ARTICLE IV
COVENANT FOR MAINTENANCE ASSESSMENTS

Section 1.   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 as set forth in Section 4 of this Article, in Section 13 of this Article and Section 15 of Article VI, or Section 3 of Article IX, such assessments to be established and collected as hereinafter provided.  The annual and special assessments, (Sometimes jointly referred to herein as "Assessments") together with interest, costs, and reasonable attorney's fees, shall be a charge on the Lot and shall be a continuing lien upon the Lot 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 Lot at the time when the assessment fell due.  The personal obligation for delinquent Assessments shall be the joint obligation of the grantor and grantee under a deed, without affecting the grantee's right to recover the grantor's share from the grantor.

Section 2.   Purpose of Assessments. The Assessments levied by the Association shall be used to promote the recreation, health, safety and welfare of the Owners and residents of the Property, for the improvement and maintenance of the Common Property, including without limitation the Common Roads, for the operation and administration of the Association, for the establishment of a maintenance, repair and reserve account for the installing and maintaining of street lighting and signage, landscaping and improvements, for payment of taxes and insurance in all Common Property, for rental and maintenance of recreational areas leased by the Declarant to the Association and for such other purposes as are set forth or permitted in this Declaration, the Articles or Bylaws.

Assessments shall also be used for the maintenance and repair of the Surface Water or Stormwater Management System(s) including but not limited to work within retention areas, drainage structures and drainage easements.

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 per Lot shall be $360.00 a year, payable quarterly, in advance.

(a) From and after January 1 of the year immediately following the recording of this Declaration, the maximum Annual Assessment for a Lot may be increased each year not more than 15% above the maximum Assessment for the previous year without approval of the majority vote of each class of membership.

(b) From and after January 1 of the year immediately following the recording of this Declaration, the maximum Annual Assessment to be levied against each class of Members may be increased by more than fifteen percent (15%) by a vote of two-thirds majority of the Association.

(c) The Board of Directors may fix the Annual Assessment at an amount not in excess of the maximum.

(d) The Association in determining the Common Expenses shall establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of improvements to Common Property.

Section 4. Special Assessments. 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 Property, including fixtures and personal property related thereto, provided that any such assessment shall have the approval of two-thirds (2/3) majority vote of the Association unless the Special Assessment is required due to the inadequacy of the insurance proceeds to cover the cost of a repair to Common Property (See Article IX, Section 1) wherein no approval shall be required.

Section 5. Uniform Rate of Assessment. Both annual Assessments and Special Assessments, for the purpose set forth in Section 4 above, must be fixed at a  uniform rate for all Lots in a class and any increase must be applied uniformly for all classes. In the event that an Owner or his family, guest or invitees specifically damage the Common Property as elsewhere provided. Such Lot may be subjected to a nonuniform Special Assessment for payment of such costs.  There shall be no Assessment against the Common Property.

Section 6. Date of Commencement of Annual Assessments:

Due Dates. The Annual Assessments shall commence upon substantial completion of the installation of the Common Roads and utilities serving a specified Lot subject to this Declaration. A Lot shall be deemed substantially complete and subject to Assessment when the Common Roads necessary to provide access to a particular Lot have been constructed, utilities for use of Owner are in place and the Owner is able to obtain a building permit therefore. In the event that any Additional Property is annexed to this Declaration, Assessments for the land annexed shall commence at such time as the roads and utilities serving that portion of the Additional Property are installed. The first Annual Assessment shall be adjusted according to the number of months remaining in the calendar year. 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 every Owner subject thereto.

Section 7. Association Certificate. 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 for a special 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 its issuance.

Section 8. Effect of Nonpayment of Assessments: Remedies of the Association. Any Assessments not paid within thirty (30) days after the due date shall bear interest from the due date at the highest rate of interest permitted by the law. The Association may bring action at law against the Owner personally obligated to pay the same, or foreclose the lien against the Lot.  No Owner may waive or otherwise escape liability for the Assessments provided for herein by non-use of Common Property or abandonment of his Lot. In addition to the preceding remedies, the Association shall have the power to impose fines for the failure of any Owner to make timely payment of any assessment.  Such fines are not subject to the procedural and other limitations contained in Section 1 of Article XII.

Section 9.   Subordination of the Lien to Mortgages. The lien of Assessments provided for herein shall be subordinate to the lien of any mortgage held by a Mortgagee. 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 proceeding in lieu thereof, shall extinguish the lien of such Assessments as to payments which became due prior to such sale or transfer.  No sale or transfer shall relieve such Lot from liability for any Assessment thereafter becoming due or from the lien thereof. Any such delinquent Assessments which were extinguished pursuant to the foregoing may be reallocated and assessed against all of the Lots as part of the annual budget.

Section 10.   Exempt Property. All properties dedicated to, and accepted by, a local public authority or utility company and serving a public use and all properties owned by a charitable or non-profit organization exempt from taxation by the law of the State of Florida and properties owned by the Association shall be exempt from Assessment created herein, except no land or improvements which are occupied as a residence shall be exempt from Assessments.

Section 11. Reserves. The Board shall establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of improvements to the Common Property.  This reserve fund shall constitute a portion of the annual budget.  In addition, the Board of Directors may establish reserve funds from the Annual Assessments to be held in reserve in an interest bearing account for:

(a) major rehabilitation or major repairs;

(b) for emergency and other repairs required as a result of storm, fire, mutual [natural] disaster or other casualty loss; and

(c) initial cost of any new service to be performed by the Association.

Section 12. Declarant Payment. The Declarant, for any Lots which it owns, shall not be liable for the Annual Assessment so long as it funds any deficit in the operating expenses of the Association.  Provided further, in its sole discretion Declarant may at any time commence paying Assessments as to Lots owned by it and thereby automatically terminate its obligation for any deficit in the operating expenses of the Association.

Section 13. Assessments for Failure to Maintain. In the event that an Owner fails to maintain his Lot or the improvements thereupon as required herein, the Association shall give written notice specifying such failure to the Owner and if the Owner fails to correct such unperformed maintenance within ten (10) days from the Association's written notice, the Association may perform such maintenance and the cost of such shall constitute a Special Assessment for which a claim of lien may be filed and enforced.

Rule IV-13-1 The Notice referred to in the above Covenant shall be prepared and served on the owner by the Rules Committee. For related provisions, see Sections V-4(k) and VI-15 of the Declaration of Covenants. [Adopted May 6, 1996]

Section 14. Failure to Revise Budget.   The failure or delay of the Board to prepare or adopt the annual budget for any fiscal year shall not constitute a waiver or release in any manner of the Owner's obligation to pay Assessment as herein provided, whenever the same shall be determined.  In the absence of an annual budget, each Owner shall continue to pay Assessment as established for the previous year.