DECLARATION ARTICLE 2

Article 2 - Assessment of the Annual Charge

¶2.01 Establishment of Assessment
¶2.02 Annual Statement
¶2.03 Interest on Delinquent Assessment
¶2.04 Delinquency for More Than 90 Days
¶2.05 Rules and Procedures for Billing and Collecting Assessments
¶2.06 Certification of Status of Assessments
¶2.07 Increases in Assessments

Article 2 Assessment of the Annual Charge

¶2.01 Establishment of Assessment: For the purpose of providing funds for uses specified in Article 4 hereof, the Board shall for each year, commencing with the year 1975, fix and assess the yearly assessment referred to in ¶1.01 (1) against the Assessable Property or any Assessable Unit, which assessment shall be equal to a specified number of dollars and cents (not in excess of three dollars ($3.00), unless such maximum rate is increased in accordance with the provisions of ¶2.07 for each one thousand dollars of the then current Assessed Valuation of the Assessable Property or an individual Assessable Unit. Notwithstanding the foregoing, such yearly assessment for the years 1975 through and including 1977 shall be no greater than the rate of one dollar and fifty cents ($1.50) for each one thousand dollars of then current Assessed Valuation. Notwithstanding anything in this ¶2.01 to the contrary, there shall be a minimum yearly assessment for any Assessable Unit in the amount of fifty dollars ($50.00). In making each such assessment, the Board shall separately assess each Assessable Unit based upon it s Assess Valuation, and each such Assessable Unit shall be charged with and be subject to a lien for the amount of the Annual Charge on such Assessable Unit.

¶2.02 Annual Statement: As soon as shall be practicable in each year, the Association shall send a written statement to each Owner providing (i) the Assessed Valuation of each Assessable Unit owned by such owner as the same appears on the County Treasurer’s duplicate or similar public record; (ii) the number of dollars and cents per one thousand dollars of such Assessed Valuation assessed by the Board as the yearly assessment for the year in question: and (iii) the amount of the Annual Charge assessed against each such Assessable Unit, stated in terms of the total sum due and owing as the Annual Charge. The Annual Charge may be billed, however, in annual, semiannual, quarterly, or monthly installments, as the Association shall in its sold discretion determine.

¶2.03 Interest on Delinquent Assessment: If an Owner shall fail to pay any installment of the Annual Charge within thirty (30) days following the date of issuance of the statement therefore, the same shall be deemed delinquent and will bear interest at the rate of eight percent (8%) per annum until paid.

¶2.04 Delinquency for More Than 90 Days: If the Owner of any Assessable Unit shall fail to pay the Annual Charge or any installment thereof within ninety (90) days following the date of issuance of the statement thererfor, the Association shall have the right to sue such Owner for a personal judgment, and, in addition, shall have the right to enforce the lien, hereinafter imposed. The amount due by such Owner shall include the unpaid Annual Charge or installment thereof as well as the cost of such proceedings, including reasonable attorneys’ fees, and the aforesaid interest. In the event an appropriate court refuses jurisdiction of a proceeding to enforce said lien or finds said lien to be unenforceable, invalid, or ineffective, then the Association shall have the right to sell the property at public or private sale in satisfaction of the amounts then owing. Every aspect of the sale including the method, manner, time, place and terms shall be commercially reasonable. The Association shall give such Owner reasonable notice (by registered mail or by publication in a newspaper of general circulation in each of Franklin and Delaware Counties) of such sale at least thirty (30) days prior to such sale, and if such sale is to be public such notice shall contain the date, time and place of such sale.

¶2.05 Rules and Procedures for Billing and Collecting Assessments: The Board shall have the power and authority to adopt rules and procedures respecting the billing and collection of the Annual Charges, which shall be binding on all Owners, provided that such procedures shall not be inconsistent with the provisions hereof. The Board may, but shall not be obligated to, contract with holders of debt obligations to assess the Annual Charge at an agreed minimum rate which shall not be greater than the maximum provided for in ¶1.01 or the maximum as increased in accordance with ¶2.07.

¶2.06 Certification of Status of Assessments: Upon written demand by an Owner, the Association shall within a reasonable period of time thereafter issue and furnish to such Owner a certificate stating that all Annual Charges or installments thereof (including interest and costs, if any) have been paid with respect to any specified Assessable Unit as of the date of such certificate, or, if all Annual Charges and installments thereof have not been paid, setting forth the amount (including interest and costs, if any) due and payable as of such date. The Association may make a reasonable charge for the issuance of such certificates, which must be paid at the time that the request for such certificate is made. Any such certificate, when duly issued as herein provided, shall be conclusive and binding with regard to any matter therein stated as between the Association and ay bona fide purchaser of, or lender on, the Assessable Unit in question.

¶2.07 Increases in Assessments: At any time after December 31, 1977, the amount set forth in ¶2.01 hereof as the maximum amount which may be assess against each one thousand dollars of Assessed Valuation may be increased for a period of one or more years by the affirmative vote of at least two-thirds of the voting members of the Association represented in person or by proxy and entitled to vote at a meeting (annual or special) called for such purpose. Such two-thirds vote requirement may not be reduced to any lower fraction.