BOARD OF DIRECTORS RESOLUTION FOR

                COLLECTION OF ASSESSMENTS

               DREAMS LANDING CONDOMINIUM

 

     WHEREAS, Article V of the Bylaws of  DREAMS LANDING CONDOMINIUM, recorded among the Land Records of Anne Arundel County on June 26, 1975 in Book 2767, pages 45 et seq. and as from to time to time thereafter amended, established various covenants, restrictions and requirements relating to the failure of Unit Owners (“Owner” or “Owners”) of the Condominium to pay assessments, and the powers and responsibilities of the Board of Directors in response thereto, and

 

     WHEREAS, pursuant to the aforesaid Article and pertinent provisions of the Maryland Condominium Act (title 11, Md. Real Prop. Code Ann.), the Board of Directors of DREAMS LANDING CONDOMINIUM deems it proper to adopt this collection policy. Such policy shall serve only as a guideline and non-compliance or deviation by the Condominium, its Board of Directors, or its attorneys, shall not excuse payment of assessments or related when due and as charged.

 

     NOW, THEREFORE, the Board of Directors of DREAMS LANDING CONDOMINIUM hereby adopts, this 24 day of September, 2002, the following collection policy:

 

1.        DUE DATE: Assessments levied pursuant to the recorded covenants shall be payable in advance in twelve equal installments, along with other related monthly fees, on the first day of each month.  The privilege to pay the annual assessment in installments will be terminated if the assessments are not paid in a timely manner.

 

2.        DUE DATE: Any special assessment levied pursuant to the recorded covenants shall be due and payable as provided by the Board of Directors.

 

3.        INTEREST: Any assessment levied pursuant to the recorded covenants, or any installment thereof, which is not paid within 30 days after it is due, shall bear interest from the due date at eighteen percent (18%) per annum (or the maximum amount permitted under the Maryland Condominium Act, whichever if greater)

    

4.        LATE FEE: A late fee of 10% of the amount of the delinquent assessment will be imposed if not paid within 15 days of the date due. 

 

5.        NOTICE: The managing agent may mail a "reminder" notice to any Owner who fails to pay a duly levied assessment, or any installment thereof, within seventeen (17) days of its due date.  The notice shall be sent to the Owner whose name appears on the books of the Condominium, and shall be mailed to that Owner's address last appearing on the books of the Condominium.  Said notice shall advise the owner that a late fee has been incurred and request prompt payment.  The managing agent may mail a warning notice to any Owner who fails to respond to the late reminder notice.  Said warning notice shall advise the Owner that if the delinquent assessment is not paid in full within 15 days, the account will be referred to the Condominium's attorney for collection.  Failure to send either of these notices shall not relieve the Unit Owner of the obligation to pay the delinquent assessment nor bar the Condominium from any of the fees, charges or

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remedies to which it is entitled pursuant to the recorded covenants, this Collection Policy or other applicable law with respect to the collection of delinquent assessments.

 

     6.   REFERRAL TO ATTORNEY: Any assessment levied pursuant to the recorded covenants or any installment thereof, which is not paid within 45 days of its due date may be referred for collection to the Condominium's attorney.  Once an account is forwarded to the attorney for collection, all contact must be through the attorney’s office, and all costs, including but not limited to title abstract, postage and copy costs, and attorneys’ fees incurred will be assessed to the delinquent Owner’s account.

 

     7.   LIEN AND ACCELERATION: The attorney shall send a notice to each delinquent Owner notifying of the Condominium's intent to impose a lien for any assessment or installment thereof levied pursuant to the recorded covenants which is not paid within 30 days in accordance with the laws of the State of Maryland. The delinquent Owner’s account will be accelerated through the fiscal year as permitted by applicable law.

 

     8.   PERSONAL LIABILITY AND FORECLOSURE: Subject to all requirements set forth in the recorded covenants and established by applicable law, the Condominium shall bring an action at law against the Owner personally obligated to pay the assessment and/or foreclose on the lien against the unit to which the assessment has been levied.

 

     9.   INTEREST, COSTS and ATTORNEYS’ FEES: Interest, costs and attorneys’ fees shall in all cases be added to the amount of each delinquent assessment and become part of the continuing lien and a personal obligation of the Owner who owns the unit subject to the assessment when said assessment became due.

 

     10.  PARTIAL PAYMENTS: Unrestricted partial payments may be accepted, but only payment in full will stop collection proceedings, unless the Board of Directors, or its attorneys, expressly agree in writing.  Unless otherwise specifically agreed in writing  unrestricted partial payments will be applied in the order first to last as follows:  1) attorneys' fees,  2) collection costs,  3) interest charges,  4) late fees,  5) other properly assessed fees and charges,  6) principal arrearage, and   7) current principal due.

 

     11.  BOUNCED CHECKS: If the Condominium receives from any Owner, in any fiscal year, a check tendered for payment of amounts due, which is returned as unpaid by the Owner's bank, the Board of Directors or its attorneys may require that Owner to make payments for the remainder of the term of the delinquency or that fiscal year by cash or the equivalent  A handling fee of twenty-five dollars ($25.00) will be assessed for any personal check returned unpaid by the bank.

    

This procedure was duly approved by a majority of the Board of Directors.  It is effective November 1, 2002, and published to Owners on October 7, 2002.

 

ATTEST:                 DREAMS LANDING CONDOMINIUM

                  

______________________            BY: ____________________________________

Secretary                                                                                                                    President                                                      10206.001/072102