state in which it existed prior to the beginning of construction.

Section 5. Disbursement of Proceeds.  Proceeds of insurance policies shall be disbursed as follows:

(a)    Damage Repaired or Reconstructed.  If the damage or destruction for which the proceeds are paid is to be repaired or reconstructed, the proceeds, or such portion thereof as may be required for such purpose, shall be disbursed in payment of such repairs or reconstruction as hereinafter provided. Any proceeds remaining after defraying such costs of repairs or reconstruction to the Common Areas or, in the event no repair or reconstruction is made, after making such settlement as is necessary and appropriate with the affected Owner or Owners and their mortgagee(s), as their interests may appear, shall be retained by and for the benefit of the Association and placed in a capital improvements account. This is a covenant for the benefit of any mortgagee of a Lot and may be enforced by such mortgagee.

(b)    No Repair or Reconstruction.  If it is determined, as provided for in Section 6 of this Article, that the damage or destruction to the Common Areas for which the proceeds are paid shall not be repaired or reconstructed, such proceeds shall be disbursed in the manner provided for excess proceeds in Section 5 (a) of this Article X.

Section 6. Damages and Destruction.

(a)    Repair Estimates and Filing of Claims.  Immediately after the damage or destruction by fire or other casualty to all or any part of the Properties covered by insurance written in the name of the Association, the Board of Directors, or its duly authorized agent, shall proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged or destroyed Properties. Repair or reconstruction, as used in this paragraph, means repairing or restoring the Properties to substantially the same condition in which they existed prior to the fire or other casualty.

(b)    Determination Not to Repair.  Any damage or destruction to the Common Areas shall be repaired or reconstructed unless Members representing at least seventy five percent (75%) of the total vote of the Association shall decide within sixty (60) days after the casualty not to repair or reconstruct.   If, for any reason, either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not made available to the Association within said period, then the period shall be extended until such information shall be made available; provided, however, such extension shall not exceed sixty (60) additional days. No mortgagee shall have the right to participate in the determination of whether the Common Area damaged or destroyed shall be repaired or reconstructed.

(c)    Restoration to Natural State.  In the event that it should be determined in the manner described above, that the damage or destruction shall not be repaired or reconstructed and no alternative improvements are authorized then, and in that event, the affected portion of the Properties shall be restored to their natural state and maintained by the Association in a neat and attractive condition.

Section 7. Special Assessment for Repair and Reconstruction.

If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed, and such proceeds are not sufficient to defray the cost thereof, the Board of Directors shall, without the necessity of a vote of the Members, levy a Special Assessment against all Owners in proportion to the number of Lots owned, provided, if the damage or destruction involves a Lot or Lots only Owners of the affected Lots shall be subject to such assessment. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction.

ARTICLE XI

NO PARTITION OF COMMON AREAS

Except as is permitted in this Declaration or any amendment hereto, there shall be no physical partition of the Common Areas or any part thereof, nor shall any person acquiring any interest in the Properties or any part thereof seek any judicial partition, unless the Properties have been removed from the provisions of this Declaration. This Article shall not be construed to prohibit the Board of Directors from acquiring and disposing of tangible personal property nor from acquiring title to real property which may or may not be subject to this Declaration.

ARTICLE XII

FINANCING PROVISIONS

Section 1. Approval of Owners and Holders of First Mortgages. Unless at least sixty‑seven percent (67%) of the Owners and fifty‑ one percent (51%) of the holders of first mortgages which are owned or insured through the FNMA, FHA or similar agency on Lots located within the Properties, have given their prior written approval, the Association shall not:

(a)    Change the method of determining the obligations, assessments, dues or other charges which may be levied against a Lot Owner, or of the voting rights of the Owners.

(b)    Change the responsibility for maintenance and repairs as may otherwise be set out herein.

(c)    Impose any restriction upon an Owner's right to sell his Lot.

Section 2. Books and Records. Any Owner or holder, insurer or guarantor of a first mortgage on any Lot will have the right to examine the books and records of the Association, current copies of this Declaration, the By‑Laws of the Association and Rules and Regulations during any reasonable business hours and upon reasonable notice. Any holder of a first mortgage shall be entitled, upon written request, to a copy of the Association’s financial statement for the previous year.

Section 3. Payment of Taxes and Insurance Premiums. The Owners and holders of first mortgages on Lots may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge or lien against the Common Areas and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon the lapse of a policy for property owned by the Association and the persons, firms or corporations making such payments shall be owed immediate reimbursement therefor from the Association.

ARTICLE XIII

RULES AND REGULATIONS

Section 1. Compliance by Owners. Every Owner shall comply with the restrictions and covenants set forth herein and any and all rules and regulations, which from time to time may be adopted by the Board of Directors of the Association.

Section 2. Enforcement. Failure of an Owner to comply with such restrictions, covenants or rules and regulations shall be grounds for action which may include, without limitation, an action to recover sums due for damages, injunctive relief, or any combination thereof. Failure of Association to enforce any covenant or restriction shall not be deemed a waiver of the right to do so thereafter.

Section 3. Fines. In addition to all other remedies, in the sole discretion of the Board of Directors of the Association, a fine or fines may be imposed upon an Owner for failure of an Owner, his family, guests, invitees, lessees or employees to comply with any covenant, restriction, rule or regulation, provided the following procedures are adhered to:

(a)    Notice. The Association shall notify the Owner of the infraction or infractions. Included in the notice shall be the date and time of the next Board of Directors’ meeting at which time the Owner shall present reasons why penalty(ies) should not be imposed.

(b)    Hearing. The non-compliance shall be presented to the Board of Directors after which the Board of Directors shall hear reasons why penalties should not be imposed. A written decision of the Board of Directors shall be submitted to the Owner no later than twenty‑one (21) days after the Board of Directors’ meeting.

(c)    Penalties. The Board of Directors may impose Specific Assessments against the Owner of the Lot as follows:

(1) First non‑compliance or violation: a fine not in excess of One Hundred Dollars ($100).

(2) Second non‑compliance or violation: a fine not in excess of Three Hundred Dollars ($300).

(3) Third and subsequent non‑compliance or violation or violations which are of a continuing nature: a fine not in excess of Five Hundred Dollars ($500).

(d)    Payment of Penalties. Fines shall be paid no later than thirty (30) days after notice of the imposition or assessment of the penalties.

(e) Collection of Fines. Fines shall be treated as Specific Assessments subject to the provisions for the collection of assessments as set forth in Article VI.

(f) Application of Penalties. All monies received from fines shall be allocated as directed by the Board of Directors.

(g) Non Exclusive Remedy. These fines shall not be construed to be exclusive, and shall exist in addition to all other rights and remedies to which the Association may be otherwise legally entitled; however, any penalty paid by the offending Owner shall be deducted from or offset against any damages which the Association may otherwise be entitled to recover by law from such Owner.

ARTICLE XIV

GENERAL PROVISIONS

Section 1. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall not affect any other provisions which shall remain in full force and effect.

Section 2. Amendment. The covenants and restrictions of this Amended and Restated Declaration shall run with and bind the land for a term of thirty (30) years from the date it is recorded after which time they shall be automatically extended for successive periods of ten (10) years. This Amended and Restated Declaration may be further amended, either during the first thirty (30) year period or during any subsequent renewal period, by an instrument signed by the Owners of not less than fifty‑one percent (51%) of the Lots, or as provided in Article XV herein. Any amendment must be properly recorded.

ARTICLE XV

AMENDMENT OF DECLARATION WITHOUT APPROVAL OF OWNERS

The Board of Directors of the Homeowners Association, without the consent or approval of any other Owner, shall have the right to amend this Declaration to conform to the requirements of any law or governmental agency having legal jurisdiction over the Property or to qualify the Property or any Lots and improvements thereon for mortgage or improvement loans made by, guaranteed by, sponsored by or insured by a governmental or quasi‑governmental agency or to comply with the requirements of law or regulations of any corporation or agency belonging to, sponsored by or under the substantial control of, the United States Government or the State of South Carolina, regarding purchase or sale in such Lots and improvements, or mortgage interests therein, as well as any other law or regulation relating to the control of the Property, including, without limitation, ecological controls, construction standards, aesthetics and matters affecting the public health, safety and general welfare. A letter from an official of any such corporation or agency, including without limitation, the Veterans Administration (VA), U.S. Department of Housing and Urban Development (HUD), the Federal Home Loan Mortgage Corporation, Government National Mortgage Corporation, or the Federal National Mortgage Association, requiring an amendment as a condition of approval, or suggesting an amendment, shall be sufficient evidence of the approval of such amendment of VA, HUD and/or such corporation or agency and permit the Board of Directors of the Homeowners Association to amend in accord with such letter.

No amendment made pursuant to this Article shall be effective until duly recorded in the Office of the Clerk of Court of Horry County, South Carolina.

ARTICLE XVI

LENDERS NOTICE

Upon written request to the Association, identifying the name and address of the holder, insurer or guarantor and the Lot number upon which it holds, insures or guarantees a first mortgage, any holder, Owner or insurer of a first mortgage shall be provided with timely written notice of:

(a)    Any condemnation or casualty loss that affects either a material portion of the project or the Lot securing its mortgage;

(b)    Any sixty (60) day delinquency in the payment of assessments or charges owed by the Owner of any Lot in which it holds the mortgage;

(c)    A lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Owner's Association;

(d)    Any proposed action that requires the consent of a specified percentage of mortgage holders.

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