Covenants

DECLARATION OF COVENANTS AND RESTRICTIONS FOR

WALNUT RUN

THIS DECLARATION made this _____ day of _____, 2010, by ______________

_____________________________________________________________________.

WITNESSETH:

            WHEREAS, Developer, as owner of certain real property located in the City of Ooltewah, Hamilton County, Tennessee, desires to create thereon a development to be known as WALNUT RUN (sometimes herein the “Development”); and

            WHEREAS, Developer desires to provide for the preservation of the land values and home values when and as the Property is improved and desires to subject the Development to certain covenants, restrictions, easements, affirmative obligations, charges and lien, as hereinafter set forth, each all o which are hereby declared to be for the benefit of the Development and each and every owner of any and all parts thereof; and

            WHEREAS, Developer has deemed it desirable, for the efficient preservation of the values and amenitieis in the Development, to create entitity to which should be delegated and assigned the power and authoriety of holding title to and maintaining and administering the Common Properties (as herein defined) and administering and enforcing the covenants and restrictions governing the same and collecting and disbursing all assessments and charges necessary for such maintenance, administraion and enforcement, as hereinafter created; and

            WHEREAS, Developer has caused to be incorparted und the laws of the State of Tennessee, WALNUT RUN HOMEOWNERS’ ASSOCIATION, INC., a Tennessee nonprofit corporation, for the purpose of excersiting the above functions and those which are more fully set out hereafter;

            NOW, THEREFORE, the Developer subjects the read property described in Article II, and such additions thereto as may hereafter be made, to the terms of this Declaration and declares that the same is and shall be held, transferred, sold, conveyed, leased, occupied and used subject to the covenatnts, restrictions, conditions, easements, charges, assessments, affirmative obligations and liens (sometimes referred to as the “Covenants”) hereinafter set forth. These Covenants shall touch and concern and run with the Property and each Lot thereof.

ARTICLE I

DEFINITIONS

            The following words and terms, when used in this Declaration, or any Supplemental Declaration (unless the context shall clearly indicate otherwise) shall have the following meanings:

1.01      Architectural Review Committee. “Architectural Review Committee” shall mean and refer to that Committee formed and operated in the manner described in Section 4.01 hereof.

1.02      Association. “Association” shall mean WALNUT RUN HOMEOWNERS’ ASSOCIATION, INC., a Tennessee nonprofit corporation.

1.03      Board of Directors or Board. “Board of Directors” or “Board” shall mean the governing body of the Association established and elected pursuant to this Declaration.

1.04      Bylaws. “Bylaws” shall mean the Bylaws of the Association, the intiatl text of which is set forth hereto and made a part hereof.

1.05      Common Expense. “Common Expense” shall mean and include (a) expenses of adminaiation, maintenance, repair or replacement of the Common Properties; (b) expenses agreed upon as Common Expenses by the Association; (c) expenses declared Common Expenses by the provisions of this Declaration; and (d) all other sums assessed by the Board of Directors pursuant to the provisions of this Declaration.

1.06      Common Properties “Common Properties” shall mean and refer to those tracts o land and any improvements thereon which are deeded or leased to the Association and designated in said deed or lease as “Common Properties.” The term “Common Properties” shall also include and personal property acquired by the Association if said property is designated as a “Common Property.” All Common Properties are to be devoted to and intended for the common use and enjoyment of the Owners, persons ovvupying dwelling places or accommodations of Owners on a guies or tenant basis, nd visiting members of the general public (to the extent permitted by the Board of Directors o the Association) subject to the fee schedules and operating rules adopted by the Associiation; provided, however, that any lands which are leased by the Association for use as Common Properties hsall lose their character as Common Propeties upon the expiration of such Lease. The Common Properties may include by not be limited to street lights, entrance and street signs, pool, poolhouse, parks, ponds, meridians in roadways, maintencnace easement areas, and landscaping easement areas.

1.07      Covenants. “Covenants” shall mean the covenants, restrictions, conditions, easements, charges, assessments, affirmative obligations and liens set forth in this Declaration.

1.08      Declaration. “Declaration” shall mean this Declaration of Covenants and Restrictions for Walnut Run and any Supplemental Declation filed pursuant to the terms hereof.

1.09      Developer. “Developer” shall mean ___________________________________________________________________

1.10      Dwelling Unit. “Dwelling Unit” shall mean any building situated upon a Lot designated and intended for use and occupancy by a single family.

1.11      First Mortgage. “First Mortgage” shall mean a recorded Mortgage with priority over other Mortgages.

1.12      First Mortgagee. “First Mortgagee” shall mean a beneficiary, creditor or holder of a First Mortgage.

1.13      Lot or Lots. “Lot” or “Lots” shall mean and refer to any improved or unimproved parcel of land located within the Propery which is intended for use as a site for a single-family detached dwelling as shown upon any recorded final subdivision map of any part of the Property, with the exception of the Common Properties.

1.14      Manager. “Manager” shall mean a person or firm appointed or employed by the Board to manage the daily affairs of the Association in accordance with instructions and idfrections o the Board.

1.15      Member or Members. “Member” or “Members” shall mean any or all Owner or Owners who are Members of the Association.

1.16      Mortgage. “Mortgage” shall mean a deed of trust as well as a Mortgage.

1.17      Mortgages. “Mortgages shall mean a beneficiary, creditor, or holder of a deed of trust, as well as a holder of a Mortgage.

1.18      Owner. “Owner” shall mean and refer to the Owner as shown by the real estate records in the office of the Recorder, whether it be one or more persons, firms, associations, corporations, or other legal entities, of fee simple title to any Lot, situated upon the Property, but notwithstanding an applicable theory of a mortgage, shall not mean or refer to the Mortgagee or holder of a security deed, its successors or assigns, unless and until such Mortgagee  or holder of a security deed has acquitted title pursuant to foreclosure r a proceeding or deed in lieu of foreclusere; nor shal the term “Owner” mean or refer to any lessee or tenant of an Owner. In the event that there is recorded in the office of the Recorder,a  long-term contract ofsale convering any Lot within the Property, the Owner of such Lot shall be the purshaser under said contract and not the fee simple title holder. A long-term contract of sale shall be one hwere the purchaser is requited to make payments for the property for a period extending beyond twelve (12) months from the date of the contract, and where the purchaser does not reveive title to the property until such payment sare made although the purchaser is given the use of said property. The Developer may be an Owner.

1.19      Property. The “Property” shall mean and refer to the real property described in Section 2.01 hereof, and additions thereto, which is subjected to this Declaration or any supplemental declaration under the provisions hereof.

1.20      Record or To Record. “Record” or “To Record” shall mean to record pursuant to the laws of the State of Tennessee relating to the recoradation of deeds and other instruments conveying or affecting title to real property.

1.21      Recorder. “Recorder” shall mean and refer to the Restister of Deeds of Hamilton County, Tennessee.

ARTICLE II

PROPERTIES, COMMON PROPERTIES AND

INPROVEMENTS THEREON

            2.01            Property. The real property which is, and shall be held transferred, sold, conveyed, leased and occupied, subject to these Covenants, is located in Hamilton County, Tennessee and additions or amendments thereto. Additionally, any easements on any real property retained by or granted to the Developer or the Association for the purpose of erection and maintenance of entrance signs or street lights, or landscaping and maintenance thereof, shall also be considered Property and subject to these Covenants.

            2.02            Additions to Property. Additional lands may become subject to, but not limited to, this Declaration in the following manner:

(a)           Final Inspection. Any existing dwelling must come before said architectural committee before and changes, modifications, or additions are completed to the dwelling for approval.

(b)           Other Additions. Upon approval in wiritn of the Association pursuant to seventy-five percent (75%) of the vote of those present in person or by proxy at a duly clled meeting, the Owner of any property who desired to add it to the plan of these Voenenatns and to subject it to the jurisdiction of the Association, may file or record a Supplementary Declartion of Covenants and Restrictions with respect to the additional property which shall extend the operation and effect of the covenants and restrictions of the Declaration ot such additional property. The Supplementary Declaration may increase or decrease the minimum suare footage requirements for Dwelling Units and mayu contain such other complementary additions and/or modidfication of the convenatns and restrictions contained in this Declarsation as may be necessary or vovenient, in the sole judgement of the Association, to reflect the difference character, if any, of the added properties and as are not inconsistent with the plan of this Declaration, but such modification shall have not effect on the Property.

(c)           Separate Associations. For any additional property subjected to this Declaration pursuant to the provisions of this Section, there may vbe established by the Developer an additional association limited to the Owners and/or residents of such additional property in order to promote their social welfare, including their health, safety, education culture, comfroty,a nd convenience, to elect representatives on the Board of the Association, to reveive from the Association a portion, as determined by the Board of Directors of the Association, of the annual assessments levied pursuant hereto and use such funds for its general purposes, and to make and enforce rules and regulations of supplementary covenants and restrictions, if any, applicable to such additional lands.

2.03            Common Properties and Improvements Thereon. The Developer may install intitally one or more entrance signs to the Development. The signs shall become part of the Common Properties when the Developer vonveys the signs to the Association, at which time the Association shall become responsible for the opearation, maintenance, repair and replacement of the signs. The Developer may also landscape the entrance areas (whether privately or publicly owned) and other areas where it may or may not have reserved an easement. These areas shall become Common Properties when conveyed to the Association and the Association shall then become responsible for maintenance of the landscaped areas. Additionally , the Developer will install a pool, a poolhouse, one ore more ponds, park/recreational areas, streetlights and/or street signs which likewish will become Common Properties when voneyed to the Association. The Developer and the Association amy add additional Common Properties from time to time as they see fir. The Common Properties swhall remain permanentyly as open space except as improved, and there shall be no subdivision of same, except as otherwise provided herein. No building, structure or facility shall be placed, installed, erected, or constructed in or on the Common Properties unless it is purely incidental to one or more of the uses above specifies.

ARTICLE III

COVENANTS, USES AND RESTRICTIONS

            3.01            Application. It is expressly stipulated that the Restrictive Covenants and conditions set forth in this Article III apply solely to Property intented for use as single-family residential Lots only. These Restricitive Vovenants and Conditions are not intended to apply to any other lots, tracts or parcels of land in the area or vicinity, owned by the Developer. Specifically, the Developer, its successors or assigns, reserve the right to use or vonvey such other lots, tracts and other parcels with different restrictions.

            3.02            Residential Use.

(a)           All of the Lots in the Development shall be, and be known and described as, primarily residential lots,a nd no structure shall be erected, altered, placed or permitted to remain on any Lot other than as provided in these Covenants and Restrictions and in supplements hereto, or except as provided for in a deed of conveyance from the Board.

(b)           “Residential,” refers to a mode of occupancy, as used in contradistinction to “business” or “commercial” or “mercantile” activity and, except where otherwise expressly provided, “residential” shall aply to temporary as well as permanent uses, and shall apply to vacant Lots as well as to buildings constructed thereon.

(c)           No Lot may be used as  meand of service to business establishments on adjacent property, including but not limited to supplementary facilities or an intentional passageway or entrance into a business or another tract of land, whether or not a part o the Property, unless specifically consented to by the Board in writing.

3.03            No Multi-Family Residences, Business, Trucks. No Dwelling Unit shall be designed, patterned, constructed or maintained for the use of more than one single family, and no Dwelling Unit shall be used as a multiple family dwelling at any time, nor used solely or in substantial part for any commercial or business activity (provided, however, that home offices and home businesses shall be permitted so long as they do not increase traffic in the development and no exterior business signs are posted on any Lot); nor shall any Lot be used for trucks or other equipment inconsistent with ordinary residentirl uses. No panel, commercial or tractor trucks shall be habitually parked in drieways or overnight on streets in front of any of the Lots. Nothing contained herein shall prohibit the Association fro permitting, maintaining, or operating concessions or vending machines on the Common Properties.

3.04            Temporary Structures.

(a)           No part of any Lot shall be used for residential purposes until a completed dwelling house, conforming fully to the provisions of these Restrictive Covenants, shall have been erected thereon. The intent of this section is to prevent the use thereon of a garage, incomplete structure, trailer, barn, tent, outbuilding or other structure as temporary living quarters before or pending the erection of a permanent building. No structure of temporary character, including trailers and similary structures, shall be erected or permitted to remain on any Lot except during the period of construction. No house may be moved from another location to any Lot in this Development.

(b)           Neither the foregoing nor any other section of this Declaration shall prevent the Developer or any builder approved by the Developer from constructing a house for use as a model home that may contain office-type furniture and by used for conducting the business of either selling that house or toher houses within the Development, nor shall the foregoing or any oyher section of this Declaration prevent the Developer at the sole discretion of the Developer, from designating a Lot or Lots from time to time for (i) the temporary placement of a trailer or other suitable structure for use as an office and/or sales center by the Developer and/or approved builders, or (ii) the storage of equipment and/or materials (which may be stored in a fenced area on such Lot or Lots) used in the construction of houses by the Developer and/or approved builders.

3.05            Rainwater Drainage. Each Lot must be landscaped so that rainwater will drain into the street adjoining the Lot or into a drainage easement that drains into a street. A Lot may not be landscaped so that rainwater runs into another Lot across an established drainage easement.

            3.06            Utility Easement. A perpetual easement is reserved on each Lot, as shown on the recorded plat, for the construction and maintenance of utilities such as electicity, gas, water, sewerage, drainage, etc., and no structure of any kind shall be erected or maintained upon or over said easement.

            3.07            Frontal Appearnce. All dwelling houses shall have conventional and acceptable frontal appearance from the main street fronting said Lots.

            3.08            Driveways. All driveways must enter a street in the set Property.