ARTICLE V
ASSESSMENTS:
Section 1. Assessment Obligations. The Developer for each lot owned by him within The Properties hereby covenants and each Owner, his legal representatives, heirs, successors and assigns, of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association: (1) initial assessments, (2) annual assessments or charges, (3) special assessments for capitol improvements, such assessments to be fixed, established and collected from time to time as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with such interest thereon and cost of collection thereof as hereinafter provided, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due, his legal representative, heirs, successors and assigns.
Section 2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents in The Properties, and in particular for the improvements and maintenance of services and facilities devoted to this purpose and related to the use and enjoyment of The Common Properties and of the homes situated upon The Properties, including, but not limited to, the payment of taxes (if any) and insurance thereon, and for the cost of labor, equipment, materials, management and supervision thereon, and for the cost of maintaining the community wells and water system for the residents.
Section 3. Initial Assessment. Each Class A member shall pay an initial assessment of Three Hundred Dollars ($300.00) per lot, said assessment to be due and payable at the time of the original transfer of said lot from 101 Realty, Inc., the Developer, to said member. In lieu of paying a cash initial assessment the Developer and Class B member, has installed a community water system consisting of two operations wells, two pump houses, an atmospheric storage tank, a pressure tank and piping and has an obligation to maintain said system and pay all expenses incidental to it through December 31, 1982. The cost of operating and maintaining said water system will be the responsibility of the Association commencing January 1, 1983.
Section 4. Maximum Annual Assessments. Annual assessments will commence with the year beginning January 1st, 1983.
a) For the year 1983, the maximum annual assessment shall be One Hundred Fifty Dollars ($150.00) per lot.
b) For years after 1983, the maximum annual assessment may be increased by the Board of Directors not more than ten percent (10%) above the maximum annual assessment for the previous year without a vote of the members.
c) For years after 1983, the maximum annual assessment may be increased more than ten percent (10%) above the maximum annual assessment for the previous year by a majority vote of each Class of members who are voting in person or by proxy at the annual meeting or at a meeting duly called for this purpose, written notice of which shall be sent to all members at least thirty (30) days in advance and shall set forth the purpose of the meeting.
d) The Board of Directors may fix the annual assessment at an amount not in excess of the maximum.
e) The annual assessment shall be due in one installment on the first day of the year unless changed by the Board of Directors who may change the due date and increase the number of installments.
Section 5. Special Assessments for Capital Improvements. In addition to the annual assessments authorized by Section 4 hereof, the Association may levy a special assessment for any purpose set forth in Section 2 above, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each Class of Members who are voting in person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all Members at least thirty (30) days in advance and shall set forth the purpose of the meeting.
Section 6. Quorum for any Action Authorized under Sections 4 and 5. Members present in person or by proxy entitled to cast fifty percent (50%) of all the votes of each Class of Membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement of thirty (30) days and purpose of meeting, and the required quorum at any such subsequent meeting shall be one-half (1/2) of the required quorum at the preceeding meeting, provided that no such subsequent meeting shall be held more than sixty (60) days following the preceeding meeting.
Section 7. Duties of the Board of Directors. The Board of Directors of the Association shall, at least thirty (30) days in advance of the date of commencement, prepare a roster of The Properties and assessments applicable thereto, which shall be kept in the office of the Association and shall be open to inspection by any Owner who is a member. Written notice of the assessment shall thereupon be sent to every Owner subject thereto. The Association shall upon demand at any time, furnish to any Owner liable for said assessment, a certificate in writing signed by an officer of the Association, setting forth whether said assessment has been paid. Such certificate shall be conclusive evidence of payment of any assessment there in stated to have been paid.
Section 8. Effect of Nonpayment of Assessments: Remedies of the Association. Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of twelve percent (12%) per annum. The association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the property in the manner provided by statute for the foreclosure of power of sales mortgages, and there shall be added to the amount of such assessment the cost of processing such action, or foreclosing said lien including reasonable attorney’s fees, and said interest.
Section 9. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any lot shall not affect the assessment lien. However, the sale or transfer of any lot pursuant to the foreclosure of a first mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such lot from the liability for any assessments thereafter becoming due or from the lien thereof.
