In a particular area if the router interface is configured as Stub area,it generates hello packet with E-bit of option field set to 0.If its neighbor interface is not configured as stub it will not form neighborship.Non stubby area generate hello packet with E bit set to 1.In order to declare the area as stub,all the neighbor interface should be configured as stub.

In Stub area LSA4,LSA5 is not supposed to be flooded instead default route is originated by ABR using LS3 summary.If you declare an area as stub,virtual area cannot be created via stub area to connect to the backbone area and also other domain router(ASBR) cannot be connected to stubby area.