Dues Collection

MASONS PASSAGE HOMEOWNERS ASSOCIATION

POLICY RESOLUTION No. 01-2001

(Policy Concerning the Collection of Assessments)

WHEREAS, Article XII of the Association's Bylaws empowers the Board of Directors of the Association to establish and collect assessments from the Association's members in order to cover the costs of the maintenance of the common elements and other common expenses of the Association; and

WHEREAS, the Board believes that it is in the best interest of the Association to establish and clarify the policy it will administer and enforce in connection with the establishment and collection of assessments; and

NOW, THEREFORE, be it resolved that the Board of Directors does hereby adopt the following policy.

1. The Board of Directors shall establish the annual assessment at the time it approves the Operating Budget for the fiscal year. The Association will notify the members of the annual assessment by first class mail, mailed to the address appearing on the books of the Association. Off-site owner/members shall be responsible for notifying the Association's management company of any alternate address they want the Association to use for notices from the Association. If a member does not receive a notice from the Association's management company, the Association will not excuse the member from the obligation to pay the assessment. All members are under a legal duty to seek out information about the annual assessment if they do not receive the Association's notice.

2. Members may pay the annual assessment in four (4) equal quarterly installments, due on the first day of January, April, July, and October. Members may make arrangements with the Association's management company to pay the quarterly assessments through a direct debit program. If members choose not to pay the quarterly assessments through the direct debit program, they must ensure that the Association's management company receives payment on or before the thirtieth (30th) day of the first month the quarterly assessment falls due. If not, the Association shall consider the account "late". If an account becomes "late", the Board shall impose a late charge of $25.00 on the account, and management will send a reminder notice to the member. If the member fails to pay the quarterly installment and any accrued late charges by the forty-fifth (45th) day after the due date, the Association will send a late notice by certified mail, return receipt requested, to the member and will add administrative costs, including the cost of postage, to the account balance. This late notice shall include a statement that if the payment is not received, the unit owner's account will be accelerated for the remainder of the fiscal year and referred to the Association's counsel, at which time additional charges will be added to the account. This late notice shall also include a statement that if payment is not received, the member's voting privileges may be suspended. The Association will deem notification effective if any member fails or refuses to sign for any registered or certified mailing from the Association.

3. If the member fails to pay the quarterly installment and any accrued late charges by the sixtieth (60th) day after the due date, the Association shall send the account to the Association's counsel for collection. Before doing so, the Association shall accelerate the balance of the account for the remainder of the fiscal year.

4. Counsel for the Association shall be authorized to record liens and file suits on behalf of the Association to collect all delinquent sums. Counsel for the Association shall add all legal fees and court costs to the account of the delinquent member.

5. If a member submits a check to the Association, which fails to clear the member's account, the Association shall add a $25.00 charge to the account.

6. In all lawsuits or liens, the Association shall claim interest on all principal sums due at a rate of 6% per annum.

7. For bookkeeping purposes, the Association shall apply payments received from delinquent members in the following order:

a. Any legal fees or costs of collection;

b. Late charges and interest;

c. All other incidental charges or fees for collection incurred by Association;

d. Any and all special assessments; and

e. The annual assessments.

8. If a member's account becomes more than sixty (60) days past due, the Association may suspend all of the member's rights and privileges, including, but not limited to, the right to vote, to serve on the Board or any committee. The suspension shall remain in effect until the member pays all amounts due. If any member wants to contest a suspension or explain any matter relative to an account, s/he may request a hearing with the Board of Directors in writing. Upon receipt of a request for a hearing, the Board will schedule a hearing and notify the member in writing of the date and time of the hearing.

9. In order to expedite the prompt processing and filing of lien memoranda and lawsuits, Peter S. Philbin is hereby given power of attorney by the Board of Directors for the sole purpose of signing lien memoranda and lawsuits on behalf of the Association.