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<br />and may, but shall not be required to, give a general warranty of title to such purchaser or purchasers
<br />binding upon the Owner or Owners of such Tract and all Improvements thereon and their heirs, executors,
<br />administrators, successors and assigns. The Agent shall give notice of such proposed sale by posting a
<br />written notice of time, place and terms of the sale for at least twenty-one (21) consecutive days preceding
<br />the date of sale at the Courthouse door of Harris County, Texas, by filing such notice with the County
<br />Clerk of Harris County, Texas, at least twenty-one (21) consecutive days preceding the date of sale, and,
<br />in addition, the Agent shall serve written notice at least twenty-one (21) days preceding the date of sale by
<br />certified mail on each debtor obligated to pay the debt according to the records of the Association of such
<br />sale and the notice thereof shall comply with the provisions of Section 51.002 ofthe Texas Property Code,
<br />as it may be amended from time to time. Service of such notice shall be completed upon deposit of the
<br />notice in the United States mail, properly addressed to such debtor obligated to pay the debt at the most
<br />recent address as shown by the records of the Association. The affidavit of any person having knowledge
<br />of the facts to the effect that such service was completed shall be prima facie evidence of the fact of such
<br />service. If any change in Texas law occurs subsequent to the date hereof, this paragraph A of Article 8
<br />shall be amended to comply with such change in Texas law.
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<br />At any foreclosure, judicial or non-judicial, the Association shall be entitled to bid up to the amount
<br />of the sum secured by its lien, together with costs and attorney's fees, and to apply as a cash credit
<br />against its bid all sums due to the Association covered by the lien foreclosed. Out of the proceeds of such
<br />sale, there shall first be paid all expenses incurred by the Association in connection with such sale,
<br />including reasonable attorneys' fee and reasonable trustees' fees; second, from such proceeds there
<br />shall be paid to the Association an amount equal to the amount in default, plus interest thereon; and, third,
<br />the remaining balance shall be paid to such Owner and/or such Owner's mortgagee. From and after any
<br />such foreclosure, the occupants of such Tract shall be required to pay a reasonable rent for the use of
<br />such Tract and such occupancy shall constitute a tenancy-at-sufferance, and the purchaser at such
<br />foreclosure sale shall be entitled to the appointment of a receiver to collect such rents and further, shall
<br />be entitled to sue for recovery of possession of such Tract by forcible detainer without further notice.
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<br />B. Purpose of Assessments. The Assessments levied by the Board shall be used exclusively
<br />for the purpose of: (i) the operating costs and expenses of the Association; (ii) the payment of all
<br />organization costs and attorney fees incurred by the Association in connection with the enforcement of
<br />this Declaration, including, without limitation, enforcement of parking restrictions; (iii) the maintenance,
<br />replacement and repair of any Private Streets and any Improvements located within the Private Streets
<br />(but not the initial construction of the Private Streets); (iv) the establishment and maintenance of capital
<br />and operating reserves that the Board determines to be necessary and desirable; (v) the payment of any
<br />ad valorem or other taxes due on any property owned by the Association; (vi) the payment of any costs or
<br />expenses incurred with respect to the provision of any facilities and services related to the Private Streets
<br />and other portions of the Subject Property determined to be necessary by the Board; (viii) street lighting,
<br />street sweeping and street maintenance of any private streets in the Subject Property and maintenance of
<br />entry markers, greenbelts, signs, detention ponds, retention areas, esplanades and landscape reserves
<br />and other common areas owned by the Association or dedicated to a governmental entity; (viii) planting,
<br />landscaping, watering, irrigation, mowing, tree surgery and general upkeep and maintenance of plants or
<br />landscaped areas of the common areas owned by the Association; (viii) reimbursement of reasonable and
<br />customary costs and expenses of the Association in connection with its operation and management and
<br />administration of this Declaration (including, but not limited to, common engagement of third party
<br />architects, engineers, attorneys, accountants, managers and other consultants in connection with the
<br />administration of this Declaration) and such other non-capital items of expenses as may be deemed by
<br />the Association, in its discretion and in good faith, to be necessary or desirable for the carrying out of this
<br />Declaration; and (ix) promotion of the recreation, health, and safety (including, without limitation, security
<br />patrols and other security measures if deemed necessary by the Association; provided however, that the
<br />Association shall not be obligated to provide security patrols or other security measures and the provision
<br />of any security measure does not guarantee the safety of any Owners, employees, guests, contractors or
<br />invitees or that the property of any Owner, guest, contractor or invitee will not be damaged, vandalized or
<br />stolen) and the general welfare of the Owners and lessees the Subject Property.
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<br />C. Maintenance Fund. The Assessments collected by the Association shall be paid into a
<br />maintenance fund (the "Maintenance Fund") and shall be held, managed, invested and expended by the
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<br />H-Final Version of Declaration of Protective Covenants and Easements(620880_ 4).DOC 12
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