4.01 General Assessments. For the purpose of providing funds for the operation of the Association, and for the operation, maintenance, care and improvement of the Common Area, and to afford the Association the means and resources necessary to carry out its duties and functions or the Association shall have the right, in each year, assess against each Lot in the Property a general assessment, which general assessment shall subject each Lot to a lien to secure payment thereof. The annual general assessment shall be $250.00 (as of October 2002, subject to change).

When an assessment is to be made hereunder, the Association will notify all owners stating the amount of the assessment and when payment is due; provided, in no event shall payment be due sooner than sixty (60) days following the notice of such assessment is mailed by the Association.

4.02 Basis and Operating Fund. All general assessments shall be made against the owners on an equal basis for each Lot or fraction thereof owned by the owner or owners.

Each new owner acquiring a Lot from a member of the Association, shall pay to the Association, at the closing of acquisition, such sum as may be required by the Association in the form of an Initiation Fee/Transfer Fee to the working capital of the Association. Such payment shall be in the amount of $150.00 (as of October 2002, subject to change).

4.03 Limitations on General Assessments.

(A) The maximum annual general assessment may be increased for any subsequent year, to an amount which is not more than 30% compounded above the annual assessment for the previous year, without a vote of the membership of the Association.

(B) The annual assessment for any year may be increased to an amount greater than that permitted by subsection (A) of this Section 4.03 only by an affirmative vote of two-thirds of the vote of the Members in attendance, who are voting in person or by official mail in ballot as provided by the Board.

(C) The Board may fix the annual assessment at any amount not in excess of the amounts permitted hereunder.

4.04 Special Assessments. In addition to general assessments, the Association may, from time to time, at a regular meeting or a special meeting called upon notice for such purpose, establish a special assessment to be levied equally against each Lot for the purpose of providing additional funds (not available through general assessments) to carry out its duties and other functions and contemplated hereunder. No such special assessment shall be valid unless two-thirds of the Members present, in person or by proxy, at the meeting vote for it. Any special assessments shall become a lien against each Individual Lot at the time of such assessment in the same manner otherwise provided for in this Article.

Further, the Association shall have the authority to establish and fix a special assessment on any Lot to secure the liability of the Owner or such Lot to the Association for any breach by such owner of any of the provisions of this Declaration, which breach shall result in an expenditure by the Association for repair or remedy.

Any special assessment shall be payable in full on the first day of the second calendar month next following the date that the same shall be established by the Association and shall thereafter bear interest until paid in full at the prevailing legal rate.

4.05 Collection and Expenditures. The Association shall have the sole authority to collect and enforce the collection of all general and special assessments provided for in this Declaration, and may, in addition to such assessments, charge and assess costs, including reasonable attorneys’ fees and penalties and interest for the late payment or nonpayment thereof. The Association shall have the authority to expend all monies collected from such assessments, costs, penalties and interest for the payment of expenses and costs in carrying out the duties, rights and powers of the Association as provided for in this Declaration and the Articles of Incorporation and Bylaws of the Association. However, the Association shall not be obligated to spend in any year all the sums collected in such year by way of general assessments, or otherwise, and may carry forward, as surplus or in reserves, any balances remaining; nor shall the Association be obligated to apply any such surpluses or reserves to the reduction of the amount of the assessments in the succeeding year, but may carry forward from year to year such surplus as the Board, in its absolute discretion, may determine to be desirable for the greater financial security of the Association and the effectuation of its purposes.

4.06 Assessments and Lien; Delinquency. Thirty (30) days after any general or special assessment shall be due and payable, and unpaid or otherwise not satisfied, the same shall be and become delinquent and a lien on the Lot and shall so continue until the amount of said charge and assessment, together with all costs, penalties and interest as herein provided, has been fully paid or otherwise satisfied.

4.07 Notice of Delinquency. At any time after any general or special assessment against any Lot has become a lien and delinquent, the Association may record in the office of the Register of Deeds, Sedgwick County, Kansas, a Notice of Delinquency as to such Lot, which Notice shall state therein the amount of such delinquency and that it is a lien, and the interest, costs (including attorneys’ fees) and penalties which have accrued thereon, a description of the Lot against which the same has been assessed, and the name of the Owner thereof, and such Notice shall be signed by an officer of the Association.
Upon payment or other satisfaction of said assessment, interest, penalties and costs in connection with which notice has been recorded, the Association shall record a further notice stating the satisfaction and the release of the lien thereof.

4.08 Enforcement of Liens. Each lien established pursuant to the provisions of this Declaration and which is specified in a Notice of Delinquency as hereinabove provided, may be foreclosed in like manner as a mortgage on real property as provided by the laws of Kansas. In any action to foreclose any such lien, the Association shall be entitled to costs, including reasonable attorneys’ fees, and such penalties for delinquent charges and assessments as shall have been established by the Association.

4.09 Subordination to Mortgages. Each and every assessment and lien, together with any costs, penalties and interest reserved under this Declaration, shall be subordinate to the lien of any valid bona fide mortgage which has been, or may hereafter be, given in good faith and for value on any interest if any Owner covered by this Declaration. Any subsequent Owner of any Lot purchased at foreclosure shall be bound by the restrictions, assessments and liens set out in this Declaration, not including, however, any assessment or lien arising prior to the foreclosure sale.

4.10 Personal Liability. In addition to the covenants and agreements heretofore set forth herein, each owner of each Lot, by the acceptance of a deed thereafter, whether or not it shall be so expressed in such deed, shall be deemed to have agreed to be personally liable for the payment of each general or special assessment levied against such Lot in each calendar quarter during any part of which such Owner holds title to such Lot.

4.11 Interest and Delinquent Assessments. All assessment charges which remain due and unpaid thirty (30) days after the same are due shall thereafter be subject to interest at the rate of fifteen (15%) percent per annum, or such other rate as may be established from time to time by the Board; provided, however, that such interest rate shall never exceed the maximum allowed by law.

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