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Article I

Definitions

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 Section 1

• "Articles of Incorporation" or "Article" shall mean and refer to the Articles of Incorporation of Greystone Estates HOA to be filed with the Secretary of the State of Tennessee.

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Section 2​

• "Association" shall mean and refer to Greystone Estates HOA, a non-profit corporation, its successors and assigns.​

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Section 3

• "Base Assessment" shall mean and refer to assessments levied against all Units in the Property to fund Common Expenses.​

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Section 4

• "Board of Directors" or "Board" shall be the elected body having its normal meaning under Tennessee corporate law.

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Section 5​

• "By-laws" shall mean and refer to the By-Laws of Greystone Estates HOA, attached hereto as Exhibit A and incorporated herein by reference, as they may be amended from time to time.

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Section 6​​

• "Class "B" Control Period" shall mean and refer to the period of time during which the Class "B" Member is entitled to appoint a majority of the members of the Board of Directors, as provided in Article III Section 2, hereof.
   

Section 7

• "Common Area" shall mean all real and personal property which the Association now or hereafter owns or otherwise holds for the common use and enjoyment of all Owners. Any pubic rights of way within or adjacent to the Property may be a part of the Common Area.

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Section 8

• "Common Expenses" shall mean and include the actual and estimated expenses incurred by the Association fur the general benefit of all Unit Owners, including any reasonable reserve, all as may be found necessary and appropriate by the Board pursuant to this Declaration, the By-Laws, and the Articles of Incorporation of the Association.

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Section 9

• "Community Wide Standard" shall mean the standard of conduct, maintenance, or other activity generally prevailing throughout the Property. Such standard may be more specifically determined by the Board of Directors.

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Section 10

• "Declarant" shall mean and refer to Greystone Development, L.L.C., a Tennessee Corporation, principal place of business in White House, Tennessee, its successors, and assigns.

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Section 11

• "Member" shall mean and refer to a Person entitled to membership in the Association, as provided herein.

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Section 12

• "Mortgage" shall mean and refer to the holder of a first lien deed of trust encumbering a Lot.

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Section 13

• "Mortgagee" shall mean and refer to a beneficiary or holder of a Mortgage.

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Section 14

• "Mortgagor" shall mean and refer to any Person who gives a Mortgage.

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Section 15​​

• "Owner" or "Unit Owner" shall mean and refer to one (1) or more Persons who hold the record title to any Unit which is part of the Property, but excluding in all cases any party holding an interest merely as security for the performance of an obligation. If a Unit is  subject to a written lease with a term in excess of one (1) year and the Lease specifically so provides, then upon filing a copy of the lease with the Board of Directors the lessee (rather than the fee owner) will be considered the Owner. 

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Section 16

• "Parcel Developer" means any builder who purchases land within the Property (as defined in this Article I) for the purpose of development and sale.

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Section 17

• "Person" means a natural person, a corporation, a partnership, a limited liability company, a trustee, or other legal entity.

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Section 18

• "Plan" shall mean and refer to the plan for the development of the Property as approved by White House, Tennessee, Planning Commission, to be recorded in the Register's Office for Sumner County, Tennessee, as it may be amended from time to time. The "Plan" shall include the recorded plans for the development of any additional property as is hereinafter subjected to this Declaration by Supplemental Declaration.

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Section 19

• "Properties" shall mean and refer to any and all of that certain real estate heretofore described or which may be submitted to the Declaration by future development of additional sections of Greystone Estates. 

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Section 20

• "Special Assessment" shall mean and refer to assessments levied in accordance with Article X, Section 3 of this Declaration. 

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Section 21

• "Supplemental Declaration" shall mean an amendment or supplement to this Declaration which subjects additional property to this Declaration or imposes, expressly or by reference, additional restrictions and obligations on the land described therein, or both. 

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Section 22​​

• "Unit" shall mean a portion of the Property, whether developed or undeveloped, intended for development as a single-family residence. The term "Unit" shall include all portions of the lot owned including any structure thereon. 

 

 

Article II

Property Rights

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Every Owner shall have a right and easement of enjoyments in and to the Common Area, subject to this Declaration as it may be amended from time to time and to any restrictions or limitations contained in any deed conveying such property to the Association or as may be otherwise imposed by the Association. Any Owner may delegate his or her right of enjoyment to the members of his or her family, tenants, members and social invitees, as applicable, subject to reasonable regulation by the Board and in accordance with procedures it may adopt. An Owner who leases his or her Unit shall be deemed to have delegated all such rights to the Unit's lessee.

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Article III

Membership and Voting Rights

 

Section 1

• Membership Every Owner; as defined in Article I, shall be deemed to have a membership in the Association, and as such. shall be a Member of the Association

• No Owner, whether one (1) or more Persons, shall have more than one (1) membership per Unit owned. In the event the Owner of a Unit is more than one (1) Person, votes and rights of use and enjoyment shall be as provided in Section 2 of this Article. The membership rights of a Unit owned by a corporation or partnership shall be exercised by the individual designated from time to time by the Owner in a written instrument provided to the Secretary of the Association, subject to the provisions of this Declaration and the By-Laws.

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​​​Section 2

• Voting - The Association shall have two (2) classes of membership, Class "A" and Class "B", as follow:

  • Class "A" - Class "A" Members shall be all Owners with the exception of the Class "B" Member, if any.

    • Class "A" Members shall be entitled to one (1) equal vote for each Unit in which they hold the interest required for membership under Section I hereof; there shall be only one (1) vote per Unit.

    • If more than one (1) person holds the interest in such Unit required for membership the vote for such Unit shall be exercised as those Persons determine among themselves and advise the Secretary of the Association in writing prior to any meeting. In the absence of such advice, the Units vote shall be suspended if more than one (1) Person seeks to exercise it. 

  • Class "B" - The class Member shall be the Declarant. The Class "B" Member shall be entitled to ten (10) votes for each Unit in which it holds the interest required for membership under Section I hereof. The rights of the Class "B" Member, including the right to approve actions taken under this Declaration and the By-Laws, are specified elsewhere in the Decimation and the By-Laws. The Class "B" Member shall be entitled to appoint a majority of the members of the Board of Directors during the Class "B" Control Period, as specified in Article III, Section 2, of the By-Laws. After termination of the Class "B" Control Period, the Class "B" Member shall have the right to disapprove actions of the Board of Directors and any committee as provided in Article III, Section 3, of the By-Laws. The Class "B" membership shall terminate and become converted to Class "A" membership upon the earlier of:

    • ​the expiration of the Class "B" Control Period pursuant to Article III of the By-Laws: or

    • when, in its discretion, the Declarant so determines

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Article IV

Maintenance

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Section 1

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• Association's Responsibility - The Association shall maintain and keep in good repair the Common Area. such maintenance to be funded as hereinafter provided. This maintenance Shall include but need not be limited to, maintenance, repair, and replacement, subject to any insurance then in effect, of all landscaping and other flora, structures, and improvements situated upon the Common Area, including but not limited to, drainage systems, recreations and open space, systems, utilities, traffic control devices, the mosquito control programs, pedestrian systems, such emergency shelters which Declarant may construct, all private streets within the Property, and such portions of any additional property included within the Common Area as may be dictated by this Declaration, or by a contract or agreement for maintenance thereof by the Association. In the discharge of its responsibilities, the association shall comply fully with all directives from government authorities.

• Except as otherwise specifically provided herein, all costs associated with maintenance, repair and replacement of Common Areas shall be allocated among all Units as part of the Base Assessment

• The Association may maintain property that it does not own, including, without limitation, property dedicated to the public, if the board of Directors determines that such maintenance is necessary or desirable to maintain the Community-Wide standard.

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Section 2

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• Owner's Responsibility - Each Owner shall maintain his or her Unit and all structures, parking areas and other improvements compromising the Unit in a manner consistent with the Community-Wide Standard and all applicable covenants, unless such maintenance responsibility is otherwise assumed in writing by the Association. If the Owner fails properly to perform his or her maintenance responsibility, the Association may perform it and assess all costs incurred by the Association against the Unit and the Unit Owner thereof in accordance with Article X, Section 4 of this Declaration; provided, however; except when entry is required due to an emergency situation, the Association shall afford the Owner reasonable notice and an opportunity to cure the problem prior to entry. 

 

 

 

Article V

Insurance and Casualty Losses

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Section 1

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Insurance - The Association's Board or its duly authorized agent, shall have the authority to and shall obtain blanket all-risk casualty insurance, if reasonably available, for all insurable improvements on the Common Area. 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 the amount sufficient to cover one hundred percent (100%) of the replacement cost of any repair or reconstruction in the event of damage or destruction from any insured hazard. 

 

The Board shall also obtain a public liability policy covering the Common Area, the Association and its Members for all damage or injury caused by the negligence of the Association or any of its Members or agents. The public liability policy shall have at least a One Million Dollar ($1,000,000) single person limit as respects bodily injury and property damage, a One Million Dollars ($1,000,000) limit per occurrence, if reasonability available, and a fifty-thousand dollar ($50,000) minimum property damage limit.

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Premiums for all insurance on the Common Area shall be Common Expenses of the Association and shall be included in the Base Assessment, as defined in Article I and as more particularly described in Article X, Section L The policy may contain a reasonable deductible, and in the case of casualty insurance, the amount 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 liable for the loss or repair in the absence of insurance and, in the event of multiple parties' fault, shall be allocated based on the respective fault of each such party. 

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All insurance coverage obtained by the Board of Directors shall be written in the name of the Association as trustee for the respective benefited parties, as further identified in (b) below Such insurance shall be governed by the provisions hereinafter set forth: 

• All policies shall be written with a company licensed to do business in Tennessee which holds 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. 

• All policies on the Common Area shall be for the benefit of the Association, its Members, and Mortgagees providing construction financing on the Common Area as their interest may appear; all policies covering the Units shall be for the benefit of the Owners and their Mortgagees as their interests may appear. 

• Exclusive authority to adjust losses under policies obtained by the Association on the Property shall be vested in the Association's Board of Directors; provided, however no Mortgagee having an interest in such losses may be prohibited from participation in the settlement negotiations if any, related thereto.

• 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 Mortgagees. 

  • 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. 

  • a waiver by the answer of its rights to repair and reconstruct, instead of paying cash; 

  • a statement that no policy may be canceled, invalidated, suspended, or subject to non-renewal on account of any one or mo1e individual Owners.

  • a statement that no policy may be canceled, invalidated, suspended, or subject to non• renewal 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, it's manager, any Owner, or Mortgagee.

  • that any other "insurance" clause in any policy exclude individuals Owner's policies from consideration; and

  • that the Association will be given at least thirty (30) days' prior notice of any cancellation substantial modification, or non-renewal.

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Section 2

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Individual Insurance By virtue of taking title to a Unit that is subject to the terms of this Declaration, each Owner covenants and agrees with all other Owner is and with the Association that each Owner shall carry blanket all-risk casualty insurance on the Unit(s) and structures constructed thereon meeting the same requirements as set forth in Section l of this Article V for insurance on the Common Area, unless the Association carries such insurance (which it is not obligated hereunder). Each Owner further covenants and agrees that in the event of a partial loss or damage resulting in less than total destructions of structures comprising his Unit. the Owner shall proceed promptly to repair to reconstruct the damaged structure in a manner consistent with the original construction or such other plans and specifications as are approved in accordance with Articles XI and XII of this Declaration. The Owner shall pay any costs of repair reconstruction that is not covered by insurance proceeds. In the event that the structure is totally destroyed, the Owner may decide not to rebuild or to reconstruct, in which case the Owner shall clear the Unit of all debris and return it to substantially the natural state in which it existed prior to the beginning of construction and thereafter the Owner shall continue to maintain the Unit in a neat and attractive condition consistent with the Community-Wide Standard.

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Section 3

Damage and Destruction

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• Immediately after damage or destruction by fire or other casualty to all or any part of the Property 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 Property Repair, or reconstruction as used in this paragraph means repairing or restoring the Property to substantially the same condition in which they existed prior to the fire or other casualty, allowing for any changes or improvements necessitated by changes in applicable building codes.

• Any damage or destruction to the Common Area shall be repaired or reconstructed unless the Members representing at least seventy-five percent (75%) of the total vote of the Association, shall decide within (60) days after the casualty not to repair or reconstruct. If for any reason either the amount or the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of the 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 damage or destruction to Common Area shall be repaired or reconstructed; provided, however, this provision shall not apply to construction Mortgagees providing construction financing for such damaged property.

• In the event that it should be determined in the manner described above that the damage or destruction to the Common Area shall not be repaired or reconstructed and no alternative improvements are authorized, then and in that event the affected portion of the Property shall be restored to its natural state and maintained by the Association, in a neat and attractive condition consistent with the Community-Wide Standard. 

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Section 4

Disbursement of Proceeds

 

If the damage or destruction for which the proceeds of insurance policies 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 repair or reconstruction to the Common Area shall be retained by and for the benefit of the Association and placed in a capital improvements account. In the event no repair or reconstruction is made, any proceeds remaining 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. Ibis is a covenant for the benefit of any Mortgagee of a Unit and may be enforced by such Mortgagee.

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Section 5

Repair and Reconstruction

 

If the damage or destruction to the Co=on Area for which insurance proceeds me 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 on the same basis as provided for Base Assessments. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction.

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Article VI

No Partion

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Except as is permitted in the Declaration or amendments thereto, there shall be no physical partition of the Common Area or any part thereof, nor sha.il any person acquiring any interest in the Property or any part thereof seek any judicial partition unless the Property has been removed from the provisions of this Declaration. This Article sha.il 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. 

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Article VII

Condemnation

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Whenever all or part of the Common Area shall be taken ( or conveyed in lieu of and under threat of condemnation by the Board acting on the written direction of Members  representing at least two-thirds (2/3) of the total Association vote and the Declarant, by any authority having the power of condemnation or eminent domain, each Owner shall be entitled to notice thereof. The award made for such talking shall be payable to the Association as trustee for all Owners to be disbursed as follow:

• If the taking involves a portion of the Common Area on which improvements have been constructed, then, unless sixty (60) days after such taking Members representing at least seventy-five percent (75%) of the total vote of the Association and the Declarant shall otherwise agree, the Association shall restore or replace such improvements so taken on the remaining land included in the Common Area, to the extent lands are available therefore, in accordance with plans approved by the Board of Directors of the Association. If such improvements are to be repaired or restored, the above provisions in Article V hereof regarding the disbursement of funds in respect to casualty damage or destruction that is to be repaired shall apply. If the taking does not involve any improvements on the Common Area, or if there is a decision made not to repair or restore, or if there are net funds remaining after any such estimation or replacement is completed, then such award or net funds shall be disbursed to the Association and used for such purposes as the Board of Directors of the Association shall determine. 

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Article VIII

Annexation of Additional Property

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Section 1

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Annexation Without Approval of Class "A" Membership - As the owner thereof. or if not the owner, with the consent of the owner and any first mortgagee thereof; Declarant shall have the unilateral right, privilege, and option, from time to time at any time until all phases of Greystone Estates has been subjected to this Declaration or 2011, whichever is earlier, to subject to the provisions of this Declaration and jurisdiction of the Association all or any part of Greystone Estates, attached hereto and by reference made a part hereof: Such annexation shall be accomplished by filing in the public records of Sumner County, Tennessee, a Supplemental Declaration to this Declaration annexing such Property. Such Supplemental Declaration shall not require the consent of Members. Any such annexation shall be effective upon the filing for record of such Supplemental Declaration signed by Declarant (or the party to whom Declarant has transferred the right of annexation, as provided below), unless otherwise provided therein. If the consent of a first mortgagee is required hereunder; such mortgagee shall either join in such Supplemental Declaration or record a separate consent. Declarant shall have the unilateral right to transfer to any other person the said right, privilege, and option to annex additional property which is herein reserved to Declarant, provided that such transferee or assignee shall be a developer of at least a portion of the real property and that such transfer is memorialized in a written, recorded instrument executed by the Declarant.

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Section 2

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Annexation with Approval of Class "A" Membership - subject to the consent of the owner and any first mortgagee thereof; the Association may annex real property following the expiration of the right in Section l. Such annexation shall require the affirmative vote of a majority of the Class "A" Members present at a meeting duly called for such purpose and the approval of the Declarant. Annexation shall be accomplished by filing or recording in the public records of Sumner County, Tennessee, a Supplemental Declaration describing the property being annexed. Any such Supplemental Declaration shall be signed by the President and the Secretary of the Association by the owner of the property being annexed, and if required hereunder, the first mortgagee of the property (or, in the alternative, such mortgagee may record a separate consent), 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 requited for and the proper form of notice of any meeting called for the purpose of considering annexation of property pursuant to this Section 2 and to ascertain the presence of a quorum at such meeting.

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Section 3

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Acquisition of Additional Common Area - Declarant may convey to the Association additional real estate, improved or unimproved, upon conveyance or dedication to the Association, shall be accepted by the Association and thereafter shall be maintained by the Association at its expense for the benefits of ail its Members. The Association shall also accept assignment of any contracts entered into by the Declarant and Declarant's designees for the benefit of the Association or the Owners. 

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Section 4

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Amendment - This Article shall not be amended without the prior written consent ofDeclarant, so long as the Declarant owns any property or other property annexed hereto. 

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Section 5

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No Required Annexation - No provision of this Declaration shall be construed to require the Declarant or any other person or entity to annex any real property to the scheme of this Declaration nor shall any provision of the scheme of development prohibit any real property, owned by the Declarant or any other person from being subject to any separate decimation or scheme of development. The community contemplated by this Declaration including parcels of ground to be annexed hereto may include a wide diversity of housing types and styles. 

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Section 6

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Removal - Declarant reserves the tight to amend this Declaration unilaterally at any time so long as it holds an un-expired option to expand the community pursuant to Article VIII hereof; without prior notice, for the purpose of removing certain portions of the Property then owned by the Declarant or its affiliates or the Association from the provisions of this Declaration, if such portions of the Property were erroneously included in this Decimation or if Declarant desires to make changes in the plan for the community; provided such withdrawal is not unequivocally contrary to the overall uniform scheme of development for the community. 

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Article IX 

Rights and Obligation of the Association

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Section 1

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Common Area and Recreational Facilities - The Association, subject to the rights of the Owners set forth in this Declaration, shall be responsible for the exclusive management and control of the Common Area and all improvements thereon (including, without limitation, recreational facilities, furnishings and equipment related there_to and common landscaped areas), and shall keep it in good, clean, attractive, and sanitary condition, order and repair, pursuant to the terms and conditions hereof and consistent with the Community-Wide 
Standard. The Declarant may construct recreational facilities within the Common Area Property. Subject to the terms of Section 1.3 of Article XIII, any recreational facilities constructed by the Declarant shall be for the exclusive use of the Owners, and shall be maintained and controlled by the Association in accordance with this Section I of Article IX. 

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Section 2

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Personal Property and Real Property for Common Use - The Association, through action of its Board of Directors, may acquire, hold and dispose of tangible and intangible personal property and real property. The Board, acting on behalf of the Association, shall accept any real or personal property, leasehold, or other Property conveyed to it by the Declarant. 

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Section 3 

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Rules and Regulations - The Association, through its Board of Directors, may make and enforce reasonable rules and regulations governing the use of the Property, which rules and regulations shall be consistent with the lights and duties established by this Declaration. Sanctions may include reasonable monetary fines and suspension of the tight to vote and the right to use any recreational facilities on the Common Area. The Board shall. in addition. have the power to seek relief in any court for violations or to abate nuisances Imposition of sanctions shall be provided in the By-Laws of the Association. The Association. through the Board, by contract or other agreement, shall have the right to enforce local ordinances or permit the City of White House to enforce ordinances on the Property for the benefit of the Association and its Members.

 

Section 4

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Implied Rights - The Association may exercise any other right or privilege given to it expressly by this Declaration or the By-Laws, and every other right or privilege given to it herein or reasonably necessary to effectuate any such right or privilege.

 

Section 5

 

Governmental Interests - The Association shall permit the Declarant reasonable authority to designate sites within the Property for fire, police, water, sewer, and other utility facilities.

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Article X

Assessments

 

Section 1

Creation of Assessments 

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• There are hereby created assessments for Association expenses as may from time to time specifically be authorized by the Board of Directors to be commenced at the time and in the manner set forth in Section 6 of this Article. There shall be two (2) types of assessments:

  1. ​Base Assessments to fund Common Expenses for the benefit of all Members of the Association and

  2. Special Assessment as described in Section 3 below.

• Base Assessments shall be levied equally on all Units, except as provided herein and in Section 3 below. The Base Assessment for Units owned by Parcel Developers shall be 15% of $25.00 or $4.25 per month, until such time it is occupied for residential purposes by an Owner.

• All assessments, together with interest, at a rate not to exceed the highest rate allowed by Tennessee law as computed from the date the delinquency first occurs, costs, and reasonable attorney's fees, shall be a charge on the land and shall be a continuing lien upon the Unit against which each assessment is made. Each such assessment, together with interest, costs, and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of such Unit at the time the assessment arose, and his or her grantee shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance, except no first Mortgagee, nominee of the Mortgagee, or third party purchaser who obtains title to a Unit pursuant to the remedies provided in the Mortgage shall be liable for unpaid assessments that accrued prior to such acquisition of title.

• The Association shall. upon demand at any time, furnish to any Owner liable for any type of assessment a certificate in writing signed by an officer or management agent of the Association setting forth whether such assessment has been paid as to any particular Unit. Such certificate shall be conclusive evidence of payment to the Association of such assessment therein stated to have been paid.. The Association may requite the advance payment of a reasonable processing fee for the issuance of such certificate.

• Assessments shall be paid in such manner and on such dates as may be fixed by the Board of Directors which may include, without limitation, acceleration of the annual Base Assessment for Owners delinquent in payments of assessments .. Unless the Board otherwise provides, the Base Assessment shall be paid in quarterly installments.

• No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration not limitation, by nonuse of Common Area or abandonment of the Unit The obligation to pay assessments is a separate and independent covenant on the part of each Owner No diminution or abatement of assessment or set-off shall be claimed or allowed by reason of any alleged failure of the Association or Board to take some action or perform some function requited to be taken or performed by the Association or Board under this Declaration or the By-Laws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association or from any action taken to comply with any law, ordinance, or with any order or directive of any municipal or other governmental authority.

• The Association is specifically authorized to enter into subsidy contacts or contracts for "in kind" contribution of services or materials or a combination of services and materials with Declarant or other entities for the payment of some portion of the Common Expenses. 

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Section 2

Computation of Base Assessment 

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• It shall be the duty of the Board, at least sixty (60) days before the beginning of each fiscal year, to prepare a budget cove1ing the estimated Common Expenses of the Association coming the coming year· The budget shall include a capital contribution establishing a reserve fund in accordance with a capital budget separately prepared.

• The Base Assessment to be levied for the coming yea against each Unit subject to assessments under Section 6 below shall be computed by dividing the budgeted Common Expenses by the total number ofUnits and property as, from time to time, may be subjected to this Declaration The Board shall cause a copy of the Common Expense budget and notice of the amount of Base Assessment to be levied against each Unit for the following year to be delivered to each Owner at least thirty (30) days prior to the fiscal year. Such budget and assessment shall become effective unless disapproved at a meeting of the Members by the vote of Members or the alternates representing at least a majority of the total Class "A" vote in the Association., and by the Class "B" Member, if such membership exists.. There shall be no obligation to call a meeting for the purpose of considering the budget except on petition of the Members as provided for the special meeting in Article II, Section 4, of the By-Laws.

• Notwithstanding the foregoing, however, in the event the proposed budget is disapproved or the Board fails for any reason so to determine the budget for any year, then and until such time as a budget shall have been determined as provided herein. the budget in effect for the immediately preceding year shall continue for the current year. 

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Section 3 

Special Assessment

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• In addition to the assessments authorized in Section 1 of this Article, the Association may levy a Special Assessment or Special Assessments from time to time; provided. such assessments shall have the affirmative vote or written consent of fifty-one (51 %) percent of the total votes to be cast by the Class "A" Members and Class "B" Member collectively. The obligation to pay Special Assessments shall be computed on the same basis as for Base Assessments. Special Assessments shall be payable in such manner and at such times and may be payable in installments extending beyond the fiscal year in which the Special Assessment is approved, if the Board so determines. (b) The Association may also levy a Special Assessment against any Member to reimburse the Association for costs incurred in bringing a Member and his Unit into compliance with the provisions of the Declaration, any amendments thereto, the Articles, the By-Laws, and the Association rules, which Special Assessment may be levied upon the vote of the Board after notice to the Member and an opportunity for a hearing.​​

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Section 4 

Lien for Assessments

 

• Upon recording of a notice of lien on any Unit there shall exist a perfected lien for unpaid assessments prior and superior to all other liens except (1) all taxes, bonds, assessments and other levies which by law would be superior thereto, and (2) the lien or charge of any first Mortgage of record (meaning any recorded Mortgage with first priority over other Mortgages) made in good faith and for value. Such lien, when  delinquent, may be enforced by suit, judgment, and foreclosure.

• The Association, acting on  behalf of the Owners, shall have the power to bid for the Unit at foreclosure sale and to acquire and hold, lease, mortgage, and convey the same. During the period in which a Unit is owned by the Association following foreclosure:

  • no right to vote shall be exercised on its behalf,

  • no assessment shall be assessed or levied on it; and

  • each other Unit shall be charged, in addition to its usual assessment, its equal pro rata share of the assessment that would have been charged such Unit had it not been acquired by the Association as a result of foreclosure. Suit to recover a money judgment for unpaid Common Expenses and attorney's fees shall be maintainable without foreclosing or waiving the lien securing the same.  

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Section 5

Capital Budget and Contribution

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The Board of Directors shall annually prepare a capital budget to take into account the number and nature of replaceable assets and the replacement cost thereof. The Board shall set required capital contribution, if any, in an amount sufficient to permit meeting the projected capital needs of the Association, as shown on the capital budget, with respect both to amount it and timing by annual assessments over the period of the budget. The capital contribution required, if any, shall be fixed by the Board and included within and distributed with the budget and assessment, as provided in Section 2 of this Article.

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Section 6 

Date of Commencements of Assessments

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The assessments provided for herein shall commence as to each Unit on the date of conveyance of the Unit by Declarant. Assessments shall be due and payable in a manner and on a schedule as the Board of Directors may provide.. The first annual assessment shall be adjusted according to the number of days remaining in the fiscal year at the time assessments commence on the Unit. 

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Section 7

Subordination of Lien to Institutional First Mortgages 

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The lien of assessments, including interest, late charges (subject to the limitations of Tennessee law), and costs (including attorney's fees) provided for herein shall be subordinate to the lien of any institutional first Mortgage upon any Unit. The sale or transfer of any Unit shall not affect the assessment lien. However, the sale or transfer of any Unit pursuant to foreclosure of an institutional first Mortgage, or transfer to an institutional first Mortgage or third party pursuant to a deed in lieu of foreclosure, 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 Unit from lien rights for any assessments thereafter becoming due. Where the Mortgagee holding an institutional first Mortgage of record or other purchaser of a Unit obtains title pursuant to remedies under the Mortgage, its successors and assigns shall not be liable for the share of the Common Expenses collectible from Owners of all the Units, including such acquirer, its successors and assigns. 

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Section 8

Exempt Property

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Exempt Property Notwithstanding anything to the contrary herein, the following property shall be exempt from payment of Base Assessments and Special Assessments: 

• all Common Areas; and

• all property dedicated to and accepted by any governmental authority or public utility, including, without limitation, public streets, and public parks, if any.

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