DECLARATION OF COVENANTS AND EASEMENTS CONDITIONS AND RESTRICTIONS

I

THIS DECLARATION made this 12th day of May, 1993, by ALDICK ASSOCIATES, INC., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania with principal place of business at 100 Swatara Village, Pine Grove Township, schuylkill county, Pennsylvania (hereinafter referred to as wDeclarantW). INTRODUCTION I. Defined Terms •

Each term which appears in the following Introduction which is intended to have a defined meaning for all purposes relevant to the subjects addressed in this Declaration has been defined in the text of the Introduction. Any term which may appear in the sections of this Declaration which follow the Introduction, which is intended to have a defined meaning, but which has not been defined in the Introduction, has been defined and listed alphabetically in Article I. After any term has been defined in the Introduction or Article I, it will thereafter be identified by capitalizing the first letter of the term. II. Identification of the Land~ Land: Prior Conveyances by Declarant. Sources of Title to the

A. By deed from Manbeck Dredging company dated May 10, 1973, recorded in Deed Book 1172 at page 917 in the schuylkill County Recorder of Deeds Office (the HRecorder's OfficeW), the Declarant acquired title to a certain tract of land located in Pine Grove Township, Schuylkill County, Pennsylvania containing 110 acres less prior adverse conveyances of .455 acres, and .918 acres, a parcel containing 45,000 square feet and a taking by the Commonwealth of Pennsylvania in the amount of 1.366 acres and 1.54 acres (the wManbeck ParcelN). B. By deed from Chester C. Luckenbill et ux dated June 12, 1985 recorded in Deed Book 1360 at page 674 In the Recorder's Office, the Declarant acquired title to 2.16 acres, more or less, west of and adjacent to the Manbeck Parcel (the wLuckenbill Parcel').

c. By quit claim deed from Reading Real Estate dated October 27, 1989, recorded in Deed Book 1437 at page 0052 in the Recorder's Of~ice, the Declarant acquired certain premises located within the perimeter of the premises described in the deed for the Manbeck Parcel and formerly used as a railroad canal right-of-way by Union Canal Company, a predecessor to Reading Real Estate (the wUnion Canal Parcel').
D. By deed dated September 1, 1986, recorded in Deed Book 1380 at page 683 the Declarant conveyed a portion of The Manbeck Parcel containing 2.299 acres and a portion of the Luckenbill Parcel containing .058 acres to McDonald's Corporation (WCommercial Parcel #lW).

E. By deed dated October 19, 1987, recorded in Deed Book 1398 at page 974, the Declarant conveyed a portion of the Manbeck Parcel containing 2.058 acres in the aggregate to H. James Rippon, et ux. ("Commercial Parcel #2").

F. The portions of the Manbeck Parcel, the Luckenbill Parcel and the Union Canal Parcel which remain vested in the Declarant as of the date hereof shall be described in this Declaration as the "Land". III. Identification of Subdivision Approvals and zonin~ Approval; Identification of Residential Lot Area; Identificat~on .Of Commercial Parcel #3. A. By virtue of a special exception granted to the Declarant by the Schuylkill County Zoning Hearing Board on February 2, 1983, a copy of which is attached as Exhibit "AW (the wSpecial ExceptionW) approval was granted to the Declarant to establish residential uses on the Land. B. On October 27, 1983, and on May 29, 1986, the Schuylkill county Planning Commission granted subdivision approval to the Declarant with respect to the Land, and commercial Parcel *1 and Commercial Parcel #2, as more fully appears on plan recorded in Map Book 11 at page 16 in the Recorder's Office (the "1983 Plan") and on plan recorded in Map Book 12 at page 105 in the Recorder's Office (the w1986 PlanW)~ c. On March 10, 1993, the Pine Grove Township Board of Supervisors and the Pine Grove Township Planning commission approved a subdivision plan with respect to the Land (the w1993 PlanW) which has been recorded in Map Book 26 at page ~9 in the Recorder's Office, and upon which a portion of the Land is identified as 159 separate residential lots (collectively the ·Lots· or individually a ·LotW). The area of the Land which has been subdivided into the Lots on the Plan shall be described in this Declaration as the "Residential Lot Area·. D. On the Plan, a portion of the Land which remains vested in the Declarant has been identified as wCommercial Parcel #3·, and has been reserved for future development by the Declarant, or its successors. E. A portion of the Land, consisting of the remaining portion of the Luckenbill Parcel, all of the Union Canal Parcel, and the remaining portions of the Manbeck Parcel Which are located south and west of the Residential Lot Area, are unimproved and have not been subdivided (the wResidue Parcel-). IV. Proposed Use of swatara Village; Creation of Swatara
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Village Property Owners' Association; Identification of Improved Lots, Dwellin~ Units, Accesso~ Buildings and Vacant Lots; structural cr~teria for Dwe~l~ng units; Identification of Qualified Residents. A. The Declarant has improved and developed and proposes to further improve and further develop the Residential Lot Area for use as a residential community known as "Swatara Village" by natural adult persons (a "Resident" or the "Residents"). B. The Declarant proposes to separately describe the Lots, in accordance with the Plan, and to conveyor lease the Lots, to third party purchasers, transferees,. and lessees in the ordinary course of the business of the Declarant. C. On May l2, 1993 the Declarant, as incorporator, filed with the Secretary of the Commonwealth of Pennsylvania Articles of Incorporation (the "Articles of Incorporation"), a copy of which is attached as Exhibit "B", for the incorporation of Swatara Vi~lage Property Owners' Association (the "Association"), a non-profit corporation. D. The Declarant has also, on this date, as the incorporator of the Association, adopted by-laws of the Association (the WBy-Laws") a copy of which are attached as Exhibit we". E. The Declarant intends that each Lot, or ·each combination of commonly owned contiguous Lots, shall contain not more than one (l) single story detached single family dwelling unit, which shall be used by a Resident or Residents for single family residential use and occupancy (a "Dwelling Unit" or "Dwelling Units") and, without the written consent of the Association, not more than one (1) garage or storage building for use appurtenant to the Dwelling Unit located on such Lot or Lots (an "Accessory Building" or "Accessory Buildings"). F. The Declarant intends that each Dwelling Unit shall consist of manufactured and partially assembled components, preconstructed in accordance with all applicable construction codes as recommended and maintained, and as from time to time amended by, the Building Official and Code Administrators, Inc. (the "BOCA Codes·). The Declarant further intends that the pre-manufactured components of each Dwelling unit shall be delivered to and assembled on the Lot, and mounted on a permanent foundation. The Declarant further intends that each Dwelling unit shall be detachable from its foundation and capable of disassembly into its original components for purposes of relocation. G. The Declarant intends that the portions of any
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Lot not occupied by a Dwelling Unit (a "Yard Area" Areas") shall be used and enjoyed by the Residents Units as an open area appurtenant to such Dwelling to the provisions of this Declaration.

or "Yard of the Dwelling Unit, subject

H. The Declarant intends that not less than eighty (80%) per cent of the Dwelling Units in Swatara village shall be occupied by households or groups of adults in which at least one person is age fifty-five or older (a "Qualified Resident" or "Qualified Residents"), or by one Qualified Resident. The term "Resident" or "Residents" when used in this Declaration, shall include Qualified Resident or Qualified Residents, unless otherwise indicated, or unless the context otherwise requires.

I. certain of the Lots are not presently occupied by any Dwelling units or Accessory Buildings. For purposes of this Declaration, any Lot which does not contain a Dwelling unit shall be described as a "Vacant Lot" or "Vacant Lots", and any Lot on which a Dwelling Unit shall be installed, shall be described as an "Improved Lot". Any Improved Lot on which the Dwelling unit shall be owned by the Declarant shall be described as a "Declarant's Improved Lot".
J. The Declarant has leased certain of the Lots, which are currently occupied by Dwelling units and Accessory Buildings, to the owners of the Dwelling units and Accessory Buildings located thereon. Those Lots, together with any Lots which the Declarant may hereafter lease, shall be described as the "Leased Lots" . K. For purposes of this Declaration the grantee in any deed from the Declarant or its successors for a Lot, whether or not such grantee shall be the Resident or Residents of any Dwelling Unit located on such Lot, and all successors of record to the interest of such grantee in such Lot shall be described in this Declaration as an "Owner" or "Owners". Any Resident or Residents of any Dwelling Unit located on a Leased Lot and any Resident of any Declarant's Improved Lot shall be described in this Declaration as a "Tenant" or the "Tenants".

L. The Declarant intends, and the By-Laws so provide, every Owner of any Improved Lot and every Owner of any Vacant Lot, and the Declarant, with respect to every Lot, including every Declarant's Improved Lot, shall be a member of the Association (a "Member" or the NMembers"). The Declarant intends, and the By-Laws provide, that no Tenant shall be a Member of the Association. The Declarant further intends, and the By-Laws so provide, that the Association shall be governed by a Board of Directors to be elected by the Members (the "Board of Directors").

that

v.

Street

System;

Swatara

Drive

Easement

Agreement;

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Improved streets; Sidewalks; Driveway Common Areas; storm Water Drainage, Light Standards on Improved Lots. A. Access to the Residential Lot Area and the Residue Parcel from the nearest public thoroughfare is gained over an accessway shown on the Plan and identified on ,the 1983 Plan and the 1986 Plan as "Swatara Drive". B. certain portions of the Residential Lot Area, by which access is gained to.the Lots, have been shown as streets on the Plan (the "street system").

c. The Declarant has installed concrete cartways in certain portions of the Street System which portions are shown on Exhibit "D". The Declarant proposes to install extensions of the concrete cartways in other portions of the street System as and when additional Lots are sold or leased, and when such Lots become Improved Lots, to provide hard surface accessways over the Street System to all Improved Lots in Swatara Village. Such hard surfaced portions of the Street System, and all future existing additions thereto shall be described in this Declaration as the "Improved streets".
D. A portion of Swatara Drive (the "Swatara Drive Eas~ent Area") is available for use by the owners of Commercial Parcel #1, subject to the terms of an Easement Agreement between the Declarant and McDonald's Corporation, dated April 17, 1986, recorded in Miscellaneous Book 245 at page 111 in the Recorder's Office (the ·Commercial Parcel #1 Easement Agreement)". The Commercial Parcel #1 Easement Agreement provides for the use and shared maintenance of swatara Drive by the parties to that Agreement and their successors, and includes the right to install utilities, and to drain storm water run-off over the premises described therein. E. The swatara Drive Easement Area is also available for use by the owner of commercial Parcel #2 under the terms of a Road Maintenance Agreement between the Declarant and H. James Rippon, et ux, dated october 19, 1987 and recorded in MiscellaneouS-Book 256 at page 411 in the Recorder's Office (the "Commercial Parcel #2 Easement Agreement"). The Commercial Parcel #2 Easement Agreement allocates responsibility for a portion of the maintenance cost for swatara Drive among the parties to that Agreement and their successors. The commercial Parcel #1 Easement Agreement and the Commercial Parcel #2 Easement Agreement, when not described separately, shall be described collectively as the "Swatara Drive Easement Agreements". F. The Declarant has installed and proposes to further install, adjacent to and parallel with the Improved Streets, concrete sidewalks, approximately four (4') feet in width (the
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"sidewalks") . G. Vehicle access to the Lots from the street System is gained over concrete driveways, portions of which are now installed, and which may in the future be installed in the right-ai-way of the Street System between the cartways of the Improved streets and the lot lines of the Lot serviced by such driveway (a "Driveway Common Area" or the "Driveway Common Areas"). The Declarant intends that all present and future Driveway Common Areas shall be maintained by the Resident or Residents of the Dwelling Unit served by such Driveway Common Area. H. A portion of the Residential Lot Area has been reserved and dedicated for storm water drainage and been improved with a storm water drainage swale (the "storm Drainage SwaleN) in accordance with, and as shown on, the 1983 Plan. The storm Drainage Swale is more fully described on Exhibit "E". The Declarant intends that the Storm Water Drainage Swaleshall convey surface storm water from Route 443 and Commercial Parcel #3, and the Residential Lot Area to the Residue Parcel, and an unn~ed tributary of Swatara Creek as shown on the 1983 Plan. The OWner of Commercial Lot *1 is authorized to discharge storm water onto a portion of the Land therein described under the terms of the commercial Parcel #1 Easement Agreement. I. The Declarant has installed on the Improved Lots and proposes to install, in the future, on all Improved Lots a driveway light standard (the "Light Standard" or 'Light Standards"). The Declarant intends that the Light Standards, shall provide street lighting in swatara Village during all hours between dusk and dawn and that electrical power for the Light Standard is and shall be supplied from the Dwelling Unit located on the Improved Lot on which the Light Standard is installed, at the expense of the Resident or Residents of such Dwelling Unit. VI. Common Facilities; Identification of Common Facility Parcel, community Building, Office Building, Parking Area, Drainage Swale; Identification of Residue Parcel and Residue Parcel Easement. A. In addition to the Lots and the street System, the Residential Lot Area includes a parcel containing 1.0897 acres, more fully shown on Exhibit "F" attached hereto and identified on the Plan as "community and Parking" (the "Common Facility Parcel"). The Common Facility Parcel is described on Exhibit "G". B. A portion of the Common Facility Parcel, shown on Exhibit "F" as "Parking" (the "Parking Area") is intended for non-reserved and non-exclusive parking by the Residents and their guests.
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c. Three (3) structures are currently located on the Common Facility Parcel in the approximate locations shown on Exhibit "F", one of which is a single story building intended for common use and enjoyment by the Residents (the "Community Building"), one of which is a two-story residential building intended for exclusive administrative use by the Declarant (the "Office Building") and the third of which is a single story structure (the nutility Building") in which supplies and equipment used by the Declarant to provide maintenance and other services to Swatara Village are located and stored.
D. The Declarant intends that each Resident shall be entitled to use and enjoy the Community _Building and the Parking Area, in common with each other Resident, subject to this Declaration. E. The Declarant further intends that Owners and Tenants shall have a non-exclusive revocable license to enter the Residue Parcel for all lawful passive recreational purposes appurtenant to residence in Swatara Village, and not inconsistent with the use of the Residue Parcel by the Declarant (the HResidue Parcel License"). F. When not described separately, the street System, the Sidewalks and in the Parking Area shall be described collectively as the ·Common Areas". When not described separately, the Common Areas, the Community Building, the storm Drainage Swale, the utility Building and the Light Standards shall be described collectively as the "Common Facilities". VII. Source of Sewer and Water utility services for the Dwelling Units and the Common Facility Parcel; Identification Of Declarant's utilities; Provision for Easements for the Declarant's utilities and Other utility Services to swatara Village; Reservation of Easements; Imposition and Collection of Rates for Declarant's Utilities. A. Potabl.edrinking water for SWatara Village is provided to the Dwelling Units and the Common Facility Parcel from a well located on the Common Facility Parcel in the location shown on Exhibit "F", and treated by a water filtration system located in the utility Building (collectively the "Well System"). Water provided by the Well System now is and will continue to be available to the Dwelling Units through a water distribution system which the Declarant has installed in the street System (the "Water Distribution System"). B. Domestic sanitary waste from the Residential Lot Area, and from Commercial Parcel #1 and Commercial Parcel #2, as well as from a parcel identified on the Plan as "R.N.D.
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Enterprises (Econolodge)" is discharged into a sewage collection system installed in the street system (the "Collection System") and is transported to a sewage treatment plant (the "Treatment Plant") constructed on the Residue Parcel. The Declarant also intends to conveyor to permit the conveyance of sewage from Commercial Parcel #3 through the collection system to the Treatment Plant.

c. The right of the Owner of Commercial Lot #1 to discharge sewage with the Sewage System arises under the terms of a Treatment Plant Agreement between the Declarant and McDonald's Corporation, dated April 16, 1986 and recorded in Miscellaneous Book 245 at page ~18 in the Recorder's Office (the "Treatment Plant Agreement").
The Treatment Plant is constructed on the Residue D. Parcel in the location identified on Exhibit pC" of the Treatment Agreement and in the location shown on the ~983 Plan and the 1986 Plan. E. Sewage is transported from the collection System to the Treatment Plant, through a pumping station and force main system also located on the Residue Parcel (the "Force Main Systemn). F. The Well System and the water Distribution System, when not described separately, shall be described collectively as the "Water system.n The Treatment Plant, the Collection System and the Force Main System, when not described separately, shall be described collectively as the "Sewage system". The Sewage System and the Water System, when not described separately, shall be described collectively as the "Declarant's utilities". G. utility services, other than the services provided by the Declarant's utilities, are provided by other utility service providers (the "Public utilities"). The facilities required by the Public Utilities shall be installed in and on the Residential Lot Area, in certain Lots, and in portions of the Street System, including the swatara Drive Easement Area, and portions of the Common Facility Parcel. The Public Utilities and the Declarant's Utilities, when not described separately, shall be described collectively, as the nUtilities". VIII. Functions of Swatara Village Property Owners Association; Common Expenses; Improved Lot Common Expense Assessments: Vacant LOt Common Expense Assessments. A. The Declarant intends, and the By-Laws so provide, that the Association shall maintain the Street System, the sidewalks, the Community Building, the Parking Area, the Utility Building, the Storm Drainage Swale and the Light standards, and
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that the Association shall administer and enforce this Declaration for the benefit of the Members of the Association. B. The Declarant intends that the Association shall contract with the Declarant to administer the Association, and to provide services which the Association, either directly or through its contractors, is required by this Declaration, or shall hereafter elect, to perform. C. The Declarant further intends that the Association shall acquire the Water System from the Declarant for reasonable compensation, and that the Declarant shall operate the water System for the benefit of swatara Village. D. The Declarant intends, and the By-Laws so provide, that the costs to the Association of administering the Association, performing the functions of the Association described herein, and enforcing the Declaration (the ·Common Expensesn) shall be paid or defrayed by assessments to be imposed uniformly against all Owners of Improved Lots (an "Improved Lot Common Expense Assessment"), including the Declarant's Improved Lots, and by assessments uniformly on all Owners of Vacant Lots, other than Vacant Lots owned by the Declarant, all as provided in this Declaration (a "Vacant Lot Common Expense Assessment") . IX. Purpose of this Declaration; Exclusions from this Declaration. A. Declarant desires, for the purpose of protecting the value and aesthetic appearance of the Lots, the Yard Areas, the Dwelling Units and the Common Facilities, and for the benefit of all Owners and Residents to provide for: (1) Access to the Lots and the Dwelling Units and the Common Facility Parcel over the street System, the Sidewalks and the Driveway Common Areas; and (2) the maintenance and eventual ownership of the Street System, the Sidewalks and the Driveway Common Areas by the Association; and (3) the preservation and maintenance of the Common Facilities by the Association; and (4) the preservation and maintenance of the Dwelling Units, the Accessory Buildings, the Yard Areas and the Driveway Common Areas by the Owners; and (5) of Directors~ and the operation of the Association by the Board

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(6) the superv~s~on of the installation, maintenance, repair and replacement of the utilities by the of Directors; and

Board

(7) easements for the installation, maintenance, repair and replacement of the utilities and the Common Facilities, and for the administration and enforcement of this Declaration, and for the performance of essential governmental, public and quasi-public purposes within and for the benefit and protection of swatara Village and the Residents; and

conditions, Facilities;

(8) the imposition of certain covenants, restrictions on the use of the Lots and the Common and

(9) the imposition of Improved Lot Common Expense Assessments, Vacant Lot Common Expense Assessments, and certain other obligations, charges and liens as herein provided; and

(10) the right of first refusal of the Declarant or the Association to reacquire any Lot with or without any Dwelling Unit located thereon prior to the conveyance thereof by any Owner to any third party; and Drive Easement (11) performance Agreements. and enforcement

of the swatara

B. The Declarant wishes to define clearly those portions of the Land to Which this Declaration shall apply those portions to which it shall not apply.

and

c. The Declarant wishes to define clearly those areas in which the Association shall have maintenance and/or ownership responsibility and those in which it shall have no responsibility.
NOW, THEREFORE, Declarant declares that the Residential Lot Area is and shall be held, transferred, sold, conveyed, leased, occupied and used subject to the covenants, restrictions, condition, easement, charges, assessments, obligations and liens hereinafter set forth in this Declaration.

ARTICLE I
DEFINITIONS Section 1 Defined Terms . to

The following words and terms when used in this Declaration or any amendment thereto (unless the context clearly indicates the contrary) shall have the following meanings:

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1.1 "Accessory Building" or "Accessory Buildings" shall mean any detached or attached garage or storage building located on an Improved Lot. 1.2 "Articles of Incorporation" shall mean and refer to the articles of incorporation of the Association, a copy of which is attached hereto and made a part hereof and marked Exhibit "B", together with any and all amendments thereto. 1.3 "Association" shall mean and refer to the swatara Village Property OWners' Association, Inc., a Pennsylvania non-profit corporation, its successors and assigns. 1.4 "BOCA Codes" shall mean ~ll applicable con?truction codes as recommended and maintained, and as from time to time amended by, Building Official and Code Administrators, Inc. 1.5 "Board of Directors" shall mean and refer to the Board of Directors of the Association. 1.6 "By-Laws" shall mean and refer to the By-Laws of the Association, a copy of which is attached hereto, made a part hereof and marked Exhibit "CH, together with any and all amendments thereto. 1.7 "Commercial Parcels" shall mean commercial Lots #1, Commercial Lot #2 and Commercial Lot #3. 1.8 "Commercial Parcel #1" shall mean premises containing 4.644 acres conveyed to McDonald's corporation by deed dated September I, 1986 and recorded in Deed Book 1380 at page 683 in the Recorder's Office. 1.9 "Commercial Parcel #1 Easement Agreement" shall mean shall mean the Agreement between McDonald's corporation and the Declarant dated April 17, 1986, recorded in Miscellaneous Book 245 at page 111 in the Recorder's Office. 1.10 "Commercial Parcel #2" shall mean premises containing 2.058 acres conveyed to H. James Rippon, et ux. by deed dated October 19, 1987 and recorded in Deed Book 1398 at page 974 in the Recorder's Office. 1.11 "Commercial Parcel #2 Easement Agreement" shall mean a certain Road Maintenance Agreement between the Declarant and H. James Rippon, et ux. dated October 19, 1987 and recorded in Miscellaneous Book 256 at page 411, providing for the shared use and maintenance of the swatara Drive Easement by the Declarant, and the Owners of Commercial Parcel #1. 1.12 "Commercial Parcel #3" shall mean premises -11-

containing three (3) acres, more or less, which are part of the Manbeck Parcel, and which are identified as Commercial Lot #3 on the Plan, of which the Declarant is the fee simple owner as of the date of this Declaration. 1.13 "Common Areas" shall mean the street System, Sidewalks, the Parking Area and the Common Facilities. the

1.14 "Common Expense Assessment" shall mean a vacant Lot Common Expense Assessment and/or an Improved Lot Common Expense Assessment. 1.15 "Common Expenses" shall mean all ordinary and extraordinary expenditures made or liabilities-incurred, together with any allocations for reserves, by or on behalf of the Association for the operation and administration of Swatara Village and the Association. 1.16 "Common Facilities" shall mean the Common Areas, the Community Building, the storm Drainage Swale, the Utility Building and the Parking Area. 1.17 "Common Facility Parcel" shall mean that parcel shown on the Plan as community Building and Parking Area and more fully described on Exhibit "F". 1.18 "Community Manager" shall mean the Declarant, or such other person on entity as may be designated by the Board of Directors to manage and administer the Association. 1.19 "Declarant" shall mean and refer to Aldick Associates, Inc., a Pennsylvania corporation, its successors assigns. and

1.20 "Declaration" shall mean and refer to this Declaration of Covenants and Easements, Conditions and Restrictions and'all exhibits attached hereto, as the same may or hereafter be amended or supplemented.

now

1.21 "Declarant's Deeds" shall mean the deeds to the Declarant for the Manbeck Parcel, the Union Canal Parcel and the Luckenbill Parcel, recorded respectively in Deed Book 1172 at page 917, Deed Book 1437 at page 0052 and Deed Book 2360 at page 674 in the Recorder's Office. 1.22 "Declarant's Improved Lot or Declarant's Improved Lots" shall mean any Lot, of which the Declarant shall remain the fee simple owner on which a Dwelling Unit owned by the Declarant shall be erected. 1.23 "Declarant's Utilities" shall mean the Water System

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and the sewage

System.

1.24 "Declarant's utility Easements" shall mean those easements reserved by the Declarant herein for the operation, repair, maintenance and replacement of the Declarant's utilities. 1.25 "Driveway Common Area" or "Driveway Common Areas" shall mean that portion of any driveway to a Lot which extends beyond the property lines of the Lot and which is installed between the Lot and the cartway of the street system, in accordance with specifications to be adopted by the Association. 1.26 -Dwelling Unit" shall mean and refer to any individual residential structure consisting of manufactured components pre-constructed in accordance with BOCA codes, located in Swatara Village installed or constructed on any Lot in accordance with this Declaration, regardless of the form of ownership. 1.27 -Force Main System" shall mean that pumping system and force main transmission line by which sewage is transported from the Collection System to the Treatment Plant. 1.28 "Improved Lot Common Expense Assessmentshall mean and refer to the annual charge levied on, and sum payable by, an OWner, in equal monthly installments, as provided herein and in the "By-Laws, with respect to an Improved Lot. 1.29 "Improved streets" shall mean those portions of the street System shown on Exhibit "B" which have been improved with concrete cartways as of the date hereof, and also those portions of the Street System which shall in the future be improved with concrete cartways. 1.30 "Institutional Lender" shall mean and refer to any bank, mortgage banker, savings and loan association or other financial institution or pension fund, which is the record owner of a first mortgage which encumbers either the legal or equitable interest, or both, in any Improved Lot or Vacant Lot. 1.31 "Land" shall mean that land located in Pine Grove Township, Schuylkill County, Pennsylvania, consisting of the Residential Lot Area, the Residue Parcel and Commercial Parcel #3 being the portions of those premises acquired by the Declarant's Deeds which remain vested in the Declarant as of the date hereof. 1.32 "Leased Lot or Leased Lots" shall mean any Lot located in the Residential Lot Area which the Declarant shall lease to any Tenant for the purpose of installing and maintaining a Dwelling Unit thereon in accordance with the provisions of this -13-

Declaration.
1.33 "Light Standard" shall mean those light standards to be installed on each Lot by the Association in accordance with specifications to be adopted by the Association from which dusk to dawn lighting for swatara Village shall be provided with power from the Dwelling units installed on such Lot.

within

1.34 "Lot" shall mean any Vacant the Residential Lot Area.

Lot or any Improved

Lot

1.35 "Luckenbill Parcel" shall mean those premises containing 2.16 acres, more or less, conveyed to the Declarant by deed from Chester C. Luckenbill, et ux dated June 12, 1985 and recorded in Deed Book 1360 at page-67~in the Recorder's Office.

1.36 "Manbeck Parcel" shall mean those premises containing 110 acres conveyed to the Declarant by deed from Manbeck Dredging Company dated May 10, 1973 and recorded in Deed Book 1172 at page 917 in the Recorder's Office. 1.37 "Member" or "Members" shall mean and refer to any Owner, incl~ding the Declarant, as long as the Declarant shall own any interest in the Residential Area, who are thereby entitled to membership in the Association pursuant to the By-Laws. A Tenant shall not be a Member. 1.38 "1983 Plan" shall mean a subdivision plan with respect to the Land approved by the Schuylkill County Planning Commission on october 27, 1983 and recorded in the Recorder's Office in Map Book 11 at page 16.
1.39 "1986 Plan" shall mean a subdivision plan with respect to the Land approved by the Schuylkill county Planning Commission on May 29, 1986 and recorded in the Recorder's Office in Map Book 12 at page lOS.

1.40 "Owner" shall mean and refer to the record owner the equitable and/or legal fee simple title to any Lot, other than the Declarant.

of

1.41 "Parking Area" shall mean that area within the Common Facility Parcel shown on Exhibit "F" as the "Parking Area" which shall be maintained for non-reserved, nonexclusive parking by Residents and their guests. 1.42 "Person" shall mean a natural person, corporation, partnership, association, trust, other entity or any combination thereof. 1.43 "Plan" shall mean the subdivision plan recorded in

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Map Book 26 at page 19 in the Recorderls Office by which the subdivision of the Residential Lot Area was approved by the Pine Grove Township Planning commission and the Pine Grove Township Supervisors .. 1.44 'Public utilities" shall mean all electricity, telephone, gas, television cable services and any other utility services other than the Declarant's Utilities which now provide or which may in the future provide services to swatara Village. 1.45 'Purchase Money Mortgagee" shall mean and refer to any seller of a Lot to whom the purchaser of such Lot shall grant a first lien purchase money mortgage which encumbers either the legal or equitable interest, or both, in such Lot. 1.46 "Qualified Resident" or Qualified Residents" shall mean any person fifty-five (55) years of age or older, who shall occupy or who shall be a member of a household or living group which occupies a Dwelling unit located in swatara village. 1.47 "Recorder's Office" county Recorder of Deeds Office. occupants including
1.48

shall mean the Schuylkill

"Resident or Residents" shall mean all full time of a Dwelling Unit located in swatara Village, Qualified Residents. of

'Residential Lot Area" shall mean that portion the Land which has been subdivided into Lots on the Plan. 1.50 'Residue Parcel· shall mean that portion of the Land which contains a portion of the Manbeck Parcel, and a portion of the Luckenbill Parcel and all of the Union Canal Parcel, and which is located South and West of the Residential Lot Area.

1.49

1.51 'Residue Parcel License· shall mean the revocable limited and conditional right granted to the Residents to use the Residue Parcel in common with the Declarant and the other Residents for all lawful passive recreational purposes appurtenant to residency in swatara the use thereof by the Declarant. Village not inconsistent with

1.52 'Rules and Regulations" shall mean and refer to the rules and regulations of the Association, set forth in section 6 hereof, and such future rules and regulations as may be adopted by the Association from time to time. 1.53 "Sewage Collection System· shall mean that central sewage collection system installed in the Land by which sewage is and shall be transported from the Residential Lot Area and from -15-

the Commercial

Parcels

to the Force Main system.

1.54 "Sewage System" shall mean the Sewage Collection System, the Force Main System and the Treatment Plant. 1.55 "Sidewalks" shall mean concrete sidewalks approximately four (4') feet in width which now adjoin and which shall in the future be constructed to adjoin the Improved streets. 1.56 "Special Assessment" shall mean any assessment imposed upon the Members by the Board of Directors in accordance with the By-Laws for the purpose of defraying or paying any Common Expense. 1.57 "storm Drainage Swale· shall mean that portion of the Land described on Exhibit "E" by which storm water is conveyed from Route 443 to an unnamed tributary of Swatara Creek as shown on the 1983 Plan. 1.58 "Swatara Drive" shall mean that portion of the street System by which access to the Residential Lot Area is gained from the nearest public thoroughfare. 1.59 "Swatara Drive Easement Agreements" shall mean the Commercial Parcel #1 Easement Agreement and the Commercial Parcel Easement Agreement.

'2

1.60 ·Swatara Drive Easement Area· shall mean that portion of Swatara Drive used and maintained by the Owners of Commercial Parcel #1 and Commercial Parcel #2 in accordance with the Swatara Drive Easement Agreements. 1.61 "Swatara Village" shall mean the existing residential community to be further constructed and developed in the Residential Lot Area as shown on the Plan. Swatara Village shall not include Commercial Parcel #3, the Residue Parcel or any portion of the Land other than the Residential Lot Area. 1.62 "Tenant" or Tenants" shall mean any Resident who shall occupy a Dwelling Unit pursuant to a lease with an owner, including the occupant of a Declarant's Improved Lot, and any Person who shall own a Dwelling unit located on a Leased Lot. 1.63 -Township" shall mean Pine Grove Township, a second class township located in Schuylkill County, Pennsylvania in which the Land is located. 1.64 "Treatment Plant" shall mean the sewage treatment plant located on the Residue Parcel by which sewage from the Residential Lot Area and the Commercial Parcels is treated. -16-

1,65 "Treatment Plant Agreement" shall mean that agreement between McDonald's Corporation and the Declarant dated April 16, 1986 and recorded in Miscellaneous Book 245 at page ll8 in the Recorder's Office by which the Owner of commercial Parcel #1 is granted the right to discharge sewage to the Treatment Plant. 1.66 "Union Canal Parcel" shall mean those premises located within the perimeter of the description contained in the deed for the Manbeck Parcel conveyed to the Declarant by quit claim deed from Reading Real Estate dated October 27, 1989, recorded in Deed Book 1437 at page 0052 in the Recorder's Office.
1.67 "utilities- shall-mean the Declarant's utilities and any electric, telephone, or other public or private utility service provided to Swatara Village. 1.68 "utility on the Common Facility on Exhibit "F".

Building" shall mean that building located Parcel and identified as utility Building

1.6Q "Vacant Lot Common Expense Assessment" shall mean and refer to the annual charge levied on, or sum payable in equal monthly installments by an Owner of either equitable or legal title to a Vacant Lot in Swatara Village, as provided herein and in the By-Laws. 1.70 "Water System" Water Distribution System.

shall mean the Well System

and the

1.71 "Water Distribution System" shall mean the water distribution system located in the street System and on the Common Facilities Parcel and certain of the Lots through which potable drinking water is provided. 1.72 "Well System" shall mean the deep well and pump located on the Common Facility Parcel and the filtration system located in the Utility Building.

1.73 -Yard Area" shall mean all portions of each Lot, Which are not occupied by the Dwelling Unit or Accessory Building erected thereon.

ARTICLE II
PROPERTY Section 2.1 SUBJECT TO THIS DECLARATION . Unit and Yard

Submission

The Residential

Lot Area and every Lot, Dwelling -17-

Area located therein, and the Street System, the Sidewalks, the Common Facility Parcel, the Common Facilities, the Driveway Common Areas and the Drainage Swale, are hereby expressly made subject to this Declaration, under, and shall be, held, transferred, sold, conveyed, leased and occupied, subject to· this Declaration, and all amendments or supplements hereto. section 2.2 Exclusion from this Declaration .

The Residue Parcel and Commercial Parcel #3, except to the extent expressly provided herein, are expressly excluded from the effect of this Declaration. Swatara Village shall not include any part of the Land other than the Residential Lot Area, unless expressly further subjected to this Declaration by supplemental written instrument which shall make specific reference to this Declaration and which shall be recorded in the Recorder's Office. ARTICLE
EASEMENT RIGHTS IN

III
SWATARA VILLAGE

GRANTED TO OWNERS

AND RESIDENTS Easements in Common

section .3.1 Owners and Residents Areas and Community Bu~ld~ng. Every OWner and Resident shall have:

Ca) a perpetual and non-exclusive easement in, over, and through the Street System, the Sidewalks and the Parking Area, and the right to use and enjoy the same together with the right to use and enjoy the community Building. (b) A perpetual, non-exclusive easement for purposes of ingress and egress to such OWner's or Resident's Lot, Yard Area or Dwelling unit and in, upon, under, over, across and through the street system and the Sidewalks, until such time as the Street System shall be dedicated and accepted by to the Township, at which time, the rights of the Owners and the Residents in the street System shall merge in and arise from such dedication to public use. (e) A perpetual, non-exclusive easement to receive service from the Sewage System, the Water System, and all gas, electric and telephone lines, pipes, mains, conduits, cables, poles, systems and transformers, and television cable facilities, and any other appurtenances, equipment and machinery necessary or incidental to the proper servicing and functioning of the Utilities which serves such Owner's or Resident's Dwelling Unit and which are located in any portion of the Residential Lot Area. (d) A perpetual and non-exclusive -18easement, in common

with the owner of Commercial Parcel #3, in, upon, over, under, across and through the street System and the storm Drainage Swale for surface water runoff and drainage caused by natural forces and the elements, provided that no Owner or Resident shall directly or indirectly interfere with or alter the drainage run-off patterns and systems within Residential Lot Area. Section 3.2 Common Areas. Easements Granted to Residents in Driveway

Each Re:sident shall have an easement in the street system appurtenant to such Residential Lot, to use and enjoy the Driveway Common Area with respect to such Lot, which shall be an easement in common with other Owners and Residents to the extent that such Driveway Common Area and the Sidewalks intersect, but which otherwise shall be exclusive to the Owner and Resident of such Lot. The easement of each Owner and Resident in the Driveway Common Areas shall be subject to the obligation of the Resident and Owner to maintain such Driveway Common Area, and shall be otherwise subject to this Declaration and the Rules and Regulations. Section.3.3 Residue Parcel License .

Subject to the provisions of this Declaration, the Articles of Incorporation, By-Laws and any Rules and Regulations of the Association, every Owner and every Resident shall have the right in common with each other Owner and Resident to enter and use the Residue Parcel for passive recreation purposes appurtenant to the use and occupancy of swatara Village, and not inconsistent with the use of the Residue Parcel by the Declarant or its successors for any other lawful purpose, whether or not appurtenant to the use and operation of Swatara Village, including the operation of the Force Main System and the Treatment Plant. The Residue Parcel License shall be revocable upon written notice of the revocation thereof executed by the Declarant or its successors provided to each Owner and Resident and recorded in the Recorder's Office provided to each owner and Resident. Section 3.4 Rights of Tenants and Residents who are not Members; Rights of Guests of Tenants and Residents. All guests of any Resident who is present in Swatara Village, and the invitees of such Resident shall be entitled to enjoy the rights described in this Section during such authorized visit as a license, however, and not as an easement. Any suspension of the right of an Owner or Resident for either non-payment of any Common Expense Assessment or Special Assessment, or for breach of the Rules and Regulations of the Association shall likewise suspend the right of any Person who is a guest or invitee of such suspended Owner or Resident. -19-

Section

3.5

Owner's Right to Encumber

Easement

Rights

.

Each Owner or Owners shall have the right to mortgage such Owner or OWner's Lot and Dwelling Unit, and any such mortgage shall, if it shall so provide, effectively encumber the interest of the Owner or Owners in the easements and rights created herein. Section
3.6

Limitation

on Easement

Rights

.

No single Resident or group of Residents shall have the right to interfere with the peaceful enjoyment, use and occupancy of the Common Facilities by any other Resident or group of Residents. Nothing herein contained shall be construed to create any easement or right of any Member or OWner to use, occupy or pass over or through the Yard Area of any other Member or Owner except for the limited purposes expressly set forth herein. section Suspend for 3.7 Effect Non-Compliance. of Rules and Regulations; Right to

The rights granted in this section shall be subject to this Declaration.and to the right of the Association, as provided in the By-Laws and this Declaration, to promulgate Rules and Regulations for the use and enjoyment of the Common Facilities and to suspend the enjoyment and use of the Common Facilities and voting rights of any Member, for any period during which any Common Expense Assessment or Special Assessment remains unpaid, or for any period during which an infraction of its published Rules and Regulations continues.
ARTICLE IV

EASEMENT RIGHTS IN SWATARA VILLAGE RESERVED TO DECLARANT AND OTHERS. Section Declarant. 4.1 Easements Reserved to Association and

The Association
(a)

and its representatives

shall have:

The right of access to each Dwelling unit, Accessory Building and Yard Area, upon request to the Resident thereof, for the purpose of inspecting the same in order to correct any conditions threatening any other Dwelling Unit, or violating any ·provisions set forth in this Declaration, the By-Laws and the Rules and Regulations, provided that any request for entry is made in advance and that such entry is at a reasonable time convenient to the Resident. In the case of an emergency, such right of entry shall be immediate whether the Resident is present at that time or not. -20-

(b) A perpetual and non-exclusive easement in, over and under each Lot Yard Area for the purpose of cutting grass, weeds and brush on such Lot and Yard Area and for the purpose of maintaining such area in grass, shrubbery, or other planting consistent with the overall landscaping in swatara village if the Owner or Resident shall fail to do so. perpetual and non-exclusive easement in, over and under each Yard Area for the purpose of installing, maintaining, repairing and replacing the Light Standards.
(c) A

(d) A perpetual and non-exclusive purpose of removing any structure ,or object provisions of this Declaration or the Rules

easement for the which violates the and Regulations.

(e) A perpetual and non-exclusive easement in, under and over each Lot for the purpose of correcting any condition or malfunction in any lateral or other connection to the Declarant's utilities if the Owner or Resident of such Lot shall fail to do so. Section 4.2 Maintenance, Repair Easements Reserved to Permit Installation, and Replacement of Utilities.

The Declarant and any successor of the Declarant which succeeds to its ownership of the Declarant's utilities, including the Association and or the Township or its agencies, and any Public utility to whom the Declarant or its predecessors shall have granted easement rights in the Land, shall have a blanket and nonexclusive right of way and easement in, upon, over, under, across and through the Lots, the Street System, the Sidewalks and the Common Facility Parcel, for the purposes of reading meters and the operation, installation, maintenance, drilling, repair, changing the size of or replacement of all appurtenances, equipment or machinery necessary and incidental to the proper functioning of the Sewage System and Water Distribution System or any other utility serving Swatara Village or any portion thereof, and any improvements thereto. Provided, however, the foregoing rights of way and easements shall not materially interfere with the use of any Dwelling Unit or Yard Area, or other surface use of the Residential Lot Area by the Residents. Upon the exercise of any rights hereunder, any disturbance to the surface of the Land, shall be restored as nearly as is practical, to the condition which existed prior to such disturbance. Section 4.3 Easements in Favor of Mortgagees •

Institutional Lender or Purchase Money Mortgagee shall have a blanket, perpetual and non-exclusive easement to enter each Lot for the purposes of inspecting the condition of a Dwelling -21-

Any

Unit or Accessory Building encumbered by its mortgage and/or repairing the same. This right shall be exercised only during reasonable daylight hours, and then, whenever practicable, only after advance notice to, and with the permission of, the Association. section 4.4 Easement and Emergency Services. Created to Permit Access by Municipal

A perpetual, nonexclusive easement of unobstructed ingress and egress in, upon, over, across and through the Residential Lot Area and the Residue Parcel, is hereby established for the benefit of the Township and the Association and their respective officers, agents and employees including, but not limited to, policemen, firemen and ambulance personnel and other emergency assistance personnel for the proper performance of their respective duties. section 4.5 Additional Easements .

Should the Declarant or any successor utility company which operates the water System, the Sewer System or any other of the Utilities, or the Township, request a specific easement by a separate recordable instrument in connection with the furnishing of any service to Swatara Village, the Board of Directors shall have the right to grant such easement, without consideration, provided it does not materially impair the rights of any Owner and regardless of whether or not the Declarant or any of its principals own a beneficial interest in the grantees of such easement.
ARTICLE V

DUTY

OF ASSOCIATION

TO MAINTAIN

COMMON

FACILITIES

section 5.1 Title to the Street Srstem and sidewalks; Conve¥ance to the Association; Duty to Ma~ntain street System and S~dewalks and Common Facilities. The Association shall be responsible for the maintenance and repair of the Improved Streets and the Sidewalks. Following the completion of the streets in the street System or Improved Streets, and following completion of the Sidewalks, the Declarant shall convey legal title to the street System and the Sidewalks to the Association. The conveyance of the Improved streets and the Sidewalks to the Association shall be subject to a covenant by the Association to maintain the same in good order, and to provide snow plowing for the Street System, and to repair and to operate the same in accordance with this Declaration. This section shall not be subject to any amendment which attempts to reduce or eliminate the obligation for maintenance and repair of the Street -22-

System

or the Sidewalks. Maintenance of Common Facilities by the

section 5.2 Association.

The Association shall, in addition to the maintenance of the Improved Streets and the Sidewalks, maintain or cause to be maintained the Community Building and the other Common Facilities in accordance with, and subject to, the provisions of the By-Laws and the Rules and Regulations of the Association. The Association shall install, maintain, repair and replace the Light Standards, and the light bulbs required thereby. section
5.3

other Services

to be Provided

by Association

The Association shall provide trash removal service to the Improved Lots, the cost of which shall be a Common Expense. The Association shall provide such other services to the Owners and Residents as the Board of Directors may from time to time approve in accordance with the By-Laws. Section 5.4 Exclusions •

Neither the Declarant nor the Association shall have any obl.iqation to provide any service to swatara village, or the owners or Residents, unless expressly provided herein or approved by the Board of Directors in accordance with the By-Laws and recorded in the minutes of the Association. Nothing herein contained shall be construed to impose any duty on the Declarant or the Association to maintain, supervise, or be responsible to any extent whatsoever for any portion of any Lot, following the sale or conveyance thereof as a Lot by the Declarant to any Owner, including the repair or replacement of any connection to the Declarant's utilities located within the property lines of the Lot, and including lawn care and week or brush cutting. The cost of such repair, maintenance or Lot care shall be assessed against the OWner or Resident if the Owner or Resident shall fail to perform those obligations, and the Association shall, in that event, be required to do so. ARTICLE RESTRICTIONS section 6.1 VI OF SWATARA • VILLAGE

ON THE USE AND OCCUPANCY Imposition

of Restrictions

In order to preserve the character of swatara Village and for the protection of the value of Swatara village, and all Dwelling Units, Yard Areas, and Common Areas therein, Declarant hereby declares that Swatara Village and all Residents of Swatara Village, shall be subject to the following Rules and Regulations, -23-

in addition to all current covenants, easements and restrictions of record, all of which shall be perpetual in nature and run with the land: Section 6.2 Restrictions R.e: General Use .

(a) No Resident shall do work or conduct any activity in swatara Village which would affect or alter the residential character of Swatara Village or jeopardize the soundness or safety of another Dwelling unit or any Common. Facility, or which would impair any easement, or encroach upon any Yard Area or Common Area. (b) No obnoxious or offensive activities shall be_carried on, in, or upon swatara Village, or in any Dwelling Unit, Yard Area or Common Areas which may be or may become an annoyance or nuisance to any other Resident or interfere with the peaceful possession, rights, comforts, or conveniences and proper use of swatara Village by its other Residents. (e) No Resident shall make or permit any disturbing noises to be made in the Village, nor shall any Resident do or permit anything to be done that will interfere with the rights, comforts, or conveniences of other Residents or Owners. No Resident shall play or permit to be played any musical instrument, phonograph, television, or radio within swatara Village that may disturb or annoy other Residents of swatara Village. (d) There shall be no obstruction of access to the Common Areas in and through the street System or the Sidewalks or Common Facility Parcel. (e) No pets shall be permitted in swatara Village except in accordance with a policy adopted by the Association. (f) Light standards shall be supplied with all required electrical power .from the Dwelling unit located on the Lot on which the Light Standard is installed to provide fifty (50) watts of dusk to dawn lighting from each Improved Lot, at the expense of the Owner or the Resident of the Dwelling Unit. (g) No fences shall be erected on any Lot anywhere within Swatara Village without written approval of the Association.

(n) No signs, except those describing or locating the Common Areas, streets in the street System, and normal real estate company sales and rental signs shall be permitted within Swatara Village or any Yard Area, or on any Dwelling unit or Accessory Building.
section 6.3 Restrictions Re: structure and Location of
-24-

Dwelling Units and Accessory Building; Grade of Lots. (a) All Dwelling Units shall be manufactured housing units consisting of partially assembled components, pre-constructed ~n accordance with the BOCA codes, and shall be mounted on a permanent foundation. All Dwelling Units shall be capable of disassembly and removal for purposes of re-assembly at a different location. (b) No Dwelling Unit shall contain more than one (1) story, and in no event shall be higher than nineteen (1.9)feet above the grade at its foundation wall without the written consent of the Association. (c) All Dwelling units shall maintain side yards of not less than five (5') feet, a rear yard of not less than twenty (20/) feet and a front yard of not less than twenty-five (25'). (d) No Accessory Building shall be installed on any Lot Which is not also occupied by a Dwelling unit. (e) All Accessory Buildings shall maintain side yards of not less than fiVe (5') feet, a rear yard of not less than five (5') feet and a front yard of not less than twenty-five (25') feet.

(f) All futUre Driveway Common Areas shall be installed in accordance with specifications to be adopted by the Association.
(q) No Owner, Resident or any other Person shall do anything to change the exterior appearance of any Dwelling unit or Accessory Building or the appearance of any Yard Area without the prior written consent of the Association. Such changes shall include, but not be limited to changing the color or style of the brick, roof, roof shingles, windows, window frames, doors, concrete, railings or exterior paint or stain, or replacing awnings, shades or draperies on outside patios and balconies. (h) Dwelling Units and Yard Areas shall be used only and solely and exclusively for residential purposes, and no Owner or Resident shall engage in, or permit any other person to be engaged in any business, profession, trade or craft in or on any Lot or on any Common Area without the express written consent of the Association.

Dwelling unit or any Yard Area or the Common Areas, without the prior written consent of the Association, except that a Resident may plant flowers, trees, shrubbery and gardens within his Yard Area in accordance with landscape plans for swatara village overall approved by the Association. -25-

(i) No owner, Resident or any other Person shall build, plant or maintain any matter or thing upon, in, over, or under any

(j) Nothing shall be done in or to any Dwelling unit, Accessory Building or Yard Area which changes or impairs the structural integrity of any Dwelling unit. No Owner, Resident or any other Person may make any exterior structural additions, alterations or improvements in or to a Dwelling unit or Accessory Building, including but not limited to construction or enlargement of decks, patios, balconies, canopies, awnings or the construction or installation of any shed, outbuilding, fence, pool, barbecue pit, compost bin, feeder, lawn ornament, above ground swimming pool or other structure or device, in any Yard Area without the prior written consent of the Association. In the event that the Owner shall breach any portion of this restriction, (in addition to all of the remedies given_to the Association in case of such breach of any condition or covenant of this Declaration), the Association shall have the right and privilege of removing any item, improvement or personality resulting in a breach of this section, and all expenses incurred in remedying such breach or violation shall be considered additional Association fees collectible from the owner in the same manner and fashion as other fees provided for herein.
(k) Nothing shall be done or kept in any Dwelling Unit or on any Lot which shall increase the rates of insurance of any other Owner or Resident, or the Association beyond the rates applicable for single family residential structures. No Owner, Resident or any other Person shall permit anything to be done or kept in any Dwelling Unit or in or upon any Yard Area or Lot or the Common Areas which would result in the cancellation of any insurance on the Common Areas or any Dwelling unit or the contents thereof, or any Yard Area or Common Areas or which would be in violation of any law. (1) No clothes, sheets, blankets or laundry of any kind or any other articles shall be hung in any Yard Area or outside of any Dwelling unit or enclosed Accessory Building or exposed in any Yard Area or on any part of the Common Areas, nor shall anything be hung, painted or displayed on the outside windows, walls or doors of any Dwelling unit without the prior written consent of the Association. (m) No television or radio antennas, wires, TVRO or satellite Dish, or canopies shall be affixed or placed upon the exterior walls or roofs of a Dwelling unit or in any Yard Area, without the prior written consent of the Association. (n) No Resident or Owner shall keep anything on any Lot which is a fire hazard, nor shall owner violate any law or government regulation.
(0)

No

Owner or Resident

shall, without
-26-

the written

consent

of the Association, place or allow to be placed any stand, booth, sign, showcase, or device on or in any part of any Lot or Common Area.
"(p) Residents shall keep the Dwelling Units and his or her individual unit together with all Accessory Buildings in a good state of repair.

section 6.4 Lawn Maintenance

Restrictions of Yard Areas.

Re: Lot Grade,

Landscaping

and

(a) No fill other than top soil and foundation backfill material shall be placed on any Lot. No fill material placed on any Lot shall direct or increase the flow of storm water to any adjoining Lot or which would fail to comply with the provisions for storm water management on the 1983 Plan. (b) All Yard Areas not landscaped in accordance with any landscaping plan contained in the Rules and Regulations shall be maintained in grass.

(e) All grass, weeds and brush on all Lots, including Vacant Lots, shall be cut so that a growth height of four (4") inches or less shall be maintained at all times.
, Section 6. 5 Restrictions Re: Age of Residents .

(a) No Dwelling Unit shall be occupied by a minor child or children (under 18 years of age) for any period of time in excess of 30 days during any six (6) month period without the prior consent of the Association. (b) Eighty (80%) or more of the Dwelling units shall be occupied only by living groups in which one of the Residents shall be a Qualified Resident. Provided, however, that in the event of the death or permanent or long term absence of the only or last remaining Qualified Resident in any Dwelling Unit, for reasons beyond the control of such Qualified Resident, the Association may, upon request, suspend this requirement for a period or periods of time, reasonable under the circumstances, to permit the Owner to dispose of or lease or rent the Dwelling Unit. Section 6.6 Vehicle Restrictions •

Ca) No commercial vehicles may be parked overnight and no boats, trailers, campers, motor homes or trucks having a gross weight in excess of eight thousand (8,000) pounds may be parked on any part of Swatara Village, or in any Yard Area without the prior written consent of the Association, except those vehicles temporarily on a Lot for purposes of serving the Dwelling Units -27-

located therein. No part of any Yard Area shall be used for unenclosed outside storage, covered or otherwise. (c) All motor vehicles shall be parked within a driveway a Lot, and not in any Driveway Common Areas, or in designated spaces, in Common Areas. in

(d) No unlicensed motor vehicles shall be parked within the Village without the express written consent of the Association. (e) No vehicle shall be operated within swatara Village at a speed in excess of 15 miles per hour, and all Resident's guests, employees and invitees shall abide by all traffic control signs and devices.

(f) No owner or Resident shall wash, service or repair a motor vehicle in any Common Area, except in an area as Association may designate.
(g) No Owner or Resident who shall wash a vehicle on any Lot or Driveway Common Area shall use any soap or detergent, or any substance other than water taken from the Water Distribution System. (h) The use of chemical snow melters on concrete surfaces of Sidewalks, Improved streets and Driveway Common Areas is not permitted during the first two (2) winter seasons following installation. Section 6.7 Restrictions Re: Refuse Disposal •

(a) Each Owner and Resident shall keep such Owner's and Resident's Yard Area clean and free from all debris or other refuse. (b) All garbage and refuse must be kept in approved garbage containers approved by the Association and all containers shall be kept in the rear or side Yard Area against the Dwelling unit and shall be disposed of at such times and such plac~s and in such manner as the Association shall direct. (e) No ash cans, garbage cans, garbage bags, wood boxes, firewood, kitchen supplies, ice or other articles will be placed outside of the Resident's Dwelling Unit, except in such places or locations as designated by the Association. section 6.8 Duty to Maintain Connections to Declarant's utilities~ Restrictions and Prohibited Discharge to Sewer System Duty of Owner to Maintain Utilities within Lot. (a) As long as Declarant's utilities are operated for the
-28-

benefit of the Residents of swatara Village, by the Declarant, or its successors, no septic or other on-site sewage disposal system shall be installed on any Lot, and no water well shall be drilled on any Lot, except wells for ground source heat pumps, without prior written consent of the Association, and the Owners and Residents shall be bound by the rules, regulations and rates lawfully promulgated and adopted by the Declarant with respect to the Declarant's utilities, including provisions of Article 7 hereof. (b) No Resident shall flush clothes, draperies, rags, hard papers, sanitary napkins, or tampons (including their containers), or any substance other than domestic waste water, down any toilet or otherwise introduce such substance into the Sewage System. Any damage resulting from such action by Resident will be charged to such Resident and/or Owner. (c) Each Owner and Resident shall be responsible for the installation, maintenance, repair and replacement of all pipes, valves, drain connections and other facilities installed or required to be installed within the property line of each Lot, to connect each Dwelling Unit of such Owner or Resident to the Water System and the Sewer System, including elimination of blockage. Section 6.9 Restrictions Re: Residue Parcel .

(a) No Owner or Resident shall operate or permit to be operated any all terrain vehicle, dirt bike or other motorized vehicle in or on the Residue Parcel. (b) Neither hunting or the discharging of firearms, nor overnight camping shall be permitted on the Residue Parcel by any Owner or Resident, or by any guest of any Owner or Resident. Section 6.10 Additional Amendments; Enforcement .

(a) The Association shall have the power to make such other Rules and Regulations as may be necessary to carry out the intent of the Declaration and these Rules and Regulations, and the Association shall have the right to bring lawsuits to enforce the same. The Association shall further have the right to levy fines for violation of such Rules and Regulations, or this Declaration, provided that the fine for any single violation may not, under any circumstances, exceed $~O.OO. For each day a violation continues after notice, it shall be considered a separate violation. Any fines so levied against the particular Owner or Resident involved and collection may be enforced by the Association in the same manner as the Association is entitled to enforce collection of any other assessments. Fines may be levied against a Tenant and the Owner jointly, and each Owner shall be severally liable with his Tenant for the payment of the same. In -29-

the event the Association institutes legal action for collection of any fines and is successful, the defendant(s) shall be responsible for payment of reasonable attorney's fee to the Association plus interests and costs of suit.
(b) By acceptance of a deed for a Lot, each owner does, to the extent permitted by law, hereby irrevocably authorize and empower the Association or any attorney, acting on behalf of the Association, to appear as attorney for such Owner in any Court of Common Pleas of the Commonwealth of Pennsylvania, and in the name or names of such Owner, as the Owner or Owners' attorney-in-fact, and on one or more occasions, to commence an amicable action and to consent to entry of a judgment therein, limited, however, in effect and enforcement to such Owner or Owners' Lot or Dwelling Unit, in the amount of all sums due to the Association under this section. If the Association or any attorney acting for it, and acting as the attorney-in-fact for the Owner or Owners, shall commence an action and enter a judgment in accordance with this Section, such attorney may, in such action, incorporate this section by reference to the place in the Recorder's Office where this Declaration shall be recorded, which reference shall be conclusive evidence of the authority herein granted.

ARTICLE
USE AND OPERATION OF WATER

VII
SYSTEM AND SEWER SYSTEM

section 7.1 Operation of Declarant's utilities; Maintenance of Declarant's utilities by Association Upon Conveyance to Association; Rights of Declarant to Compel Maintenance of Declarant's Utilities. Unless and until the Declarant shall convey either or both of the water system and the Sewer System to the Association or any other third party, the Declarant shall operate the Declarant's utilities for the benefit of Swatara Village. If the Association shall acquire either the Water System or the Sewer System from the Declarant, the Association shall have the responsibility of maintaining and repairing whichever of the Declarant's Utilities which it shall in that event own. In the event the Association fails or neglects to maintain and repair that portion of the Declarant/s utilities for which it is responsible, as herein provided, or in the event the Declarant, in its sole and absolute discretion, determines that any portion of the Declarant's Utilities is in need of repair, replacement or maintenance, then in either event, if the Declarant shall then own any of the Lots, the Declarant, in order to preserve the benefit of the Declarant/s Utilities to the Lots which the Declarant shall then own, shall upon reasonable notice to the Association, have the right to make such repairs or perform such maintenance and to restore the surface of such ground to its original condition and
-30-

thereafter charge, at current the commercial rates, the cost thereof to the Association. In that event, the Association shall reimburse the Declarant for the cost of such repairs and maintenance, together with interest at the rate of 10%, if payment is not received by the Declarant within 30 days of billing. Section 7.2 Discontinuance of Service of Liabilities to Perform Repairs. The Declarant or the Association, as the case may be, shall have the right temporarily to stop the service of either the Water System or the Sewer System to the Dwelling units, the Common Facilities or any of them, in the event of an accident or malfunction, or as required by routine maintenance, in order to repair or maintain the Declarant's utilities. The Association shall have no liability to any Owner or Resident for failure to supply service from the Declarant's utilities during such periods. section 7.3 Discontinuance of Service for Non-Payment .

In the event that all applicable charges and fees for service provided by the Declarant's utilities to any Dwelling Unit are not paid on the date when due then, in such event, the Declarant or the Association, as the case may be, in addition to all other rights and remedies provided herein or otherwise available at law, shall have the right to discontinue service to such Dwelling Unit, until such time as all past due water and sewer charges and fees have been paid in full. Section 7.4 Entry of In Rem Judgment for the Unpaid Water and Sewer Charges. By acceptance of a deed for a Lot, each Owner does, to the extent permitted by law, hereby irrevocably authorize and empower the Declarant or the then owner of the Declarant's Utilities, or any attorney, acting on behalf of the Declarant or its successor, to appear as attorney for such Owner in any court of Common Pleas of the Commonwealth of Pennsylvania, and in the name or names of such OWner, as the OWner or Owners' attorney-in-fact, and on one or more occasions, to commence an amicable action and to consent to entry of a judgment therein, limited, however, in effect and enforcement to such Owner or Owners' Lot or Dwelling Unit, in the amount of all sums due to the owner of the Declarant's Utilities. If the owner of the Declarant's utilities, or any attorney acting for it, and acting as the attorney-in-fact for the Owner or owners, shall commence an action and enter a judgment in accordance with this Section, such attorney may, in such action, incorporate this section by reference to the place in the Recorder's Office where this Declaration shall be recorded, which
-31-

reference shall be conclusive evidence of the authority herein granted. section 7.5 Liens for Declarant's Utilities to have status Equivalent to Municipal Liens. The Declarant intends, and so provides that the priority of any lien obtained against the interest of any Owner in any Lot in accordance with Section 7.4 shall have, with respect to the lien of any mortgage granted or judgment suffered by such Owner or the successors of such Owner, including mortgages in favor of any Purchase Money Mortgagee or Institutional Lender, the same priority in time, and in right of payment, that such lien would have if the Declarant or the Association were a Eunicipal utility, and if such lien were obtained in accordance with the statutes of the Commonwealth of Pennsylvania providing for the filing of liens for the collection of municipal claims. section 7.6 Non-Waiver of Remedies .

The failure of the Declarant or the Association to exercise any rights under the provisions of this Article 7, any other Article of this Declaration or applicable law, or anyone or more occasions shall not be construed as a waiver thereof on any subsequent occasion and recourse to anyone or more remedies granted by this Article 7 or any other Article of this Declaration or applicable law, shall not be deemed a waiver of or a bar to any other remedy or remedies, including but not limited to the right to commence suit against an owner or Resident, or the Association, for collection of unpaid water and sanitary sewer service charges or fees for services provided by the Declarant's utilities, it being the intent that all such remedies shall be cumulative and not exclusive. ARTICLE VIII ASSESSMENTS section 8.1 General; Common Expenses to be Fgid by Common Expense Assessments; Assessments for Vacant Lots and Assessments for Improved Lots . The Declarant intends that the cost of operating and maintaining the Common Facilities, and the cost of administering and enforcing this Declaration, as well as the cost of providing such additional services as the Association may offer to the OWners and Residents of Swatara Village shall be paid from Common Expense Assessments imposed on each Lot, including Declarant's Improved Lots, but not including any other Lots owned by the Declarant. The Declarant further intends, in recognition of the requirement for, and consumption of, Association services by the
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Residents, and the greater extent to which services provided by the Association shall benefit Improved Lots, beyond the benefit provided to Vacant Lots, that there shall be two (2) categories of.C9~on Expense Assessments, one of which shall be assessed against Vacant Lots, and one of which shall be assessed against Improved Lots. Section 8.2 categories of Common Expenses .

The Common Expense Assessments levied by the Association shall be used exclusively for promoting the health, safety, pleasure and welfare of the Owners and the Residents, and for the costs and expenses incident to the operation of the Association and swatara Village, including the interior and exterior maintenance and repair of the Community Building, and landscaping, lawn mowing, maintenance, trash removal and snow removal from the Common Areas, and for the maintenance and repair of the storm Drainage Swale and for the performance of the swatara Drive Easement Agreements, and for the the purchase, installation, maintenance, repair and replacement of Light Standards, and for the the payment of all real estate taxes on the street System, the Sidewalks, the Common Facility Parcel, the Community Building, and for the payment of insurance premiums as provided in Article 9 hereof and all other costs and expenses incidental to the operation and administration of the Association, its facilities and services, including the expense of a Community Manager employed pursuant to the By-Laws, and including reasonable reserves and sinking funds and such expenses as the Board of Directors of the Association shall determine to be Common Expenses from time to time. section 8 .. 3 Assessments. Determination of vacant Lot Common Expense

At its initial meeting, and thereafter annually, the Board of Directors shall determine the annual Vacant Lot Common Expense Assessment for the ensuing year.. Each Member shall be personally liable for the vacant Lot Common Expense Assessment attributable to each Vacant Lot which Such Member shall own .. Section 8 .. 4 Assessments. Determination of Improved Lot Common Expense

At its initial meeting, and annually thereafter, the Board of Directors shall determine, by its informed best estimate, the amounts sufficient to cover all Common Expenses of the Association as specified in Section 8.2 hereof and in the manner specified in the By-Laws. Each Improved Lot, including Declarant's Improved Lots, shall be liable for one equal share of the total amount assessed and to be collected as the Vacant Lot Common Expense Assessments in such year. Each Member shall be
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personally liable for the Improved Lot Common Expense Assessment attributable to such Improved Lot. Each Improved Lot Common Expense Assessment shall be due and collectible from every Member, other than the Declarant, who owns an Improved Lot. section 8.5 Special Assessments .

In addition to the annual Improved Lot Common Expense Assessment and the Vacant Lot Common Expense Assessment authorized by this Article, the Board of Directors 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, unexpected repair or replacement of any Common Facility or Common Area or any part thereof, or for any other lawful Common Expense not paid by annual Common Expense Assessments. Any such special Assessment shall be apportioned equally among Improved Lots including Declarant's Improved Lots and Vacant Lots, including Vacant Lots owned by the Declarant. No Special Assessment shall be enforceable unless it shall have been approved by two-thirds (2/3) of all the Members eligible to vote at a duly called special meeting of the Association for this purpose. SectionS.6. .. Common Expense Assessments Assessments to be Payable in MonthlyPayments~ and Special

All Improved Lot Common Expense Assess~ents and Vacant Lot Common Expense Assessments shall be payable in twelve (12) equal monthly installments, and shall be due and payable in advance on the first day of each month. Special Assessments shall be due and payable in ~ne or more monthly payments, in advance, on the first day of each month, as determined by the Board of Directors. section S.7 Pro-Rata Members' Right to Use Common Lien for Real Facilities. Estate Taxes on Each

All real estate taxing authorities are hereby granted a continuing lien against each Dwelling unit and Lot for the pro rata (ratio of assessment of each Lot and Dwelling Unit to total assessment of street System, Sidewalks, community Building and storm Drainage Swale) share of all real estate taxes, if any due and payable by the Association for real estate taxes assessed against the Street System, the Sidewalks, the community Building and the storm Drainage Swale. section Mortgages.

s.s

Subordination

of Lien to Taxes

and

Certain

The lien of Common Expense Assessments shall be subordinate to any lien for past due and unpaid real estate taxes, and to the first mortgage lien of any Institutional Lender or Purchase Money -34-

Mortgagee now or hereafter placed upon any Lot. Provided, however, that such subordination shall apply to Common Expense Assessments which have become due and payable after the recordation of such mortgage, and prior to the sale or transfer of such Lot pursuant to a judicial sale. Such sale or transfer shall not relieve any such Lot from liability for any Common Expense Assessment thereafter becoming due, or from the lien of any subsequent Common Expense Assessment or Special Assessment. If an Institutiona.l Lender, Purchase Money Mortgagee or any other purchaser of a Lot obtains title to such Lot as a result of a judicial sale on a first mortgage, such acquirer of title, its successors and assigns, shall not be liable for the Common Expense Assessment pertaining to such Lot or chargeable to the former Member owner thereof which became due prior to the acquisition of title as a result of judicial sale. Such unpaid sums shall be deemed to be an Association expense collectible from all the remaining Members, including such acguirer and such acquirer's successors and assigns. Section 8.9 Acceptance of Deed as Covenant to Pay Common Expense Assessments. Each OWner, other than the Declarant, except to the extent of th~ Declarant's Improved Lots, by virtue of the acceptance of a deed for a Lot from the Declarant or its successors, covenants and agrees to pay Common Expense Assessments and Special Assessments to the Association to be used to pay all Common Expenses. No Member may waive or otherwise avoid liability for the Common Expense Assessments or Special Assessments by the non-use of such Member's Lot or Dwelling unit or the street system, the Common Areas or otherwise. Any Owner who hereafter enters into an agreement of sale for such OWner's Lot shall remain liable for the Common Expense Assessment attributable to such OWner's Lot until the actual conveyance of the legal and equitable fee simple title of such Lot to the purchaser thereof. Section 8.10 Lien for Common Expense Assessments; Action to Crea.teRecord Lien in Rem for Common Expense Assessments. Amicable

Each Vacant Lot Common Expense Assessment or Improved Lot Common Expense Assessment, together with any interest or late charges thereon, and cost of collection thereof (including, but not limited to, reasonable attorneys' fees) shall be a continuing lien upon the Improved Lot or Vacant Lots against which such Common Expense Assessment is made, and shall also be the personal obligation of the Owner who owns such Lot at the time the Common Expense Assessment is due. Each owner, to the extent permitted by law, does hereby
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irrevocably authorize and empower the Association or any attorney, acting on behalf of the Association, to appear as attorney for such Owner in any Court of Common Pleas of the Commonwealth of Pennsylvania, and in the name or names of such Owner, as the Owner's attorney-in-fact, and on one or more occasions, to commence an amicable action and to consent to entry of a judgment therein, limited, however, in effect and enforcement to such Owner or Owners' Lot or Dwelling Unit, in the amount of all sums due to the Association under this section. If the Association· or any attorney acting for it, and acting as the attorney-in-fact for the Owner or Owners, shall commence an action and enter a judgment in accordance with this section, such attorney may, in such action, incorporate this section by reference to the place in the Recorder's Office where this Declaration shall be recorded, which reference shall be conclusive evidence of the authority herein granted. Liens for unpaid Common Expense Assessments or unpaid Assessments may be executed upon by suit brought in the name of the Association in the same manner as the foreclosure of a mortgage on real property_ In addition thereto, suits to recover a money judgment for an unpaid common Expense Assessments or special Assessments may be maintained against the Resident and Owner of the Lot as of the effective date of the Common Expense Assessments or Special Assessments, or against all subsequent Owners thereof, except as otherwise provided herein, without waiving the lien securing the same. Section 8.11 Interest and Counsel Fees .

The Board of Directors, at its option, shall have the right in connection with the collection of any Common Expense Assessment, Special Assessment or any other charge, to impose a late fee, or an interest charge at the legal maximum rate if such payment is made after the due date thereof. In any proceeding in connection with the collection of any Common Expense Assessment or Special Assessment Association shall also be entitled to recover the costs of such proceeding and reasonable attorney's fees. section 8.12 Liability of Declarant for Improved Lot Common Expense Assessment on Declarant's Improved Lots and Special Assessments; Liability of Declarant for any Common Expense Assessment on on any other Lots. The Declarant shall be liable for Improved Lot Common Expense on Declarant's Improved Lots, if any, and for Special Assessments, on all Declarant's Improved Lots and any Vacant Lots owned by the Declarant. The Declarant shall not otherwise be liable or responsible for the payment of any Common Expense Assessment with respect to all or any portion of any Lot.

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ARTICLE

IX

INSURANCE

section

9.1

Insurance

to be Maintained

by the Association

.

(a) Property insurance insuring against fire, extended coverage perils and all risks of physical loss commonly insured against covering the Community Building and the utility Building and any other insurable interest of the Association in the Common Facilities, shall be maintained by the Association. The total amount of insurance, after application of any deductibles, shall be 100% of the replacement costs of the insured property exclusive of land, foundations, excavations, and other items normally excluded from property policies. Such insurance is to afford protection against at least the following: (i) Loss or damage by fire and other hazards covered by the standard extended coverage endorsement, debris removal, cost of demolition, vandalism, malicious mischief, wind, storm, and water damage; and (ii) such other risks as shall customarily be covered with respect to similar improvements in projects or communities similar in construction, location and use. Such insurance shall name the Association in its own right, and for the benefit of the Members and the Declarant, as their interests shall appear. (b) Comprehensive general liability insurance, including medical payments insurance, in an amount determined by the Board of Directors covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Sidewalks, the Street system, the community Building, the Parking Areas, the Drainage Swale and the residue Parcel. Such insurance shall be for the benefit of the Association. Cc) Workmen's compensation Insurance and employees liability insurance as required by law, for the benefit of the Association. (d) Such other insurance as the Board of Directors deems appropriate to protect the Association, the Members the Owners, and the interest of the Declarant required to be insured hereunder. section 9.2 Contents of Insurance pursuant Policies to section . 9.1 must

Insurance policies provide that:

carried

(a) The insurer waives its right of subrogation under the policy against any Owner, Member, or member of a Member's household but not against the tenants, guests, invitees or licensees of a Member. -37-

(b) No act or omission by any Owners or Members, unless acting within such Member's scope of authority on behalf of the Association, will void this policy or be a condition to recovery under this policy. (c) The Association and the Declarant, and not the Members, as individuals, shall have the sale right to adjust claims under any of the foregoing policies. (d) The insurance may not be cancelled unti-l thirty days notice of the proposed cancellation has been mailed the Association.
(30)

to

Section

9.3

Insurers

. ~n

The insurance set forth in section 9.~ shall be maintained reputable insurance companies authorized to do business within the Commonwealth of Pennsylvania. section 9.4 Cost •

The cost of the insurance set forth in section 9.~ shall be a Common 'Expense of the Association, except for that portion of the cost of such insurance which is incurred as a result of the improper use, misuse, occupancy or abandonment of any Dwelling Unit, or its appurtenances which portion of the cost shall be paid by the Owner of such Dwelling Unit • .section 9.5 Evidence and Cancellation of Insurance .

An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance to the Association and, upon request, to any Member, OWner, Institutional Lender or Purchase Money Mortgagee.

Section

9.6

Owner's

and Resident's

Insurance

(a) Property insurance insuring against fire, extended coverage perils and all risks of physical loss commonly insured against covering a Dwelling Unit shall be maintained by the Owner. The total amount of insurance, after application of any deductibles, shall be 100% of the replacement costs of the Dwelling Unit and Accessory Building, exclusive of land, foundations, excavations, and other items normally excluded from property policies. Such insurance is to afford protection against at least the following: (i) Loss or damage by fire and other hazards covered by the standard extended coverage endorsement, debris removal, cost of demolition, vandalism, malicious mischief, wind, storm, and water damage; and (ii) such other risks as shall customarily be covered with respect to -38-

single

family

residential

property. on the contents

ot·

(b) Each Resident shall maintain insurance the Dwelling Unit and Accessory Building.

(c) Each Owner insurance, insuring that Dwelling unit.

and Resident shall maintain liability such Owner and Resident, and all Residents

of

(d) Each Owner and Resident, upon five (5) days written request, shall provide a certificate of insurance to the Association confirming the existence of all insurance required by this section. All such insurance shall name the Declarant and the Association as additional insureds. ARTICLE LIMITATION section 1.0.1. X

OF LIABILITY of the Board of Directors •

Limit of Liability

The Board of Directors and its members in their capacity as members of the Board of Directors, officers and employees of the Association: (a) Shall not be liable for the failure of any service to be obtained by the Board of Directors and paid for by the Association, or for injury or damage to persons or property caused by the elements or by another owner, Resident or Person on the property, resulting from electricity, gas, water, rain, dust or sand which may leak or flow from the outside or from any part of any improvem'ent, or from any of its pipes, drains, conduits, appliances, equipment, or from any other place unless in such instance such injury or damage has been caused by the willful misconduct or gross negligence of the Association or the Board of Directors; (b) Shall not be liable to the Members, Owners, Residents, or any other Person as a result of the performance of the Board of Directo.rs member' sduties for any mistake of judgment, negligence or otherwise, except for their own willful misconduct or gross negligence; (c) Shall have no personal liability in contract to any Member, Owners, Resident, or any other Person under any agreement, check, contract, deed, lease, mortgage, instrument or transaction entered into by them on behalf of the Board of Directors in the performance of their duties; (d) Shall not be liable to a Member, Owner, Resident, or such Member's, Owner's or Resident's tenants, employees,
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agents, customers or guests for loss or damage caused by theft or damage to personal property left by such Member, Owner or Resident or his tenants, employees, agents, customers or guests in a Dwelling Unit, Lot, Yard Area, or Common Area or Common Facility, or in or on swatara Village, except for loss or damage caused by their own willful. misconduct or gross negligence; (e) Shall have no personal liability in tort or to a Member, owner, Resident or any other Person, direct or imputed, by virtue of acts performed by.or for them, except for their own willful misconduct or gross negl igence· . in performance of their duties; and (f) Shall have no personal liability arising out of the use, misuse or condition of Swatara Village and the Common Areas and Common Facilities or Residue Parcel or Dwelling Units erected within swatara Village, or the Yard Areas thereof, or which might in any way be assessed against or imputed to the members of the Board of Directors as a result of or by virtue of their performance of their duties, except for their own willful misconduct or gross negligence. section ·10.2 Indemnification .

Each member of the Board of Directors, in such director's capacity as a member of the Board of Directors, office or both, is hereby indemnified by the Association against all expenses, judgments, fines, settlement amounts and liabilities, including attorneys' fees, reasonably incurred or imposed upon each director in connection with any threatened, pending or completed action, suit or proceeding whether civil, criminal, administrative or investigative in which such director may become involved by reason of his or her being or having been a member and/or officer of the Board of Directors, or any settlement of any such action, suit or proceeding, whether or not such director is a member of the Board of Directors, officer or both, at the time such expenses are incurred, except in such case wherein such member of the Board of Directors and/or officer is adjudged guilty of willful misconduct or gross negligence in the of such member's or officer's duties, provided that, in the event of a settlement, this indemnification shall apply only if and when the Board of Directors (with the affected director abstaining if such director is then a member of the Board of Directors) approves such settlement and reimbursement as being in the best interests of the Association; and provided further that, the indemnification hereunder with respect to any criminal action or proceeding is permitted only if such member of the Board of Directors and/or officer had no reasonable cause to believe such director's and/or officer's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its -40-

equivalent shall not of itself create a presumption that the person is guilty of gross negligence or willful misconduct, and with respect to a criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful. The indemnification of the members of the Board of Directors set forth in this Section shall be paid by the Association on behalf of the Members and shall constitute a Common Expense and shall be assessed and collectible as such. Such right of indemnification shall not be deemed exclusive of any other rights to which the member of the Board of Directors and/or officer may be entitled as a matter of law or agreement or by vote of the Members or otherwise. section ~O.3 Defens'e of Claims

Complaints brought against the Association, the Board of Directors or officers, employees or agents thereof in their respective capacity as such, as a whole, shall be directed to the Board of Directors, and such complaints shall be defended by the Association. Neither the Members nor any Purchase Money Mortgagee or Institutional Lender shall have the right to participate in such defense other than through the Association. Section 10.4 Indemnification Insurance •

The Board of Directors may obtain insurance to satisfy the indemnification obligation of the Association and all of the Members set forth in Section 10.2 above. ARTICLE RIGHT section 1~.1 Association; Duty of Offer. XI

OF FIRST REFUSAL

TO ACQUIRE

LOTS

Rights Created in Favor of Declarant and of Owners to Notify Declarant and Association

It is agreed that should any Owner, or the heirs, executors, grantees, successors or assigns of an Owner: (1) receive an offer to purchase a Lot, with or without the Dwelling unit erected thereon, and such Owner desires to accept said offer, or (2) make an offer to sell any Lot, with or without any Dwelling unit erected thereon, if the Declarant shall then own any Lots in swatara Village, such OWner shall give the Association and the Declarant notice in writing of such offer. Such notice shall set forth the name and address of the proposed purchaser, and the conditions of such offer. In that event, the Declarant shall have a first option, and the Association shall have a second option to purchase the Lot, with or without any Dwelling Unit erected thereon, by giving written notice to the Owner within seventy-two (72) hours of the OWner's notice to the Declarant and -41-

the Association. In the event that neither the Declarant nor the Association shall give notice of the intention of either of them to exercise the option to purchase within such period, and in the event that the Lot is not sold for any reason, in the transaction identified in such Owner's notice, this right of first refusal and all of its .terms and conditions shall nevertheless remain in full force and effect as to any future offer received or made by any Owner. In that event, the Declarant and the Association shall have, upon the same conditions and notice, the continuing first option and second option to. purchase the Lot, with or without any Dwelling unit erected thereon, upon the terms of such subsequent offer. section ~~.2 Price to be Paid by Declarant or-Association for Lot and Dwelling unit; Price to be Paid by Declarant or Association for Lot Only. If the Declarant or the Association shall exercise the right of first refusal with -respect to the Lot and Dwelling Unit, the price to be paid to the Owner shall be the same price in the offer made to or by an Owner, a~d the price listed in the notice from the Owner, and shall be payable upon the same terms and conditions. - If the Declarant or the Association shall exercise the right of first refusal with respect to the Lot only, the purchas.e price for the-Lot shall be the fair market value of such Lot determined, unless parties shall agree otherwise by the average of the appraisals performed by licensed real estate lenders, the first of which shall be selected by the owner, the second of which shall be selected by the Declarant or the Association, as the case may be, and the third of which shall be selected by the first two brokers. The cost of such appraisals shall be divided between the Owner and the Declarant or the Association, as the case may be. section 11.3 Duration of Declarant's Right of First Refusal; Supremacy Right of First Refusal Granted to Declarant Over Right of First Refusal Granted to Association. The right of first refusal granted to the Declarant shall continue only as long as the Declarant shall remain the Owner of record of any Lot. As long as the Declarant shall remain the OWner of record of any Lot, the right of first refusal granted to the Association shall be subordinate to the right of first refusal granted to the Declarant, and shall be void if the Declarant shall exercise the right of first refusal granted to it. section 11.4 Quality of Title .

In the event that any of the rights of first refusal granted above is exercised, the Owner shall convey marketable title in -42-

fee simple to the Declarant or the Association by good and sufficient special warranty deed and free from all encumbrances whatsoever. The Owner will convey good and marketable title, or such as will be insured by a reputable title insurance company at regular rates. Settlement and conveyance to the Declarant or the Association be made within ninety (90) days from the said date of exercise. Taxes, water rent, Common Expense Assessments, and Special Assessments, and other current expenses, if applicable, shall be adjusted pro rata on an as levied basis as of the date of settlement. section 11.5 Record as Evidence of Non-Exercise •

All bona fide third party purchasers for value and all Institut10nal Lenders and Purchase Money Mortgagee of any Lot who do not otherwise have actual notice of the exercise by the Declarant or the Association of any right of first refusal granted herein, shall be entitled to rely on any deed from any owner, to any successor to such Owner which shall appear of record in the Recorder's Office as conclusive evidence that notice was provided to the Association and, if applicable to Declarant, by the Owner in accordance with this Section and that neither the Declarant nor the Association exercised the rights of first refusal granted herein.
ARTICLE XII GENERAL

PROVISIONS

Section

12.1

Duration

.

This Declaration shall run with and bind the Residential Lot Area, and shall inure to the benefit of and be enforceable by the Association, any Member, or the owner of any land subject to this Declaration, and their respective successors, assigns, heirs, executors, administrators and personal representatives. The Declaration shall have a duration of twenty-five (25) years, unless a particular section specifically provides otherwise, at the end of which. period said Declaration shall be automatically extended for successive periods of ten (10) years each, unless at least two thirds (2/3) of the Members at the time of the expiration of the initial period, or any extension, thereof, shall sign an instrument or instruments, which shall be duly recorded in the Recorder's Office in which they shall agree to change the Declaration in whole or in part. Section 12.2 Notice .

Any notice required to be sent to any Member, Owner, Resident, Institutional Lender or Purchase Money Mortgagee under the provisions of this Declaration, the Articles of Incorporation
-43-

or the By-Laws shall be deemed to have been properly sent, and notice thereby given, when mailed by regular mail, with postage or Purchase Money Mortgagee at the last known address of such Member,. Owner, Resident, Institutional Lender or Purchase Money Mortgagee as the same appears on the records of the Association at the time of such mailing. If a Lot is owned jointly by more than one Member or Owner, notice to one of the Members or unit Owners shall constitute notice to all owner Members and Owners thereof. It shall be the obligation of every Member or Owner to notify the secretary of the Association in writing immediately of any change of address. Valid notice may also be given to a Member by personal delivery. section 12.3 Enforcement .

Enforcement of this Declaration shall be by appropriate proceeding at law or in equity in any court having jurisdiction, against any person or persons, firm or corporation violating or attempting to violate or circumvent any provision herein contained, either to restrain or enjoin such violation or threatened violation or to recover damages, if any, and against any Lot and Dwelling unit to enforce any lien created by this Declaration; In the event the Association should at any time fail to discharge its obligations to maintain any portion of Swatara Village or toen~orce the provisions hereof, any Member shall have the right to enforce such obligations by any proceeding at law or in equity. Except as otherwise specifically provided herein, no other person or entity shall have any rights by reason hereof. section 12.4 Severability .

Should any covenant or restriction herein contained, or any article, section, subsection, sentence, clause, or phrase or term of this Declaration be declared to be void, invalid, illegal or enforceable, for any reason, by any court or other tribunal having jurisdiction, such judgment shall in no wise affect the other provisions hereof which are hereby declared to be severable, and which shall remain in full force and effect. section 12.5 Amendments .

This Declaration may be amended at any time after the date hereof, by vote of at least two-thirds (2/3) of the Members, at any duly called meeting, upon thirty (30) days written notice to every Member of the exact language of the amendment in advance, provided however, no amendment may be effective Which (i) would permit any Member to be exempted from the payment of any Common Expense Assessment; (ii) would change the share of Common Expense Assessment appurtenant to each Dwelling Unit or Lot; (iii) modify any easements or restrictions set forth in Article III and
-44-

Article IV hereof; (iv) would provide for the conveyance of the Common Facilities or the Common Areas or any interest therein, except a utility in accordance with section 4.5, to any Person, or (v) would modify the rights of the Township in any manner, without the express written consent, by ordinance or otherwise, of the Township. Provided, further, no amendment which effects any rights or obligations of the Declarant hereunder shall be effective without the consent and joinder of the Declarant. An amendment made by an agreement signed and acknowledged by all of the Members, in the manner required for the execution of a deed, may modify any provision hereof, except the rights of the Township, which may only be modified in the manner set forth above. No amendment shall become effective until the same is recorded in the Recorder's Office. section 22.6 waiver.

No provisions contained in this Declaration may be deemed to have been abrogated or waived by reason of the failure of the Association to enforce the same, irrespective of the number of violations or breaches which may occur. section Agreements. 12.7 Ratification, Confirmation, and Approval of

The fact that some or all of the directors, officers and shareholders of the Association and the Declarant may be identical, and the fact that the Declarant has heretofore or may hereafter enter into agreements with the Association or third parties, will not invalidate any such agreements and the Association, and its Members, from time to time, will be obligated to abide by and comply with the terms and conditions thereof. Purchase of a Lot, and the acceptance of a deed therefor by any party, whether for the Declarant or its successors, shall constitute the ratification, confirmation an approval by such purchaser, such purchaser's heirs, legal representatives, successors and assigns, of the propriety and legality of said agreement, and any other agreements authorized and permitted by this Declaration, the Articles of Incorporation or the By-Laws. section 12.8 Condemnation. Rights of certain Mortgagees Upon

If any Dwelling Unit, Yard Area, Lot or portion thereof, or the Common Facility, or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by a condemning authority, then an Institutional Lender or Purchase Money Mortgagee holding a first mortgage on either the legal or equitable interest, or both, in a portion of Swatara Village so affected is entitled to -45-

a timely written notice from the Association of any such proceeding or proposed acquisition and no Member or other party shall have priority over such Institutional Lender or Purchase Money Mortgagee with respect to the distribution allocable to .such portion of Swatara Village from the proceeds of any award or settlement. Section 12.9 Effect .

This Declaration shall be .binding upon the Declarant, all Members, Owners, Residents, Institutional Lenders, Purchase Money Mortgagees and their respective heirs, executors, administrators, successors, assigns, business visitors and tenants. IN WITNESS WHEREOF, Aldick Associates, Inc. has caused its.~ name to be executed and seal affixed to these presents this ~. day of May, 1993. ALDICK ASSOCIATES, INC.

BY:

C. RONALD

~~Gc.UGILL,

Pres~dent

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