COVENANTS & RESTRICTIONS

The Association is organized and operated under a hierarchy of legal documents designed to ensure the creation of a high quality living environment at Tipton Lakes. These documents also provide for the proper management and maintenance by the Association long after the Developer's work is complete.

The Declaration of Covenants serves as the "constitution" or "charter" for the Association. It is the enabling document for its creation and governance and all the other documents build upon it. It is designed to be inherently flexible in order to serve the Association well even under changing economic and social conditions, while at the same time it is deliberately difficult to amend. It establishes the terminology and jurisdiction of the Association and its corporate structure of Board, committees, and Members. It provides for the creation, ownership, maintenance and use of the Common Areas and recreational facilities and for the establishment and collection of assessments to ensure the financial integrity of the Association. The rights and responsibilities of the Board, Members, Developers, and Lenders are clarified, and certain key covenants regarding the use of the property are listed.

The Declaration includes the master plan for Tipton Lakes. It is an illustrative design of the intended land uses for the staged development of the community. This plan may be amended from time to time by Tipton Lakes Company.

As each new Cluster (subdivision) in Tipton Lakes is readied, a Supplementary Declaration is recorded to bring that Cluster under the jurisdiction of the Association, and to establish specific architectural standards, covenants, Cluster Common Areas, facilities, services, and Cluster Assessments particular to that development.

The Bylaws provide for the routine administration of the organization and operations of the Association as a corporate entity. They provide for the selection, powers and duties of the Board, officers, and committees and for membership rights, voting, and obligations. The timing and conduct of annual and special meetings and committee functions are outlined in detail.

Once filed with the Secretary of the State of Indiana, the Articles of Incorporation establish the Association as a Not-for-Profit Corporation.

The Board from time to time issues detailed Rules and Regulations, which apply to specific activities or functions of the Association. These Rules and Regulations further aid the Association in the protection of members' property values. All members are asked to comply. If compliance is not voluntarily achieved, the Association has adopted enforcement procedures. A brief description of each of the current Rules and Regulations follows.

Actions taken by the Board of the Association as a whole will be contained in the Minutes, which, like the rest of the Association's records, are made available for inspection by the Members. Key policy resolutions are placed in a Book of Resolutions.