: : 4208 BOWSER CONDOMINIUM ASSOCIATION COLLECTION POLICY OF DELINQUENT REGULAR AND SPECIAL ASSESSMENTS 1. DUE DATES: 1.
2.
Regular assessments shall be due and payable on the first day of each month.
Special assessments and all other assessments shall be due and payable as expressly provided when the special assessment or other assessment was levied.
2. DELINQUENT: Any assessment which is not fully paid when due shall be termed delinquent. When the account of a unit becomes delinquent, it shall remain delinquent until paid in full. In this policy, "delinquent assessments" shall refer to all amounts due and owing by an Owner to the Association, including collection costs and late fees.
3. LATE FEES: If the Association does not receive full payment of an assessment within 15 days after the due date, a late fee of $25.00 shall be assessed for the month in which the unit's account first became delinquent, and for every month thereafter until the delinquency is paid in full.
4. INTEREST: The Association may levy interest on delinquent assessments at the rate of 10 percent per annum until paid.
: : 5. INSUFFICIENT FUNDS: The Association may levy a charge of $25.00 against an Owner if the check on which his payment is made is returned to the Association marked "not sufficient funds" or the equivalent.
6. WAIVER: Properly levied collection costs, late fees and/or interest may not be waived by the Board, unless a majority of the Board determines that extraordinary circumstances warrant an adjustment to the account.
7. RIGHT TO ACCELERATE: If a special assessment is payable in installments, and if an Owner defaults in the payment of any installment, the Association may declare the entire assessment in default and accelerate the due date on
special assessment is payable in installments, and if an Owner defaults in the payment of any installment, the Association may declare the entire assessment in default and accelerate the due date on all remaining installments of that assessment.
8. NOTICE TO OWNER: A special assessment payable in installments may be accelerated only after the Association gives the Owner at least 15 days prior notice of the default and the Association's intent to accelerate the unpaid balance if said default is not timely cured.
9. NO DUTY TO REINSTATE: Following acceleration of the indebtedness, the Association has no duty to reinstate the installment program upon partial payment by the Owner.
10. APPLICATION OF PAYMENTS: All payments received by the Association shall be applied in the following order, starting with the oldest charge in each category, until that category is fully paid, regardless of notations on checks and regardless of when the obligations arose: 1. Collection costs Reimbursable expenses Late charges Interest charges 2.
3.
4.
5.
6.
7.
Current special assessments Delinquent special assessments Delinquent regular assessments 8. Current regular assessments 111 FORM OF PAYMENT: The Association may require that payment of delinquent assessments and costs of collection be made only in the form of cash, cashier's check or certified funds.
12. PARTIAL PAYMENT: The acceptance by the Association of partial payment of delinquent assessments shall not waive the Association's right to pursue or to continue pursuing its remedies for payment in full of all outstanding obligations.
13. NOTICE OF PAYMENT: If the Association received full payment of the delinquency after recording a notice of lien, the Board shall instruct the Association's attorney to
l outstanding obligations.
13. NOTICE OF PAYMENT: If the Association received full payment of the delinquency after recording a notice of lien, the Board shall instruct the Association's attorney to prepare and record a release of notice of lien, a copy of which shall be sent to the Owner; provided, however, the Owner prepays the cost of preparing and recording the release.
; " 14. LIABILITY FOR COLLECTION COSTS The defaulting Owner shall be liable to the Association for the cost of title reports, credit reports, certified mail, long distance calls, filing fees, and other reasonable costs and attorney's fees incurred in the collection of the delinquency.
15. DEMAND LETTER: If an account has been delinquent for 60 or more days, or if it remains, one month delinquent for two or more consecutive months, the Board shall send a demand letter to each defaulting Owner shown on the Association's records. The letter shall include a demand for payment in full within 10 days and shall state that if full payment is not received, the Association may pursue any or all of the following procedures, at the sole cost and expense of the defaulting Owner.
16. COLLECTION BY ASSOCIATION'S ATTORNEY: The Board may refer the delinquent account to an attorney for collection. In that event, the defaulting Owner shall be liable for its legal fees and expenses.
17. VERIFICATION OF OWNER INFORMATION: At the Owner's expense, the Board may obtain a title report to determine (i) the full and correct names of the unit Owner(s), and (ii) the identity of other lienholders, including the mortgage company.
18. NOTICE OF LIEN: The Board, through the Association's attorney, may prepare and record a notice of the Association's assessment lien against the unit. A copy of the
including the mortgage company.
18. NOTICE OF LIEN: The Board, through the Association's attorney, may prepare and record a notice of the Association's assessment lien against the unit. A copy of the notice of lien shall be sent to the defaulting Owner, and may be sent to his mortgage holder.
19. FORECLOSURE OF LIEN: The Board may instruct an officer or agent of the Association to notify the defaulting Owner of the Association's intent to foreclose its assessment lien, to post the property for public auction, and to conduct a public auction of the unit on the steps of the county courthouse in accordance with state law and the Associa tion's documents.
20. SUIT FOR OWNER'S PERSONAL LIABILITY: Whether or not the Board forecloses on the Association's lien, the Board may elect to file suit for a personal judgement against the defaulting Owner, and to execute on the judgement.
21. CANCELLATION OF DEBT: If the Board considers the debt uncollectable and decides to cancel the debt on the books of the Association, the Association may report the full amount to of the forgiven indebtedness to the Internal Revenue Service as income to the defaulting Owner.
22. NOTICES: Unless the Declaration, By-Laws or this policy provide otherwise, any notice or other written communication given to an Owner pursuant to this policy will be deemed delivered to the Owner upon depositing same with the U.S. Postal Service, addressed to the Owner at the most recent address shown on the Association's records, or upon personal delivery to the Owner. If the Association's records show that a unit is owned by two or more persons, notice to one co-owner shall be deemed notice to all co-owners. Written communications to the Association, pursuant to this policy, will be deemed given upon
a unit is owned by two or more persons, notice to one co-owner shall be deemed notice to all co-owners. Written communications to the Association, pursuant to this policy, will be deemed given upon actual receipt by the Association's president, secretary, managing agent or attorney.
23. DEFINITIONS: All words and phrases used in this policy have the same meanings given to them by the Declaration and By-Laws.
24. EFFECTIVE DATE: This policy shall become effective June 1, 1994, provided that copies of this policy have been mailed to an Owner of each unity as shown on the records of the Association, by first class mail at least 10 days prior to the effective date.
TO: JERRY ANITA CINDY FROM: TIM SCHUTZE REMINGTON PROPERTIES. INC..
RE: COLLECTION POLICY DRAFT #1 i DATE: APRIL 5, 1994 Enclosed for your review and edification is the initial draft of the collection policy we discussed last week.
Please take a few minutes to review this policy and feel free to make any changes or additions. We can discuss this policy at our next meeting.
696-1144 10501 North Central Expressway Suite 304 Dallas Tevas 75921