WVHOA

Covenants: Pg 16-18

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Section 6: Disclaimer. The Declarant shall not be liable for any loss or damage to the Residence caused by, resulting from, or 1n any way connected with soil conditions on any Lot.

ARTICLE XI. MORTGAGEE PROTECTION

Section 1: Introduction. This Article establishes certain standards and covenants which are for the benefit of the holders, insurers, and guarantors of certain Security Interests. This Article is supplemental to, and not in substitution for, any other provisions of the Declaration, but in the case of conflict, this Article shall control.

Section 2: Notice of Actions. The Association shall give prompt written notice to each Mortgagee and Insurer of (and each Lot Owner hereby consents to and authorizes such notice):

1. Any condemnation loss or any casualty loss which affects a material portion of the Common Interest Community or any Lot in which there is a First Security Interest held, insured, or guaranteed by such Mortgagee or Insurer, as applicable.
2. Any delinquency in the payment of Common Expense assessments owed by a Lot Owner whose Lot is subject to a First security Interest held, insured, or guaranteed by such Mortgagee or Insurer, as applicable, which remains uncured for a period of sixty (60) days.
3. Any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association.
4. Any proposed action which would require the consent of a specified percentage of Mortgagees as specified in section 4 of this Article XI.
5. Any judgment rendered against the Association.

Section 3: Consent and Notice Required.

1. Document Chanqes. Notwithstanding any requirement permitted by this Declaration or the Act, no amendment of any provision of this Declaration pertaining to the matters hereinafter listed by the Association or Lot Owners shall be effective without notice to all Mortgagees and Insurers, and the vote of at least sixty-seven percent (67%) of the Lot Owners (or any greater Lot Owner vote required in this Declaration or the Act) and until approved by at least fifty-one percent (51%) of the Mortgagees (or any greater Mortgagee approval required by this Declaration). The foregoing approval requirements do not apply to amendments effected by the exercise of any Development Right:
   
   
   1. Voting rights.
   2. Assessments, assessment liens, or priority of assessment liens.
   3. Reserves for maintenance, repair, and replacement of Common Elements.
   4. Responsibility for maintenance and repairs.
   5. Redefinitions of boundaries of Lots, except that when boundaries of only adjoining Lots are involved or a Duplex Lot is being subdivided, then only those Lot Owners and the Mortgagees holding Security Interests in such Lot or Lots must approve such action.
   6. Convertibility of Lots into Common Elements or Common Elements into Lots.
   7. Expansion or contraction of the Common Interest community or the addition, annexation, or withdrawal of property to or from the Common Interest community.
   8. Insurance or fidelity bonds.
   9. Leasing of Lots.
   10. Imposition of any restrictions on a Owner's right to sell or transfer his Lot.
   11. A decision by the Association to establish self-management when professional management had been required previously by the Declaration or any Mortgagee.
   12. Restoration or repair of the Common Elements after a hazard damage or partial condemnation in a manner other than that specified in the Declaration.
   13. Termination of the Common Interest community after occurrence of substantial destruction or condemnation of the Common Elements.
   14. Any provision that expressly benefits mortgage holders, insurers, or guarantors.

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2. Actions. Notwithstanding any lower requirement permitted by this Declaration or the Act, the Association may not take any of the following actions, other than rights reserved to the Declarant as Special Declarant Rights, without the notice to all Mortgagees and Insurers as required by section 2 above and approval of at least fifty-one percent (51%) (or the indicated percentage) of the Mortgagees:
   
   
   1. Conveyor encumber the Common Elements or any portion thereof without approval by eighty percent (80%) of the Mortgagees. (The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Elements by the Common Interest community will not be deemed a transfer within the meaning of this clause.)
   2. The termination of the Common Interest Community for reasons other than substantial destruction or condemnation of the Common Elements without approval by sixty-seven percent (67%) of the votes of Mortgagees.
   3. The granting of any permits, easements, leases, licenses, or concessions through or over the Common Elements (excluding, however, any utility, road, or other easements serving or necessary to serve the Common Interest Community and excluding any leases, licenses, or concessions for no more than one [1] year).
   4. The establishment of self-management when professional management had been required previously by the Declaration or by a Mortgagee.
   5. Restoration or repair of the Common Elements after a hazard damage or partial condemnation in a manner other than specified in the Declaration.
   6. The merger of the Common Interest Community with any other common interest community.
   7. The assignment of the future income of the Association, including its right to receive Common Expense assessments.
   8. Any action taken not to repair or replace the Common Elements.
   
   
3. The Association may not change the period for collection of regularly budgeted Common Expense assessments to other than monthly without the consent of all Mortgagees.
4. The failure of a Mortgagee or Insurer to respond within thirty (30) days to any written request of the Association delivered by certified or registered mail, return receipt requested, for approval of an addition or amendment to the Declaration wherever Mortgagee or Insurer approval is required shall constitute an implied approval of the addition or amendment.

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Section 4: Inspection of Books. The Association must maintain current copies of the Declaration, Bylaws, Rules and Regulations, books and records, and financial statements. The Association shall permit any Mortgagee or Insurer to inspect the books and records of the Association during normal business hours.

Section 5: Financial Statements. The Association shall provide any Mortgagee or Insurer who submits a written request a copy of an annual financial statement within ninety (90) days following the end of each fiscal year of the Association. Such financial statement shall be audited by an independent certified public accountant if:

1. The Common Interest Community contains fifty (50) or more Lots, in which case the cost of the audit shall be a Common Expense; or
2. Any Mortgagee or Insurer requests it, in which case the Mortgage or Insurer shall bear the cost of the audit.

Section 6: Enforcement. The provisions of this Article are for the benefit of Mortgagees and Insurers and their successors and may be enforced by any of them by any available means at law or in equity.