Effective 9/1/97 & revised 11/18/97 and 11/26/2009

Policy

1. PAYMENT OPTIONS: Annual regular assessments are due January 1^st of each year. There is a payment option plan available, but the lot owner must choose either option 1 or option 2, and must make payment accordingly, no later than January 31^st.

1.1 OPTION 1 Payment of the full annual assessment no later than January 31^st is choosing option 1. Full payment by January 31^st completes the annual regular assessment obligation of the lot owner.

1.2. OPTION 2 Payment by January 31^st of an amount equal to the 1^st installment constitutes making a choice to pay in two (2) installments and obliges the lot owner to make a second payment that includes the administrative fee. The assessment is considered overdue if not paid in accordance with the final payment date and the full amount due, including administrative processing fee. For option 2 (payment in 2 installments due January 1^st and May 1^st) a payment is considered overdue if not paid by January 31^st and May 31^st. A late charge of $10.00 will be added to overdue, or underpaid, accounts. In addition interest of 1% per month will be charged on overdue, or underpaid, payments, including applicable administrative processing fee, starting from the date of January 1^st or May 1^st for those paying in 2 installments.

1.3 If no installment payment is made by January 31^st, the lot owner is considered to have chosen option 1 and a late charge of $10 will be added to overdue accounts for the full amount of the annual assessment. In addition, interest of 1% per month will be charged on overdue payments of the full annual assessment starting from the date of January 1^st.

2. LIEN POLICY: For owners choosing option 1, a lien notice will be sent by certified mail for all accounts not paid in full by March 15^th. If the account is not paid in full by April 15^th, a lien on the property will be filed without further notice. If the lot owner has chosen the option 2 payment schedule, a lien notice will be sent by certified mail for accounts not paid in full by July 15^th. If the account is not paid in full by August 15^th a lien on the property will be filed without further notice.

3. LIEN CHARGES: Each lien has filing process costs of approximately $ 450.00. The work of filing a lien is performed by a professional service. The lot owner is obliged to pay the entire filing, administrative, legal, and collection costs associated with the lien, including, but not limited to, professional services, recording costs, notary fees, mileage, lien preparation and notification by certified mail, and any postage or delivery charges. Depending on the amount of professional services time and work involved in filing and collecting the lien, the charges may be higher than indicated above.

4. When the Board of Directors determines that the total unpaid liens against a property are sufficient to warrant other actions, such as small claims court or foreclosure, it will be done in accordance with the CC & R’s.

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To avoid late payments, interest, and/or lien fees, please pay by the payable due date of the installment payment plan that you choose:

Option 1 by January 31^st, 2009 $ 255

Option 2 by January 31^st and May 31^st, 2009 $ 128 and $ 131, respectively