Chimney Lakes

Declaration of Convenants, Conditions and Restrictions

Declaration of Covenants, Conditions and Restrictions

THIS DECLARATION, made on this date hereinafter set forth by Argyle Forest, Inc., a Florida corporation, hereinafter referred to as "Declarant".

WITNESSETH:

WHEREAS, Declarant is the owner of certain property in Jacksonville, County of Duval, State of Florida, which is more particularly described on Exhibit A attached hereto and made a part hereof. ("Property")

WHEREAS, Declarantdesires to provide for the orderly development of the Property so as to promote the well being of the residents and value of the Property.

NOW, THEREFORE, Declarant hereby declares that all of the Property described herein shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability of, and which shall run with, the Property and be binding on all parties having any right, title or interest in the Property or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof.

ADDITIONAL LAND more fully described on Exhibit B may be annexed by the Declarant without consent of the members within ten (10) years of the date of recording of this Declaration pursuant to the provisions more fully set forth in Article VIII hereof provided that if approval of the Federal Housing Administration ("FHA") and/or the Veterans Administration ("VA") is obtained, then the annexation shall be in accord with the general plan heretofore approved by the VA and/or the FHA.

Article I

Definitions

Section 1. "Articles" shall mean and refer to the Atricles of Incorporation of the Association as amended from time to time.

Section 2. "Association" shall mean and refer to Chimney Lakes Owners Association, Inc., it successors and assigns.

Section 3. "Bylaws" shall mean and refer to the Bylaws of the Association as amended from time to time.

Section 4. "Common Area" or "Common Property" shall mean and refer to those tracts of land which are deeded to the Association and designated in the deed as "Common Properties" or "Common Areas" and such improvements thereon as are specifically conveyed to the Association. The term Common Property shall also include any personal property acquired by the Association if the property is designated "Common Property"' All Common Property or Common Areas are to be devoted to and intended for the common use and enjoyment of the Members and their guests, lessees or invitees and the visiting general public (to the extent permitted by the Board of Directors of the Association) subject to any operating rules adopted by the Association and subject to any use rights made available by Declarant prior to conveyance of such Common Area or Common Property.

Section 5. "Common Expenses" shall mean and refer to those items of expenses for which the Association is responsible under this Declaration and those additional items of expense approved by the Owners.

Section 6. "Condominium" shall mean and refer to a condominium regime established by a Declaration of Condominium ("Condominium Declaration") within the Property which is governed by its own association ("Condiminium Association")in addition to the convenants contained herein.

Section 7. "Declarant" shall mean and refer to Argyle Forest, Inc., its successors and assigns, if such successors or assigns should acquire more than one undeveloped Lot from the Declarant for the purpose of development and provided that such successor or assign shall specifically assume the obligations of Declarant under the Declaration, Articles and Bylaws.

Section 8. "Declaration" shall mean and refer to this Chimney Lakes Declaration of Covenants, Conditions and Restrictions applicable to the Property.

Section 9. "Lot" shall mean and refer to any plot of land together with the improvements thereon shown upon any recorded subdivision plat of the Property or in a Condominium Declaration exceptiong the Common Area and Common Property. References herein to a Lot shall include a Multi-Family Residential Lot or a Single Family Residential Lot, unless the context otherwise requires.

Section 10. "Member" shall mean and refer to those persons entitled Class "A", "B", and "C" Membership in the Associatiopn as provided in the Declaration and Articles.

Section 11. "Mortgagee" shall mean and refer to any institutional holder of a first mortgage encumbering a portion of the Property as security for the performance of an obligation and insuror or guarantor of such mortgage including without limitation the Veterans Administration ("VA") or Federal Housing Administration (FHA") and/or a purchasor of such mortgages in the secondary market including without limitation, Federal National Mortgage Association ("FNMA") and Governmental National Mortgage Association ("GNMA").

Section 12. "Multi-family Residential Lot" ("MFRL") shall mean and refer to any plot of land together with improvements thereon shown upon any recorded subdivision plat of the Property which is zoned for residential use and for which the applicable plat contains more than four lots per acre. MFRL shall also refer to a condominium unit apartment or other such separate dwelling unit which is constructed at a density of more than six and one-half such units per acre.

Section 13. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot whether Multifamily Residential or Single Family Residential Lot which is a part of the Property, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 14. "Property" or "Properties" shall mean and refer to that certain real property described in Exhibit A together with improvements thereon except such improvements the title of which are reserved by the Declarant or its assignees and such additions to the Property as may hereafter be brought within the jurisdiction of the Association by annexation.

Section 15. "Single Family Residential Lot" ("SFRL") shall bean and refer to any plot of land together with improvements thereon shown upon any recorded subdivision plat of the Property, however, that the applicable plat shall contain six and one-half or less lots per acre.

Section 16. "Subdivision" shall mean and refer to a platted subdivision or condominium within the Property which is subjected to its own Declaration of Covenants, Conditions and Restrictions ("Subdivision Declaration") and is goverened by its own Association ("Subdivision Association") in addition to the covenants contained in this Declaration.

ARTICLE II

PROPERTY RIGHTS

Section 1. Owners' Easements of Enjoyment. Subject to the provisions of the Declaration, the rules and regulations of the Association, and any prior use rights granted in the Common Property or Common Area, every Class A, B, or C Member, their families and every guest, tenant, and invitee of such Members shall have a right and easement of ingress and egress and enjoyment in and to the Common Area and Common Property which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:

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

(b) The right of the Association to suspend the voting rights and right to use of the recreational facilities by an Owner for any period during which any assessment against his lot remains unpaid; and for a period not to exceed 60 days for any infraction of its published rules and regulations. In no event may the Association deny an Owner the use of the entrance areas or private roads or cul-de-sacs, if any, so as to prohibit ingress and egress to his Lot.

(c) The right of the Board of Directors Association to dedicate or transfer or grant an easement over all or any part of the Common Area to any public agency, authority or utility for the purpose of providing such utility or cable television service to the Property.

(d) The right of the Association to sell, convey or transfer the Common Area or any portion thereof to any third party for such purposes and subject to such conditions as may be agreed to by the Members.

(e) The right of the Association to adopt reasonable rules and regulations pertaining to the use of the Common Areas or Common Properties.

(f) The right of the Declarant or the Association to authorize other persons to enter upon use of the Common Property for uses not inconsistent with the Owners rights therein.

Section 2. Delegation of Use. Any Owner may delegate, in accordance with Bylaws, his right of enjoyment to the Common Area and Common Property to the members of his family, his tenants, or contract purchasers who reside in the Property.

Section 3. Buffer Easements. Certain Lots will be subject to an easement for berming, landscaping and buffering the Lots from the roadways. Such Buffer Easements shall be described in the applicable Subdivision Declarations or in the plat thereof. The Declarant is hereby granted an easement for its successors and assignees as well as all Owners to use the Buffer Easement for recreational purposes including without limitation jobbing, walking and bicycling.

The Buffer Easements shall be maintained by the Association at its sole cost and expense. The Association shall also obtain and maintain public liability insurance to cover any injuries or damage which may occur on the buffer easements which insure the owner of the Lot subject to the Buffer Easement as well as the Association.

ARTICLE III

MEMBERSHIP AND VOTING RIGHTS

Section 1. Every Owner of a Lot which is subject to this Declaration 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 this Declaration.

Section 2. The Association shall have these classes of voting membership:

Class A. Class A Members shall be all Owners of MFRL, with the exception of the Declarant, and each shall be entitled to one vote for each MFRL owned.

Class B. Class B Members shall be all owners of SFRL, with the exception of the Declarant, and each shall be entitled to one vote for each SFRL owned.

Class C. Class C Members shall be the Declarant who shall be entitled to three votes for each MFRL, and SFRL. The Class C Membership shall cease and be converted to Class A or B membership at such time as the first of the following events occurs:

(a) when the total votes outstanding in the Class A and B membership equals the total of the Class C membership;

(b) ten years from the date of recording this Declaration;

(c) when Declarant, in its sole discretion, elects to transfer control to the Class A and Class B Members.

ARTICLE IV

COVENANT FOR MAINTENANCE
ASSESSMENTS

Section 1. Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner of any Log by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) annual assessments of charges, and (2) special assessments for capital improvements, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, costs, and reasonable attorney's fees, shall be a charge on the Lot and shall be a continuing lien upon the Lot against which each such assessment is made. Each such assissment, together with interest, costs, and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

Section 2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety, and welfare of the residents in the Property and for the improvement and maintenance of the Common Areas and Common Property.

Section 3. Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment per Lot shall be as follows:

The maximum annual assessment for a SFRL shall be Two Hundred Forty Dollars ($240.00)per year. The assessment for a MFRL shall be 75% of the SFRL assessment or One Hundred Sixty Dollars ($160.00) per year.

(a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment for a SFRL and a MFRL may be increased each year not more than 5% above the maximum assessment for the previous year without a vot of the applicable class of membership.

(b) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment to be levied against all Members may be increased above 5% by a vote of two-thirds (2/3) of all classes of members who are voting in person or by proxy, at a meeting duly called for this purpose.

(c) The Board of Directors may fix the annual assessment at an amount not in excess of the maximum.

(d) The Association in determining the common expenses shall establish and maintain an adequate reserve fund for the periodic maintenance, repair, and replacement of improvements to the Common Area and Common Property.

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area or Common Property, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose.

Section 5. Notice and Quorum for Any Action Authorized Under Sections 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Section 3 or 4 shall be sent to all members not less than 30 days nor more than 60 days in advance of the meeting. At such meeting, the presence of members or of proxies entitled to cast majority of all the votes of each class of membership shall consititue a quorum.

Section 6. Uniform Rate of Assessment. Both annual and special assessments must be fixed at a uniform rate for all Lots in a Class and any increase must be applied uniformly for all classes. In the event that an Owner or his family, guest or invitees damage the Common Area and Common Property as provided in Article XI Section 3, such Lot may be subjected to a nonuniform assessment for payment of such damage.

Section 7. Date of Commencement of Annual Assessments: Due Dates. The annual SFRL and MFRL assessments shall commence upon the conveyance of the first SFRL or MFRL in a Subdivision or Condominium to an Owner other than Declarant. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The annual assessment shall be payable monthly and the due date shall be the first day of the month unless specifically changed by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the annual assessments for a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of its issuance.

Section 8. Effect of Nonpayment of Assessments; Remedies of the Association. Any annual assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of fifteen percent (15%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the Lot. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot.

Section 9. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any mortgage held by a Mortgagee. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessment thereafter becoming due or from the lien thereof. Any such delinquent assessments which were extinguished pursuant to the foregoing may be reallocated and assessed against all of the Lots as a common expense.

Section 10. Exempt Property. All properties dedicated to, and accepted by, a local public authority and all properties owned by a charitable or non-profit organization exempt from taxation by the laws of the state of Florida shall be exempt from the assessment created herein, except no land or improvements which constitute a SFRL or MFRL shall be exempt from assessments.

Section 11. Reserves. The Board shall establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of improvements to the Common Area and Common Property. This reserve fund shall constitute a portion of the annual budget. In addition, the Board of Directors may establish reserve funds from the regular annual assessments to be held in reserve in an interest bearing account or inventments or reserves for:

(a) major rehabilitation or major repairs;

(b) for emergency and other repairs required as a result of storm, fire, mutual disaster or other casualty loss; and

(c) initial cost, if any, new service to be performed by the Association.

Section 12. Declarant Guaranty. The Declarant is obligated to pay twenty five percent (25%) of the annual assessment for each Lot it owns in a Subdivision which payment shall commence upon the conveyance of the first Lot in the Subdivision to an Owner other than Declarant or Declarant shall pay the difference between the total of the annual assessments and the Common Expenses as established by the applicable budget whichever amount is the greater.

Section 13. Subdivision or Condominium Association. In the event that the Lot is subject to an additional assessment created by a separate declaration governing the Log and enforced by a Subdivision or Condominium Association, the Subdivison or Condominium Association is authorized to collect the annual assessment created herein and transfer the annual assessments to the Association.

ARTICLE V

ARCHITECTURAL CONTROL

Section 1. General Provisions. No building, fence, wall or other structure, landscaping or exterior lighting plan or any other type of improvement other than those erected by the Declarant shall be commenced, erected, or maintained upon the Property, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, height, color, materials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topogaphy by the Architectural Review Board ("ARB").

Section 2. Architectural Review Board.

(a) Composition of the Architectural Review Board. The architectural review and control functions of the Association shall be administered and performed by the ARB, which shall consist of three (3) members who need not be members of the Association. The Declarant shall have the right to appoint all of the members of the ARB, or such lesser number as it may choose, as long as it controls the Association. Members of the ARB as to who Declarant may relinquish the right to appoint, and all members of the ARB subsequent to the transfer of control shall be appointed by, and shall serve at the pleasure of, the Board of Directors of the Association. At any time that the Board of Directors has the right to appoint one or more members of the ARB, the Board shall appoint at least one (1) architect or building contractor thereto. A majority of the ARB shall constitute a quorum to transact business at any meeting of the ARB, and the action of a majority present at a meeting at which a quorum is present shall constitute the action of the ARB. Any vacancy occuring on the ARB because of death, resignation, or other termination of service of any member thereof shall be filled by the Board of Directors; excelpt that Declarant, to the exclusion of the Board, shall fill any vacancy created by the death, resignation, removal or other termination of services of any member of the ARB appointed by Declarant.

(b) Powers and Duties of the ARB.

The ARB shall have the following powers and duties:

(1) To draft Architectural Planning Criteria and to recommend from time to time, to the Board modifications and/or amendments to the Architectural Planning Criteria. Any modification or amendment to the Architectural Planning Criteria shall be consistent with the provisions of this Declaration, and shall not be effective until adopted by a majority of the members of the Board of Directors of the Association at a meeting duly called and noticed and at which a quorum is present and voting and are approved in writing by the Declarant if the Declarant is still a member of the Board. Notice of any modification or amendment to the Architectural Planning Criteria including a verbatim copy of such change or modification, shall be delivered to each member of the Association however, a receipt copy of any modification or amendment to the Architectural Planning Criteria shall not constitute a condition precedent to the effectiveness or validity of such change or modification.

(2) To require submission to the ARB of one (1) complete set of all plans and specifications for any improvement or structure of any kind, including, without limitation, any building, fence, wall, sign, site paving, grading parking and building additions, alterations, screen enclosure, sewer, drain, disposal system, decorative building, landscaping, landscape device or object, exterior lighting scheme or other improvement, the construction or placement of which is proposed upon any Lot or Property, together with a copy of any City of Jacksonville Permits. The ARB may also require submission of samples of building materials and colors proposed for use on any Lot or the Property, and may require such additional information as reasonably may be necessary for the Board to completely evaluate the proposed structure or improvement in accordance with the Declaration and the Architectural Planning Criteria. Reviews shall be coordinated with required City of Jacksonville approvals.

(3) To approve or disapprove any improvement or structure of any kind, including, without limitation, any building, fence, wall sign, site paving, grading, parking and building additions, alterations, screen enclosure, sewer, drain, disposal system, decorative building, landscaping, landscape device or object, exteriodr lighting scheme or other improvement or change or modification thereto, the constrruction, erection, performance or placement of which is proposed upon any Lot or the Property and to approve or disapprove any exterior additions, changes, modifications or alterations including the color thereof, therein or thereon. Any party aggrieved by a decision of the ARB shall have the right to make a written request to the Board within thirty (30) days of such decision, for a review thereof. The determination of the Board upon reviewing any such decision shall in all events be dispositive.

(4) If any improvement or structure as aforesaid shall be changed, modified or altered without prior approval of the ARB of such change, modification or alteration, and the plans and specifications therefor, if any, then the Owner shall upon demand cause the improvement or structure to be restored to comply with the original plans and specirfications, or the plans and specifications originally approved by the ARB, and shall bear all costs and expenses of such restoration, including costs and reasonsble attorneys' fees of the ARB.

(5) In addition, any Owner making or causing to be made any improvement or additions to the Property or a Lot, agrees and shall be deemed to have agreed, for such Owner, and his heirs, personal representatives, successors and assigns to hold the Association and all other Owners harmless from any liability or damage to the Property and expenses arising therefrom and such Owner shall be solely responsible for the maintenance, repair and insurance thereof as may be required by the Association.

(6) In the event of a disagreement between this ARB and the ARB or equivalent entity of any Condominium or Subdivision Association, the decision of this ARB shall prevail.

ARTICLE VI

USE RESTRICTIONS

In order to provide for congenial occupancy of the Property and for the protection of the value of the Lots, the use of the Property shall be in accordance with the following provisions so long as the Property is subject to this Declaration.

Section 1. Residential Use. Lots shall be used for residential living units and for no other purpose, and no business or commercial building may be erected on any SFRL or MFRL and no business may be conducted on any part thereof.

Section 2. Antennae. No aerial, antenna, satellite dish or similar device shall be placed or erected upon any Lot or affixed in any manner to the exterior of any building on such Lot unless appropriately screened from view of the neighboring Owners and from the street.

Section 3. Boats and Motor Vehicles. No boats, recreation vehicles or other motor vehicles, except four wheel passenger automobiles less than 5.6 feet in height, shall be placed, parked or stored upon any Lot unless appropriately screened from view of the neighboring Owners and from the street. No maintenance or repair which necessitates putting such vehicles on blocks or otherwise extends for a period greater than three daylight hours may be performed upon any boat or motor vehicle upon any Lot unless with the written approval of the ARB, except within a building where totally isolated from public view.

Section 4. Trees. No tree or shrub, the trunk of which exceeds six (6) inches in diameter as measured three feet from the ground, shall be cut down, destroyed or removed from a Lot without the prior express written consent of the ARB. In the event of the clearing of Lots for construction, each builder shall submit a tree survey designating the trees to be removed for approval by Declarant. Violation of this providion will result in an automatic fine.

Section 5. Artificial Vegetation. No artificial grass, plants or other artificial vegetation or sculptural landscape decor shall be placed or maintained upon the exterior portion of any Lot unless approved by the ARB.

Section 6. Clothes Drying Area. No portion of any Lot shall be used as a drying or hanging area for laundry of any kind unless screened from the view of neighboring Owners and from the street.

Section 7. Landscaping. An initial basic landscaping plan for each lot, including a written estambate of the costs of effectuating such plan, must be submitted to and approved by the ARB at the time of construction of improvements on such lot. The ARB may specify minimum initial expenditures for landscaping of Lots, which may vary on the basis of Lot use and location. The ARB may also require or prohibit specific plants, and may vary such requirements or prohibitions on the basis of Lot use or location.

Section 8. Nuisances. Nothing shall be done or maintained on any Lot which may be or become an annoyance or nuisance to the neighborhood. Any activity on a Lot which interferes with television, cable or radio reception on another Lot shall be deemed a nuisance and a prohibited activity. In the event of a dispute or question as to what may be or become a nuisance, such dispute or question shall be submitted to the Board of Directors of the Association and the written decision of the Board shall be dispositive of such dispute or question.

Section 9. Signs. No signs larger than 3 square feet, except for one "For Sale" or "For Rent" sign of the spproved size may be placed on any Lot.

Section 10. Maintenance. No weeds, underbrush or other unsightly vegetation shall be permitted to grow or remain on any Lot, and no refuse piles or unsightly objects shall be allowed to be placed or suffered to remain anywhere on any Lot. The Owner shall maintain the exterior of all buildings and improvements on his Lot in good and workmanlike manner, and shall present a neat and clean appearance upon the Lot. In the event that any Owner fails or refuses to keep his Lot free of weeds, underbrush, refuse piles, debris or other unsightly growths or objects, or to keep the buildings or improvements on his Lot in a good and workmanlike manner, or in a neat and clean appearance, the ARB or the Board may enter upon the Lot and perform any necessary maintenance at the expense of the Owner, and such entry will not be deemed a trespass. In the event that the exterior maintenance of the dwellings constructed upon the Lot are governed by a Condominium or Subdivision Association and such Association fails to maintain the Lots as required, the Board or the ARB may enter onto the Lot and perform the maintenance at the expense of the Association and such entry will not be deemed a trespass. During construction of a dwelling or other improvement, each Owner will be required to maintain his Lot in a clean condition, providing for trash and rubbish receptacles and disposal. Construction debris shall not be permitted to remain upon any Lot.

Section 11. Games and Play Structures. All tennis courts and other play structures (except basketball backboards) shall be located at the rear of the dwelling, or on the inside portion of corner Lots within the setback lines. No platform, doghouse, tennis court, playhouse or structure of a similar kind or nature (except basketball backboards) shall be constructed on any part of a Lot located in front of the rear line of the residence constructed on the Lot, and any such structure must have prior approval of the ARB. No basket ball backboards may be installed adjacent to the street or on any cul-de-sac.

Section 12. Fences and Walls. The composition, location color and height of any fence or wall to be constructed on any Lot is subject to the approval of the ARB. The ARB will require that the composition of any fence or wall be consistent with the material used in the surrounding buildings and other fences, if any. In no event and for no purpose shall chain link fencing be installed on any Lot. Certain Lots adjacent to the roadways will be subject to a Buffer Easement as described in Article II, Section 3. No LOt Owner whose Lot is subject to such Buffer Easement shall install a fence which encroaches on the Buffer Easement.

Section 13. Garbage and Trash Containers. No Lot shall be used or maintained as a dumping ground for rubbish, trash or other waste. All trash, garbage and other waste shall be kept in sanitary containers and completely screened from view, except during pickup, if required to be placed at the curb. The Association will be entitled to specify the type of trash container to be used by each Owner, and to contract for trash removal for all of the Property or for specific areas within the Property.

Section 14. Temporary Structures. Unless first approved in writing by the ARB, no structure of a temporary character, trailer, basement, tent, shack, garage, barn, or other out building shall be used on any Lot at any time as a residence, either temporarily or permanently, except that the Lot may be used by Declarant as a sales office during any development of the Property by Declarant in the area of the Lot.

Section 15. Mailboxes. No mailbox, paperbox or other receptacle of any kind for use in the delivery of mail, newspapers, magazines or similar material shall be erected on any Lot without the approval of the ARB as to style and location. If and when the United States Postal Service or the newspaper or newspapers involved shall indicate a willingness to make delivery to wall receptacles attached to dwellings, each Owner, on the request of the ARB shall replace the boxes or receptacles previously employed for such purpose or purposes with wall receptacles attached to dwellings.

Section 16. Energy Conservation. Solar energy and other energy conservation devices are not prohibited or discouraged, but the design and appearances of such devices will be closely scrutinized and controlled to assure consistency with neighborhood aesthetics.

Section 17. Utility Connections. Permanent building connections for all utilities, including, but not limited to, water, electricity, telephone and television, shall be run underground from the proper connecting points to the building structure in such a manner to be acceptable to the governing utility authority. All exterior lighting plans for Lots, Condominiums or Subdivisions including any modifications or changes to existing plans shall be approved by the ARB.

Section 18. Air Conditioning Equipment. Central air conditioning units only shall be permitted within the Property, and window or wall air conditioning shall be prohibited.

Section 19. Window Coverings. No reflecting window coverings or treatments shall be permitted on any building in the Property. The ARB, at its discretion, may control or prohibit window coverings and treatments not reasonably compatible with athestic standards in the area of the Property where located.

Section 20. Off-Street Motor Vehicles. No motorized vehicle including, without limitation, two and three wheel all terrain vehicles or "dirt bikes" may be operated off of paved roadways and drives except as specifically approved in writing by the ARB for the purpose of maintenance, construction, security or similar purposes. Owners may be fined for each violation of this provision by themselves, their families, guests, tenants, and invitees. Violations will result in automatic fines of $25.00 for the first offense, $50.00 for the second offense and $100.00 for each subsequent offenses.

Section 21. Noise. Exterior noise, and noise emanating from within buildings or other improvements, including without limitation talking, singing, television, radio, record or tape player or musical instrument, shall be maintained from 11:00 p.m. until 7:30 a.m. at such volume that the noise is not audible beyond the boundaries of the Lot, or outside the boundaries of the Unit, from which it originates, and at all times so as not to constitute a nuisance or unreasonable annoyance to neighbors.

Section 22. Pets and Animals. The Board shall have the right from time to time to adopt with respect to any neighborhood or area within the Property rules and rregulations governing the type, number and size of pets or other animals that may be kept within that neighborhood; and rules and regulations governing pets may vary between areas of the Property to the extent that the Board of Directors deems appropriate.

Section 23. Garage Doors. All doors shall be kept closed except when vehicles are entering or exiting.

Section 24. Additional Use Restrictions. The Board of Directors of the Association may adopt such additional use restrictions, rules or regulations, applicable to all or any portion or portions of the Property and to waive or modify application of the foregoing use restrictions with respect to any Lot(s) as the Board, in it sole discretion, deems appropriate.

ARTICLE VII

RIGHTS OF MORTGAGEES

Section 1. Mortgagee Notice Rights. Upon written request to the Association, identifying the name and addrress of Mortgagee, Mortgagee will be entitled to timely written notice of:

(a) Any condemnation loss or any casualty loss which affects a material portion of the Property or any Lot on which there is a first mortgage held, insured or guaranteed by such Mortgagee.

(b) Any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to a first mortgage held, insured or guaranteed by such Mortgagee, which remains uncured for a period of 60 days.

(c) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association.

(d) Any proposed action which would require the consent of a specified percentage of mortgage holders.

Section 2. Mortgagee Information. The Association shall make available to Owners and Mortgagees current copies of this Declaration, Articles, Bylaws and rules and regulations of the Association, as well as books, records and financial statements of the Association. "Available" means available for inspection, upon request during normal business hours or under other reasonable circumstances.

ARTICLE VIII

ANNEXATION OF PROPERTY

Section 1. Declarant's Annexation. The Declarant shall have the right until ten years from the date of recording this Declaration from time to time and in its sole discretion, to annex to the Property and to include within this Declaration all or part of the additional land described in Exhibit B.

Section 2. Members Annexation. The Owners may annex additional lands to the Property with the approval of 2/3 of each class of Owners of the Lots within the Property. Such approval may be given at regular meeting duly called for such purpose or by written consent of the requested number of Owners of each Class.

Section 3. Supplemental Declarations. Any such additions authorized in section 1 or 2 above may be made by filing of record of one or more supplemental declarations with respect to the annexed property. A supplemental declaration shall contain a statement that the real property that is subject of the supplemental declaration constitutes additional property which is to become a part of the Properties subject to this Declaration. Each supplemental declaration shall become effective upon being recorded in the public records of Duval County, Florida.

Section 4. Effect of Annexation. In the event that any additional property is annexed to the Property pursuant to the provisions of this Article, then such lands shall be considered within the definition of Property for all purposes of this Declaration, and each Owner of a Lot shall be a Class A or B Member and the votes of members, of the respective classes, shall be adjusted accordingly. In the event that the land described in Exhibit B is not annexed as provided herein, this Declaration shall not be construed as a lien, encumbrance or defect on the land described on Exhibit B.

Section 5. Additional Declarations. Declarant intends as the Property is developed and offered for sale to subject portions thereof to specific covenants and restrictions which apply only to each portion as defined and described in each such set of covenants and restrictions such additional covenants and restrictions shall be subject to the provisions hereof so that the Chimney Lakes Community remains an integrated development.

ARTICLE IX

RECONSTRUCTION OR REPAIR

Section 1. Damage to Common Area. In the event that any portion of the Common Area or Common Property is damaged or destroyed by casualty, it shall be repaired or restored to substantially its condition prior to the damage or destruction by the Association.

Repair or reconstruction of the Common Area and Common Property shall be substantially in accordance with the plans and specifications pursuant to which the same was originally constructed. All insurance proceeds shall be applied to the restoration and repair. If the insurance proceeds are insufficient, the deficit shall be assessed against all Owners as a special assessment. If there is a surplus of insurance proceeds, it shall become the property of the Association.

Section 2. Damage to the Lots. In the event of damage or destruction to any portion of the improvements on a Lot, the improvements shall be repaired or restored in accordance with the provisions of the applicable insurance requirements. In the event that the Owner is not required, by the applicable insurance policy, to rebuild the improvements on the Lot the Owner shall clear the debris and have the Lot leveled, within 60 days from the date of destruction or damages.

Section 3. Damage to Common Property Due to Owner Negligence. In the event that the Common Property is damaged as a result of the willful or negligent acts of the family, guests or invitees of the Owner, such damage shall be repaired by the Association and the cost thereof shall be added to and become a part of the assessment to which such Lot is subject.

ARTICLE X

EASEMENTS

Section 1. Utility Easements. Until such time as Declarant transfers control of the Association the Declarant hereby reserves the right to grant perpetual nonexclusive easements for the benefit of Declarant or its designees, upon, across, over, through and under any portion of the Property for ingress, egress, installation, replacement, repair and maintenance of all utility and service lines and service systems, public and private including with limitations cable television. Declarant, for itself and its designees, reserves the right to retain title to any and all pipes, lines, cables or other improvements installed on such easements. Upon transfer of control, the Association shall have the right to grant the easements described herein.

Section 2. Declarant's Easement of Correct Drainage. Until such time as Declarant transfers control of the Association, Declarant hereby reserves the blanket easement on over and under the ground within the Property to maintain and correct drainage of surface waters and other erosion controls in order to maintain reasonable standards of health, safety, and appearance.

Section 3. Easement for Unintentional Encroachment. The Declarant hereby reserves an exclusive easement for the unintentional encroachment by any SFRL or MFRL upon the Common Area or Common Property or vice-versa caused by or resulting from, construction, rerpair, shifting, settlement or movement of any portion of the Property, which exclusive easement shall exist at all times during the continuance of such encroachment, easement appurtenant to the encroaching Property to the extent of such encroachment.

Section 4. Entry Easement. In the event that the Owner and/or the applicable Subdivision or Condominium Association fails to maintain the Lot as required herein or in the event of emergency, the Association shall have the right to enter onto the Lot to make emergency repairs and to do other work reasonably necessary for the proper maintenance and operation of the Property. Entry onto the lot as provided herein shall not be deemed a trespass and the Association shall not be liable for any damage so created unless such damage is caused by the Association's willful misconduct or gross negligence.

ARTICLE XI

LAKE AND WATER RIGHTS

Section 1. Ownership of Lakes. The Declarant intends to annex certain portions of the property described on Exhibit B which shall constitute "lakes". At such time as the lakes are annexed the Declarant shall convey the lake bottom to an individual owner, the Association, who shall be the "owner" of the lake for the purposes set forth in this Declaration.

Section 2. Maintenance of Lake Embankments and Lake Bottoms. The Association shall maintain and control the water level and quality of the lakes including the control and eradication of plants, fowl, reptiles, animals, fish and fungi in and on any lake within the Property. The owner of the lake bottom shall maintain the lake bottom and the embankment. Such maintenance shall be conducted so that the grass, planting or other natural support of the embankment shall be maintained in a clean and safe manner and so as to prevent erosion. If the owner of the Lake bottom shall fail to maintain the embankment, the Association shall have the right, but not the obligation to enter onto the owner's property and perform the maintenance at the expense of the owner which expense shall be a special assessment against the owner.

Section 3. Improvements on Lake. In the event that the Declarant and/or its successors or assigns or the Association shall construct any bridges, docks or other improvements which may extend over or into the lake or construct any bulkheads or similar improvements to support or enhance the lake, the Association shall maintain any and all improvements in good repair and condition. No Owner except the Declarant or the Association shall be permitted to construct any improvement, permanent or temporary, on, over or under any lake without the written consent of the ARB which consent may be withheld for any reason.

Section 4. Easements. All Owners shall have a perpetual non-exclusive easement for enjoyment, and use of the lake surface waters together with an easement for ingress and egress at the locations so designated by the Association. The Unit Owners use and access to the lakes shall be subject to the rules and regulations of the Association. The use of lakes shall be limited to fishing, boating, swimming and/or recreational use. The Association shall have a non-exclusive easement for ingress and egress over the lakes for the purpose of providing the maintenance required herein.

Section 5. Use Restrictions and Covenants. In connection with the use of any lake the following restrictions shall apply:

a. No motorized or power boats shall be permitted on any lake with the exception of boats used for maintenance thereof.

b. No bottles, trash, cans or garbage of any kind or description shall be placed in the lake.

c. No activity shall be permitted on any lake which may become an annoyance or nuisance to the adjacent property. The Association shall determine whether any activity constitutes and annoyance or nuisance.

d. No person or entity except Declarant or the Association shall have the right to pump or otherwise remove any water from any lake for the purpose of irrigation or other use.

e. The lake shall not be used in conjunction with any business enterprise or public use whatsoever.

f. There shall be no fishing permitted from bridges, streets or right of ways. Only Owners shall be permitted to fish in the lakes and only in areas so designated.

g. The Association shall be entitled to establish, amend, or modify rules and regulations governing the use of the lake in accordance with the Articles and Bylaws.

ARTICLE XII

GENERAL PROVISIONS

Section 1. Enforcement. The Association, or any Owner, shall have the right to enforce, by a proceeding at law or in equity, all rrestrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no wise affect any other provisions which shall remain in full force and effect.

Section 3. Amendment. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. This Declaration may be amended during the first twenty (20) year period by an instrument signed by not less than ninety percent (90%) of the Owners, and thereafter by an instrument signed by not less than seventy-five (75%) of the Owners. Any amendment must be recorded.

Section 4. FHA/VA Approval. As long as there is a Class C membership, the following actions will require the prior approval of the Federal Housing Administration or the Veterans Administration: annexation of additional property proper, dedication of Common Area or Common Property, and amendment of this Declaration of Covenants, Conditions and Restrictions.

IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has hereunto set its hand and seal this 6th day of December, 1984

By_________________
Its President

STATE OF FLORIDA

COUNTY OF DUVAL

The foregoing instrument was acknowledged before me this 6th day of December, 1983, by ..... the President of Argyle Forest, Inc., a Florida corporation, on behalf of the corporation.