Palmetto's CCR's...ie "The Rules"

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR PALMETTO BAY PLANTATION

This DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR PALMETTO BAY PLANTATION (“CC&Rs”) amends and restates as of this 1st day of October, 2008 the prior CC&Rs and implements and supplements the STATUTES OF THE COMMITTEE OF NEIGHBORS OF PALMETTO BAY PLANTATION (“Statutes”). To the extent that this Declaration is inconsistent with the Statutes, the provisions of the Statutes shall govern.

TABLE OF CONTENTS

ARTICLE 1 - GENERAL 4
1.1 Parties. 4
1.2 Purpose of Declaration. 4
1.3 Declaration. 4
1.4 Repeal of Prior Declarations 4
ARTICLE 2 – DEFINITIONS 5
2.1 Assessment. 5
2.2 Association. 5
2.3 Association Properties. 5
2.4 Budget. 5
2.5 Common Assessment. 5
2.6 Condominium Site. 5
2.7 Declaration. 5
2.8 Design Review Committee. 6
2.9 Facilities. 6
2.10 Improvement, Improve. 6
2.11 Owner. 6
2.12 Person. 6
2.13 Reimbursement Assessment. 6
2.14 Site. 7
2.15 Statutes. 7
2.16 Special Assessment. 7
2.17 Villa Lots. 7
TICLE 3 - GENERAL RESTRICTIONS 7
3.1 Maintenance of Palmetto Bay. 7
3.2 Property Uses. 8
3.3 Construction Type. 8
3.4 No Noxious or Offensive Activity. 8
3.5 Annoying Sounds or Odors. 8
3.6 Generators 8
3.7 Hazardous Activities. 8
3.8 Unsightliness. 9
3.9 Weeds. 9
3.10 Garbage and Trash. 9
3.11 Animals. 9
3.12 Temporary Structures. 9
3.13 Antennae. Pipes. Utility Lines. Transmitters and External Lighting. 9
3.14 Signs and Advertising. 10
3.15 Mining or Drilling. 10
3.16 Maintenance of Drainage. 10
3.17 Subdivision and Consolidation of Sites. 10
3.18 Sewage Disposal Systems. 10
3.19 Water Wells. 10
3.20 Restoration in the Event of Damage or Destruction. 10
3.21 Storage. 11
3.22 Storage of Gasoline and Explosives, etc. 11
3.23 Trailers. Campers and Vehicles. 11
3 .24 Air Conditioning and Heating Equipment. 11
3.25 Villa Lots Size. 11
3.26 Condominium Site Size, Density. 11
3.27 Trees 12
3.28 Beach Reserve. 12
3.29 Watering or Irrigation of Sites. 12
3.30 Water, Electricity, and Telephone. 12
3.31 Bird Sanctuary. 12
3.32 Tropical Forest Preserves. 12
3.35 Notification of Renters and Lessees. 13
ARTICLE 4 - ARCHITECTURAL APPROVAL 13
4.1 Membership of Design Review Committee. 13
4.2 Approval of Improvements Required. 13
4.3 Submission of Plans. 13
4.4 Criteria for Approval. 13
4.5 Design Standards. 14
4. 6 Decision of Design Review Committee. 14
4.7 Completion of Work After Approval. 15
4.8 Notice of Noncompliance. 15
4.9 Correction of Noncompliance. 15
4.10 Nonliability for Committee Action. 15
ARTICLE 5 - ASSOCIATION PROPERTIES 16
5.1 Association as Successor Owner 16
5.2 Owners’ Rights of Use and Enjoyment Generally. 16
5.3 No Partition of Association Properties. 16
5.4 Easement for Encroachment, Maintenance of Association Properties. 16
5.5 Conveyance to Association of Common Areas 16
ARTICLE 6 - ASSOCIATION OPERATION 16
6 .1 Association. 16
6.2 Association Board of Directors. 16
6.3 Voting Rights of Owners. 16
ARTICLE 7 - DUTIES AND POWERS OF ASSOCIATION 17
7.1 General Duties and Powers of Association. 17
ARTICLE 8 - ASSESSMENTS 17
8.1 Obligation and Lien for Assessments. 17
8.2 Allocation of Assessments/Working Capital. 17
8.3 Common Assessments. 17
8.4 Supplemental Assessments. 17
8.5 Payment of Assessments. 17
8.6 Annual Budgets. 18
8.7 Special Assessments for Capital Expenditures. 18
8.8 Reimbursement Assessments. 18
8.9 Late Charges and Interest 18
8.10 Notice of Default and Acceleration of Assessments. 19
8.11 Remedies to Enforce Assessment. 19
ARTICLE 9 – PENALTIES 19
9.1 Monetary Penalty. 19
9.2 Violations by Renters or Lessees. 19
ARTICLE 10 - MISCELLANEOUS 20
10.1 Term of Declaration. 20
10.2 Amendment of Declaration by Members. 20
10.4 Notification of Provisions of This Declaration 20
10.6 Recorded Easements. 20
10.7 Articles of Incorporation Governing; Retroactivity. 21
10.8 Severability. 21
EXHIBIT A – MAPS OF PALMETTO BAY PLANTATION 24

ARTICLE 1 - GENERAL

1.1 Parties.
The parties hereto (“Parties”) are severally the owners of approximately 109.39 acres of Palmetto Bay Village located at Palmetto Bay, Roatan Island, Department of the Bay Islands, Republic of Honduras as described on Exhibit A, attached hereto (“Palmetto Bay”). Palmetto Bay, including any property which may be added to Palmetto Bay by the Parties, is a resort community of single family homes, a condominium site, and a commercial area for a restaurant, dive shop and resort offices, as well common areas consisting of a Beach Reserve, a Bird Sanctuary, Tropical Forest Preserves, parking areas, a pool area, a dock, access paths, walkways and internal roads (“Common Property”). Palmetto Bay Condominium Development Company (“Palmetto Co.”) is the assignee of the original developer of Palmetto Bay and is currently engaged in subdividing and selling property there,
1.2 Purpose of Declaration.
This Declaration is executed as part of a common plan to protect and enhance the quality, value, and attractiveness of Palmetto Bay; to provide for an Association to hold and manage Association Properties; and to define certain duties and rights of Owners of Sites within Palmetto Bay. It constitutes the Bylaws called for by the “STATUTES OF THE COMMITTEE OF NEIGHBORS OF PALMETTO BAY.”

1.3 Declaration.
The Parties, for themselves, their successors and assigns, hereby declare that all properties constituting Palmetto Bay and all other property which becomes subject to this Declaration and each part thereof, shall be owned, transferred, sold, leased, encumbered, used, and maintained, subject to the provisions of this Declaration.
1.4 Amendment of Prior Declarations
The Fourth Amended Declaration of the Covenants, Conditions, Restrictions and Easements for the Village at Palmetto Bay Plantation and its predecessors is hereby amended pursuant to Section 11.2 thereof. Pursuant to Section 12(b) of the Beach Front Homeowners Declaration, said declaration is hereby terminated and replaced by this Declaration.

ARTICLE 2 – DEFINITIONS
2.1 Assessment.
“Assessment” shall mean a Common Assessment, Special Assessment, or a Reimbursement Assessment.
2.2 Association.
“Association” shall mean the Committee of Neighbors of Palmetto Bay Plantation, a Honduras non-profit corporation, its successors and assigns, as established by the Statutes.
2.3 Association Properties.
“Association Properties” shall mean all the real or personal property that has been conveyed to the Association and that will be conveyed to the Association, to be used and enjoyed by the Owners, including, but not limited to, internal roads, paths and walkways; landscaped areas along roads; Beach Reserve, Bird Sanctuary, Tropical Forest Preserves; electric, water and television cable systems; non-exclusive Parking Areas, easements or rights of ways over external roads, a dock, a pool, the sewer system, electrical distribution, and the gatehouse. Association Properties include, but are not limited to, those depicted on Exhibit A. They do not include the restaurant or above-grade constructed spaces surrounding it.
2.4 Budget.
“Budget” shall mean a written itemized estimate of the expenses to be incurred by the Association in performing its functions under this Declaration and prepared pursuant to Section 8.6 of this Declaration.
2.5 Common Assessment.
“Common Assessment” shall mean the assessments made for the purpose of covering the annual costs of operating the Association, which are to be paid by each Owner to the Association for purposes provided herein and charged to such Owner and to the Site of such Owner. Common Assessment shall not include those services that are billed separately by the Association based on actual usage.
2.6 Condominium Site.
“Condominium Site” shall mean that portion of Palmetto Bay consisting of approximately 14 acres that is identified on Exhibit A or as expanded pursuant to Article 3.26.
2.7 Declaration.
“Declaration” shall mean this instrument as it may be amended from time to time
2.8 Design Review Committee.
“Design Review Committee” shall mean the Design Review Committee provided for in Article 4 of this Declaration.

2.9 Facilities.
“Facilities” shall mean a restaurant, bar, dive shop, dock, supply commissary, swimming pool, parking for Palmetto Bay of at least thirty (30) cars which shall be readily accessible to walkways to the Beach Reserve and the Villa Lots, and walkways to the Beach Reserve.
2.10 Improvement, Improve.
“Improvement” shall mean all structures and any appurtenances thereto of every type or kind, including but not limited to buildings, outbuildings, swimming pools, patio covers, awnings, decks, painting of any exterior surfaces of any visible structure, additions, walkways, garages, carports, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, fixtures, landscaping, lawn statuary and other exterior decoration, exterior lighting, plantings, poles, signs, exterior tanks, solar equipment, or exterior air conditioning units in Palmetto Bay. To “Improve” a property includes: (a) the construction, or expansion of any building, structure, or other improvement, including utility facilities and fences; (b) the demolition of any building, structure, or other Improvement; ( c) the grading, excavation, filling or change of drainage pattern; (d) any change or alteration of any previously approved Improvement, including any material change of exterior appearance, color, or texture; (e) the installation of a sewage or septic disposal system; (f) any material change in landscaping, including cutting of trees as described in Section 3.27; (g) the installation of or material change in any road or walkway; (h) the installation of or material change in any exterior lighting, lawn statuary or other decoration; and (i) any material change to a Site that is visible from other property in Palmetto Bay or any road way leading to or within Palmetto Bay.
2.11 Owner.
“Owner” shall mean the Person or, if more than one, all Persons collectively who hold title of record to a Site. Each Owner holds one membership in the Association for each Site owned.
2.12 Person.
“Person” shall mean a natural person, a corporation, a partnership or any other entity.
2.13 Reimbursement Assessment.
“Reimbursement Assessment” shall mean any charge against a particular Owner and his Site (a) for the purpose of reimbursing the Association for expenditures and other costs of the Association in curing any violation of this Declaration or the Statutes, pursuant to Section 8.8 hereof, together with late charges and interest, and/or (b) levied as a fine or penalty by the Association with respect any such violation. Fees paid by the Association for internet service on behalf of any Owner and not reimbursed by the due date set forth in an invoice from the Association shall result in a Reimbursement Assessment without further action by the Association.
2.14 Site.
“Site” shall mean any lot or parcel of land or duplex unit within Palmetto Bay, including without limitation an individual condominium unit, other than Association Properties or any Common Property. A Site includes all improvements on any lot or parcel, as well as the land itself.
2.15 Statutes.
“Statutes” shall mean the Statutes of the Committee of Neighbors of Palmetto Bay Plantation, as adopted simultaneously herewith and approved by the government of Honduras and as the same may be amended from time to time.

2.16 Special Assessment.
“Special Assessment” shall mean a charge against each Owner and Site representing a portion of the costs of the Association for the purpose of funding capital repairs, maintenance, replacement, and Improvements, pursuant to Section 8.7 hereof.
2.17 Villa Lots.
“Villa Lots” shall mean that portion of the Palmetto Bay other than the Condominium Site, areas owned by the Association and areas approved by the Board for commercial activities.

ARTICLE 3 - GENERAL RESTRICTIONS

All real property within Palmetto Bay shall be held, used and enjoyed subject to the following limitations and restrictions. The strict application of the following limitations and restrictions in any specific case may be modified or waived in whole or in part by the Design Review Committee if such strict application would be unreasonably harsh under the circumstances. Any such modification or waiver must be pursuant to written permission of the Design Review Committee.
3.1 Maintenance of Palmetto Bay.
All property within Palmetto Bay, including any fences, Improvements and landscaping thereon, shall be kept and maintained in a clean and attractive condition and in good repair. Maintenance, repair, and upkeep of each Site shall be the responsibility of the Owner of the Site. Maintenance, repair, and upkeep of Association Properties shall be the responsibility of the Association. If an owner does not, in the opinion of the General Manager, maintain property adequately then the General Manager will give notice to the lot owner that cutting, chopping, cleaning or other maintenance is needed and that the owner must have that service performed on the lot within seven days. The General Manager will also give notice of the estimated cost and necessity of the work. If the work is not performed within the prescribed period, then the General Manager is authorized to have the work performed and a Reimbursement Assessment for the cost thereof will be a lien on the property. There shall be no entry into the interior of an Improvement intended for human occupancy without the consent of the Owner thereof unless a clear emergency exists.
3.2 Property Uses.
All Villa Lots and condominiums or houses on the Condominium Site shall be used only for single family residential purposes (except A3, A8, A11 and lot 15 which may be used as a duplex/double for two (2) single family residential purposes), but they may be rented or leased. In-home businesses not involving the physical presence of customers or employees, other than the Owner, shall be allowed, provided such activities do not constitute a nuisance. The membership may authorize commercial uses at places other than Villa Lots and condominiums or houses on the Condominium Site. The reference to A3, A8 and A11 shall not affect the interpretation of this section.
3.3 Construction Type.
All construction shall be new. No building previously used at another location nor any building or structure originally constructed as a mobile dwelling or structure may be moved onto any property within Palmetto Bay.
3.4 No Noxious or Offensive Activity.
No noxious or offensive activity shall be carried on within Palmetto Bay, nor shall anything, be done or placed thereon which is or may become a nuisance or cause an unreasonable disturbance to others.

3.5 Annoying Sounds or Odors.
No sound or odor shall be emitted within Palmetto Bay which is noxious or unreasonably offensive to others. Exterior speakers, horns, bells, or other sound devices, other than security devices, are prohibited. In the Condominium Site, music shall not be audible outside the residence. Normal noise for construction between the hours of 7:00 a.m. and 5:00 p.m. Monday through Saturday is permitted. Special events held at the restaurant and pool shall end before 11:00 p.m. on Friday, Saturday and Sunday nights, 10:00 p.m. on all other nights and 1:00 a.m. on New Years Day. Not more than eight times per year, and upon six months advance notice to the Owners, an event scheduled at the restaurant and pool may be scheduled to end by 1:00 a.m. The General Manager, through his security staff, shall enforce these limitations on event hours.
3.6 Generators
New generators anywhere in Palmetto Bay must be approved by the Design Review Committee. In the Condomium Site, only communal generators, powered by butane or propane, will be allowed upon approval of the Design Review Committee. Existing generators anywhere in Palmetto Bay must be muffled or otherwise limited to acceptable decibel levels as approved by the Design Review Committee.
3.7 Hazardous Activities.
No activity shall be conducted on and no Improvement shall be constructed within Palmetto Bay which is or might be hazardous to any Person or property. No firearms shall be discharged upon any property within Palmetto Bay.
3.8 Unsightliness.
All unsightly conditions, structures, equipment, objects, and conditions within Palmetto Bay shall be enclosed within a structure, including garden or maintenance equipment except when in actual use.
3.9 Weeds.
Each Site shall be kept free from brush or other growth which, in the reasonable opinion of the Design Review Committee, is unsightly or causes undue danger of fire.
3.10 Garbage and Trash.
No garbage, trash, lumber, grass, shrub or tree clippings, metal, bulk materials, scrap, or debris of any kind shall be stored, or allowed to accumulate on any Site except within an enclosed structure or appropriately screened from view, except that any container containing such materials may be placed outside at such times as may be necessary to permit garbage or trash pick-up. Garbage or trash pick up within Palmetto Bay will be arranged by the Association and billed monthly to each Owner or to the Association based on actual usage, as appropriate, and such billing will be subject to lien as described under Section 8.1.
3.11 Animals.
No animals or livestock shall be housed on any property in Palmetto Bay, except: domesticated birds or fish and other small animals confined indoors; an aggregate of not more than a total of two domesticated dogs and two cats (which must be fenced or restrained in the backyard of one of the Villa Lots or at all times kept inside the residence within the Villas or Condominium Units); no more than 1 horse per acre, so long as it is housed no less than 300 feet from any dwelling on any other property. This policy does not affect the presence of well-behaved animals within the immediate control of their owners. On approval of the HOA Board, the 1 acre limit will not affect the keeping of horses on the common property of Palmetto HOA property should the board so authorize the creation of a community stables in the future. The Design Review Committee may grant variances to this policy.
3.12 Temporary Structures.
No tent, tree house, storage shed, playhouse, temporary structure, or temporary building shall be placed within Palmetto Bay except with the consent of the Design Review Committee.
3.13 Antennae. Pipes. Utility Lines. Transmitters and External Lighting.
Pipes for water, gas, sewer, drainage, or other purposes, and wires, poles, aerials, antennae, and utility meters, within Palmetto Bay, except for satellite dishes under 2 meters in diameter and antennae for internet and VHF radio service, shall be kept and maintained, to the extent possible, underground or within an enclosed structure or otherwise reasonably screened from other Sites and from the Association Properties. With the approval of the Design Review Committee, a master antenna or cable television antenna may, but need not, be provided for use of all Owners or a group of Owners, and the Association may grant easements for such purposes. All exterior site and building accent lighting shall be low in level and complement the natural tropical environment.

3.14 Signs and Advertising.
No sign, billboard or display of any kind sha1l be erected or maintained anywhere within Palmetto Bay so as to be evident to public view, except signs as may be approved by the Design Review Committee and except signs identifying Palmetto Bay. A sign advertising a Site for sale or for lease may be placed on such Site, provided, however, that standards relating to dimensions, color, style, and location of such sign shall be determined from time to time by the Design Review Committee.
3.15 Mining or Drilling.
No property within Palmetto Bay shall be used for the purpose of mining, quarrying, or drilling, except drilling for underground water by the Association or at the direction of the Board of Directors and any such well will be owned by or deeded to the Association.
3.16 Maintenance of Drainage.
There shall be no material interference with the established drainage pattern over any property within Palmetto Bay, except as approved by the Design Review Committee.
3.17 Subdivision and Consolidation of Sites.
The Owner of a Site shall not, without approval as provided below, further subdivide that Site except for the Condominium Site which may be "subdivided" as provided in Section 3.26. However, nothing herein shall prohibit fractional ownership (co-ownership) of any Site. The Owner(s) of contiguous Sites may, without prior approval, legally consolidate those Sites under Honduran law and the consolidated Sites will thereafter be a single Site for all purposes, including assessments. The Board of Directors may, subject to the availability of services, separately permit an Owner to subdivide a Site, provided that each parcel is not less than 1/2 acre after subdivision. If a Site to be subdivided is composed of Sites that had previously been consolidated and prior to that consolidation were subject to separate assessments, the Board shall condition approval of the subdivision on the consolidating Owner(s) paying assessments avoided by the consolidation plus interest (but not penalties) as provided herein.
3.18 Sewage Disposal Systems.
No septic tank, or other sewage disposal system shall be installed within Palmetto Bay without the approval of the Design Review Committee. Sewage for the Villa Lots shall be by septic tank to be installed at the expense of each Villa Lot owner. The Condominium Site is required to have a self contained sewage disposal system and may not utilize septic tanks, except as approved by regulatory authorities.
3.19 Water Wells.
No individual water well shall be installed or maintained for any property within Palmetto Bay other than those wells identified for use by Palmetto Bay .and described under Section 3.30.
3.20 Restoration in the Event of Damage or Destruction.
In the event of damage or destruction of any Improvement on any Site, the Owner thereof shall cause the damaged or destroyed Improvement to be restored or replaced in a timely manner to its original condition or such other condition as may be approved by the Design Review Committee, or the Owner sha1l cause the damaged or destroyed Improvement to be demolished and the Site to be suitably landscaped, subject to the approval of the Design Review Committee, so as to present an attractive appearance.
3.21 Storage.
No building materials shall be stored within Palmetto Bay except temporarily during continuous construction of an Improvement or except for the temporary stacking of lumber for drying immediately adjacent to a construction site.

3.22 Storage of Gasoline and Explosives, etc.
No part of Palmetto Bay shall be used for storage of explosives, gasoline, or other volatile and/or incendiary materials or devices except for a limited amount of gasoline and diesel as reasonably necessary in the ordinary course of the operation of the Facilities on the Condominium Site or yard maintenance on any lot.
3.23 Trailers. Campers and Vehicles.
No boat, camper, trailer, tractor, truck (other than a small pick-up truck not used for commercial purposes), motorcycle, disabled vehicle, motor home, or mobile home, shall be parked for more than twenty-four (24) hours or stored in, on, or about any Site or street or parking area within the Condominium Site, except within a garage or unless such vehicle is reasonably concealed from view or is in a location which is approved by the Design Review Committee. The Association shall have the right to enter Owner's Site to remove and store, at Owner's expense, vehicles in violation of this Section. An Owner shall be entitled to thirty (30) days’ written notice prior to such action by the Association.
3 .24 Air Conditioning and Heating Equipment.
No affixed heating, air conditioning or refrigeration equipment shall be placed, allowed, or maintained in Palmetto Bay anywhere other than on the ground adjacent to the building it serves, under it, within a roof parapet, and/or in the rear window and shall be screened reasonably from view in accordance with plans approved by the Design Review Committee; provided, however, that solar units may be located on the roof if approved by the Design Review Committee. Owners of houses within the Condominium Site may, without separate approval by the Design Review Committee, install air conditioning with compressors under the house.
3.25 Villa Lots Size.
Each Villa Lot will be at least one-half (1/2) acre in size.

3.26 Condominium Site Size, Density.
(a) The Condominium Site shall be at least fourteen (14) acres. The Owner of the Condominium Site may annex adjoining property to the Condominium Site, but this will not increase the number of units or homes that may be constructed on the Condominium Site. No more than fifty five (55) condominium units or homes may be constructed on the Condominium Site; (b) The Condominium Site will contain a minimum of two walking access paths including an existing board walk from the Villa Lots to the Beach Reserve which paths shall be Common Property. Access within the Condominium Site shall generally be through the use of walking paths, with access roads into said Condominium Site as reasonably approved by the Design Review Committee.
3.27 Trees
No living, disease free and insect free trees with a diameter of more than four (4) inches may be cut within Palmetto Bay without the approval of the Design Review Committee. No trees may be planted which will materially interfere with the ocean view from a Site.
3.28 Beach Reserve.
The Beach Reserve is owned by the Association and contains most of the property in Palmetto Bay one hundred eighty (180) feet from the high tide line of the ocean.
3.29 Watering or Irrigation of Sites.
No significant irrigation of lawns within Palmetto Bay will be allowed except for small garden areas and for recently installed plants or trees. This prohibition does not apply to irrigation with reclaimed or “grey” water or to drip irrigation.

3.30 Water, Electricity, and Telephone.
Palmetto Co. or its predecessor has installed at their expense underground water and electric lines to the exterior boundary of each of the existing Villa Lots and the Condominium Site. Electric, any cable television and any telephone lines must be underground in Palmetto Bay. Water to Sites shall be available through wells installed by Palmetto Co. located within Palmetto Bay and deeded to the Association as described in Section 3.19, and water may be billed by the Association based on actual usage and will be subject to lien as described under Section 8.1. Neither Palmetto Co., the Association nor their respective agents or employees guarantee the amount of water which can be produced by the wells. The primary source of water shall be cisterns described under Section 4.4. Water may be filtered from the wells, but purification will be the responsibility of the Owner who receives the water. The wells, pipes and reservoir tanks shall be maintained and operated by the Association. Electric service will be provided by a public utility and will be billed by that utility to each Owner. Any telephone service as may be provided would likewise be billed to each owner. Each Owner must make arrangements with the public utility for electric service from the Boundary to the house, condominium unit, or the Facilities. Meter boards are located throughout Palmetto Bay. Charges for utility services may be liened as described in section 9.1. An Owner may arrange with the Public Utility for an individual meter on the meter board for an additional charge which will include new electric lines and conduit from the meter board to the house. The public utility may impose a charge for electrical hookups or change.
3.31 Bird Sanctuary.
The Bird Sanctuary consists of at least six (6) acres and is owned by the Association. Other than walkways, no construction of any kind will be allowed within the Bird Sanctuary.
3.32 Tropical Forest Preserves.
The Tropical Forest Preserves and green spaces, not including the Bird Sanctuary, are located within Palmetto Bay and consist of approximately twenty (20) acres.
3.35 Notification of Renters and Lessees.
An Owner who rents or leases a Site shall notify his or her renters and lessees as of the relevant requirements of this Declaration and require that the renter or lessee abide by all rules of these CC&Rs.

ARTICLE 4 - ARCHITECTURAL APPROVAL

4.1 Membership of Design Review Committee.
The Design Review Committee shall consist of three (3) members appointed by the Board of Directors of the Association, all of which shall have Palmetto Bay as their primary residence and not more than one of which members shall be an employee of or represent Palmetto Co.
4.2 Approval of Improvements Required.
The approval of the Design Review Committee shall be required for any future Improvement on any Site. All existing Improvements are deemed approved.

4.3 Submission of Plans.
Prior to commencement of any proposed Improvement, the Person proposing to make such Improvement ("Applicant") shall submit to the Design Review Committee such descriptions, surveys, plot plans, drainage plans, elevation drawings, construction plans, specifications, and samples of materials and colors and description of water conserving plumbing fixtures as the Committee shall reasonably request. The Committee may require submission of additional information prior to approving or disapproving the proposed Improvement.
4.4 Criteria for Approval.
The Design Review Committee shall approve any proposed Improvement only if its appearance, exterior design, materials and colors will be in harmony with the surrounding areas of Palmetto Bay, will be environmentally acceptable, will not materially interfere with the view of adjacent sites and Palmetto Bay as a whole, and will be in conformance with presently existing structures, although alternate construction materials may be permitted. In addition, there shall be the following minimum requirements:
No primary residence within the Villa Lots shall have a gross square feet of floor area including covered porches or decks but not including uncovered porches (“Floor Area”) of less than one thousand two hundred (1,200) square feet. No house can have more than a three (3) car garage, which must be attached to or underneath the house or the Out Building.
The height of any building within the Condominium Site shall not exceed one (1) story or thirty (30) feet from ground as measured from the existing grade which is below the center point of the structure's overall footprint to the highest point of the roof, with the exception that it may be two (2) or more stories up to thirty six (36) feet at the south, east and west perimeter.
Except for along lot lines shared with properties outside of Palmetto Bay, or the Tropical Forest Reserve or the Bird Sanctuary, any newly-constructed building in the Villa Lots must be a minimum of twenty (20) feet from the boundary line of the Site unless the Design Review Committee approves a variance.

No condominium within the Condominium Site shall have a Floor Area of less than seven hundred (700) square feet and there shall be no Out Buildings, but there may be an exclusive designated parking area within the Condominium Site; provided, however, that there may be a limited number of attached garages for those condominium units located along the rear boundary of the Condominium Site, to the extent approved by the Design Review Committee.
Each house within the Villa Lots and each condominium or house in the Condominium Site must include a rain water cistern connected to all roofs by gutters which shall be a primary source of water for a house, condominium unit, restaurant or hotel room unless a reverse sea water osmosis or similar system is used. The cistern and connections may be periodically monitored by the Association. It must be a minimum of five hundred (500) gallons per one hundred (l00) square feet of Floor Area for houses in the Villa Lots and must be of adequate size to be the primary source of water for condominiums or houses in the Condominium Site at all times of the year.
The Design Review Committee shall deny permission to construct an Improvement if that Committee determines that the infrastructure of Palmetto Bay, including but not limited to water, sewage and electrical facilities, is approaching its capacity to accommodate new Improvements, with a reasonable margin of safety. In such a case, the application for the Improvement may be denied, or else as a condition of approval, the proponent of the Improvement may be required to deposit into a special reserve fund an amount that the Design Review Committee reasonably determines will be required to accommodate the cumulative impacts of the Improvement on infrastructure and essential services.

4.5 Design Standards.
The Design Review Committee shall by October 1, 2007 issue reasonable rules ("Design Standards") relating to approval criteria; recommended materials and designs; submittal and approval procedures; materials to be submitted; fees; and additional factors which will be considered in connection with the review of any proposed Improvement. No Design Standards may be enforced in advance of their issuance. Any such standards are subject to review and revision by the Board of Directors upon application by any Owner.
4. 6 Decision of Design Review Committee.
Any decision of the Design Review Committee shall be made within thirty (30) days after receipt by the Committee of all information required by the Committee, unless a written extension is granted. Failure of the Design Review Committee to act within that period shall constitute denial of the application without prejudice to resubmission.

4.7 Completion of Work After Approval.
After approval of any proposed Improvement, the proposed Improvement shall be accomplished as promptly as reasonably possible and in complete conformity with the information submitted to the Design Review Committee, and any reasonable conditions imposed by the Committee. Failure to complete the proposed Improvement and to provide to the Committee a written notice of completion within twelve (12) months after the date of approval (excluding any period during which an appeal of approval of the Improvement is before the Association), or to complete the Improvement to the Property in accordance with the information submitted to, and the conditions imposed by, the Committee, shall constitute noncompliance.
4.8 Notice of Noncompliance.
If the Design Review Committee finds that any Improvement has been done without obtaining the approval of the Committee or was not done in conformity with the information furnished to, and any conditions imposed by, the Committee or was not completed within twelve ( 12) months after the date of approval by the Committee or such reasonably shorter period as specified in writing by the Committee, the Committee shall notify the Owner in writing of the noncompliance. The notice of noncompliance shall specify the particulars of the noncompliance and shall require the Owner to take such action as may be necessary to remedy the noncompliance.
4.9 Correction of Noncompliance.
If the Design Review Committee determines that a noncompliance exists, the Owner shall remedy or remove the same within a period of not more than forty-five (45) days or such shorter time as may be specified by the Design Review Committee, from the date of receipt by the Owner of the notice of noncompliance. If the Applicant does not comply with the Committee ruling within such period, the Association may enter upon such property and remove the noncomplying Improvement, or may otherwise remedy the noncompliance, and the Applicant shall reimburse the Association, upon demand, for all expenses, including attorneys fees, incurred therewith. If such expenses are not promptly repaid within thirty (30) days by the Applicant or Owner to the Association, the Board may levy a Reimbursement Assessment against the Owner of the Site for such costs and expenses. The right of the Association to remedy or remove any noncompliance shall be in addition to all other rights and remedies which the Association may have at law or under this Declaration. The Applicant and Owner of the Site shall have no claim for damages or otherwise because of the entry upon the property and removal of the noncomplying Improvement.
4.10 Nonliability for Committee Action.
There shall be no liability imposed on the Design Review Committee, any member of the Design Review Committee, the Association, any member of the Board of Directors, or any Owner for any loss, damage, or injury arising out of or connected with the performance of the duties of the Design Review Committee unless as a result of its willful misconduct.
ARTICLE 5 - ASSOCIATION PROPERTIES
5.1 Association as Owner
The Association is the owner of all properties belonging to the Committee of Neighbors of Palmetto Bay, a Honduras non-profit corporation.
5.2 Owners’ Rights of Use and Enjoyment Generally.
Unless otherwise provided in this Declaration, all Owners and their reasonable number of guests may use the Association Properties.
5.3 No Partition of Association Properties.
No Owner shall have the right to partition or seek partition of the Association Properties other than through action by the Association.

5.4 Easement for Encroachment, Maintenance of Association Properties.
There is hereby created a blanket easement across all Sites for the benefit of the Association for the purpose of entering upon the portion of any Site not within an enclosed structure to maintain, repair, replace or remove any Association Properties. In the event any fence or other Association Properties encroaches upon any Site, a valid easement is hereby created and does exist for the encroachment and for the maintenance, repair, replacement or removal of such encroachment as long as it exists.
5.5 Conveyance to Association of Common Areas
The no later February 15, 2011, Palmetto Co. shall convey to Association free and clear of any liens or back taxes: all Association Properties.
ARTICLE 6 - ASSOCIATION OPERATION
6 .1 Association.
The Association shall have the duties, powers, and rights set forth in this Declaration and in the Statutes.
6.2 Association Board of Directors.
The business of the Association shall be managed by a Board of Directors. The number, term, and qualifications of the Board of Directors shall be fixed in the Statutes. The Board of Directors may take any action except those reserved exclusively to the Owners by the Statutes or this Declaration. Except as may be provided herein, the Board of Directors shall be elected by Owners acting in their capacity as members of the Association. Each member of the Board of Directors shall reside at Palmetto Bay for more than 180 days per year.
6.3 Voting Rights of Owners.
The Owner of each Site shall have one vote on any matter that comes before the Association at a meeting; provided however that Palmetto Co. or its successor shall have, in addition to such votes that it may have as an owner of Sites outside of the Condominium Site, an additional 35 votes less the number of other Owners within the Condominium Site. The right to vote as an Owner is not assignable separately and apart from the title of each Site. No Owner who is delinquent in the payment of any Common Assessment or Special Assessment may vote on any matter to come before the Association until such assessments have been paid in full and any checks used to pay the assessments have cleared.
ARTICLE 7 - DUTIES AND POWERS OF ASSOCIATION

7.1 General Duties and Powers of Association.
The Association, acting through the Board of Directors or Persons to whom the Board has delegated such powers, shall have the duties and powers hereinafter set forth and, in general, the power to do anything that may be necessary to further the common interests of the Members, including, but not limited to, preparing Budgets; levying and collecting Assessments; arranging for trash removal under Section 3.10, operation and billing of the community water system if applicable, enforcing the provisions of this Declaration and bringing and defending legal actions.

ARTICLE 8 - ASSESSMENTS
8.1 Obligation and Lien for Assessments.
Each Owner, by acceptance of a title to a Site, agrees to pay to the Association any and all Assessments, water charges and garbage and trash removal, together with interest, late charges, cost of collection and attorneys’ fees as provided herein which shall also be a continuing lien upon the Site against which each Assessment is made in the event of delinquency in payment.
8.2 Allocation of Assessments/Working Capital.
All Assessments (other than Reimbursement Assessments) will be allocated among the Sites in accordance with the formula stated in Section 6.3 for allocation of votes.
8.3 Common Assessments.
For each calendar year, the Association may levy Common Assessments against Owners of the Sites. Each Owner shall be obligated to pay the Common Assessments levied against and allocated to such Owner and the Site of such Owner, as hereinafter provided. An initial assessment (prorated for calendar year) shall be payable by the Owner of any Site at such time as the Owner of such Site takes title to the Site.
8.4 Supplemental Assessments.
If the estimated sums required for Common Assessments prove inadequate for any reason, including nonpayment of any Owner’s Common Assessment, the Board may, from time to time, levy a Supplemental Assessment. Such Supplemental Assessments shall be allocated among the Sites in the same manner Common Assessments are allocated. Written notice of any change in the amount of any annual Common Assessment shall be sent to every Owner subject thereto, not less than thirty (30) day's prior to the effective date of such change.
8.5 Payment of Assessments.
Common Assessments shall be billed no later than December 1 of each year and shall be due and payable to the Association on January 1 of each year except as resolved by the Members.
8.6 Annual Budgets.
The Board of Directors shall cause to be prepared, at least thirty (30) days prior to the General Meeting at whch such budget is adopted a budget for such calendar year. The budget may include an amount for contingencies and amounts deemed necessary or desirable for deposits to create, replenish, or add to the reserve fund for major capital repairs, replacements, and improvements to the Association Properties. Copies of the budget shall be made available by the Association to any Members requesting a copy of the same.

8.7 Special Assessments for Capital Expenditures.
In addition to Common Assessments, the Board of Directors may, subject to the provisions of this Section, levy Special Assessments for the purpose of raising funds not otherwise provided under the Budget from Common Assessments to construct or reconstruct, repair, or replace capital Improvements upon Association Properties, including necessary personal property related thereto; to provide for facilities and equipment required to maintain the roadways, paths, walkways, Association Property and the community water system as authorized in this Declaration. The Board of Directors shall not levy Special Assessments without the vote of the Members representing at least a majority of the voting power of all Members, including Declarant's votes as owner of Sites. Special Assessments shall be allocated in the same manner as Common Assessments. The Association shall notify Members in writing of the amount of any Special Assessment and of the manner in which, and the dates on which, any such Special Assessment is payable and the Members shall pay any such Special Assessment in the manner so specified.
8.8 Reimbursement Assessments.
The Board of Directors may, subject to the provisions hereof, levy an Assessment against any Member if the failure of the Member to comply with this Declaration or the Statutes shall have resulted in the expenditure of funds by the Association to cause such compliance. Such Assessment shall be known as a Reimbursement Assessment and shall be levied only after approval by the Board. The amount of the Reimbursement Assessment shall be due and payable to the Association thirty (30) days after notice to the Member that the Reimbursement Assessment is owing. Checks returned for any reason are subject to bank fees which shall be a Reimbursement Assessment.

8.9 Late Charges and Interest
If any Common Assessment, Special Assessment, or Reimbursement Assessment or any installment thereof is not paid within thirty (30) days after it is due, the Member obligated to pay the Assessment is required to pay a $100 U.S. late charge plus bank charges, if applicable. Any Assessment or installment of an Assessment which is not paid within thirty (30) days after it is due shall bear interest from the due date at the rate of eighteen (18) percent per annum. If the amount of the penalty fee or the interest rate exceed those allowed by law, then the fee an interest imposed shall be the highest allowed.

8.10 Notice of Default and Acceleration of Assessments.
If any Common Assessment, Special Assessment, or Reimbursement Assessment or any installment thereof is not paid within thirty (30) days after its due date, the Board of Directors may mail a notice of default to the Owner. If the delinquent Assessment or installment and any late charges, lega1 fees or interest thereon are not paid in full on or before the date specified in the notice, the Board, at its option, may declare all of the unpaid balance of the Assessment to be immediately due and payable without further demand and may enforce the collection of the full Assessment and all charges and all interest thereon in any manner authorized in this Declaration, in the Statutes, or by law.

8.11 Remedies to Enforce Assessment.
Each Assessment levied hereunder shall be a separate, distinct, and personal debt and obligation of the Owner against whom the same is assessed. In the event of a default in payment of any Assessment or installment thereof, whether Common, Special, or Reimbursement, the Board may enforce such obligation on behalf of the Association in any manner authorized in this Declaration, in the Statutes, or by law. By action of the Board, the Association may withhold access to Association properties and services, including but not limited to utilities and access to any Owner and guests of any Owner who is past due in paying any assessment. Owners who are past due in paying an assessment shall be notified by electronic mail or facsimile transmission or by other means authorized by such Owner 30 days in advance of actions to be taken.
ARTICLE 9 – PENALTIES
9.1 Monetary Penalty.
In addition to penalties presecribed elsewhere, the Board may assess a penalty of up to $100 for each violation of the requirements and prohibitions of this Declaration. Each day in which a separate act constituting the violation occurs may result in a separate penalty. Each penalty assessed by the Board shall be a Reimbursement Assessment under this Declaration.
9.2 Violations by Renters or Lessees.
A violation of the requirements and prohibitions of this Declaration by an Owner’s renters or lessees shall be treated as a violation by the Owner if the Board determines that Owner or the Owner’s agent knew of the violation and failed to take timely and reasonable actions to correct or prevent the violation. If the Board determines that an Owner or that Owner’s agent persistently and unreasonably fails to enforce the provisions of this Declaration against renters and lessees, then the Board may notify the Owner that the Site in question may not thereafter be rented or leased for a period of time to be set by the Board. Upon determining that a renter or lessee has violated and/or threatens to violate provisions of this Declaration, or that the Owner is prohibited from renting or leasing the Site under this section, the Board may instruct its General Manager to deny that lessee or renter entrance through Association Property.
ARTICLE 10 - MISCELLANEOUS

10.1 Term of Declaration.
Unless amended, each provision contained in this Declaration shall continue and remain in full force and effect until December 31, 2050 and thereafter shall be automatically extended for successive periods of ten (10) years each unless terminated by the vote of Members. In the event this Declaration is terminated, the termination of this Declaration shall be evidenced by a termination agreement, or ratification thereof, executed by the requisite number of Owners.
10.2 Amendment of Declaration by Members.
Any provision contained in this Declaration may be amended or repealed at any time and from time to time upon approval of the amendment or repeal by Members of the Association holding at least sixty-seven (67) percent of the voting power of the Association present in person or by proxy at a duly constituted meeting of the Members.; provided, however , that approval of at least 75% of the voting interests outstanding (and not merely 75% of the voting interests present at a meeting) shall be required to change the provisions of Section 3.25, 3.26 or 9.1 hereof. The approval of any such Amendment or repeal shall be evidenced by the certification by the Board of Directors of the Association of the votes of Members provided that any such Amendment shall not detrimentally modify the intent of the Declaration under Section 1.2 including but not limited to materially increasing density. Any such amendment shall not be inconsistent with the Statutes. A copy of documents submitted for member review shall be in at least 12 point type and, at least 24 hours prior to the meeting at which they are to be discussed, be provided by electronic mail and made available on site.
10.4 Notification of Provisions of This Declaration
Each Owner shall upon sale of that Owner’s Site insert into the deed (“estritura”) transferring the Site either the text of this Declaration as then current or else incorporate it by reference, along with provisions reflecting that this Declaration, as existing and as thereafter amended, is binding on the new Owner. Each Owner who rents or leases a Site shall provide a copy of this Declaration, or any summary of relevant prohibitions approved bythe Board, to the person renting or leasing the Site.
10.5 Form of Notices by Board or General Manager.
All Owners not residing in Roatan shall provide an electronic mail address to the General Manager. Any notice permitted or required to be given under this Declaration by the Board or the General Manager may be given either personally or by electronic mail, to the address provided by the Owner. If no address is provided or the address is inoperative, such notice may be delivered to the to the Site. Further notice may, but is not required to be, delivered by facsimile transmission, postal service, or other means.

10.6 Recorded Easements.
In addition to all easements and rights-of-way of record at or before recordation of this Declaration, Palmetto Bay, and all portions thereof, shall be subject to the easements shown on any recorded plat of Palmetto Bay, or any portion thereof. All conveyances of Sites or Association Properties hereafter made shall be construed to grant and reserve the easements and rights contained in this Declaration, even though no specific reference to such easements or to this Declaration appears in the instrument for such conveyance. There are reserved to the Association, Palmetto Co., and to their successors and assigns, perpetual, alienable, divisible and releasable easements and the right from time to time to grant such easements to others for the Villa Lots, Condominium Site and Association Properties over, under, in and across five (5) foot strips along and adjoining boundary lines for use of all or part of such areas for road, walkway and pathway maintenance: underground electric, telephone, water, sewer, television line installations; and access. There is an easement to the Association and Palmetto Co., its successors and assigns of ten feet in width along the roads for all sites for landscaping maintenance.
10.7 Articles of Incorporation Governing; Retroactivity.
To the extent that anything in this Declaration is inconsistent with the Statutes, the Statutes shall control. All developments and improvements existing as of the date of this Declaration are ratified hereby.
10.8 Severability.
If any provision of this Declaration shall be invalid, illegal or unenforceable in any jurisdiction, such provision shall be severable from the remainder of this Declaration and shall be stricken from this Declaration for purposes of that jurisdiction only and this Declaration shall remain in full force and effect as to the remaining provisions.
10.9 Copies.
An electronic copy of this Declaration and of the Statutes shall be made available by the Association to each Owner via electronic mail without charge, or by hard copy for the cost of copying.

INDEX

Advertising
Forbidden 9
Air Conditioning 11
Allocation of Assessments 17
Amendment of CC&Rs 20
Animals 9
Antennae 9
Assessments
Acceleration of for non-payment 18
Alloocation of 17
Common 17
Defined 5
Due date 17
Lien for 17
Obigation for 17
Reimbursement Assessment 18
Remedies for non-payment 19
Special Assessments 18
Supplemental common 17
Association
As owner 15
Defined 5
Association Properties
Defined 5
No partition of 16
Beach Reserve 12
Bird Sanctuary 12
Board of Directors 16
Budget 17
Building Materials
Storage forbidden 11
Buildings
Height Maximum 13
Materials required 8
Placement 14
Square foot minimum 13, 14
Business use of property 7
Campers
Storage forbidden 11
CC&Rs
Purpose of 4
Cisterns
As primary source of water 12, 14
Required 14
Commercial uses of property 8
Common Assessments 17
Defined 5
Common Property
Conveyance of 16
Defined 4
Condominium Site 11
Defined 5
Sewage system required 10
Construction
Materials required 8
Copies
Request for 21
Declaration
Defined 5
Design Review Committee
Approval of Improvements Required 13
Approval of Sewage Systems 10
Correction of Noncompliance 15
Criteria for Approval 13
Decisions of 14
Defined 5
Membership 13
Non-liability 15
Notice of Noncompliance 15
Power to issue Design Standards 14
Submission of Plans to 13
Temporary structures require permission of 9
Design Standards
Power to issue 14
Drainage
Maintenance of 10
Drilling
Forbidden 10
Easement
For encroachment, maintenance 16
Easements 20
Electricity 12
Approvsl to build denied or conditioned 14
Expiration of CC&Rs 19
Explosives
Storage forbidden 11
Facilities
Defined 6
Floor Area
Minimum required 13
Garbage 9
Gasoline
Storage forbidden 11
General Manager
Notice of required maintenance 7
Generators 8
Guests
Rights of Use and enjoyment 16
Hazardous Activities
Forbidden 8
Height
Maximum in Condominium Site 13
Horses 9
Improve
Defined 6
Improvement
Defined 6
Interest
On late payments 18
Irrigation of Sites 12
Late Charges 18
Lighting
Low level required 9
Maintenance of Property
Notice of General Manager 7
Mining
Forbidden 10
Mobile Dwelling
Prohibited 8
Motorcycle
Storage forbidden 11
Noncompliance
Notice of 15
Notice of Noncompliance 15
Notices 20
Notification of CC&R Requirements 20
Noxious Activity 8
Odors
Limits on 8
Offensive Activity 8
Owner
Defined 6
Rights of Use and enjoyment 16
Parties
Defined 4
Penalties 19
For violations 19
Violations by Renters or Lessees. 19
Person
Defined 6
Pipes
Visibility of 9
Reimbursement Assessments 18
Defined 6
Renters
Notification of CC&R requirenents 13
Restoration
After damage or destruction, required 10
Sewage
Approval required for systems 10
Approvsl to build denied or conditioned 14
Condominium Site 10
Villa Lots 10
Signs
Forbidden 9
Site
Defined 7
Sounds
Limits on 8
Special Assessments 18
Defined 7
Statutes
Defined 7
Subdivision
Prohibited 10
Supplemental Common Assessments 17
Telephone service 12
Temporary Structures
Permission required 9
Term of Declaration 19
Termination of CC&Rs 20
Tractor
Storage forbidden 11
Trailers
Storage forbidden 11
Trash 9
Trees 12
Tropical Forest Preserves 12
Conveyance of 16
Defined 12
Unsightliness 8
Utility Lines
Visibility of 9
Villa Lots
Defined 7
Minimum size 11
Voting Rights of Owners 16
Water 12
Approval to build denied or conditioned 14
Irrigation of Sites 12
Weeds 9

EXHIBIT A – MAPS OF PALMETTO BAY PLANTATION