Section l. Creation of the Lien and Personal Obligation of Assessments The Declarant, for each Lot owned within the properties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant, and agree to pay to the Association: (1) annual assessments or charges, and (2) special assessments-for capital improvements, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest costs, and reasonable attorney’s fees 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 interest, costs, and reasonable attorney’s fees, shall also be the personal obligation of the person who was the owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

 

Section 2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the health, safety, and welfare of the residence in the properties and for the improvement and maintenance of the Common Area.

 

Section 3. Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be seventy dollars ($70.00) per Lot.

 

(a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased each year not more that l0% above the maximum assessment for the previous year without a vote of the membership.

 

(b) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may he increased above 10% by a vote of two-thirds (2/3) of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose.

 

(c) The Board of Directors may fix the annual assessment in an amount not in excess of the maximum.

 

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, 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 for this purpose.

 

Section 5. Notice and Quorum for Any Action Authorized Under Sections 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Section 3 or 4 shall be sent to all members not less than thirty days no more than sixty days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (60%) of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the preceding meeting shall be one-half (1/2). No such subsequent meeting shall be held more than 60 days following the preceding meeting.

 

Section 6. Uniform Rate of Assessment. Both Annual and special assessments must be fixed at a uniform rate for all Lots and shall be collected on an annual basis.

 

Section 7. Date of Commencement of Annual Assessments: Due Dates. Annual assessments provided for herein shall commence as to all Lots on the first day of the month following the conveyance of the Common Area. Each Class A member shall pay his prorated share of the annual assessment at the time of closing of his purchase or at the time of first occupancy, whichever occurs first. If first occupancy takes slice prior to closing, payment shall be made directly to the Association at 3402 'C' St. N.E., Auburn, Washington, or such other place as designated by the Board of Directors. Otherwise, the payment shall be collected by the designated escrow agent on behalf of the Association: The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to each owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments a specified Lot have been paid. A properly executed certificate of the association as to the status of assessments on a lot is binding upon the Association as of the date of issuance .

 

Section 8. Effect of Non-payment of Assessments: Remedies of the Association. Any assessment not paid within thirty days after the due date shall bear interest from the due date at the rate of 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. No owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot.

 

Section 9. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall he 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 Mortgage foreclosure or any offer shall relieve such Lot from liability for ang assessments thereafter becoming due or from the lien thereof.

 

Section 10. Method of Collection of Assessments. The regular annual assessments shall be paid when due directly to the Association at Its registered office The treasurer of the Association shall deposit all fees into an interest bearing account at Rainier National Bank, Auburn, Washington, or such other depository as shall be designated by the Board of Directors any special assessments shall be handled in like manner.