ARTICLES OF INCORPORATION OF THE FIVE OAKS RECREATIONAL ASSOCIATION
In compliance with the requirements of Chapter 55A of the General Statutes of North Carolina, the undersigned, all of whom are residents’of the State of North Carolina and all of whom are of full age, have this day voluntarily associated themselves together for the purpose of forming a corporation not for profit and do hereby certify:
ARTICLE I
The name of the corporation is The Five Oaks Recreational Association, Inc., hereinafter called the “Recreational Association”.
– ARTICLE II
The initial registered office of the Recreational Association is-located at 2514 University Drive (Post Office Box 3450; Zip Code 27702), in the City of Durham, County of Durham, State of North Carolina.
ARTICLE III .
R. L. Maser, whose address is 2514 University Drive (Post Office Box 3450; Zip Code 27102), in the City of Durham, County of Durham, State of North Carolina, is ‘hereby appointed the initial registered agent of this Recreational Association.
ARTICLE IV
This Recreational Association does not comtemplate pecuniary gain or profit to the members thereof, and the’specific purposes for which it is formed are:
(a) To manage, own and maintain the swimming pool, tennis courts, clubhouse and other facilities located on the Recreational Area of The Five Oaks Development Area, said Recreational Area being more fully described herein below, for the benefit and use of the members of the Association subject ‘to’such restraints or suspensions of use and voting rights of members as are provided. herein and in the Bylaws.
(b) To own, purchase,, manage, maintain, repair and replace any or all of the equipment, facilities, and buildings used in connection with the operation of the swimming pool, tennis courts, bath house and other facilities.
(c) To establish An orderly and efficient system of billing topay for the expenses incurred in the furtherance of the aforesaid purposes.
·(d) . To promulgate such rules and regulations and perform such deeds-as are deemed necessary to achieve the aforesaid objectives.
LEGAL DESCRIPTION FOR RECREATIONAL AREA OF THE FIVE OAKS’OEVELOPMENT AREA:
· BEGINNING at a stake in the westerly property line of Farrington Road, the northeastern corner of H. C. Markham, as ‘ shown on the plat of survey hereinafter referred to; AND RUNNING THENCE along and with the northerly -.property line of the said H. C. Markham North 84 degrees, 45 minutes, 20 seconds West, a distance of 1,455.36 feet to a stake; thence, along and with the westerly property line of the said H. C. Markham South 5 degrees, 15 minutes, 19 seconds West, a distance of 928.38 feet to a stake; thence, north 87 degrees, 14 minutes, 26 seconds West, a distance of 574.23 feet to a stake, the .southeastern corner of the Devonshire Manor Subdivision; thence, along and with the easterly property line of said subdivision north 3 degrees, 6 minutes, 13 seconds East, a distance of 923.23 feet to a stake, the northeastern corner of said subdivision; thence, along and with the northerly property line of said subdivision North 83 degrees, 12 minutes, 20 seconds West, a distance of 942.35 feet to a stake, the southeastern corner of a Utilities Lot for Devonshire Manor; thence, along and with the easterly property line of said Utilities Lot North 14 degrees, 34 minutes, 37 seconds East, a distance of 215.24 feet to a stake; thence, South 87 degrees, 40 minutes, 14 seconds East, a distance of 418.89 feet to a stake; thence, North 72 degrees, 10 minutes, 3 seconds East, a distance of 184.60 feet to a stake; thence, South 81 degrees, O minutes, 29 seconds East, a distance of 165.62 feet to a stake; thence, South.79 degrees, 32 minutes, 37 seconds East, a distance of 150.77 feet to a stake; thence, South 87 degrees, 5 minutes, 38 seconds East, a distance of 107.69 feet to a stake in the center line of “City of Durham Sanitary Sewer Easement; thence continuing with the center line of said sewer easement South 74 degrees, 4 minutes, 8 seconds East, a distance of 370.28 feet to a stake and corner with a small drive; thence, along and with the westerly property line of said drive, North 6 degrees, 55 minutes, 43 seconds East, a distance of 270.01 feet to a stake in the.southerly,property line of Pine Cone Drive; thence, along and with.the southerly property line of the said Pine Cone Drive, along the arc of a curve having a radius of 630 feet, an arc length distance of 51.51 feet to a stake in the southerly property line of the said Pine Cone Drive; thence, along and with the easterly property line of said small drive South 06 degrees, 55 minutes, 43 seconds West, a distance of 295.90 feet to a point in the center line of a 25 foot City of Durham Sanitary Sewer Easement;thence, along and with the center line of said easement South 81 degrees, 58 minutes, 45 seconds East, a distance of 166.77 feet to a stake in the center line of said easement; thence, continuing with the center line of said easement North 82 .degrees, 52;minutes, 54 seconds.East, a distance of 278.58 feet’to a stake in the center line of said easement; thence, continuing with said easement South 89 degrees, 49 minutes, 35 seconds East, a distance of 279.48 feet to a stake in the center line of said easement; thence, continuing with said easement North 17 degrees, 21 minutes, 14 seconds East, a distance of 329.57 feet to a stake in the center line of said easement; thence,, continuing with said easement South 89 degrees, 34 minutes, 18 seconds East, a distance of 315.77 feet to a stake in the center line of said easement; thence, leaving the centerline of said easement North 34 degrees, 11 minutes, 37 seconds East, a distance of 37.79 feet to a stake and corner of Devonshire Manor Utilities Company; thence, South 5 degrees, 55 minutes, 27 seconds West, a distance of 157 feet to a stake; thence, South 84 degrees, 04 minutes, 33 seconds East, a distance of 164 feet to a stake; thence, North 5 degrees, 55 minutes, 27 seconds East, a distance of 120.49 feet to a stake; thence, North 49 degrees, 8 minutes, 27 seconds East, a distance of 82.55 feet to a stake; thence, along the arc of a curve to the northeast, said curve having a radius of 183.65 feet, an arc length distance of 130.81 feet to a stake; thence, North 89 degrees, 57 minutes, 7’seconds East, a distance of 46.45 feet to a stake in the westerly property line of the said Farrington Road; thence, along and with the westerly property line of’said Farrington Road, along the arc of a curve to the southeast, said curve having a radius of 984.93 feet, an arc length distance of 54.14 feet to a stake in the westerly property line of Farrington Road; thence, continuing with the westerly property line of the said Farrington Road South 10 degrees, 29 minutes, 48 seconds East, a distance of 155.35 feet to a stake; thence, continuing along and with the westerly property line of the said Farrington Road, along the arc of a curve to the southwest, said curve having a radius of 924.93 feet, an arc length distance of 446.63 feet to a stake in the westerly property line of the said Farrington Road; thence, continuing with the westerly property line of Farrington Road, South 17 degrees, 10 minutes, 12 seconds west, a distance of 107.18 feet to a stake in the westerly property line of the said Farrington Road, the northeastern corner of the said H. C. Markham, the place and point of BEGINNING: the same being a tract or parcel of land containing 37.36 acres, more or less, and being shown on that certain plat of survey entitled “Recreational Area, Property of Five Oaks Recreational Corporation,” dated March 14, 1975, prepared by Larry W. Poole, RLS, and recorded in Plat Book 86 , page 68, Public Registry of Durham County, North Carolina, to which plat reference is hereby made for a more particular description of said property; Provided, however, that an easement is reserved by HIC Management Corporation of N. C., its successors and assigns, over the following described. portion of said property:
BEGINNING at a stake in the easterly property line of Gordon and G. M. Pope, said stake being reached by beginning at a stake which is located at the southeastern corner of the Utilities Lot for Devonshire Manor as shown on the plat of survey previously identified and referred to and running from said stake North 14 degrees, 34 minutes, 37 seconds East, a distance of 215.24 feet to a stake, THE PLACE AND POINT OF BEGINNING, AND RUNNING THENCE from said beginning point South 87 degrees, 40 minutes, 14 seconds East, a distance of 418.89 feet to a stake; thence, North 72 degrees, 10 minutes, 3 seconds East, a distance of 184.60 feet to a stake; thence, South 81 degrees, 0 minutes, 29 seconds East, a distance of 165.62 feet to a stake; thence, South 79 degrees; 32 minutes, 37 seconds East, a distance of 150.77 feet to a stake; thence,. South 87 degrees, 5 minutes, 38 seconds East, a distance of 107.69 feet’to a stake in the center line of a City of Durham -Sanitary Sewer Easement; and running thence along and with the center line of said easement, South 70 degrees, 25 minutes, 42. seconds West, a distance of’86.74 feet; thence, North 80 degrees, 45 minutes, 10 seconds West, a distance of 230.68 feet to a stake; thence South 81 degrees; 51 minutes, 37 _seconds West, a distance of 307.04 feet to a stake; thence, South 88 degrees, 57 minutes, 37 seconds West, a distance of 194.95 feet to a stake; thence, North 84 degrees, 25 minutes, 3 seconds West, a distance of 216.93 feet to a stake, the place and point of BEGINNING: the same being a portion of the previously described Recreational Area, over, under and through which easement area the right, privilege and option is reserved and retained for the-purpose of placing and maintaining one or more sewer lines for the benefit and development of the Five Oaks Development Area and the owners and residents thereof.
and to promote the health, safety and welfare of the members of the Recreational Association and for these purposes to:
(a) exercise all of the powers and privileges and to perform all of the duties and obligations or things reasonably necessary or desirable for carrying out the Recreational Association’s purposes, and for protecting the lawful rights and interests of its members in connection therewith;
(b) fix, levy, collect and enforce payment by any lawful means, all charges or assessments more fully hereinafter described; to pay all expenses in connection therewith and all office and other expenses incident to the conduct of the business of the Recreational Association, including ‘all licenses, taxes or governmental charges levied or imposed against the .property of the Recreational Association;
(c) acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for . public use or otherwise dispose of real property in connection with the affairs of the Recreational Association;
(d) borrow. money, and with the assent of two-thirds (2/3) of each class of members, mortgage, pledge, deed in trust, or hypothecate any or all of its’real or personal property as security for money borrowed or debts incurred;
(e) dedicate, sell or transfer all or any party of the Recreational Area to any public agency, authority, or utility for such purposes and.subject ‘to such conditions as maybe agreed to by the members. No such dedication or transfer shall be effective unless an instrument has been signed by two-thirds (2/3) of each class of members, agreeing to such dedication, sale or transfer (such instrument or instruments may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument);
(f) participate in mergers and consolidations with, or as a member in, other nonprofit corporations organized for the same or similar purposes provided that any such merger or consolidation shall have the assent of two-thirds (213) of each class of members;
(g) have and to exercise any and all powers, rights and privileges which a corporation organized under the Non-Profit Corporation. Act of the State Of North Carolina by law may now or hereafter have or exercise.
Article V
MEMBERSHIP AND USE
(a) Every person or entity who is a record owner of a fee- or undivided fee interest in any condominium unit, patio home or townhouse Lot which is located in-or on The Five Oaks Development Area (described herein below), and which is subject to covenants of assessments by the Recreational Association, including contract sellers, shall be a member of this Recreational Association, subject to:
(i) the right of the Recreational Association to charge reasonable admission and other fees for the use of any recreational facilities situated upon the Recreational Area;
(ii) the right of the Recreational Association to suspend the voting rights and right to the use of any recreational facilities situated upon the Recreational Area by a member for any period during which any assessment against his Lot or unit remains unpaid; and for a period not to exceed sixty (60) days from any infraction of its published rules and regulations;
(iii) the right of the Recreational Association’to dedicate or transfer all or any part of the Recreational Area to any public agency, authority, or utility far such purposes and subject to such conditions as May be agreed to by the members. No such dedication or transfer shall be effective unless an Instrument or instruments signed by two-thirds (2/3) of each class of members agreeing to such dedication or transfer has been recorded (such instrument or instruments may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument};
(iv) the right of the Recreational Association to limit the number of guests of members as to use of any recreational facilities situated upon the Recreational Area;
(v) the right of the Recreational Association, in accordance with its Articles and Bylaws, to borrow money for the purpose of improving the Recreational Area and facilities and in aid thereof to mortgage and grant liens and encumbrances upon said Recreational Area and facilities, the right of any such mortgagee of the Recreational Area and facilities shall be subordinate to the rights of the members hereunder;
(vi) the right of the Recreational Association, through its Board of Directors, to determine the time and manner of use of any recreational facilities situated upon the Recreational Area by the members;
(vii) the right of the Recreational Association to reasonably regulate, locate and direct access routes in the Recreational Area and the location of parking thereon.
The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. Membership will be appurtenant to and may not be separated from ownership of any condominium unit, patio home or Townhouse Lot which is subject to assessment by the Recreational
(b) The right and privilege, subject to the matters and things described in these Articles of Incorporation, the Bylaws of this Recreational Association and Rules and Regulations promulgated by the Board of Directors of this Recreational Association, to use and enjoy the property and facilities of this Recreational Association shall belong to every member of this. Association and to each Single Family who shall from time to time occupy a condominium unit, patio home or Townhouse Lot located in The Five Oaks Development Area, irrespective of whether or not such Single Family is owning or renting its condominium unit, patio home or Townhouse Lot. Any member may delegate, in accordance with the ‘Bylaws of the Recreational Association, his right of enjoyment to the Recreational Area and facilities to the members of his family, his tenants, or contract purchasers who reside on the property. For purposes of these Articles “Single Family”shall mean a group of one or more persons, each related by blood, marriage, or legal adoption, or a group of one or more persons not so related, together with their domestic servants, who maintain a common household in a condominium unit, patio home or townhouse lot located in The Five Oaks Development Area.
(c). The Five Oaks Development Area is more fully described as follows
BEGINNING at a stake in the southerly property line of the Old Chapel Hill Road, as shown on the plat of survey hereinafter referred to, the northwest corner of Louis A. Coletta as shown on said plat; AND RUNNING THENCE along and ….with the westerly line of the said Louis A. Colette South 3 ‘degrees, 29 minutes, 10 seconds West, a distance of 368.19 feet to a point in the line of William Markham, Jr.; thence along and with the line of the said Markham North 78 degrees, 43 minutes, 40 seconds West, a distance of 290.96 feet to a , stake; the northwest corner of the said Markham;’thence continuing with the westerly property line of the said Markham, South 11 degrees, 16 minutes, 20 seconds West, a distance of 378.37 feet to a stake, the southwest corner of the said Markham; thence along and with the southerly property line of the said Markham South 78 degrees, 43 minutes, 40 seconds East, a distance of 520.42 feet to a-stake in the westerly property line of Farrington Road; thence in, a southerly direction along and with the westerly property line of the said Farrington Road, along the arc of a curve having a radius of 984.93 feet, an arc length distance of 397.56 feet to a stake in the westerly property line of the said Farrington Road; thence South 89 degrees, 57 minutes, 7 seconds West, a distance of 41.34.feet to a stake; thence along the arc of a curve to the southwest, said curve having a radius of 233.65 feet, an arc length distance of 166.43 feet to a stake; thence South 49 degrees, 8 minutes, 27 seconds West, a distance of 79.43 feet to a stake; thence North 84 degrees, 4 minutes, 33 seconds West, a distance of 129.70 feet to a stake; thence South 5 degrees, 55 minutes, 27 seconds West, a distance of 157 feet to a stake; thence South 84 degrees, 4 minutes, 33 seconds East, a distance of 164 feet to a stake; thence North 5 degrees, 55 minutes, 27 seconds East, a distance of 120.49 feet to a stake; thence North 49 degrees, 8 minutes, 27 seconds East, a distance of 82.55 feet to a stake; thence along the arc of a curve to the northeast said curve having a radius of 183.65 feet, an arc length distance of 130.81 feet to a stake; thence North 89 degrees, 57 minutes, 7 seconds East, a distance of 46.45 feet to a stake in the westerly property line of the said Farrington Road; thence continuing in a southerly direction along and with the westerly property line of the said Farrington Road along the arc of a curve, said curve having a radius of 984.93 feet, an arc length distance of 54.14 feet to a, stake in the westerly property line of Farrington Road; thence continuing with the westerly Property line of the said Farrington Road South 10 degrees, 29 minutes, 48 seconds East; a distance of 165.35 feet to a stake in the westerly property line of the said Farrington Road; thence continuing with. the westerly property line of the said Farrington Road along the arc of a curve to the southwest, said curve having a radius of 924.93 feet, an arc length distance of 446.63 feet to a stake in the westerly property line of Farrington Road; thence continuing along and with the westerly property line of the said Farrington Road South 17 degrees, 10 minutes, 12 seconds West, a distance of 107.18 feet to a stake in the westerly property line of the said Farrington Road, the northeast corner of H. C. Markham; thence along and with the northerly property line of the said H. C. Markham North 84 degrees, 45 minutes, 20 seconds West, a distance of 1,455.36 feet to a stake, the northwest corner of the said H. C. Markham; thence along and with the westerly property lines of the said H. C: Markham and L. K. Thompson, III South 5 degrees, 15 minutes, 19 seconds West, a distance of 1,279.15 feet to a stake in the line of the said L. K. Thompson, III; thence along, the arc of a curve to the southwest, said curve having a radius of 250.79 feet, an arc length distance of 6.23 feet to a stake in the northerly property line of Davenport Road (not open); thence along and with the northerly property line of the said Davenport Road South 89 degrees, 18 minutes, 53 seconds West, a distance of 596.66 feet to a stake; thence, continuing along and with the northerly property ling of the said Davenport Road, along the arc of a curve to the southwest said curve having a radius.of 1,546.47 feet, an arc length distance of 141.70 feet to a stake, thence, continuing with the northerly property line of the said Davenport Road, South 84 degrees, 3 minutes, 53 seconds West, a distance of 306 feet to a stake, thence, continuing along and with the northerly property line of the said Davenport Road, along the arc of a curve to the southwest, said curve having a radius of 1,432.39 feet, an arc length distance of 259.17 feet to a stake in the northerly property line of said Davenport Road; thence, continuing along and with the northerly property line of the said Davenport Road, North 85 degrees, 34 minutes, 7 seconds West, a distance of 1,247.63 feet to a stake in the easterly property line of Pope Road; thence, along and with the easterly property line of the said Pope Road, along the arc of a curve to the northeast, said curve having a radius of 1,457.53 feet, an arc length distance of po. 82 feet to a stake in the easterly property line of the said Pope Road, the southwest corner of Anna Pope; thence, along and with the southerly property line of the said Anna.
Pope South 85 degrees, 34 minutes, 59 seconds East, a distance .of 675.60’feet to a stake, the southeastern corner of the said Anna Pope; thence, along and with the easterly property line of the said Anna Pope North 21 decrees, 29 minutes, 29 seconds East, a distance of 262.6 feet to a stake in the easterly property line of the said Anna Pope, a corner of Devonshire Manor Subdivision; thence, along and with the southerly property line of the said Devonshire Manor Subdivision South 86 degrees, 59 minutes, 26 seconds East, a distance of 205.22 feet to a stake in the southerly property line of the said subdivision; thence, continuing with the southerly property line of the said subdivision South 87 degrees, 14 minutes, 26 seconds East, a distance of 999.61 feet to a stake, the southeastern . corner of said subdivision; thence, along and with the easterly property line of said subdivision North 3 degrees, 6 minutes, 13 seconds East, a distance of 923.23 feet to a stake, the northeastern corner of said subdivision; thence, along and with the northerly property line of said subdivision north 83 degrees, 12 minutes, 20 seconds West, a distance of 942.35 feet to a stake in the northerly property line of said subdivision, a corner with the Devonshire Manor Sewage Plant (also known as Devonshire Manor Utilities Lot); thence, along and with the easterly property lines of the said sewage plant and Gordon and G. M. Pope North 14 degrees, 34 minutes, 37 seconds East, a distance of 1,188.81 feet to a stake, a corner of J. P. Evans; thence, along and with the easterly property line.of the said J. P. Evans North 14 degrees, 31 minutes, 1 second East, a distance of 1,188.85 feet to a stake.in the southerly property line of’the said Old Chapel Hill,Road; thence,.along and with the southerly property line of the said 01d Chapel Hill Road, along the arc of a curve to the southeast, said curve having a radius of 845.09 feet, an arc length’ distance of 291.58 feet to a stake, the northwestern corner of B.C. Crotts; thence, along and.with the westerly property line of the said B. C. Crotts along the arc of a curve to the Southwest, said curve having a radius of 20 feet, an arch length distance of 31.42 feet to a stake; thence, continuing with the westerly line of B. C. Crotts South 13 degrees, 6 minutes, 37 seconds West, a distance of 150 feet to a stake in the line of the said Crotts; thence, continuing along and with the westerly property line of the said Crotts, along the arc of a turve to the southeast, said curve having a radius of .244.78 feet, an arc length distance of 145.56 feet to a stake, the southwestern corner of the said Crotts; thence, along and with the southerly property line of the said B. C. Crotts North 74 degrees, 3 minutes, 37 seconds East, a distance. of. ‘ 220.73 feet to a stake, the southeastern corner of the said B. C.Crotts; thence, along and with the easterly property line . of the said B. C. Crotts North 13 degrees, 6 minutes, 37 seconds East, a distance of 200 feet to a stake in the southerly property line of the said Old Chapel Hill Road; thence, along and with the southerly property line of said Old Chapel Hill Road South 76 degrees, 53 minutes, 23 seconds East, a distance of 95.10 feet to a stake in the southerly property line of said Old Chapel Hill Road, the northwestern corner of’ Wilbert E. Clark; thence, along and with the.westerly property line of the said Wilbert E. Clark South 2 degrees, 13 minutes, 39 seconds West, a distance of 199.91 feet to a stake, the southwestern corner of the said Wilbert E. Clark; thence, along and with the southerly property line of the said Wilbert E. Clark South 76 degrees, 55 minutes, 58 seconds East, a distance of 75.01 feet to a stake, the southeastern corner of the said Wilbert E. Clark; thence, along and with the eastern property line of the said Wilbert E. Clark North 2 degrees, 20 mdnutes, 51 seconds East a distance of 199.77 feet to a stake in the southerly property line of the said Old Chapel Hill Road;thence, South 76 degrees, 53 minutes; 23 seconds East, a distance of 123.65 feet to a stake in the southerly property line of the said Old Chapel Hill Road, the northwestern corner of Hege; thence, along and with the westerly property line of the said Hege South 4 degrees, 52 minutes, 2 seconds West, a distance of 833.45 feet to a stake, the southwestern corner of
the said .Hege; thence, along and with the southerly property line of the said Hege, South 89 degrees, 57 minutes, 56 seconds East, a distance of 400:35 feet to a stake,-the southeastern corner of the said Hege; thence, with the easterly property line of the said Hege North 4 degrees, 52 minutes, 2 seconds East, a distance of 740.42 feet to a stake in the southerly property line of the said Old Chapel Hill Road; thence, aiding and with the southerly property line of the said Old Chapel Hill Road • South 76 degrees, 53 minutes, 48 seconds East, a distance of 1,235.82 feet to a stake in the southerly. property line of the said Old Chapel Hill Road, the northwest. corner of said Lewis A. Colette, the place and point of BEGINNING: the same being a portion of Parcel I and, all of Parcels 2; 3 and 4, containing 154.01 acres, more or less, as shown on that certain plat of survey entitled “Property of Valco, Incorporated” dated July 1972 prepared by William O. Yates, RLS, and recorded in Plat Book.74, page 39, in the Public Registry of Durham County, North Carolina. , The portion of Parcel No. 1 which is not included in the above description being.shown on that certain plat of survey entitled “Five Oaks Treatment Plant, Property of Devonshire Manor Utilities Co.” dated December 30, 1914 and prepared by Larry W. Poole, RLS, which plat of survey is recorded in Plat Book 84, page 13 in the Public Registry of Durham County, North. Carolina, to which plats of survey reference is hereby made for a more particular description of said property.
(d) The Five Oaks Development Area.as hereinabove described may be expanded and added. to by HIC Management Corporation of N. C., (or any person; firm or corporation to whom HIC Management Corporation of N. C. specifically transfers and assigns the right, privilege and option herein retained) on or before January 1, 1981 upon thirty (30) days prior written notice to the Board of Directors of this Recreational Association describing in detail any such addition or additions. (said notice to be accompanied by a current plat of survey of the property covered by such addition or.additions to The Five Oaks Development Area), so long as any such addition or additions to The Five Oaks Development Area will not result in more than 750 Class A memberships in this Recreational Association. For definition of Class A Membership see Article V, Paragraph (e) and Article VI oftheSe Articles of Incorporation. Any such addition or additions as herein provided for shall be accorded the privileges and shall.be treated for all purposes as if Said property were a portion of the originally described Five Oaks Development Area.
(e) Permit Members. The Board of Directors of this Recreational Association, at their discretion and from time to time, may issue Permit Memberships to persons residing outside the FiVe Oaks Development Area or to persons residing within the Five, OaksDevelopment Area but not owning or occupying a condominium unit, patio home or townhouse lot; PROVIDED, HOWEVER, that such Permit Memberships shall be divided into two (2) classes as follows:
(i) .a Resident Permit Membership shall be the Permit Membership available to persons residing within The Five Oaks Development Area but not owning or occupying a condominium unit, patio home or townhouse lot, and such Resident Permit memberships shall be available as a matter of right to tenants of rental apartments, if any, within the Five Oaks Development Area, the owner of such rental apartments to exercise such right from time to time by written notification to the Board of Directors and the owner of such rental apartments being responsible for payment of all annual and special assessments and membership fees for units for which such right is being exercised; and
(ii) a Social Permit Membership shall be the Permit Membership available to persons residing outside The Five Oaks Development Area.
Such Permit Members, so long as said Permit Memberships shall be and remain in good standing, may use the swimming pool, tennis courts, clubhouse and other facilities of this Recreational Association subject to payment of annual and special assessments as provided in Article VIII hereof, together with such fees, and subject to such rules and regulations and cancellation terms as may be promulgated by the Board of Directors from time to time, and in addition Resident Permit Members shall be Class “A” members (as described below) and shall be entitled to voting privileges. The owner of rental apartments shall have one vote for each apartment for which membership rights are being exercised from time to time.
Social Permit Members shall not be Class “A” members and shall not be entitled to voting’ privileges.
ARTICLE VI
VOTING RIGHTS
The Recreational Association shall have two classes of voting membership:
Class A. Class A members shall be all Owners (with the exception of Declarant) and all Resident Peimit Members and shall be entitled to one vote for . each townhouse lot, condominium unit or patio home owned or Resident Permit Membership held. When more than one person holds an interest in any such townhouse•ot, condominium unit, patio home or Resident Permit Membership all such persons shall be members. The vote for such townhouse lot, condominium unit, patio home or Resident Permit Membership shall be exercised as they among themselves determine, but in no event shall more than one (1) vote be case with respect to any one townhouse lot, condominium unit, patio home or Resident Permit Membership,
Class B. Class B member(s) shall be HIC Management Corporation of N. C., a North Carolina corporation, its successors and assigns if such successors and/or …assigns should acquire more than one undeveloped lot or patio home site from HIC Management Corporation of N. C. for development, and it shall be entitled to three (3) votes for each townhouse lot, condominium unit or patio home owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of -the following events, whichever occurs earlier:
(a) when the total votes’ outstanding-in the Class A membership , equal the total votes outstanding in the Class B membership; or
(b) on January 1, 1987.
ARTICLE VII
·BOARD OF DIRECTORS
The affairs of this Recreational Association shall be managed by a Board of Directors, consisting of not less than three directors nor more than twelve directors, the exact number of directors to be fixed in the manner provided, from .time to time by the Bylaws of the corporation, who must be members of the Recreational Association, officers of a corporation owning an individual condominium unit, patio home or townhouse lot, or a partner in’a partnership owning an individual condominium unit, patio home or townhouse lot. From the time of Incorporation until the expiration of their respective initial terms of office, the Board shall consist of five (5) persons appointed by HIC Management Corporation of N. C. and need not own or occupy a Condominium Unit, Patio Home or Townhouse Lot. Until these persons are replaced by elected Board members, they shall constitute the Board of Directors and exercise all powers and duties granted the Board of Directors in these Articles of Incorporation and the Bylaws of this Recreational Association.” The names and addresses of the persons who are to act in the capacity of directors until the selection of their successors are:
NAME. TERM ADDRESS
J. O’Hara Smith 6 years 1110 Brickell Avenue, Post Office Box 1500, Miami, Florida 33143
R.L. Maser. . 6 years 2514 University Drive, Post Office Box-3450, Durham, NC 27702,
Harold M. Barber 4 years 2514 University Drive, Post Office Box 3450, Durham, NC 27702
Ralph Lasiter 4 years 2514 University Drive, Post Office Box 3450, Durham, NC 27702
Betty J. Pittard 1 year 2514 University Drive, Post Office Box 3450, Durham, NC 27702
At the expiration of the initial term of office of each of the respective directors, his successor shall be elected to serve a term of two years.
ARTICLE VIII
ASSESSMENTS
(a) Each member for each condominium unit, patio home, townhouse lot or Permit Membership (resident and social) owned shall pay to the Recreational Association an annual assessment equal to that amount of money determined by dividing the total number of condominium units, patio homes, townhouse lots and Permit Memberships (resident and social) into the total sum necessary to provide for insurance, reserve fund far replacements, maintenance did operation of the swimming pool, tennis courts, bath house, and their facilities, for the particular fiscal 80 year involved; PROVIDED, HOWEVER, that appropriate adjustments shall be made in
such annual assessments to provide for the limitation set forth in sub-section (j) of this Article so long as there are Class 8 condominium units, patio homes or townhouse lots subject to covenants of assessment by this Recreational Association; PROVIDED, FURTHER, HOWEVER, that if, on the date of determination of the Annual Budget for this Recreational Association, there are no more than an aggregate of 100 Class A condominium units, patio homes and townhouse lots subject to covenants of assessment by this Recreational Association and Resident Permit Memberships, then and in such event, the annual assessment for the upcoming fiscal year for each Class A condominium unit, patio home and townhouse lot and Permit Membership (resident and social) shall be that amount of money determined by dividing into the total sum necessary to provide for insurance, reserve fund for replacements, maintenance and operation of the swimming pool, tennis. courts, clubhouse, and their facilities. Any difference between the amount required to provide for insurance, reserve fund for replacements, maintenance and operation of the swimming pool., tennis courts, clubhouse, and their facilities, and the amount assessed against Class A condominium units, patio homes and townhouse lots and Permit Memberships (resident and social) shall be provided by HIC Management Corporation of N. C.; its successors and assigns, until such time as there shall be an aggregate of 100 Class A condominium units, patio homes and townhouse lots subject to Covenants of Assessment by this Recreational Association and Resident Permit Memberships.
(b) Each owner of any condominiun unit, patio home or townhouse lot located within the Five Oaks Development Area, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, or acceptance of the benefits, rights and privileges provided by this Recreational Association, is deemed to ‘covenant and agree to pay to the Recreational Association: (1) annual assessments or charges’, and (2) special assessments for capital improvements, such assessments to be established and collected as hereinafter provided, All such annual. and special assessments, together with interest, costs and reasonable attorney’s fees for the collection thereof shall be a charge and lien upon the condominium patio home or townhouse lot of the respective Owners thereof, and the same shall be a continuing lien upon the unit, patio home or lot against which each such assessment is made. Each such assessment, together with interest costs, and reasonable attorney’s fees for the collection thereof, shall also be a personal financial obligation of the person or persons, who was, or were, the Owner, or Owners, of such property at the time when the assessment became due. The personal financial obligation for delinquent assessments shall not pass to successors title to any such Unit, Patio Home or Lot unless expressly assumed by such purchasers, PROVIDED, HOWEVER, the same shall be and remain a’charge and lien upon any such Unit, Patio Home or Lot until paid or otherwise satisfied except as may herein otherwise be provided.
(c) The Assessments levied by the Recreational Association shall be used exclusively to provide for necessary insurance, reserve fund for replacements, maintenance acid operation of the swimming pool, tennis courts, bath house, and their facilities and to promote the recreation, health, safety and welfare of the members.