WITNESSETH WHEREAS, New Braunfels River Chase is a 3, acre, more or less, residential subdivision, the Subdivision, developed by

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1 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS NBRC PROPERTY OWNERS ASSOCIATION STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COMAL COUNTY, TEXAS This Declaration is made by the NBRC Property Owners Association (NBRCPOA), hereinafter referred to as the ASSOCIATION, to be effective on the date of filing and recording by the Comal County Clerk in the official records of Comal County, Texas. WITNESSETH WHEREAS, New Braunfels River Chase is a 3, acre, more or less, residential subdivision, the Subdivision, developed by SUMMERLIN PROPERTIES INC. a Texas Corporation, as Successor of TEXAS SOUTHERLAND VENTURE, a Massachusetts Joint Venture and TEXAS SUMMERLIN CORP., as Successor of TEXAS SOUTHERLAND VENTURE, and RIVER CHASE VENTURE, LTD., a Texas Limited Partnership by SOUTHERLAND/RCR MANAGEMENT INC., a Texas Corporation, General Partner, hereinafter referred to as Developer, has completed its development activity and has transferred full authority to manage the Subdivision over to the ASSOCIATION, and WHEREAS it is desirable to simplify the Declaration of Covenants, Conditions and Restrictions (DCCRs) by removing all language referring to Developer s rights and responsibilities, and by consolidating the individual Declarations for each of ten (10) Subdivision units into a single DCCR document governing all of the Subdivision, and WHEREAS subsequent to filing the original Declarations documents there have been a number of changes to Texas State Property Code pertinent to Property Owner Associations, and the ASSOCIATION has identified, through experience, elements in the current Declaration documents that hinder effective management of the Subdivision because they are unclear or inadequate; NOW, THEREFORE, the ASSOCIATION membership declares and imposes upon River Chase the following reservations, easements, covenants, conditions and restrictions applicable thereto all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the Subdivision and which will run with the Subdivision and title or interests therein, or any part thereof, and inuring to the benefit of each owner thereof. CONTINUITY OF DECLARATIONS This Declaration shall supersede and be superior to all previous Declarations pertaining to the Subdivision, as listed herein. All business transactions (including any liens for assessment) completed, agreements entered into, property plans approved or, in general, anything approved and executed by or between ASSOCIATION, its members or the Developer under the auspices

2 of the previous Declarations shall remain in force and unchanged by this Declaration. Conversely, all unapproved transactions, agreements and buildings shall remain unapproved. All ASSOCIATION activity conducted after approval and proper filing of this Declaration shall fall under its auspices. Any substantive conflicts between the previous Declarations and this Declaration which complicate NBRPOA business transactions, agreements or development approvals pending on the effective date of this Declaration shall be resolved by the Board of Directors or Architectural Control Committee, as applicable, with all practical deference being given to the guidance established by this Declaration. The following documents, recorded in Comal County, Texas records, are hereby superseded and shall be used for reference only as they pertain to Developer and ASSOCIATION activity conducted prior to approval of this Declaration. 1. Declaration of Covenants, Conditions and Restrictions River Chase Unit One, filed and recorded as document number , 22 pages, April 19, 1999, in the Official Records of Comal County, Texas. 2. Declaration of Covenants, Conditions and Restrictions River Chase Unit Two, filed and recorded as document number , 22 pages, October 18, 1999, in the Official Records of Comal County, Texas. 3. Declaration of Covenants, Conditions and Restrictions River Chase Unit Three, filed and recorded as document number , 22 pages, November 23, 1999, in the Official Records of Comal County, Texas. 4. Annexation Declaration River Chase Unit Four Comal County, Texas, filed and recorded as document number , 3 pages, July 6, 2001, in the Official Records of Comal County, Texas. 5. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Four Comal County, Texas, filed and recorded as document number , 7 pages, July 6, 2001, in the Official Records of Comal County, Texas. 6. Annexation Declaration River Chase Unit Five Comal County, Texas, filed and recorded as document number , 3 pages, May 21, 2002, in the Official Records of Comal County, Texas. 7. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Five Comal County, Texas, filed and recorded as document number , 10 pages, May 21, 2002, in the Official Records of Comal County, Texas. 8. Annexation Declaration River Chase Unit Six Comal County, Texas, filed and recorded as document number , 2 pages, November 26, 2002, in the Official Records of Comal County, Texas. 9. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Six Comal County, Texas, filed and recorded as document number , 7 pages, November 26, 2002, in the Official Records of Comal County, Texas. Page 2

3 10. Annexation Declaration River Chase Unit Seven Comal County, Texas, filed and recorded as document number , 4 pages, November 26, 2002, in the Official Records of Comal County, Texas. 11. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Seven Comal County, Texas, filed and recorded as document number , 7 pages, May 24, 2004, in the Official Records of Comal County, Texas. 12. Annexation Declaration River Chase Unit Eight Comal County, Texas, filed and recorded as document number , 4 pages,may 6, 2005, in the Official Records of Comal County, Texas. 13. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Eight Comal County, Texas, filed and recorded as document number , 7 pages, June 6, 2005, in the Official Records of Comal County, Texas. 14. Annexation Declaration River Chase Unit Nine Comal County, Texas, filed and recorded as document number , 4 Pages, May 15, 2006, in the Official Records of Comal County, Texas. 15. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Nine Comal County, Texas, filed and recorded as document number , 8 pages, May 15, 2006, in the Official Records of Comal County, Texas. 16. Annexation Declaration River Chase Unit Ten Comal County, Texas, filed and recorded as document number , 4 Pages, January 11, 2007, in the Official Records of Comal County, Texas 17. First Amendment to Declaration of Covenants, Conditions and Restrictions River Chase Unit Ten Comal County, Texas, filed and recorded as document number , 8 pages, January 11, 2007, in the Official Records of Comal County, Texas. Page 3

4 ARTICLE I DEFINITIONS Section1.01 Adjacent Lots shall mean Lots that are contiguous on any property line and owned by the same Owner. Section 1.02 "Association" shall mean and refer to the NBRC PROPERTY OWNERS ASSOCIATION, and its successors and assigns. The Association shall consist of Members from all Units within River Chase Subdivision. It is intended that only one NBRC PROPERTY OWNERS ASSOCIATION exists for the whole of the 3, acres and for any other property hereafter subjected to these restrictions. Section 1.03 "Board of Directors" shall mean and refer to the Board of Directors (BOD) of the Association. Section 1.04 "Builders" shall mean and refer to persons or entities that purchase Lots and build speculative residential dwelling(s) thereon. Section 1.05 Common Area shall mean all real property (including the improvements thereon) within the Subdivision owned by the Association for the common use and enjoyment of the Owners. Section 1.06 "Contractor" shall mean and refer to the person or entity with whom an Owner contracts to construct a residential dwelling or other improvement on such Owner s Lot. Section 1.07 Lot shall mean and refer to any plot of land identified as a parcel or home site on the Plats of River Chase. For purposes of this instrument Lot shall not be deemed to include any portion of the "Common Areas" or "Unrestricted Reserves", (defined herein as any Common Areas and Unrestricted Reserves shown on the Plats) in River Chase, regardless of the use made of such area. Section 1.08 Maintenance Fee shall mean an annual assessment established by the Association for the purposes further defined in Article VI. Section 1.09 "Member" shall mean and refer to every person or entity who holds a membership in the Association. Membership shall consist exclusively of Owners, as defined in 1.10 and as further defined in Section 5.01 following. Section 1.10 "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot which is a part of the Subdivision, including a contract seller (a seller under a Contract for Deed), but excluding those having such interest merely as security for the performance of an obligation, and Builders. Section 1.11 Related User shall mean family members or other persons related to a Member and authorized to use Common Areas and facilities. Section 1.12 Rental Use for purposes of this Document the term rental use shall include the following types: a) Hourly Rental, Lease, or Bailment: The rental or bailment of private property or space for a period of one (1) to three (3) hours. Page 4

5 b) Daily Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of twenty-four (24) hours. c) Weekly Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of seven (7) days. d) Monthly Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of thirty (30) consecutive calendar days. e) Short Term or Seasonal Rental, Lease, or Bailment: The rental, lease, or bailment of private property or space for a period of less than ninety (90) consecutive calendar days. f) Six-month rental, Lease, or bailment. The rental, lease, or bailment of private property or space for a period of six (6) consecutive calendar months. g) Yearly Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of twelve (12) consecutive calendar months. h) In and out Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of one (1) day to eight (8) weeks where the renter only occupies the property for 3-5 consecutive or intermittent days per occupancy. i) Special Events Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space for a period of one (1) to seventy two (72) hours. j) Ghost Rental, Lease, or Bailment. The rental, lease, or bailment of private property or space in the name of another person, association, club, cult, gang, organization, or religious organization, with the intent to hide the true identity and intent of the renter or renters. k) Straw Rental, Lease, or bailment. The rental, lease, or bailment of private property or space by third party or straw person/party with the full intent to turn the property or space over to another person to hide the true identity and intent of the renter or renters. l) Bed and Breakfast. The rental, lease, or bailment of private property or space for a period of one (1) day to eight (8) weeks where the renter occupies the property and is offered or provided a meal as part of the contract. m) Motel and Hotel. The rental, lease, or bailment of private property or sleeping space for a period of time. Section 1.13 Residential as used in the phrase single-family residential purposes, shall mean to occupy a place over a substantial period such that it is permanent rather than temporary as evidenced by one s physical presence simultaneous with a then-existing intent to remain (433 rd Judicial District Court, Comal County, September 19, 2014, Cause No. C C) Section 1.14 Unit Unit(s) refers to a particular Plat of land designated on each filed map or Plat of River Chase Subdivision. ARTICLE II - RESERVATIONS, EXCEPTIONS AND DEDICATIONS Section 2.01 Recorded Subdivision Maps of the Property. The Plats of River Chase Units dedicated for use as such, subject to the limitations as set forth therein, the roads, streets and easements shown thereon. The Plats further establish certain Restrictions applicable to River Chase Units. All dedications, Restrictions and reservations created herein or shown on the Page 5

6 Plats, replats or amendment of the Plats of River Chase Units recorded or hereafter recorded shall be construed as being included in each contract, deed, or conveyance executed. Section 2.02 Easements. The original developer reserved utility easements for public use that are shown on the Plats or that have been or hereafter may be created by separate instrument recorded in the Official Public Records of Comal County, Texas, for the purpose of constructing, maintaining and repairing a system or systems of electric lighting, electric power and telephone lines, storm surface drainage, cable services, or any other public utility. All utility easements in the Subdivision may be used for the construction of drainage swales in order to provide for improved surface drainage of the Reserves, Common Area and/or Lots. Should any utility company furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, the Owners of the lots affected by the request, without the joinder of any other Owner, shall have the right to grant such easement on said lots without conflicting with the terms hereof. Any utility company serving the Subdivision shall have the right to enter upon any utility easement for the purpose of installation, repair and maintenance of their respective facilities No utility company, political subdivision or other authorized entity using the easements herein referred to shall be liable for any damages done by them or their assigns, agents, employees, or servants, to fences, shrubbery, trees, or any other property of the Owner of the property covered by said easements. However, utilities and other companies shall not leave easement areas in unfinished condition, such as open ditches, after their work is complete. Section 2.03 Title Subject to Easements. It is expressly agreed and understood that the title conveyed by the original developer, transferred by a builder or Owner to any of the Lots by deed, contract for deed or other conveyance shall be subject to any easement affecting same for roadways or drainage, electric lighting, electric power or telephone purposes and other easements hereafter granted affecting the Lots. The Owners of the respective Lots shall not be deemed to own pipes, wires, conduits or other service lines running through their Lots which are utilized for or service to other Lots, but each Lot shall have an easement in and to the aforesaid facilities as shall be necessary for the use, maintenance and enjoyment of the Lot. The Association may convey title to the above said easements to the public, or a public utility company. Section 2.04 Utility Easements. a) Utility ground and aerial easements have been dedicated in accordance with the Plat descriptions and by separate recorded easement documents. b) No building shall be located over, under, upon or across any portion of any utility easement. The Owner of each Lot shall have the right to construct, keep and maintain driveways, fences, and similar improvements across any utility easement, and shall be entitled to cross such easements at all times for purposes of gaining access to and from such Lots. However, any driveway, fence or similar improvement placed upon such utility easement by the Owner shall be constructed, maintained and used at Owner's risk. As such, the Owner of each Lot subject to said utility easements shall be responsible for (i) any and all repairs to the driveways, fences and similar improvements which cross or are located upon such utility easements and (ii) repairing any damage to said improvements caused by the Utility District or any public utility in the course of installing, operating, maintaining, repairing, or removing its facilities located within the utility easements. Page 6

7 ARTICLE III - USE RESTRICTIONS This Article III shall apply only to residential Lots within River Chase and shall not apply to Lots 525, 526, 646, and 647 in Unit Five which are hereby designated as commercial property. Lots 525, 526, 646, and 647 shall be restricted in a separate document, which restrictions shall be enforceable by the Association. All other Articles in this Declaration shall apply to all lots, whether residential or commercial. Section 3.01 Use Restrictions. All Use Restrictions shall comply with Chapter 202 of the Texas Property Code, and any amendment thereto. Section 3.02 Single Family Residential Construction. Except as provided below, no building shall be erected, altered, placed or permitted to remain on any Lot other than one dwelling unit per Lot to be used for single family residential purposes. One guest/servants house may be built provided said guest/servants house contains no less than five hundred (500) square feet of living area, no more than one-thousand (1000) square feet of living area and is built after or while the main dwelling is being built and has prior approval of the Architectural Control Committee. All primary residences shall have a garage. Detached garages and workshops may not be constructed on any Lot prior to the main dwelling being built. Storage buildings and/or barns may be constructed on the Lot prior to the main dwelling being built provided that the location of the storage building or barn is approved in writing prior to the construction thereof. The storage building and/or barn shall be placed on the Lot behind the intended dwelling site. The term "dwelling" does not include single or double wide, mobile or manufactured homes, or prefab houses regardless of whether the same are placed upon a permanent foundation, and said houses are not permitted within the Subdivision. All primary residential dwellings shall have at least one thousand eight hundred (1800) square feet of living area for one story homes and two thousand (2000) square feet of living area for two story homes, with at least one thousand (1000) square feet on the ground floor, excluding porches, and be built with new construction material. Any building, structure or improvements commenced on any Lot shall be completed as to the exterior finish and appearance within six (6) months from the commencement date. All garages, including detached garages, will be of the same general construction as the main dwelling and located on the Lot according to the approved building site plan and shall be suitable for not less than two (2) automobiles. All garage entries shall face the side or rear lot line. No carports shall be allowed. All structures permitted in this Section 3.02, including size, placement and type of construction, shall be approved in writing by the Architectural Control Committee prior to being erected, altered or placed on the Lot. Section 3.03 Composite Building Site. Any Owner of one or more Adjacent Lots may consolidate, with the prior written approval of the Architectural Control Committee, and with approval of the Comal County Commissioner's Court, if required, such Lots into one building site, with the privilege of placing or constructing improvements on such resulting site. In which case, the setback lines shall be measured from the resulting Lot lines rather than from the previous Lot lines as indicated on the Plat. Public utility and drainage easements are exempt from this provision. Section 3.04 Location of the Improvements upon the Lot. No building of any kind shall be located on any Lot nearer its boundaries than provided herein: a) for River Chase Units One (1) through Three (3), no nearer than forty feet (40') to a side Lot line, or seventy-five feet (75') to a front or rear Lot line. Page 7

8 b) for River Chase Units Four (4) through Ten (10), no nearer than twenty feet (20 ) to a side Lot line, or twenty-five (25 ) to the side Lot line, if such Lot line faces a street, or sixty feet (60 ) to a front or rear Lot line. c) On any corner Lot, in River Chase Units Five (5) through Ten (10), the front Lot line shall be defined as the shortest Lot line adjacent to a street. On such a corner Lot, the house may, with the approval of the Architectural Control Committee, face the side Lot line adjacent to a street, in which case the setback from the said Lot line adjacent to the street shall be forty feet (40 ). The Architectural Control Committee may waive or alter any such setback line, if in the exercise of the Committee's sole discretion, it determines such waiver, or alteration is necessary to permit effective utilization of a Lot. Any such waiver or alteration shall be in writing and recorded in the Official Public Records of Comal County, Texas. All dwellings placed on any Lot shall be equipped with a Class I Aerobic Septic Tank System that meets all applicable laws, rules, standards and specifications, and all such dwellings shall be served with water and electricity. Section 3.05 Use of Temporary Structures. No structure of a temporary character, whether trailer, motor home, basement, shack, garage, barn or other outbuilding shall be maintained or used on any Lot at any time as a residence, except as provided below. No Lot shall be used as a camping ground. A property owner may use Recreational Vehicle (RV) (truck-based camper, trailer, or motor home) as his/her temporary residence for up to six (6) months during construction provided that all RV waste is disposed of in an approved facility and the RV is placed behind the construction site. After the dwelling is complete an RV may be stored on the Lot provided it is stored in compliance with Section 3.18 of these Restrictions. The BOD shall have the right to pursue remedies provided in Section 7.10 for any RV found to be in violation of these Restrictions and ultimately to have the RV removed and stored at the expense of the owner. For these purposes the representative of the BOD is granted express written consent to remove the RV without penalty or offense. Section 3.06 Construction in Place. All dwellings constructed on the Property shall be built in place on the applicable Lot. The use of prefabricated materials for any improvements, including but not limited to fences, shall be allowed only with the prior written approval of the Architectural Control Committee. Section 3.07 Color. All exterior color schemes on any structure shall be approved by the Architectural Control Committee prior to use. Section 3.08 Masonry. The exterior walls of the main residence constructed on any lot shall be at least seventy-five percent (75%) masonry or masonry veneer, inclusive of door, window and similar openings. However, all exterior walls exposed to view from the front property line shall be constructed of no less than seventy-five percent (75%) masonry or masonry veneer exclusive of all door, window or similar openings. Masonry and Masonry veneer includes stucco, ceramic tile, clay, brick, rock and all other materials commonly referred to in the New Braunfels, Texas area as masonry. However, log houses not meeting the above masonry requirements may be allowed with the prior written approval of the Architectural Control Committee. Section 3.09 Roofing Materials. The roof surface of all principal and secondary structures including garages and domestic living quarters shall be of slate, stone, concrete tile, clay tile, or Page 8

9 other tile of a ceramic nature, composition shingles with a twenty-five (25) year or more warranty; or they may be metal, left natural or painted a color approved by the Architectural Control Committee, using standing or battened seams or shingles that have solar generation capabilities, that are resistant to wind damage, or improve heating and cooling efficiency as provided in the Texas Property Code. The Architectural Control Committee shall have the authority and sole discretion to approve other roof treatments and materials. Section 3.10 Model Homes. Builders shall be allowed to construct model homes as long as such model homes conform to these Restrictions. Section 3.11 Repair of Buildings. All improvements upon any Lot shall at all times be kept in good condition and repair and adequately painted or otherwise maintained by the owner. Section 3.12 Alteration or Removal of Improvements. Any construction, other than normal maintenance, which alters the exterior appearance of any improvement, or the removal of any improvement, shall be performed only with the prior written approval of the Architectural Control Committee. Section 3.13 Walls, Fences, and Mail Boxes. Walls and fences, if any, shall be approved prior to construction by the Architectural Control Committee and, unless otherwise permitted shall be built of new material and constructed of wood, metal, masonry, masonry veneer, smooth wire or barbed wire. Electric wire shall not be permitted; chain link fencing may be used per Section 3.20 only. All wooden fences shall be painted or stained and the color shall be approved by the Architectural Control Committee. All individual mail boxes (if approved in the future by the postal department) shall be of masonry construction and approved by the Architectural Control Committee. Section 3.14 Antennas, Towers, and Satellite Dishes. To the extent permitted by federal law (i.e., OTARD, 47 C.F.R. Section ), antennas, towers, or satellite dishes of any kind shall not exceed ten (10) feet above the roof of the dwelling or other building whichever is higher. Any antenna, tower, or satellite dish shall be located to the side or rear of the dwelling or accessory building, and within all building setback Restrictions provided in Section Nothing herein shall be construed to conflict with the latest rules and regulations set forth by the Federal Communications Commission. Section 3.15 Prohibition of Offensive Activities. No activity, whether for profit or not, shall be conducted on any Lot which is not related to single family residential purposes, unless said activity meets the following criteria: (a) no additional exterior sign of activity is present, (b) no additional traffic, that would not be there normally, is created, and (c) nothing dangerous is present that should not be there. Home offices are specifically allowed as long as they meet the requirements of (a), (b) and (c) above. Further, this restriction is waived in regard to the customary sales activities required to sell homes in the Subdivision. The discharge or use of firearms is expressly prohibited. Hunting is expressly prohibited. The Association shall have the sole and absolute discretion to determine what constitutes a nuisance or annoyance, and any such nuisance or annoyance shall not be allowed within the Subdivision. Page 9

10 Section 3.16 Rental Use of Residential Property. Property owners may rent, lease or bail their residence for use consistent with residential use as defined herein. Such property owners shall not rent, lease, or bail their property for periods shorter than the short term or seasonal rental period as defined herein, and consistent with the restrictions cited below. a) Any allowed rental, lease, or bailment for whatever duration shall not contain any provision for sublet clauses that allow (1) hourly rental, lease, or bailment, (2) daily rental, lease, or bailment, (3) weekly rental, lease, or bailment, (4) monthly rental, lease, or bailment. b) In addition, (1) ghost rental, lease, or bailment, (2) straw rental, lease, or bailment, and (3) bed and breakfast, motel, hotel, and daily rental business activities are all expressly prohibited. Section 3.17 Garbage and Trash Disposal. Garbage and trash or other refuse shall not be permitted to be dumped at any place within this Subdivision, including all common areas. Trash, garbage or other waste shall not be allowed to accumulate, shall be kept in sanitary containers and shall be disposed of regularly. All equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition. No Lot shall be used as a depository for abandoned or junked motor vehicles. No refuse of any kind or character shall be kept on any Lot. In the event of the failure of an Owner to comply with the above requirements after ten (10) days written notice thereof, the Association or its agents may, without liability, in trespass or otherwise, remove or cause to be removed, such garbage, trash and rubbish, or junked motor vehicles, or take such legal action as necessary to secure compliance with this Declaration at the expense of the Owner. Payment for the charges by such Owner shall be payable on the first day of the next calendar month. Section 3.18 Trailers, RVs. Boats. All recreational vehicles (RV's), graders, trucks (other than pickups of a size one (1) ton or less), boats, tractors, wagons, utility trailers, buses, and lawn or garden maintenance equipment shall be kept at all times, except when in use (not to exceed one (1) week), in enclosed structures or screened from view from common areas, public or private thoroughfares and adjacent properties. An RV belonging to a guest visiting Owners are considered in use and may be parked on the Owner s Lot, not to exceed one (1) week every 3 months without approval of the BOD. The RV shall be located as far as practical from the street and adjacent Lots during the guest s visit. Section 3.19 Signs. Other than for political signs which meet the provisions for exemption under Section , Texas Property Code, no signs, advertising, billboards or advertising structure of any kind may be erected or maintained on any Lot without the consent in writing of the Architectural Control Committee. However, the Architectural Control Committee shall allow: a) one (1) professionally made sign not more than twenty-four inches (24") by thirty inches (30") advertising Owner's Lot for sale or rent, and b) one (1) professionally made sign, not more than twelve inches (12") by twenty-four inches (24") identifying the Lot owner's name or names and/or address. c) Further, Home Builders shall be allowed to place one professionally made sign, no larger than four feet by four feet (4 x 4 ), which is preapproved by the Architectural Control Committee, on the Lot on which the house is being built. Page 10

11 The term "professionally made sign" does include the plastic pre-made "for sale" or "for rent" signs. No sign shall be nailed to a tree. The BOD shall have the authority to enforce the provisions of this Section by the means provided in Section Section 3.20 Animal Husbandry. No animals, livestock or poultry of any kind shall be raised, bred or kept on any Lot except that in River Chase Units One (1) through Ten (10) one (1) horse may be kept per every two and one half (2 ½) contiguous acres, as long as it does not become a nuisance or threat to other Owners. Provided, however, animals being raised for 4-H or school sponsored programs will be allowed. No pigs or hogs will be allowed under any circumstances or programs. All horses, cows and 4-H or school sponsored animals being raised by individual Lot owners shall be kept in a fenced area on the Owner's Lot. No overgrazing is allowed on any portion of the Lot. Dogs, cats, or other common household pets may be kept on a Lot. Dogs shall be kept in a kennel, dog run, or fenced in area that confines said dog(s) to that area, and for these purposes chain link fencing shall be allowed provided, however, no such fenced in area shall be located adjacent to any side, front or rear boundary line. Dogs will not be allowed to run loose in the Subdivision and shall be vaccinated for rabies according to State law and registered with Comal County in compliance with County regulations. Section 3.21 Mineral Development. No commercial oil drilling, oil development operations, oil refining, quarrying or mining operation of any kind shall be permitted upon or in any Lot. No derrick or other structures designed for the use of boring for oil or natural gas shall be erected, maintained or permitted upon any Lot. Section 3.22 Drainage. Natural established drainage patterns of streets, Lots or roadway ditches shall not be impaired by any person or persons. Where required, driveway culverts shall be installed and will be of sufficient size to afford proper drainage of ditches without backing water up into the ditch or diverting flow. Drainage culvert installation is subject to County requirements. Section 3.23 Re-subdivision. Except as provided below or as otherwise permitted in these Restrictions, no Lot shall be re-subdivided or split. Lots may be combined into one Lot for building purposes and the interior common boundary line shall be extinguished by filing a recordable document of record, joined by the Architectural Control Committee or its duly authorized representative, declaring the same to be extinguished. Thereafter, all set back lines shall refer to the exterior property lines. Public utility and drainage easements are exempt from this provision. Section 3.24 Underground Utilities. All utilities within the Subdivision Units four (4) through ten (10) shall be underground. No utility lines including, but not limited to, wires or other devices for the communication or transmission of telephone or electric current or power, or cable services shall be erected, placed or maintained anywhere in or upon any portion of the these Units unless the same shall be contained in conduit or cables installed and maintained underground or concealed in, under or on buildings or other improvements. No provision of this Declaration shall be deemed to forbid the erection of temporary power or telephone structures incident to the construction of buildings or other improvements which have been previously approved by the Architectural Control Committee. The Architectural Control Committee shall have no liability for either reviewing or not reviewing the installation method, or for approval or disapproval of the same. The responsibility for installation shall be solely upon the Owner or the Owner s agents. All such installation shall be by experienced professionals. Page 11

12 Section 3.25 Adjacent Lots. With approval of the Architectural Control Committee, an Owner may construct, within the required setbacks, on an adjacent Lot any building, structure, or other improvement customarily appurtenant to a residence (Texas Property Code A). Should an adjacent Lot be used for such residential purposes the requirements of Property Code shall be followed upon the sale or transfer of the lot containing the residence. ARTICLE IV - ARCHITECTURAL CONTROL COMMITTEE Section 4.01 Basic Control. a) No building or other improvement as described herein shall be commenced on any Lot in the Subdivision prior to obtaining approval in writing from the Architectural Control Committee (ACC). Any changes in the approved design during construction shall also require approval prior to implementation. Any exterior alterations (excluding any staining, painting or siding without color change), or demolition or destruction by voluntary action made after original construction, on any Lot in the Subdivision, shall require prior approval of the construction plans and specifications before beginning the alterations or demolition. Approval shall be granted or withheld by the ACC based solely on matters of compliance with the provisions of this instrument. b) Each application made pursuant to the requirements of 4.01(a) above shall be accompanied by plans and specifications as required by the ACC for all proposed construction (initial or alteration) to be done on such Lot including plot plans showing location on the Lot. Such plans shall demonstrate that all requirements specified in this Declaration are met. Section 4.02 Architectural Control Committee. a) The authority to grant or withhold architectural control approval of applications is vested in and exercised by the ACC, a committee acting under the authority of BOD. The ACC shall be composed of Members of the Association. b) There shall be three (3) voting members of the ACC, selected via a procedure specified in the By-Laws. ACC members shall be selected for three (3) year terms staggered such that a majority of the terms shall not expire within the same year. A voting member shall serve no more than two (2) terms, which shall be served nonconsecutively. The voting members may from time to time designate nonvoting associate members to serve in an assisting capacity. An ACC vacancy shall be filled by the BOD with the appointee to fulfill the unexpired term of the vacancy. A member, voting or associate, of the ACC may be removed with or without cause by the BOD. Section 4.03 Effect of Inaction. Approval or disapproval of architectural control matters as set forth in the preceding provisions of this Declaration shall be in writing. In the event that the ACC fails to approve or disapprove in writing any plans and specifications and plot plans received by it in compliance with the preceding provisions within thirty (30) days following completed submissions, such plans and specifications and plot plan shall be deemed approved. Section 4.04 Effect of Approval. The granting of approval (whether in writing or by lapse of time) shall constitute only an expression of opinion by the ACC that the terms and provisions hereof shall be complied with if the building and/or other improvements are completed in accordance with said plans and specifications and plot plan. Such approval shall not constitute any nature of waiver or estoppel either as to the persons expressing such approval or any other Page 12

13 person in the event that such building and/or improvements are not constructed in accordance with such plans and specifications and plot plan, but, nevertheless, fail to comply with the provisions hereof. Further, no person exercising any prerogative of approval or disapproval shall incur any liability by reasons of the good faith exercise thereof. Section 4.05 Variance. The ACC may authorize variances from compliance with any of the construction provisions of this Declaration when circumstances such as topography, natural obstructions, Lot configuration, Lot size, hardship, aesthetic or environmental considerations require a variance. The ACC reserves the right to grant variances as to building set-back lines as long as such variance does not encroach on the utility easements. Such variances shall be evidenced in writing and shall become effective when signed by at least a majority of the voting members of the ACC. If any such variances are granted, no violation of the provisions of this Declaration shall be deemed to have occurred with respect to the matter for which the variance is granted. However, the granting of a variance shall not operate to waive any of the provisions of this Declaration for any other purpose or Lot. The granting of any variance shall not affect in any way the Owner's obligation to comply with all governmental laws and regulations affecting the Lot concerned and the Plat. Section 4.06 Appeal. At its first meeting following the annual meeting of the NBCPOA, the BOD shall appoint an independent Appeals Committee to serve for one (1) year. In the event an Owner is not able to reach agreement with the ACC, the Owner may submit a written request for review to the Appeals Committee. Additionally, the Owner may present the case to the Appeals Committee in person. The Appeals Committee shall review all associated documents, including the written appeal from the Owner within 30 days of receipt of the appeal. The Appeals Committee shall report its findings to the ACC, the BOD, and the Owner within 3 days of making a decision. If agreement between the ACC and Owner is not reached after this appeals process, the Owner may submit an appeal to the BOD who shall provide a final decision on the matter. The appeals committee shall review all associated documents, including the Declarations and Member s written appeal, and use sound judgment, common sense, and consideration of the community environment in their review. Their report shall cite all applicable requirements. ARTICLE V - NBRC PROPERTY OWNERS ASSOCIATION Section 5.01 Membership. Every person or entity who is a record Owner of any Lot which is subject to the Maintenance Fee (or could be following the withdrawal of an exemption and other assessments provided herein), shall be a Member of the Association. The foregoing is not intended to include persons or entities that hold an interest merely as security for the performance of an obligation or those having only an interest in the mineral estate. No Owner shall have more than one membership for each Lot owned. Memberships shall be appurtenant to and may not be separated from the ownership of the Lots, regardless of the number of persons who may own a Lot (such as husband and wife, or joint tenants, etc.); there shall be but one membership for each Lot. Ownership of one or more River Chase Lots shall be the sole qualification for membership. Section 5.02 Non-Profit Corporation. NBRC PROPERTY OWNERS ASSOCIATION, a nonprofit corporation, has been organized and shall be governed by the Articles of Incorporation, this Declaration, and the Bylaws of said Association. All duties, obligations, benefits, liens and rights hereunder in favor of the Association shall vest in said corporation. However, the Restrictive covenants will not be construed as to assess the Veterans Land Board or the State Page 13

14 of Texas. Any assessments are the personal obligation of the Veteran purchaser, his successors, heirs and assigns. Any lien imposed by the restrictive covenants does not affect the Veterans Land Board's interest in the property. Section 5.03 Bylaws. The Association has adopted or may adopt whatever Bylaws it may choose to govern the organization or operation of the Subdivision and the use and enjoyment of the Lots and Common Areas, provided that the same are not in conflict with the terms and provisions of this Declaration. Section 5.04 Owner s Right of Enjoyment. Every Owner shall have a beneficial interest of use and enjoyment of the Common Areas and such right shall be appurtenant to and shall pass with the title to every assessed Lot, subject to the following provisions: a) the right of the Association, with respect to the Common Areas, to limit the number of guests of Owners; b) the right of the Association, in accordance with its Articles and Bylaws to: i) borrow money for the purpose of improving and maintaining the Common Areas and facilities and ii) mortgage said Property. However, the rights of such mortgage of said Property shall be subordinate to the rights of the Owners hereunder; c) the right of the Association, in accordance with Chapter 209 of the Texas Property Code or any amendment thereto, to suspend the Member s and Related Users right to use any recreational facilities within the Common Areas during any period in which the Maintenance Fee or any assessment against the Owner s Lot remains unpaid; d) the right of the Association in accordance with Chapter 209 of the Texas Property Code or any amendment thereto, to suspend the Member's and Related Users' right to use any recreational facilities within the Common Areas, after notice and hearing by the BOD, for the infraction or violation by such Member or Related Users of this Declaration or the Rules and Regulations, as hereinafter provided for in Section 7.09, which suspension shall continue for the duration of such infraction or violation, plus a period not to exceed sixty (60) days following the cessation or curing of such infraction or violation. ARTICLE VI - MAINTENANCE FEE AND OTHER ASSESSMENTS Section 6.01 Maintenance Fund Fee Obligation. Each Owner of a Lot by acceptance of a deed whether or not it shall be expressed in any such deed or other conveyance, agrees to pay to the Association an annual Maintenance Fee and any other assessments or charges herein levied. The Maintenance Fee and any other assessments or charges herein levied, together with such interest thereon and costs of collection thereof if not timely paid, as hereinafter provided, shall be a charge on the associated Lot or Lots and shall become a continuing lien upon the Property against which each such Maintenance Fee and other charges and assessments are made. Section 6.02 Purpose of the Maintenance Fee. The Maintenance Fee levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety, and welfare of the Owners of the Association. In particular, the Maintenance Fee shall be used for any improvement or services in furtherance of these purposes and the performance of the Association's duties described in Article VII, including the maintenance of any Common Areas, any drainage easements and the establishment and maintenance of a reserve fund for maintenance of any Common Areas. The Maintenance Fee may be expended by the Page 14

15 Association for any purposes which, in the judgment of the Association, will tend to maintain the property values in the Subdivision, including, but not limited to, providing funds for the actual cost to the Association of all taxes, insurance, repairs, energy charges, replacement and maintenance of the Common Areas as may from time to time be authorized by the Association. Except for the Association's use of the Maintenance Fee to perform its duties described in this Declaration and in the Bylaws, the use of the Maintenance Fee for any of these purposes is permissive and not mandatory. It is understood that the judgment of the Association as to the expenditure of said funds shall be final and conclusive so long as such judgment is exercised in good faith. Section 6.03 Special Assessments. The BOD may from time to time levy one-time Special Assessments if, when acting in the best interests of the Association, it determines that a valid need exists. Special Assessments are separate from and do not impact the amount of the Maintenance Fee. All Special Assessments must be approved by a vote of the Association membership as specified below: a) Special Assessments of $50.00 per Lot or less, and an imminent need exists can be requested by the Board for a vote of the membership at a duly called meeting having a quorum of at least 15% of the voting Members present. A vote of sixty six percent (66%) plus one (1) of the Members who vote, either in person, by absentee ballot, or by proxy presented at the meeting, shall be required to pass the Assessment. An imminent need exists when: i) the total dollar value required to address the need exceeds reserve or trust accounts available, or ii) when eighty percent (80%) of the applicable trust fund has already been allocated to or spent on the need, and iii) urgency requires timely action. b) Special Assessments greater than $50.00 per Lot can be requested by the Board at a duly called special or regular membership meeting, or by mail vote as provided herein. The vote, in person, by absentee ballot, or by proxy, will be deemed approved when sixty six percent (66%) plus one (1) of all Association Members votes in favor of the requested assessment. Section 6.04 Handling of Maintenance Fees and Other Assessments. (a) The collection and management of the Maintenance Fee and any other charge or assessment levied hereunder, shall be performed by the Association. The Association shall maintain separate accounting for these funds, and Owners shall be provided information on all funds at least annually. (b) The Maintenance Fee for the year in which an Owner purchases a Lot shall be prorated by month at closing and then shall be paid annually, in advance, on or before the first day of the first month of each calendar year. Provided, however, if such Owner owns more than one Lot in the Subdivision, such Owner shall pay only twice the assessment of one (1) Lot no matter how many Lots are owned. In the event said Owner obtains consent from the ACC for a Composite Building site pursuant to Section 3.03, such Composite Building Site shall be considered for the Maintenance Fee as one Lot beginning on the completion of the improvements thereon. Page 15

16 Section 6.05 The Maintenance Fee. (a) The Maintenance Fee is due in advance, payable on January 1 of each year, applicable to each lot. All other matters relating to the Maintenance Fee and the collection, expenditures and administration of the Maintenance Fee shall be determined by the BOD, subject to the provisions hereof. (b) The Association shall have the further right at any time, with a majority vote of all Association Members, to adjust or alter said Maintenance Fee from year to year as it deems proper to meet the reasonable operating expenses and reserve requirements of the Association in order for the Association to carry out its duties hereunder. (See End Note No. 1) Section 6.06 Creation of Lien and Personal Obligation. In order to secure the payment of the Maintenance Fee, and other charges and assessments hereby levied, each Owner of a Lot in the Subdivision, by such party's acceptance of a deed thereto, hereby grants to the Association authority to establish a lien on an Owner s Lot or Lots, on which Assessments are due. Such lien may be foreclosed on by non-judicial foreclosure, pursuant to the provisions of Sections and of the Texas Property Code (and any successor statute). Each such Owner hereby expressly grants the Association a power of sale in connection therewith. The Association shall, whenever it proceeds with non-judicial foreclosure pursuant to the provisions of said Sections of the Texas Property Code and said power of sale, designate in writing a Trustee to post or cause to be posted all required notices of such foreclosure sale and to conduct such foreclosure sale. The Trustee may be changed at any time and from time to time by the Association by means of written instrument executed by the President or any Vice- President of the Association and filed for record in the Official Public Records of Comal County, Texas. In the event that the Association has determined to non-judicially foreclose the lien provided herein pursuant to the provisions of said Sections and of the Texas Property Code and to exercise the power of sale hereby granted, the Association, or the Association's agent, shall give notice of foreclosure sale as provided by the Texas Property Code as then amended. Upon request by the Association, the Trustee shall give any further notice of foreclosure sale as may be required by the Texas Property Code as then amended, and shall convey such Lot to the highest bidder for cash by a General Warranty Deed. Out of the proceeds of such sale, if any, there shall first be paid all expenses incurred by the Association in connection with such default, including reasonable attorney's fees and a reasonable trustee's fee; second, from such proceeds there shall be paid to the Association an amount equal to the amount in default; and third, the remaining balance shall be paid to such Owner. Following any such foreclosure, each occupant of any such Lot foreclosed on and each occupant of any improvements thereon shall be deemed to be a tenant at sufferance and may be removed from possession by any and all lawful means, including a judgment for possession in action of forcible detainer and the issuance of a writ of restitution thereunder. In the event of non-payment by any Owner of any Maintenance Fee or other charge or assessment levied hereunder, the Association may, in addition to foreclosing the lien hereby retained, and exercising the remedies provided herein, upon ten (10) days prior written notice thereof to such non-paying Owner, exercise all other rights and remedies available at law or in equity. Notwithstanding anything herein to the contrary, the lien for assessments established in the original DCCRS, as listed hereinabove, is hereby ratified, carried forward and extended. Page 16