Section 5.021 Annual Accounting. Annually, as soon as practicable after the close of each fiscal year, the Board shall cause to be prepared and furnish to each Owner a financial statement prepared by the Declarant or its successor, which statement shall show all receipts and expenses received, incurred and paid during the preceding calendar year. The Association shall furnish such financial statement for the preceding fiscal year free of charge to any holder, insurer or guarantor of first mortgage who shall so request in writing.

Section 5.02 Proposed Budget. Annually, on or before the date of the Annual Meeting of the Association, the Board of Directors shall cause to be prepared a proposed Annual Budget for the ensuing or current fiscal year estimating the total amount of the Common Expenses for such fiscal year. The Board of Directors shall furnish a copy of such proposed Annual Budget to each Owner prior to or at the Annual Meeting. The Annual Budget shall be submitted to the Owners at the Annual Meeting of the Association for review and comments, prior to adoption by the Board, and, if so adopted, shall be the basis for the Annual Assessment for the following fiscal year. At the Annual Meeting of the Owners, the Budget may be approved in whole or in part or may be amended in the whole part or in part, by the Board of Directors.

Section 5.03 Annual and Special Assessments. Common Expenses shall be assessed to the Owners, either as an Annual Assessment, or as a Special Assessment, equally with respect to each lot which is subject to assessment, all as set fourth below.

(A) An Annual Assessment shall be made for each Fiscal Year of the association for all anticipated ongoing operation expenses of Association, including reserves. The amount of the aggregated Annual Assessments shall be equal to the total amount of Expenses provided for in the Annual Budget, including reserve items.

(B) Special Assessments may be made for any unusual and/or extraordinary items, including capital expenditures, and any unanticipated items. Special Assessments shall be payable in such amounts and at such times as may be provided in the resolution or other formal proposal setting fourth the terms of such Special Assessments.

( C) The Annual Assessment and all Special Assessments, together with interest, late charges, cost and reasonable attorney's fees, shall be a continuing lien on the lot upon which each such assessment is made as each installment thereof becomes payable. Each such assessment, together with interest, late charges, cost and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of the lot at the time the assessment was payable.

Section 5.04 Fiscal Year. The Fiscal year of the Association shall commence on January 1 and end December 31, but the Board of Directors may change such Fiscal Year.

Section 5.05 Limitation on Assessments. During the Fiscal Year ending on or prior to December 31, 1998, the Maximum Regular Annual Assessment shall be $150.00 per Residence Unit per year payable in advance, annual. For the purpose of this Section any lot re-acquired by the Developer after it has been sold shall be deemed not to be owned by the Developer.

Section 5.06 Vote for Special Assessments. No Special Assessment shall be adopted unless voted for by two-thirds (2/3) of the members of the Association who are voting in person or by proxy at a meeting called for this purpose. However, Special Assessments required because of an insufficiency of insurance shall not be subject to any vote by the owner.

Section 5.07. Notice of Meetings for Assessment. Written notice of any meeting other than the Annual Meeting which is called for the purpose of reviewing the Annual Budget and Annual Assessment, shall be given or sent to all members and such notice shall state that the Annual Budget and/or a Special Assessment will be considered at such meeting.

Section 5.08 Commencement of Assessments. The Annual Assessments provide for herein shall be made for each Fiscal Year of the Association. The Annual Assessment shall be set for each fiscal year of the Association. If the Annual Assessment has not been set by the first day of the Fiscal Year, then the payments due on the Annual Assessment shall be based upon a Tentative Annual Budget set by the Board of Directors, and if none is set then the Assessments shall be based on the prior year's assessments until the Annual Budget and the Annual Assessment for such Fiscal Year is approved. If more than one lot is conveyed or rented with a home, then each lot, or part part, shall be subject to the Annual Assessment for the Fiscal Year in which occurs the conveyance of the first lot to an Owner other than a builder shall be established by the Developer. No lot shall be liable for payment of the Annual Assessment until after a home on the lot is substantially completed and is then conveyed by the Builder of the home to a purchaser. At that time of the first conveyance of a home, the purchaser shall pay a prorated assessment for the balance of the year in which the lot is conveyed. The seller of each lot shall be responsible to notify the Association of his sale of the lot and to give to the association the purchaser's name and address for mailing purposes and satisfaction evidence of his ownership.

Section 5.09 Delinquent Assessment. Any payment of an Assessment which is not paid with fourteen days of the date when due shall automatically be subject to a late charge of $25.00. Late charges may continue to be assessed for each month a payment remains outstanding. The Board of Directors shall have right to change the amount of the late charge, the time period before such charge is imposed, and to make other provisions for late charge, and/or for imposing interest on late payments. The Board of Directors shall have the right to charge the Home Owner any and all costs that the Association may incur in securing the annual Association fee, late fees.  Such costs may also include but not limited to  legal fees, Management fees, etc. The Association may bring an action at law against the Owner personally obligated to pay the same; it may foreclose its lien against the Owner's lot; or it may assert both rights and/or other remedy available to it in law or in equity.

Section 5.10 Lien of Assessments. All sums assessed by the Association, nut unpaid, including installments of Annual Assessment and Special Assessments, and any fines duly imposed by the Association, together with late charges, interest, attorney's fees and the cost of collection thereof, shall constitute a lien on the Owners lot prior to all other liens, except only:

(A) Tax Liens on the lot in favor of any assessing unit or special district; and

(B) All sums unpaid on a first mortgage of record.

The sale or transfer of any lot by foreclosure ( but not any other transfer), shall extinguish the assessment lien for payments which became due prior to the date of such sale or transfer, but shall not extinguish the personal liability for any assessments thereafter becoming due or from the lien thereof. The lien for sums assessed may be foreclosed by a suit by the association or Managing Agent on its behalf in like manner as a mortgage of such property. In any such foreclosure the Owner shall be required to pay a reasonable rental for the use and occupancy of the lot. The Association, upon the affirmative vote of 90% of all the Owners ( so authorizing and setting up a special assessment to pay for the same ), shall have the power to bid on the lot at any foreclosure sale and too acquire and hold, lease, mortgage and convey the same.

Section 5.11 Liability of Grantee. In a voluntary conveyance of a lot other than a deed in lieu of foreclosure, the grantee of the lot shall be jointly and severally liable with the grantor for all unpaid assessments up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee thereof. Upon the request of any Owner, purchaser or mortgagee,  the Secretary or other authorized officer of the association or the Managing Agent shall provide within seven (7) days of the request, a statement of the amount of current and delinquent assessments by the Association, including fines, and charges, against a particular lot. The Association may charge a reasonable charge for such statement is a Mortgagee or purchaser of or from the Owner. Once having been furnished with such a statement, such person( other than the delinquent Owner) shall not be liable for, nor shall the lot conveyed be subject to a lien for, any unpaid assessments made by the Association against the grantor in excess of the amount therein set fourth, plus costs of collection of such sums, if applicable.

Section 5.12. Failure of Owner to Pay Assessments. Each Owner shall be personally liable for the payment of all Annual and Special Assessments. Where the Owner constitutes more than one person, the liability of such persons shall be joint and several. The Board may, at its option, bring a suit to recover a money judgment for any unpaid Annual or Special Assessments without foreclosing or waiving the lien securing the same, or it may bring a joint action to recover money damages and to foreclose it liens on the lot.

Article VI