Waters Edge Homeowners Association

Collection and Delinquent Assessment Policy

Collection and Delinquent Assessment Policy

Timely payment of regular and special assessments is of critical importance to the Association. Your Board of Directors takes very seriously its obligation under the Association’s governing documents, including the Declaration of Restrictions, Restrictive Covenants and the North Carolina General Statues (N.C.G.S. §47F-3-116), to enforce the members’ obligation to pay assessments. The failure of any owner to pay monthly assessments when due creates a cash-flow problem for the Association and causes those owners who make timely payment of their assessments to bear a disproportionate share of the Association’s financial obligations. The following are the Association’s assessment practices and policies:

1. Assessments, late charges, interest, collection costs, and any attorneys’ fees, are the personal obligation of the owner of the property at the time the assessment or other sums are levied.

2. Annual Assessments: The assessment period for all annual assessments is January 1 through December 31 of each year.

3. Assessment Due Date: Annual assessments are due and payable as of the date of the annual homeowner’s association meeting. It is the owner of record’s responsibility to pay each assessment in full regardless of whether a statement is received.

4. Special Assessments: All other assessments, including special assessments, are due and payable on the date specified by the Board in the notice imposing such an assessment. In no event shall a special assessment be due and payable earlier than thirty (30) days after the date the members received notice of the special assessment.

5. Application of payments: Unless the owner and the Association enter into an agreement providing for payments to be applied in a different manner, any payments made shall be first applied to assessments owed. Only after the assessments owed are paid in full shall such payments be applied to late charges, interest, and collection expenses, including attorneys’ fees, unless the owner and the Association enter into an agreement providing for payments to be applied in a different manner.

6. Late Fees: Delinquent assessments will be assessed a late charge of $30.00, regardless of the amount of the delinquent assessment. For annual assessments, a late charge will not be imposed more than once per delinquent owner per year. A late charge will be imposed on each delinquent special assessment.

7. Interest: Interest shall be imposed on all delinquent assessments, at the annual percentage rate of 18%, commencing 30 days after the assessment becomes due.

8. Collection: If an assessment is not received within fifteen (15) days after the assessment becomes due, the Association or its assigned agent or trustee will send a Late Notice (pre-lien letter) to the owner at the owner’s mailing address advising of the delinquent status of the account and impending collection action. The owner will be charged a fee.

9. Liability for Collection Fees and Costs: If an owner fails to pay the amounts set forth in the pre-lien letter within fifteen (15) days of the date of that letter, the Association or its assigned agent or trustee will send, by certified mail, return receipt requested, a Notice of Lien for the amount of any delinquent assessments, late charges, interest and/or costs of collection, including attorneys’ fees against the owner’s property. The owner will be charged for the fees and costs of preparing and recording the lien.

10. Recording of Lien: If an owner fails to pay the amounts set forth in the Notice of Lien within 15 days of receipt (or last failed attempted delivery) of the Notice of Lien, that lien will be recorded with the Clerk of Courts for the county of Rowan.

11. Returned Checks: In the event the bank returns an owner’s check (e.g., insufficient funds, etc.), the owner will be charged bank fees at cost, plus an additional $30.00 processing fee.

12. Enforcement: No less than thirty (30) days following recordation of the lien, the lien may be enforced in any manner permitted by law, including, without limitation, judicial or non-judicial foreclosure. Nothing in this collection policy limits the Association’s right to proceed in any lawful manner to collect any delinquent sums owed to the Association.

13. Disputes: If an owner disputes the amount of any late charge or other charge, the owner may pay all delinquent amounts in full and when due under protest and send the Association, by certified mail, a written notice that the full amount is paid under protest. The owner has the right to demand a hearing in front of the Board of Directors, at the next regularly scheduled meeting, but not more than 30 days after receipt of written notice by the Board.

14. If it is determined that the owner has paid the assessments on time, the owner will not be liable to pay the charges, interests, and costs of collection associated with collection of those assessments.

15. Payment Plan Requests: Any owner may make a formal request to the Board for a payment plan. An owner may also request to meet with the Board in executive session to discuss a payment plan. Each request will be handled on a case-by-case basis. The Board is under no obligation to grant payment plan requests.

16. Paid in Full: Prior to recordation of the release of any lien, or dismissal of any legal action, all assessments, late charges, interest, and costs of collection, including attorneys’ fees, must be paid in full to the Association.

17. Collection procedures are listed in Exhibit A of this document.

18. This policy is subject to change upon thirty (30) day written notice.

19. The mailing address for overnight payment of assessments is Waters Edge Homeowners Association, 740 Deer Lake Run, Salisbury, NC 28146.

20. This policy was duly adopted by the action of the Board of Directors on May 10, 2004, and shall be effective as of the same date.


Exhibit A

COLLECTION PROCEDURES

1. Invoices for annual assessments will be mailed at least 30 days prior to the scheduled annual homeowners association meeting
2. Owners who attend the annual homeowners association meeting may present payment in full to an officer of the homeowners association at that meeting, less a discount of $25.00. Only one discount is allowed per owner.
3. For assessments that remain unpaid after fifteen (15) days, a late notice will be mailed to the owner and a late fee will be charged.
4. For assessments that remain unpaid after thirty (30) days, a Notice of Lien will be delivered to the owner by certified mail, receipt requested.
5. For assessments that remain unpaid after forty-five (45) days, a Notice of Lien will be recorded with the Clerk of Courts of Rowan County. Recording, notary and/or attorney’s fees will be added to the unpaid assessments and late charges. The amount of the recorded lien will include the annual assessment and all additional fees.
6. For assessments that remain unpaid after sixty (60) days, Pursuant to North Carolina General Statute 47F-3-116 (a), the Board of Directors, at its discretion, may initiate foreclosure proceedings in order to collect delinquent accounts.