Article VI — Corporation Powers

Clause VI.A — Community Club

The Lakemoor Community Club is a Washington nonprofit corporation with all powers set forth in the Articles of Amendment filed October 2008 and the First Amended Bylaws adopted pursuant to Washington nonprofit law. All lot owners are members; membership is contingent on lot ownership. Upon sale or contractual purchase, membership automatically transfers to the new owner and terminates for the prior owner.

Clause VI.B — Responsibility of Corporation

The Club holds title to all park areas and the Ken Lake Watershed Protection Area for the benefit of all lot owners. The Club is empowered to establish reasonable use restrictions for common areas and to assess each residential lot (excluding corporation-owned park and community areas) for the costs of development, maintenance, and applicable taxes.

Clause VI.C — Assessments for Common Expenses

The Board of Directors shall annually prepare a budget, determine the amounts needed for common expenses, and allocate and levy assessments among all residential lots. Common expenses include all amounts the Board deems necessary or advisable in exercising its lawful powers and duties.

Clause VI.D — Special Assessments for Capital Improvements

The Board may levy a special assessment for the construction, reconstruction, or unexpected repair of a capital improvement on common areas, provided the assessment is approved by an affirmative vote of 60% of the members.

Clause VI.E — Board Notice of Annual & Special Assessments

The Board shall provide written notice to all owners of annual and special assessment amounts at least 30 days before they take effect.

Clause VI.F — Commencement of Annual Assessments

Regular annual assessments shall commence on January 1 of each year for each owner.

Clause VI.G — Payment of Assessments; Personal Obligation

Assessments shall be payable at times determined by the Board. The person who was the owner at the time an assessment became due has a personal obligation for its payment.

Clause VI.H — Collection of Assessments

Assessments more than 30 days overdue shall bear interest at the maximum rate allowed by law. The Board may initiate enforcement action with all costs and attorney fees paid by the delinquent owner. Enforcement methods include:

H.1. After 10 days' notice, the Club may sever or disconnect cable television service to the delinquent lot until the assessment is paid in full.

H.2. The Club may bring a foreclosure action on the Assessment Lien.

Clause VI.I — Liens & Foreclosures

Unpaid assessments, together with interest, costs, and attorney fees, constitute a lien on the owner's parcel, prior to all other liens except: (i) tax liens from governmental units and special districts; (ii) unpaid sums secured by mortgages recorded before the assessment became due; and (iii) liens recorded before this Declaration. The lien may be foreclosed as a mortgage foreclosure. A receiver may be appointed. The Association may bid at the foreclosure sale. The Club may also bring a personal suit for unpaid assessments without foreclosing the lien.

Clause VI.J — Liability of Mortgagee or Purchaser

A mortgagee or purchaser who obtains possession of a lot through foreclosure or deed-in-lieu of foreclosure is liable for all assessments that became due before they obtained possession.

Clause VI.K — Conveyance; Liability of Grantor & Grantee

In a voluntary conveyance, the grantee is jointly and severally liable with the grantor for all unpaid assessments due up to the time of conveyance, with the grantee retaining the right of recovery from the grantor. The grantee may request a written statement from the Board of unpaid amounts; the grantee will not be liable for amounts exceeding those stated.

Clause VI.L — Nonuse

No owner may exempt themselves from assessment obligations by waiving the right to use or enjoy common areas, or by abandoning their lot.