ARTICLE VI

COVENANTS FOR ASSESSMENTS

 

Section 6.01. Creation of the Lien and Personal Obligation to Pay Assessments. Each Owner, by acceptance of a deed to any Lot, whether or not it shall be so expressed in such deed is deemed to covenant and agree to pay the Association: (1) Annual Assessments (on an monthly basis, if deemed more practical by the Board) 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 attorneys’ fees ,shall be a charge on the Lot and shall be a continuing lien upon the property against which each assessment is made. Delinquent assessments, together with interest, costs, and reasonable attorneys’ fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment was levied. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

 

Section 6.02. Purpose of Assessments. The Annual Assessments levied by the Association shall be used exclusively to promote the recreation, heath, safety and welfare of the Members and their guests, for the improvement and maintenance of the Common Property including, but not limited to, the operation and maintenance of the private streets and sewer system within the  Common Area, and for all purposes set forth in the Articles, Bylaws and this Declaration.

 

Section 6.03. Basis and Maximum of Annual Assessments. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum Annual Assessment, exclusive of Membership Assessments provided for herein, shall be Six Hundred Dollars ($600.00) 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 effective January 1 of each year without a vote of the membership in conformance with the raise, if any, of the Consumer Price Index (for U.S. City Average—All Urban Consumer—published by the Department of Labor, Washington, D.C.) for the preceding month of July.

 

     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 be increased above that established by the Consumer Price Index formula by a vote of the Members for the next succeeding two(2)years and at the end of each such period of  two years, for each succeeding period of two years, providing that any such change shall have the assent of two-