1. DECLARANT and every OWNER shall automatically be members of the ASSOCIATION, however, COMMERCAL OWNERS shall not be members of the ASSOCIATION.

2. It Is specifically understood that a portion of the RESIDENTIAL PROPERTY may be sold to the State of Texas pursuant to the Veterans Land Board of the State of Texas program. The State of Texas shall not be responsible for payment of the annual assessment provided for herein. Instead, the veteran contracting to purchase any UNIT from the State of Texas shall be considered as the OWNER of any such UNIT, shall be considered a member of the ASSOCIATION, shall be personally responsible for payment of the annual assessment provided for herein and shall be entitled to cast all votes with respect to such UNIT. Execution of a Contract of Sale between a veteran and the Veteran's Land Board for the State of Texas for any UNIT shall signify that such veteran accepts. ratifies and will comply with terms of this DECLARATION. In the event that the State of Texas forfeits the con-tract of sale with a veteran neither the UNlT nor the State shall be liable for assessments past or present. However, when such Unit is resold or placed under another contract of sale with the Veteran's Land Board of the State of Texas, the UNIT and the new OWNER shall thereafter be subject to assessments in accordance with the terms hereof.

3. Subject to the provisions of this Article V, each UNIT shall be owned by only one person or by two persons if they are husband and wife. An OWNER of a 100% interest in a Unit may sell or transfer his interest in such UNIT at any time, whether during lifetime or at death, if the purchaser or transferee of 100% of the interest in such UNIT is either one person or two persons if they are husband and wife. An OWNER of an undivided fractional interest in a UNIT may sell or transfer, whether during lifetime or at death, his undivided fractional interest to the owner of another individual fractional interest and otherwise he may sell his undivided fractional interest only if all of the other OWNERS who own an undivided fractional interest in such UNIT join with such OWNER such that a 100% interest in such UNIT is sold or transferred to, or owned at the completion of the transfer or transfers by, one person or two persons if they are husband and wife; provided, however, an OWNER of an 100% interest in a UNIT, or an OWNER of an undivided fractional Interest in a UNIT, may transfer his interest at death to such OWNER'S spouse and/or to any one or more of his issue or to a trust for the benefit of such spouse and/or any one or more of his issue.

Any purported transfer in violation of this paragraph by an OWNER (including but not limited to a transfer under the laws of descent and distribution which would, except for this Article V, vest ownership of an undivided fractional interest in a person or persons other than an OWNER'S spouse or issue, and a transfer under a divorce decree or property settlement that would, except for this Article V, vest ownership in two persons who are no longer husband and wife) shall be void and ineffectual, and shall not operate to transfer any interest or title to any purported transferee.
For purposes of this Article V, the term "issue" means al descendants of whatever degree of the named ancestor, including descendants both by blood and by adoption, providing the adoption is by court proceedings, the finality of which is not questioned by the adopting person, and the term "spouse'1 means the person to whom an individual is married by a ceremonial marriage and from whom such individual is not divorced.

4. An OWNER may permit the use of a UNIT by immediate family members and guests accompanied by immediate family members. However, the use of UNITS and COMMON AREAS by guests may be regulated by the ASSOCIATION which may promulgate rules and regulations as to the number of guests which may be permitted at any one time. An OWNER may lease his UNIT, provided that such lease shall not be for a term shorter than six (6) months and during the term of said lease, the tenant under the lease shall be deemed to be the OWNER for purposes of use of the COMMON AREAS and the OWNER shall not have the right to the use of the COMMON AREAS except as a guest of the tenant subject to all of the rules and regulations of the ASSOCIATION with respect to guests. Although a UNIT is leased, the OWNER shall remain liable for the assessments and shall retain the right to vote in the ASSOCIATION.

5. It is specifically understood that the holder of a contractual lien upon any UNIT may purchase such UNIT at a foreclosure sale notwithstanding the provisions of Paragraph V (3). The FORECLOSURE PURCHASER shall not have the right to the use and enjoyment of the COMMON AREAS and the FORECLOSURE PURCHASER shall not be members of the ASSOCIATION if such FORECLOSURE PURCHASER does not meet the requirements of Article V (3). A transfer by the FORECLOSURE PURCHASER must be in compliance with Article V (3).

6. It is specifically understood that the holder of a contractual lien upon any UNIT may obtain title to a UNIT by virtue of a Warranty Deed in Lieu of Foreclosure of its lien and shall be referred thereafter as a FORECLOSURE PURCHASER. The FORECLOSURE PURCHASER shall not have the right to the use and enjoyment of the COMMON AREAS and the FORECLOSURE PURCHASER shall not be a member of the ASSOCIATION if such FORECLOSURE PURCHASER does not meet the requirements of Article V (3). A transfer by the FORECLOSURE PURCHASER must be in compliance with Article V (3).