Keystone Manors

ASSESSMENT COLLECTION RESOLUTION

ADOPTING A COLLECTION POLICY

The following resolution has been adopted by the Keystone Homeowners Association at a regular meeting of the Board of Directors.

RECITALS

1. The Association is charged with certain responsibilities regarding care, maintenance and service of certain portions of Keystone Manors in Odessa, Florida.

2. The Association must have the financial ability to discharge its responsibility.

3. The Board of Directors is required to pursue collection of assessments and other charges from delinquent owners.

4. The Board of Directors of the Association desires to adopt a uniform, non-discriminating and systematic procedure to collect assessments and other charges of the Association.

Now, therefore, be it resolved that the Association does hereby adopt the following procedures and policies for the collection of assessments and other charges of the Association:

1. Due Dates. The annual assessment as determined by the Association and as allowed for in the Declaration of Covenants, Conditions, Restrictions, and Easements and Bylaws shall be due and payable in twelve(12) installments due on the first day of each month. Assessments or other charges not paid to the Association by the tenth day of the beginning month in which they are due shall be considered past due and delinquent. Assessment payments may be made on an annual or semi-annual basis, if requested by the owner.

2. Coupons. The Association may, but shall not be required to, provide payment coupons to each owner to facilitate payment of assessments. Coupons should be mailed to each owner in the month of December for the following year. Non-receipt of coupons shall in no way relieve the owner of the obligation to pay the amount due by the due date.

3. Interest. The Association may impose interest of 18% on any unpaid balance that is 20 days or more delinquent. The interest shall be the personal obligation of the owner(s) of the unit for which such assessment is unpaid and is to be paid immediately and separately from the assessment.

4. Return Check Charges. In addition to any and all charges imposed under the Declaration, Articles of Incorporation and Bylaws or this resolution a $20 fee shall be assessed against an owner in the event any check or other instrument attributable to or payable for the benefit of such owner is not honored by the bank or is returned by the bank for any reason whatsoever, including but not limited to insufficient funds. Such return check charge shall be due and payable immediately upon demand. Notwithstanding this provision, the Association shall be entitled to all additional remedies as may be provide by applicable law. If two or more of an owner’s checks are returned unpaid by the bank within any year, the Association may require that all of the owners future payments, for a period of one year, be made by certified check or money order.

5. Attorney’s Fees on Delinquent Accounts. As an additional expense permitted under the Declaration, the Association shall be entitled to recover its reasonable attorney’s fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent owner. The reasonable attorney’s fees incurred by the Association shall be due and payable immediately when incurred, upon demand.




6. Application for Payments Made to the Association. Payments received from an owner will be credited in the following order:

Charges for legal fees, court costs and other costs of collection

All interest accrued, as applicable

All other charges incurred by the Association as a result of any violation by an owner, their family,
employees, agents or licensees of the Declaration, bylaws or resolutions.

The monthly assessment for a unit, including any accelerated or special assessment due, as
applicable; payment shall be applied toward the oldest month(s) then owed.

7. Collection Letters.

After a monthly assessment or other charge due the Association becomes 14 days late, the
Association may cause, but shall not be required to send a “late notice” to the unit owner by
regular mail.

If payment in full is not received within 30 days of the due date, the Association may, but shall not be
required to send a “Notice of Intention to Refer Account to the Attorney” to the homeowner by
certified mail.

8. Use of Certified Mail/Regular Mail. In the event the Association shall send a collection or demand letter or notices to a delinquent owner by certified mail, the Association may also send, but shall not be required to send, an additional copy of that letter or notice by regular mail.

9. Liens. The Association may file a Notice of Lien against the property of any delinquent owner in accordance with the terms and provisions of the Declaration.

10. Referral of Delinquent Accounts to Attorneys. The Association may,but shall not be required to, refer delinquent accounts to its attorney for collection. Upon referral to the attorney, the attorney shall take all appropriate action to collect the accounts referred.

11. Referral of Delinquent Accounts to Collection Agencies. The Association may,but shall not be required to, refer delinquent accounts to one or more collection agencies for collection. Upon referral to a collection agency, the agency shall take all appropriate action to collect the accounts referred.

12. Collection Procedures and Time Frame. The following time frame shall be used in the collection of monthly installments of the assessment and other charges:

Due Date 1st day of each month
Past Due Date 10th day of month
Interest Charges Begin(if imposed) 30th day of month
“Late Notice” Mailed 14 days after the due date
“Notice of Intention to Refer Account to Attorney” Mailed 30 days after the due date
Account Referred to Attorney for Legal Action 45 days after the due date
Notice of Lien initiated 60 days after the due date
Foreclosure Letter 90 days after the due date

Once the assessment violation is turned over to the attorney, there is to be no contact by the homeowner with the Board nor the property manager except in writing through the attorney.



13. The Association may grant a waiver of any provision herein upon petition in writing by an owner showing personal hardship. Such relief granted an owner shall be appropriately documented in the files with the name of the person or persons representing the Association granting the relief and the conditions of the relief. In addition, the Association is hereby authorized to extend the time for the filing of lawsuits and liens, or otherwise modify the procedures contained herein, as the Association shall determine appropriate under the circumstances.

14. Notification to Owners. The Association shall cause all owners to be notified of this Resolution.

15. Ongoing Evaluation. Nothing in this Resolution shall require the Association to take specific actions other than to notify homeowners of the adoption of these policies and procedures. The Association has the option and right to continue to evaluate each delinquency on a case by case basis.

IN WITNESS WHEREOF,the undersigned have executed this Resolution the _____ day of _____ in the year 2006.



____________________ _____________________
President Vice President

____________________
Secretary/Treasurer